Technical Aspects of Missouri s TDD Act KC Streetcar Implementation

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1 Welcome Technical Aspects of Missouri s TDD Act KC Streetcar Implementation

2 Transportation Development Districts Creature of Statute TDD Act et seq., RSMO Proposed by Petition filed in Circuit Court by: 50+ registered voters of the County One or more Local Transportation Authorities, or 100% of Property Owners (if no potential registered voters) TDD Act specifies contents of Petition Must name as Respondents Missouri Highways and Transportation Commission, and each affected LTA that is not a Petitioner District must be contiguous area, but exception if petitioners are all property owners and (1) all parcels will benefit, (2) all parcels within 5 miles of each other, and (3) sales tax will be sole source of revenue

3 Projects Transportation Infrastructure Examples: Bridge, street, parking lot, garage, interchange, signage, signalization, terminal, shelter, dock, wharf, lake or river port, airport, hangar, railroad, light rail or public mass transportation system Within Jackson County portion of Kansas City, project can be the operation of a street car or other rail-based or fixed guideway public mass transportation system Public mass transportation system: transportation system owned or operated by a governmental or quasi-governmental entity, employing motor buses, rails, or any other means of conveyance, by whatsoever type of power, operated for public use in the conveyance of persons, mainly providing local transportation service within a municipality or a single metropolitan statistical area A District may be created to fund, promote, plan, design, construct, improve, maintain, and operate one or more projects or to assist in such activity

4 Court Proceeding Service on all Respondents Notice of Petition published in newspaper (not required if Petitioners are 100% of Property Owners) Any resident, taxpayer, any other entity, or any local transportation authority within the proposed District may join in or file a petition supporting or answer opposing the creation of the District Court holds judicial hearing, though need not hold judicial hearing if no opposition filed Court may hold public hearing, but must do so if the Petitioners are 100% of the Property Owners (i.e., when there are no registered voters in District)

5 Court Proceeding Court must make certain findings The Petition is not defective (contains the information required by and otherwise meets requirements of TDD Act) The District is not illegal or unconstitutional The method for funding the District is not illegal or unconstitutional The District is not an undue burden on any owner of property within the District The District is not unjust or unreasonable If Court finds the above, then it calls for election by registered voters within the District to decide whether District should be formed If Petitioners are 100% of property owners, then no formation election necessary

6 District Governance District is a political subdivision of the State Governed by a Board of Directors of between 5 and 15 residents of the District, elected by registered voters in the District If Petition to form District filed by two or more LTAs, then Board consists of the presiding officer of each LTA in the District, and one person appointed by the governing body of each LTA in the District If no registered voters within the District, then property owners elect Board, with voting based on acreage owned; Directors must be property owner or representative of property owner Directors are public officials, subject to conflict of interest rules like all public officials District subject to Sunshine Law open meetings and open records

7 Election Procedure Elections (except for Directors) can be held either at polling places on a regularly scheduled general, primary or special election day by mail-in ballot at any time of year, though ballots cannot be mailed on the same day as a polling place election Mail-in elections take at least 14 weeks Registered voters must apply for a ballot Ballots mailed on a Tuesday at least 8 Tuesdays after Court order, and application period ends 4 Tuesdays before ballots mailed Ballots must be returned on 6 th Tuesday after mailed Election judges appointed by Court from list provided by local election authority Director elections must be a polling place, though can be any time of year

8 Revenue Sources Approval of revenue sources requires separate election after formation If no registered voters, the property owners are the electorate, and can approve by unanimous petition in lieu of election Sales Tax up to 1.00% Collected by State with other sales taxes Excludes sales of motor vehicles and boats and utility charges Special Assessments on benefitted real property Added to County tax bill Not captured by TIF, and not avoided by tax abatement Real Property Tax up to $0.10 per $100 of assessed value Tolls Cannot toll existing free road, street or highway

9 Powers of District Issuance of revenue bonds Eminent domain (requires approval of MHTC or LTA) Purchase real or personal property For personal property over $1,000, must be completive bid Where Board comprised of property owners, be mindful of conflict of interest rules for contracting Employ staff Public works requires compliance with prevailing wage & payment bond Other implied powers necessary or convenient for the District to accomplish its purposes

