OC, Placentia Create State’s First City-County EIFD
Orange County and the City of Placentia have formed the state’s first city/county EIFD (Enhanced Infrastructure Financing District). The EFID was formed last month under a 2014 law allowing local governments to use tax increment revenue to finance large infrastructure projects. This is one solution to some of the problems that arose after California eliminated redevelopment agencies in 2012.
The new EIFD was announced in a press release from Kosmont Companies, which partners with SCAG, the City of Placentia, and County of Orange on the Placentia TOD Packing House & Old Town EIFD. Kosmont notes that the new EIFD area encompasses two Opportunity Zone census tracts. This “enables the City/County to use the EIFD as a collateral inducement for private sector investment driven by the federal tax benefits that [Opportunity Zones] can provide.”
More from the release:
The District encompasses ~300 acres, representing approximately 7% of the City. The District includes the City’s “Old Town” Placentia Revitalization Plan area and Transit-oriented Development (TOD) Packing House District, and other proximate areas. The nucleus is a forthcoming Metrolink station for the 91 Line; the first Metrolink station in Orange County in nearly 10 years.
The District represents a partnership between Placentia and the County of Orange, and will be funded by property tax increment from both taxing entities. The Southern California Association of Governments (“SCAG”) provided funding for the technical analysis for the Infrastructure Financing Plan through its Tax Increment Financing Pilot Project Program.
The Placentia/Orange County EIFD was selected by SCAG based on:
1. High potential for development/redevelopment within the near term (5 years) 2. Mixed-use/transit-oriented development with zoning in place 3. Identified infrastructure that would be catalytic for future private development 4. Infrastructure that provides community-wide and regional benefit 5. Sufficient tax increment funding capacity to fund targeted infrastructure improvements
PURPOSE OF THE EIFD
The Placentia/Orange County EIFD will serve as a catalyst for private development in the Old Town and TOD Packing Housing District areas, put in place to capture value from significant (~$460 million+) residential, commercial, and hospitality development potential and to direct the funding generated to critical transit-supportive infrastructure with transformative potential for the City and North Orange County region.
Private development and infrastructure improvements in the District will relieve traffic on the 2nd most congested freeway in the nation (91 FWY) while providing community and economic benefits:
• Support of City and County Economic Development (job creation, quality of life, sustainability) • Sustainable infrastructure, GHG/VMT reduction, convenient transit to local universities • 1600+ housing units • 3900+ construction jobs, 1150+ permanent jobs • $800+ million in economic output from construction; $164+ million annual economic output • ~$60M present value net fiscal benefit for City over 50 years • ~$32M present value net fiscal benefit for County over 50 years
KEYS TO PLACENTIA'S AND ORANGE COUNTY'S SUCCESS
• Positive existing working relationship with City executive staff and County executive staff • Transparent approach to County contribution including evaluation of net fiscal impact to County • Strategic “third party” partner in SCAG as Metropolitan Planning Organization with funding to assist in formation activities • Complementary tools such as federal Opportunity Zone incentives