CRESTVIEW — The Okaloosa Board of County Commissioners will consider funding alternatives for widening the P.J. Adams-Antioch Road Corridor.
After more than an hour of discussion on Monday, commissioners’ consensus swung from supporting a tax increment financing district, or TIF.
Mike Chessher discusses TIF district advantages>>
Both northern district commissioners, BCC Chairman Nathan Boyles and Wayne Harris, voted no.
“Isn’t it ironic that the districts most affected by this voted no?” Harris asked after the 3-2 vote.
Harris said, in lieu of a TIF, he supports adding an extra half-cent or penny to the current 10 cents-per-gallon county gas tax rather than taking money from existing road projects. Boyles favors the original TIF proposal.
“I think that the TIF, while not the perfect solution, in our less than perfect world, it is the best solution currently on the table because it sets aside future revenues and controls how to spend it,” he said.
NOT A NEW TAX
Under a TIF, property taxes would not increase. The amount of tax revenue when a TIF is established forms a baseline. As revenue grows, the difference is applied to the TIF project. A TIF typically lasts for 20 years.
“Funds that would be collected would be deposited in an account solely for improvements to the P.J. Adams Corridor,” county Public Works Director Jason Autrey said.
The TIF is projected to raise about $20 million of the project’s estimated $100 million cost, he said. TIF money could be used to leverage federal and state funding.
The TIF district would be the entire county north of the Eglin Reservation, excluding the Crestview Community Redevelopment Agency district.
Area attorney Michael Chesser proposed the P.J. Adams Corridor TIF more than a year ago to finance what commissioners agree is the county’s foremost road improvement need.
“It was my thought that we could devise an ordinance that I can say, ‘If you do this, it will never cost you a dime,’” Chesser said.
Chesser, a real estate and government specialist, said analysis shows “the assessed value in the vicinity of the road you are about to improve will go up faster than you can imagine.”
As real estate values go up, so does the amount of money that goes toward the project.
ALTERNATIVES
Former county commissioner Dave Parisot spoke against the TIF, saying it would “rake off” county property tax revenue. He favored increasing gas taxes to fund the project.
Commissioner Trey Goodwin motioned for the board to direct county officials to prepare information on reallocating some gasoline tax revenue, or creating a “savings account” funded by existing revenue sources.
Commissioner Carolyn Ketchel, who, with Goodwin, campaigned on a “no tax increases” platform, also supported the savings account.
That, Boyles said, is essentially what a TIF does, but a TIF would not take money from other county departments’ budgets.
Following discussion, Boyles said there appeared to be five options:
•Do nothing
•Create a “savings account”
•Use existing gas taxes
•Raise gas taxes
•Implement the TIF
“The benefit of the TIF is that it doesn't eat into existing revenues,” Boyles said. “Citizens frequently complain about the creep of government and this is one way to get ahead of that.”
WANT TO GO?
Funding sources for widening the P.J. Adams Corridor will be discussed at the Okaloosa Board of County Commissioners' next meeting, 9 a.m. Feb. 3 at the Crestview Courthouse.
Email News Bulletin Staff Writer Brian Hughes, follow him on Twitter or call 850-682-6524.
This article originally appeared on Crestview News Bulletin: Commissioners set meeting on PJ Adams funding options (VIDEO)