10 Relationship with MHTC or LTA District project must be approved by MHTC before funding or construction If project not to be merged into state highway system, then (1) project must also be approved by LTA that will eventually take over ownership and maintenance and (2) MHTC may decline to consider project MHTC or LTA may provide assistance in project funding, promotion, planning, design, right-of-way acquisition, relocation assistance services, construction, maintenance, and operation MHTC appoints non-voting advisor to Board of Directors If project not to be merged into state highway system, then LTA that will eventually take over maintenance also appoints non-voting advisor After costs of development have been paid, District transfers ownership and control of project to MHTC or LTA

11 Kansas City Main Street Rail Transportation Development District

12 Starter Line District Boundary

13 Starter Line District in Context

14 New District for Main Street Extension

15 District Revenue Components

16 Assessment Examples COMMERCIAL REAL PROPERTY WITH A TAX MARKET VALUE OF $1,000,000 Property Tax Liability $30, Special Assessment $1, Effective Rate Approx. 3% ( levy rate) Effective Rate Approx. 0.15% RESIDENTIAL REAL PROPERTY WITH A TAX MARKET VALUE OF $200,000 Property Tax Liability $3, Special Assessment $ Effective Rate Approx. 1.5% ( levy rate) Effective Rate Approx. 0.13% CITY REAL PROPERTY WITH A TAX MARKET VALUE OF $1,000,000 Property Tax Liability $0 Special Assessment $3, Effective Rate N/A Effective Rate Approx. 0.33% TAX EXEMPT PROPERTY WITH A TAX MARKET VALUE OF $500,000 Real Property Tax Liability $0 Special Assessment $ Effective Rate N/A Effective Rate Approx. 0.05% TAX EXEMPT PROPERTY WITH A TAX MARKET VALUE OF $1,000,000 Real Property Tax Liability $0 Special Assessment $ Effective Rate N/A Effective Rate Approx. 0.09% Supplemental Property Assessment $2, SURFACE PAY PARKING LOT WITH 50 PAY PARKING SPACES Equivalent to a commercial improvement with a tax market value of approx. $1,782,226.00

17 Main St Extension Capital Costs (projected) Capital Costs in 2019 $ $ 227,150,000 Capital Funds in 2019 $ Bond proceeds $ 129,500,000 53% Small Starts grant $ 100,000,000 41% STP/CMAQ grants $ 14,500,000 6% Total $ 244,000,000 Excess Capital Capacity $ 16,850,000

18 Kansas City Main Street Rail Transportation Development District

19 Kansas City Streetcar System (c 1915) 136 million riders annually 32 lines 300 track miles System decommissioned in 1957 Cars, suburbia and sprawl

20 Kansas City, Missouri (319 square miles)

21 The Rocky Road to Rail in Kansas City Between 1997 and 2010, there had been 9 separate failed efforts over 14 years for various light rail plans: 1997 Election defeat #1 (KCATA) downtown starter line Mayor Cleaver calls it touristy frou-frou 1998 Election defeat #2 (Chastain/Initiative Process) 1999 Election defeat #3 (Chastain/Initiative Process) 2000 Election defeat #4 (Chastain/Initiative Process) 2001 Election defeat #5 (Mayor Barnes) 2002 Election defeat #6 (Chastain/Initiative Process) 2003 Election defeat #7 (Chastain/Initiative Process) 2006 Election win #1 (53%) (Chastain/Initiative Process) Repealed by Council as infeasible; Court sustains repeal 2008 Election defeat #8 (Mayor Funkhouser)

22 From No to Yes Newly Fertile Soil New Mayor with high priority for urban rail transit Incumbent Councilmember with passion and acumen Resurgent downtown with growing millennial culture Downtown commercial interests coalesced under Downtown Council $5.9 Billion invested in downtown over the last decade Significant residential redevelopment - 20,000 units and still growing 9 block Power & Light entertainment district, anchored by H&R Block world headquarters and 18,500 seat Sprint Center

23 From No to Yes Go where the support is Action Plan Return to incremental approach with downtown starter line Establish new dedicated revenue streams through compact voting district surrounding starter line

24 Questions and Discussion