Redevelopment

What Do Redevelopment Agencies Do?

RDAs assist communities in addressing three types of development issues:  

• Redevelopment: Encourage private and public investment in previously developed areas that are blighted. 
• Economic Development: Work with businesses to increase the jobs available in the community and the state as a whole.
• Housing Development: Increase the amount and variety of housing within a community.

What is a Project Area?

A project area is a part of a community usually less than 100 acres in size, which has been targeted for RDA assistance. RDAs create a project area by adopting a plan for redevelopment, economic development, or education housing development in a specific geographic area. Many communities have multiple RDA project areas.

How do RDAs pay for Community Improvements?

In most cases, RDAs pay for only a fraction of developments related to the new developments they encourage. The RDAs share of development costs is paid through the use property tax increment. Property tax increment is the increase in property taxes generated in a project area over and above property taxes generated prior to the new development (base taxes). Generally, base taxes are not used to pay project costs. The use of tax increment must be approved by a committee made up of representatives from each of the affected property taxing entities.