Macon Mayor Robert Reichert presented City Council with a plan Tuesday for using a “tax allocation district” to help revitalize downtown. Fundamentally, he’s pitching to make the Second Street Bridge more pedestrian-friendly and to make Second Street the center of downtown, connecting it cleanly with Little Richard Penniman Boulevard.
The tax allocation district basically freezes property values in the district so the city, county and school board continue receiving taxes for properties in the assigned district while putting money from new investments into the redevelopment of the district.
In other words, under a TAD, the city would take out bonds to invest in the district. In that district, a vacant lot valued at $1,000 pays taxes at that value to the city, county and school board, even if a developer builds a multi-million dollar structure on the property.
Meanwhile, that additional value — the difference between the original $1,000 value and the new value — would be taxed separately with that money going into a fund to pay off the bonds.