Wheatland Targeted Economic Development District
Author: Broadwater County Commissioners
Wheatland Targeted Economic Development District
Broadwater County Commissioners
The Wheatland Targeted Economic Development District (TEDD) is in southern Broadwater County. Created by resolution in 2019, there has been some misunderstanding about the district since its inception. The unfortunate timing of COVID derailed the Wheatland TEDD’s initial potential as an economic development engine. But conditions are now good for regaining momentum.
Over the past year, the Commissioners have worked proactively with the Montana Business Assistance Connection (MBAC), the county’s regional economic development organization, to resume advancement of the district. Because of the TEDD’s regionally strategic location, it is also part of a broader assessment of resources and growth in the area.
Traditionally, TEDDs have been used by counties to attract businesses and grow areas identified as infrastructure deficient, that are underutilized, and often rural. TEDDs support value-adding industries such as manufacturing, processing, technology, or logistics. The Wheatland TEDD Comprehensive Development Plan explains the district’s goals. Find the plan on the county website at https://www.broadwatercountymt.gov under the Planning and Development Department.
A TEDD is a special type of Tax Incremental Financing (TIF) district, so the two terms are often used interchangeably. TIF is a public financing method that allows local governments to fund qualifying infrastructure projects without using general fund property tax dollars. TIF captures the increase in property tax revenue, or the increment that results from rising property values due to improvements in the district. Developers in the district can apply for reimbursement for pre-approved and completed value-added projects that meet the district’s infrastructure requirements.
To clarify further, in a TIF district, base value property taxes are collected as usual. Taxes based on the incremental value or added value are redirected to the TIF to pay for infrastructure projects in the TEDD. Funds can be used for roads, water/sewer systems, broadband, and other approved infrastructure outlined in the development plan. These improvements make the area even more attractive for private investment and job creation.
The money in TIF and the known future increment can also be used to leverage other funding sources like grants and bonds. Several counties across the state have one or more targeted economic development districts. These are part of a broader group of approximately 91 tax incremental financing districts that include TEDDs and urban renewal districts in Montana.
TIF districts come with an expiration date. As per MCA 7-15-4292, “the tax increment provision contained in a targeted economic development district comprehensive development plan terminates upon the later of the 15th year following its adoption or the payment or provision for payment in full or discharge of all bonds for which the tax increment has been pledged and the interest on the bonds.” After the termination of the TIF, all taxes must be levied against the actual taxable value of the property and paid to each of the taxing bodies as provided by law.
Changes in the state’s subdivision laws delayed some projects in the TEDD, which are now moving forward. There are others in the works, with some waiting on shifting federal financing. The Commissioners are currently asking for letters of interest for a 5-member TEDD Advisory Committee with whom they will be actively working to review TIF funds and potential projects. Letters should be submitted to dhansen@broadwatercountymt.gov by November 28.
More information on targeted economic development districts and tax incremental financing can be found in Montana Code Annotated at https://archive.legmt.gov/bills/mca/index.html and the Commissioners can be contacted directly with questions at commissioners@broadwatercountymt.gov.
Article Images
Click on Image Thumbnail(s) to view fullsize image
PhotoCredit: Broadwater County
Image 1 Caption: Logo
_0.jpg)
