(A) This article is intended to serve as guidelines for the purpose of considering and, as appropriate, approving the establishment of tax increment development districts and the issuance of bonds of such districts pursuant to the Act. The purpose of this policy is to enable the city to make a reasoned judgment concerning the terms and conditions upon which to approve the formation of a TIDD and to provide procedures for the city to consider TIDD applications. Capitalized terms not otherwise defined herein are as defined in the Act.
(B) This policy is adopted to provide ease of administration and to assure that the city's tax base is not compromised, taking into account the overall economic benefits of the TIDD, which are demonstrated to the reasonable satisfaction of the city. The decision to form a TIDD shall be a legislative enactment of the City Council and Mayor exercised in accordance with law. The city shall encourage an area to be governed by as few TIDDs as practicable, taking into account however the need to finance discrete infrastructure projects to serve separate but related land uses and the need to utilize discrete financing approaches.
(C) TIDDs should be utilized for the financing of public infrastructure for economic development or redevelopment that facilitates and supports development and job creation. Public infrastructure financed by a TIDD shall (i) enhance the sustainability of the local, regional or statewide economy, (ii) support the creation of jobs, schools and workforce housing, (iii) generate tax revenue for the provision of public improvements and (iv), if located in a rural or reserve area, be consistent with the no net expense policy set out in the Planned Communities Criteria including the provision that interim revenue generation shortfall for public service costs shall be borne by the development so as to prevent net expense to the city as required by policy adopted by the Albuquerque/Bernalillo County Comprehensive Plan, and, if located in an unserved area, be consistent with the no net expense policy set out in Revised Ordinances of Albuquerque, New Mexico, 1994, including the provision of § 14-13-2-3(C)(3) that developers of properties in the unserved area shall be required to assure fiscal self- sufficiency.
(D) Public improvements financed by a TIDD should be in conformance with applicable long-range city policies for development, including, but not limited to, the Albuquerque/Bernalillo County Comprehensive Plan, the Integrated Development Ordinance, the Ordinance adopting elements of a Planned Growth Strategy; the current city enactment relating to the Capital Implementation Program; the Impact Fee Component Capital Improvement Program; other ordinances applicable to the affected land including annexation ordinances and any related annexation agreements, if any; and all supplements and subsequent enactments relating to these measures.
(E) All costs and expenses incurred by the city in connection with the application, formation, and operation of a TIDD shall be paid by the applicant/ landowner through advance payments as provided in §§ 4-10-6(B) and 4-10-7(A) hereof. Costs and expenses incurred by the city in connection with the application and formation of a TIDD shall not be liabilities of the city. Advance payments shall include payments for services rendered by city staff, services rendered by outside consultants who may be retained by the city including, but not limited to, bond counsel and other attorneys, financial advisers, planners, urban designers, engineers, appraisers, and tax consultants. If the city uses outside consultants as "staff," such as attorneys or engineers, those consultants shall be paid their normal rate for services.
(F) Subsequent to the approval of an application for formation of a TIDD by the city, and after authorization by the TIDD exercising its sole discretion, all or part of such advance payments may be reimbursed to the developer/landowner or to the TIDD to the extent permitted by state or federal law, from the proceeds of bonds, tax increment revenues or other legally available revenues of the TIDD. The city may, in its discretion, based on a particular applicant's development plan and financing plan, authorize the TIDD to reimburse 100% of the applicant's equity contribution based on a demonstration satisfactory to the city that the goals served by the TIDD are not compromised by such reimbursement. Section 20(B) of the Act requires property owners to contribute a minimum of 20% of initial infrastructure cost prior to the issuance of gross receipts or property tax increment bonds, unless the project to be financed is a redevelopment project pursuant to the Metropolitan Redevelopment Code.
