Regional Infrastructure Improvement Zones (RIIZs): An Innovative Infrastructure Financing & Funding Tool

Overview National Problem RIIZs are… RIIZs are not… 3 Steps to RIIZ RIIZ Qualifications RIIZ Example RIIZ Benefits Legislative Update Questions/Comments

National Problem THERE IS NO MONEY – Economic Recession and Financial Constraints and Cuts at all levels of gov’t THE NEED IS TREMENDOUS – ASCE estimates it will cost $2.2T over the next five years just to repair current infrastructure FEDERAL POLITICS ARE SLOW – Typical legislative and funding vehicles are not moving through Congress LOCAL MATCH IS HARD TO MEET – Typical 80% federal, 20% local funding for infrastructure is increasingly difficult

RIIZs are… A simple change to federal tax code – tax deduction A voluntary public-private partnership for investment in infrastructure – urban & rural Infrastructure = surface transportation, water, wastewater, stormwater A part of an approved plan through COG/MPO, local governments and community stakeholders A possible local match contribution A way to leverage private, federal, state, local dollars A complement to other infrastructure funding opportunities and mechanisms

RIIZs are NOT… Reliant on lengthy federal authorization/appropriation processes A tax credit An infringement on or contradictory to local or state statutes A direct liability of the local governments or their officials New mandates or federal requirements To supplant other funding/financing mechanisms Limited to any one category of public infrastructure

3 Steps to RIIZ Step 1: Local businesses or individuals petition RC/MPO to form a RIIZ. Step 2: RC/MPO review RIIZ application, build consensus and establish RIIZ that fits within approved regional plan. Step 3: State Attorney General approves, and business or individuals contribute tax deductible funds (annual corporate/income tax) to RIIZ infrastructure improvements.

RIIZ Qualifications Designated Area: No limitations - entire municipality, single corridor, intersection or station area. Project Scope: No limitations - communitywide improvements or a single road or area. Requirements: (1) Public infrastructure (2) In RC/MPO or local gov’t infrastructure plan(s) (3) Consistent with plan decisions

A four-way intersection with a bank, a gas station, a department store and an office building at each corner. Each could apply to the Regional Planning Organization for RIIZ designation to make tax deductible contributions for such projects as adding a turn lane, a sidewalk or a bus stop RIIZ Example

Benefits of RIIZs Uphold proven regional and local infrastructure investment decision-making processes. Drive monies directly to the local level – both rural and urban. Local governments and local elected officials determine if a RIIZ is established. Offer new options to fund and finance infrastructure improvements and construction projects that are shelf-ready. Be a revenue positive for government. And many more…

Legislative Update HR 3780 was introduced by Rep. Davis (R-KY, 4) in 112 th Congress Working with Reps. Schock (R-IL, 18) and Schiff (D- CA, 29) for reintroduction in 113 th Congress Looking for Congressional Co-sponsors Building Support Educating on Infrastructure Needs

Legislative Targets Initial focus is House Ways and Means Committee Secondary focus is House Transportation & Infrastructure Committee Welcome all Congressional support and assistance

RIIZs Supporters

RIIZs are an immediate way to provide local funding to our public infrastructure, thereby improving safety, providing jobs and energizing our economy. Please lend your support! Questions/Comments? Mark Policinski Executive Director, OKI Shannon Baxevanis Deputy Director, NARC , x217