1. Draft Business/Finance Plan Overview & Draft Business Terms RED LINE REGIONAL RAIL PROJECT Economic Development Committee January 10, 2012

2. POLICY FRAMEWORK Economic Development Focus Dual Benefit Strategy Unified Benefits Approach State Leadership

3. Presenters @ Public Policy Meeting(s) Paul Morris, Deputy Secretary – NCDOT Katherine Henderson, KKH Consulting Mark Briggs, Parsons Brinckerhoff

4. Economic Development Focus

6. Freight Oriented Development (FOD) Transit Oriented Development (TOD) Revenue-sharing across jurisdictions 25% State 25% CATS 50% Local Tax Increment Assessment District Governed by Joint Powers Authority (JPA) State backing of the bond financing package Dual Benefit Strategy Unified Benefits Approach State Leadership

7. RESOLUTION REQUIRING A FISCAL IMPACT ANALYSIS FOR PUBLIC SUPPORTED ECONOMIC DEVELOPMENT PROJECTS December 18, 2006 WHEREAS,... NOW, THEREFORE BE IT RESOLVED by the Mecklenburg Board of County Commissioners, that a fiscal impact analysis be performed for all new economic development initiatives seeking Mecklenburg County’s partnership and financial support;

8. RESOLUTION REQUIRING A FISCAL IMPACT ANALYSIS FOR PUBLIC SUPPORTED ECONOMIC DEVELOPMENT PROJECTS December 18, 2006 WHEREAS,... NOW, THEREFORE BE IT RESOLVED by the Mecklenburg Board of County Commissioners, that a fiscal impact analysis be performed for all new economic development initiatives seeking Mecklenburg County’s partnership and financial support;

9. Premise: Counties provide services to “Household” Definition of Household A household includes all the persons who occupy a housing unit. A housing unit is a house, an apartment, a mobile home, a group of rooms, or a single room that is occupied (or if vacant, is intended for occupancy) as separate living quarters. – U.S. Census Bureau PROPOSED METHODOLOGY FOR FISCAL IMPACT ANALYSIS

10. Number of Households in Mecklenburg County362,213 Total Property Taxes (FY-12)$880,397,487 Percent Residential68% Residential Property Taxes$598,670,291 Household Service Charge Analysis Average Property Tax/Household$1,653

11. Residential Components (Expected at build-out) Number of Households Adjustment Factor Equivalent Households Single Family1,1601.001,160 Condo/T.H./Seniors3,8900.261,011 Multifamily6,4310.342,187 Total HH & Equivalent HH 11,481 4,358 Total Service Costs > $18,978,000 per yr. Equiv. Service Costs > $ 7,204,000 per yr. > Residential Tax Revenue needed: (# Households) * ($1,653 per Household)

12. TOTAL Benefits (using FY-12 tax rate) Residential Tax Value (at build-out)$1,728,011,000 Commercial Tax Value (at build-out)$1,192,328,000 Total Annual Tax Revenue (at build-out)$23,847,500

13. TOTAL Benefits (using FY-12 tax rate) Residential Tax Value (at build-out)$1,728,011,000 Commercial Tax Value (at build-out)$1,192,328,000 Total Annual Tax Revenue (at build-out)$23,847,500 Residential Tax Revenue Generated$14,111,000 Commercial Tax Revenue Needed$4,867,000 Total Service Revenue Needed, Annually$18,978,000

14. TOTAL Benefits (using FY-12 tax rate) Residential Tax Value (at build-out)$1,728,011,000 Commercial Tax Value (at build-out)$1,192,328,000 Total Annual Tax Revenue (at build-out)$23,847,500 Residential Tax Revenue Generated$14,111,000 Commercial Tax Revenue Needed$4,867,000 Total Tax Revenue Needed, Annually$18,978,000 % Incremental Revenue Retained 100% Residential 50% Commercial

15. TOTAL Benefits (using FY-12 tax rate) Residential Increment (at build-out)$1,728,011,000 Commercial Increment (at build-out)$1,192,328,000 Total Annual Tax Revenue Expected$23,847,500

16. TOTAL Benefits (using FY-12 tax rate) Residential Increment (at build-out)$1,728,011,000 Commercial Increment (at build-out)$1,192,328,000 Total Annual Tax Revenue Expected$23,847,500 Equivalent Residential Tax Revenue Needed$7,204,000 25% Commercial Tax Revenue (per Plan)$2,434,000 Total Tax Revenue Retained, Annually$9,638,000

17. TOTAL Benefits (using FY-12 tax rate) Residential Increment (at build-out)$1,728,011,000 Commercial Increment (at build-out)$1,192,328,000 Total Annual Tax Revenue Expected$23,847,500 Equivalent Residential Tax Revenue Needed$7,204,000 25% Commercial Tax Revenue (per Plan)$2,434,000 Total Tax Revenue Retained, Annually$9,638,000 % Incremental Revenue Needed40%

18. Summary of Tax Increment Options Percent Tax Revenue Retained Residential, %Commercial, % Finance Plan Proposal25% Equivalent HHs Analysis40% Total HHs Analysis100%50%

19. Draft Business Terms 1. % Retainage 2. Iredell County’s participation 3. Bryton excluded 4. No County financing risks 5. O&M support 6. Cost Overruns 7. Allocation District boundaries 8. Projects outside District boundaries 9. Termination provisions 10. JPA Formation, Composition, and Dissolution

20. NEXT STEPS Public Policy Presentation (today) ED Committee Recommendations (by 3/13/12) Board Action (by 3/20/12) Final Draft Business/Finance Plan (by 3/31/12)