Introduction

What is a Redevelopment District?

A Redevelopment District is an area designated by the Mayor and Council as being in need of revitalization. It is not a quick fix up of the area designated, but is used as a tool to encourage and aid private development. The Redevelopment Plan lays out broad goals and guidelines for the area to be revitalized. The establishment of a Redevelopment District is the responsibility of the Mayor and City Council. State statutes provide an outline of material to be included in the plan.

What are some benefits of a Redevelopment District?

The benefit to businesses and property owners in the Redevelopment District depends on the projects undertaken. The City of Maricopa needs an identifiable Central business core to attract new businesses and jobs. While not a panacea, it does provide a valuable tool to induce desirable Economic Development.

The major incentive in the Redevelopment District and Single Central Business District is the Mayor and City Council’s ability to offer Property tax relief to preferred projects. For example, in Phoenix, a forty year absence in new commercial development and construction was overcome with use of targeted property tax relief. A municipality also may offer other financial and aid incentives in a Redevelopment District. The property tax relief is not guaranteed for every project within a Redevelopment District. The Mayor and City Council have the final decision and weigh the direct and indirect economic and community benefits of each project prior to the granting of such incentives.  The City Economic Development Staff have developed performance criteria for consideration in the granting of any incentives by the City, and these same criteria can be used for projects wanting to locate/develop in the Redevelopment District.

The use of a Redevelopment District also expands the ability to use more financing options, such as State Bond banks like WIFA and GADA for public infrastructure improvements, and Government Property Lease Excise Tax. Many incentives and financing tools available to cities and often used to encourage business development can only be performed within Redevelopment and/or Central Business District boundaries, such as Government Property Lease Excise Tax (GPLET; please contact the economic development department for additional details).