Lilburn Community Improvement District

FAQ

Q. What is a Community Improvement District (CID)?

A. A community improvement district (CID) is the most powerful public-private partnership today and has been used successfully around the country to revitalize commercial areas. It is an effective tool for financing improvements that directly enhance property values by allowing property owners to determine how funds are spent in their area. The secret to success for a CID is the ability to use funds to effectively leverage additional public and private funds. The worst performing CID in Georgia has seen a return on investment of ten to one.

Q. How is a CID created?

A. A CID is a geographically defined district in which commercial property owners vote to impose a self-tax. This is set as a portion of the property tax and the millage rate is set by the commercial property owners. The proposed amount is 5 mils.

To form a CID, a simple majority of area property owners representing at least 75% of the assessed property value of the area sign an Agreement to form a CID. Funds are collected by the Gwinnett County Tax Commissioner and disbursed to the board of directors elected by the property owners. The CID has full authority over the use of these funds. The CID will also be eligible of additional funds that have been set aside for Community Improvement projects.

Q. What types of improvements can a CID make?

A. The Georgia Constitution specifies that funds collected through a CID may be used for seven types of applications:

Water
Public transportation
Street and road construction and maintenance
Parks and recreational areas and facilities
Storm water and sewage
Parking, terminal and dock facilities
Other

Q. Who runs the CID?

A. The participating property owners define the purpose of the CID and elect a board of directors to represent their interests. The board is ultimately responsible for determining funding and managing the process and for identifying and retaining staffing resources necessary to conduct day-to-day operations. A Community Improvement District gives commercial property owners the ability to improve the economic condition of the area surrounding their property.

Q. How does it work?

A simple majority of the commercial property owners, representing at least 75% of the value of the commercial property in the proposed district, must voluntarily sign an Agreement to form the CID.

The commercial property owners will elect their own board. This board will set the millage rate that will be collected to use as leverage capital. The proposed amount is 5 mils. These funds will be collected as part the property tax bill and disbursed to the CID board. The board will have full authority over the use of these funds. The CID will also be eligible of additional funds that have been set aside for Community Improvement projects.

Q. Who benefits from a CID?

The commercial property owners benefit through increased property values due to local improvements. Business owners and residence of the surrounding area also benefit from the improvements and activities of the CID.

Q. The power of the CID is primarily two-fold.

The CID funds are used as seed money to leverage much higher returns in local, state and federal funds, based on the projects and plans prepared by the CID.
A single voice of one property owner has limited influence, but the combined voice of the CID has a much greater ability to directly influence action.

Q. Steps to establish a Community Improvement District (CID)

Individual commercial property owners agree to join by signing an Agreement to form CID form.
A minimum of 51% of the commercial property owners represented in the proposed district must voluntarily agree to join, representing at least 75% of the property value. The deadline for this is March 2010.
The Gwinnett County Commission will certify the Agreement forms and establish the Community Improvement District. The Tax Commissioner will certify the Consent Forms and the Gwinnett County Commission and the Lilburn City Council will vote to approve the new CID.
The commercial property owners will vote to elect a CID board from among themselves. This board will vote to set the assessment rate and oversee all activities of the Community Improvement District.
The first assessments for the CID will appear on the 2010 tax bills.
The CID will then be able to make significant steps towards beginning desired projects.

Q. I’m a commercial property owner, what does mean for my property?

To join the CID, an official notarized Agreement must be signed. They are available for commercial property owners by contacting the LCP board. All property owners who voluntarily sign the Agreement to form a CID will vote to elect the board to set the assessed millage rate and oversee the activities of the CID.

Once a simple majority of owners have signed, and the city and county ratify the Agreements, the millage rate will be set. This amount will appear on the next property tax bill. The funds collected will be disbursed directly back to the CID board.

Funds will be used as the CID chooses, to make substantive improvements on the Hwy 29 corridor. The lowest performing CID in Georgia has a return on investment of 10 to 1 for every dollar collected. This is accomplished by using CID funds for studies and projects that then attract matching grants, local, state and federal funds to complete projects.

For more details click here.
For links to other CIDs in Georgia click here.


	Contact Us: 3870 Lawrenceville Highway Suite C-106 Lilburn, GA 30044 Gerald McDowell Executive Director Office: 678.380.1000 Fax: 678.380.1370 GMcDowell@LilburnCID.com