(G) The TIDD shall be governed by a Board of Directors comprised of members of the City Council, ex officio, or, at the option of the City Council, five directors appointed by the City Council (the "TIDD Board"). The City Council may, in accordance with law, delegate certain responsibilities of governance of the TIDD to a committee as approved by the City Council. The day-to- day responsibilities of the TIDD may be performed pursuant to an agreement with outside personnel (including a development agreement entered into pursuant to the Act), or city staff. Advisory committees may, at the option of the Council or the TIDD Board, be utilized. An applicant may request the formation of a single TIDD or multiple TIDDs which are designed to finance discrete infrastructure projects to serve separate but related land uses, and which rely on discrete tax increment financing approaches.
(H) The TIDD shall be self-supporting. Except as set forth in § 4-10-3(K), ROA 1994, no city funds shall be used for TIDD purposes including financing, operations or maintenance. Notwithstanding anything to the contrary which may be contained herein, neither the property, the full faith and credit nor the taxing power of the city shall be pledged to the payment of any TIDD obligation or indebtedness.
(I) The TIDD Board shall determine, in accordance with its policies and procedures, the amount, timing and form of financing to be used by a TIDD after review of the financial feasibility study required by § 4-10-5(E) and (F), ROA 1994. All bond proceeds generated by the financing must be spent on project costs in accordance with the bond documents and the policies and procedures of the TIDD Board. No water or wastewater utility system, or any portion thereof, which is billed for separate and apart from the City/County water and wastewater utility shall be financed. All financings shall be subject to final review and approval by the City Council, provided, however, that financings which contemplate the issuance of a multiple series of bonds shall be approved at the time of the approval of the first issuance of bonds and the TIDD Board shall not be required to receive further approvals from City Council except when there is a material change affecting the financial stability of the bond such as the amount and timing of issuance in relation to the projected build-out of the TIDD project.
(J) Except as otherwise determined by the City Council, the TIDD shall construct or finance improvements on such terms and with such persons as the TIDD Board determines to be appropriate, in accordance with Section 12(B) of the Act, as amended. The TIDD shall otherwise construct and finance improvements in accordance with applicable public works acts excluding those related to architecture/ engineering, professional/technical services, and construction contractor selection. Construction, performance, and payment bonds shall be furnished in accordance with the city policies and procedures governing subdivision improvement agreements.
(K) Existing city policies for development, growth management and conservation shall remain in effect and shall not be waived or relaxed upon the creation of a TIDD. The TIDD may use bond proceeds or other TIDD funds to purchase public rights-of-way or other real property to be used for public infrastructure improvements, unless such real property would be required to be dedicated and conveyed to the city by the developer/landowner upon development of the developer's/landowner's property.
(L) Until the dedication of the infrastructure to the city, and acceptance by the city, all costs of administration and operation of the TIDD and the operation and maintenance of public infrastructure in the TIDD shall be the responsibility of the TIDD, the developer/landowner, applicable homeowners' association, or any combination of the foregoing, as may be acceptable to the city and the TIDD. For developments located in reserve, rural, and unserved areas, except as demonstrated to the city to be consistent with the requirements that TIDD-financed improvements result in no net expense to the city as defined herein, after dedication and acceptance, all costs of operating and maintaining public infrastructure serving an area not otherwise served by the city shall be borne by the TIDD, the developer/landowner or the applicable homeowner's association, or any combination of the foregoing, until the area in which the public infrastructure is located in a partially served or served area.
(M) Notwithstanding any other provisions of this article, a TIDD may be created in an area for which neither the city nor the Albuquerque Bernalillo County Water Utility Authority provides water, wastewater, or storm drainage utilities. Any TIDD created in an area not served by existing water, sewer or storm drainage utilities shall be consistent with the parameters of the no net expense policy set forth in § 14-13-2-3 ROA 1994, and §§ 14-13-1-1 et seq., ROA 1994. For developments located in reserve, rural, and unserved areas, except as demonstrated to the city to be consistent with the requirements that TIDD-financed improvements result in no net expense to the city as defined herein, developers shall be required to pay 100% of all on-site charges associated with the TIDD- financed improvements. As provided in the Development Agreement, developers of unserved areas shall be required to pay off-site charges attributable to the development's impact.
(Ord. 36-2006; Am. Ord. 2017-025)