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HomeMy WebLinkAboutItem #3 Pioneer Capital VenturesCommunity Infrastructure District (CID) What is a CID? A Community Infrastructure District -CID (Idaho Code Title 50 Chapter 31) is a special-purpose district created to finance and manage infrastructure improvements within a defined geographic area. Developers work in partnership with Local governments who establish these districts to support public infrastructure development such as roads, water and sewer systems, parks, and other community facilities and utilities. CIDs are funded usingrip vate investment bonds, which are repaid through special assessments or property taxes within the specified district. These are NOT public bonds that require a super majority vote. There is no risk to the City and does not effect current residents. How Does a CID Work? 1. Formation: A CID is formed through a legal process initiated by a petition from property owners or developers, followed by approval from the local government. The district's boundaries are defined, and a governing board is established to oversee its operations. 2. Financing: CIDs finance infrastructure projects by issuing bonds, which are repaid over time using revenue generated from special assessments or property taxes levied on properties within the district. 3. Implementation: The CID board oversees infrastructure projects' planning, construction, and maintenance. They ensure that the projects meet specific infrastructure needs and comply with regulatory standards. 4. Maintenance: Once the infrastructure is built, the CID is responsible for ongoing maintenance and operations, funded by continued assessments or taxes generated from within the created district. Opportunities Generated Through,ClDs 1. Targeted Development: Community Infrastructure Districts (CIDs) enable targeted investments in specific areas, ensuring that new developments are self-financing and do not impose additional financial burdens on existing residents for infrastructure enhancements. 2. Economic Growth: By providing necessary infrastructure, CIDs can stimulate economic development, attract businesses, and create jobs. 3. Local Control: CIDs give local communities more control over the planning and implementation of infrastructure projects, ensuring that developments align with local needs and priorities. 4. Efficient Financing: CIDs can access financing through bonds, which may offer lower interest rates and longer repayment terms than traditional funding methods. CID Approval Process The Community Infrastructure District (CID) funding approval process in Idaho is governed by Idaho Code § 50-3103 and involves several steps to ensure transparency, public input, and legal compliance. Here's a breakdown of the process: 1. Petition for Formation • Initiated by: All landowners within the proposed district within the next 10 working days. • Filed with the clerk of the governing body (city or county) where the district is proposed. 2. Public Notice and Hearing • Governing body must: o Schedule a public hearing within 30 days of petition filing. o Public Notice as per state/city requirements. 3. Public Hearing • As per requirements 4. Approval • Approve it via resolution: • Establishing district boundaries • Authorizing formation Approving any development agreements Commercial Property Assessed Clean Energy (CPACE) What is CPACE? Commercial Property Assessed Clean Energy (CPACE) is a financing mechanism that enables commercial property owners and developers to fund energy efficiency, renewable energy, and water conservation improvements. CPACE programs is a tool designed to overcome the upfront costs of these improvements by providing long-term financing repaid through a special assessment on the property tax bill. CPACE was approved by the Idaho Legislature and signed into law during the 2024 legislative session. It can be found in Title 67, Chapter 38, of the Idaho Code. It was successfully adopted in the City of Rexburg. "There is no risk to the City or County" How Does CPACE Work? 1. Program Establishment: CPACE programs are established by local governments or special districts. They set guidelines and requirements for eligible projects and financing terms. 2. Project Identification: Property owners identify energy efficiency, renewable energy, or water conservation projects that qualify for CPACE financing. These can include upgrades to HVAC systems, lighting, insulation, solar panels, and more. 3. Financing: Property owners apply for CPACE financing through a participating lender. The funding is secured by a special assessment on the property, which is repaid through the property tax bill over 20-30 years. 4. Implementation: Once financing is approved, the property owner proceeds with installing the improvements. The CPACE program may provide oversight to ensure projects meet the required standards. S. Repayment: The property owner repays the financing through the special assessment of their property tax bill. The assessment stays with the property, meaning the new owner continues to repay the CPACE financing if the property is sold. Opportunities Generated Through CPACE 1. Long -Term Financing: CPACE offers long-term repayment periods, often up to 20-30 years, making payments manageable and aligning them with the lifespan of improvements. 2. Energy Savings: CPACE-funded improvements can lead to significant energy savings, reducing operating costs and increasing property value. 3. Environmental Benefits: CPACE promotes energy efficiency and renewable energy projects, contributing to environmental sustainability and reducing greenhouse gas emissions. CPACE Approval Process The use of Commercial Property Assessed Capital Expenditure (C -PACE) in development is governed by Idaho Code § 67-3806. It requires local governments to follow a structured procedure that centers on adopting resolutions. Here's the step-by-step process: 1. Adopt a Resolution of Intent The local government must first adopt a resolution of intent 2. Hold a Public Hearing The local government must conduct a public hearing to accept the resolution 3. Adopt a Resolution Establishing the Program After the hearing, the local government adopts a resolution formally establishing the C -PACE program and its terms.