Pittsburgh Pittsburg established an Enhanced Infrastructure Financing District, which sets aside a portion of property growth tax without imposing new taxes on citizens, in an effort to influence its economic future and investment in the city.
According to Jordan Davis, director of Pittsburg Community and Economic Development, the city intends to launch about 17 illustrative projects. These projects include rehabilitation of the former U.S. Steel site, upgrades to parks and main roads, pedestrian improvements at Old Town, and improvements to the city’s harbor and the Bliss Avenue to Garcia Avenue corridor.
According to Davis, the initiatives are not a final list because real investments will change over time based on community needs, money availability, and local progress.
In an interview with this news outlet, Davis stated, “I don’t think we have a project we’re focused on as much as a responsibility to the community that we’re focused on, which is figuring out ways to bring jobs.” These roughly 17 initiatives are things we envision doing tomorrow if we had the funds, but they are neither the only things we would accomplish with the funds nor are there any promises.
The city made it clear that there is no tax increase or new tax associated with the Enhanced Infrastructure Financing District. It is a specific percentage of money collected from property taxes that is used to build different infrastructure projects for economic development. According to Davis, the city receives roughly 18% of the 1% property tax, which is normally equal to 1% of a home’s assessed value.
Only the increase in property tax income brought in by new construction within the district will go toward the fund for the new district. The general fund will get 75% of the difference between the existing property tax and the baseline revenue, while the Enhanced Infrastructure Financing District will receive 25%.
Since 2023, Pittsburg has sought to establish the financial district. The Infrastructure Financing Plan, which describes how the district would finance projects to boost the city’s economy, was approved by the City Council at the beginning of June.
There are other cities that have taken similar approach to raise money for upcoming public initiatives besides Pittsburg.
The Public Financing Authority Board was established by Brentwood to suggest strategies for financing local infrastructure upgrades. The creation of a similar district is also being considered in Scotts Valley.
According to Davis, the Enhanced Infrastructure Financing District aims to improve the general quality of life for locals by concentrating on infrastructure projects that can provide recreational activities, create jobs, and spur further economic development.
According to him, many of the infrastructure initiatives we’ve discussed also have the ability to directly or indirectly enhance things like roads and air quality, which individuals may encounter on a regular basis.
The proposed location for the Enhanced Infrastructure Financing District is either undeveloped, underutilized, or slated for significant development or redevelopment, per a City Council staff report.
The regions are thought to have the potential to witness increases in property taxes and where infrastructure spending may have a significant positive impact on economic growth.
According to Robert Hicks-Carrera, Pittsburg’s Economic Development Manager, the areas comprise around 4,467 acres, or 34% of the city.
According to Hicks-Carrera, the city has been educating the public about the Enhanced Infrastructure Financing District through a number of outreach activities. He noted that residents can find out more information by visiting the city’s website.
The first property now contributing to the Enhanced Infrastructure Financing District is the recently opened Courtyard Marriott Hotel on Center Drive. In the future, a number of other noteworthy events are expected to strengthen its finances.
Many residential developments approved in the past ten years, such as Tuscany Meadows near Buchanan Road and the Faria/Southwest Hills Project around the Los Medanos Ridgeline, will start to contribute once homes are ready and occupied. Other examples include the Pittsburgh Technology Park, which is located on the now-defunct Delta View Gold Course.
Three council members, the city treasurer, and one unaffiliated citizen will make up the Public Financing Authority, which will be in charge of the Enhanced Infrastructure Financing District.
To maintain accountability and track advancement, the finance authority shall convene at least twice a year.
According to Davis, the City Council is one of many checks and balances in existence in addition to the financial power.
Davis stated, “I can’t think of a situation where any projects done in the city will not have some sort of council approval, even though we may develop an infrastructure financing plan and proposed projects.” They might receive funding from the financial authority, but the City Council will probably need to approve or authorize it first.
