The purpose of a TAD (tax allocation district) is to provide funds for the upgrade of an area or a neighborhood that is underdeveloped. The theory is that by upgrading the underdeveloped area, the tax value and taxes will be increased, with the difference between the tax income as underdeveloped and the tax income after upgrading used to pay off the money borrowed to finance the upgrade.
In a low-income housing neighborhood where tax income is low, by replacing the old houses with new, more modern houses with a higher tax value, there is an increase in tax income with the difference being used to pay off the financing.
For this scheme to work, the potential for increase in tax income must be carefully studied by the decision-makers to be sure there is a very high potential for a higher tax income. The hook here is that if the scheme does not pay off the debt, it falls back on all taxpayers in Dougherty County.
I am very much afraid that there is not going to be any increase in tax income in the Central Business District and all the taxable income in Dougherty will end up having to pay off the loans incurred by the TAD.
PAUL A. JONES