Municipal Management District

Tonight we worked on the numbers for the pro forma. We have some creative financing ideas we would like to implement, but are not sure if the city of Highland Park would be willing to participate. We would like to implement a Municipal management District. The city would create a special tax district that includes only our property. This allows the creation of a new land tax, say 1% of property value per year. It typically has a time horizon, for example 20 years, after which the tax district is abolished. The income stream from this new tax is then sold to parties seeking long term investments. The net effect is that the city receives a new development it could not have achieved without finance, the bond holders receive a long term income stream similar to a municipal bond and the developer receives some finance. We have heard about some developments in the city of Dallas creating this type of Municipal Tax District for development purposes. Note: http://www.dallas-ecodev.org/incentives/municipal-management-district/. We checked in with Kirk, the director of development in the City of Highland Park, and he had not heard of this type of tax district and seemed to get the idea that we were interested in debt financing. If we were to pursue this project we would need to discuss this in further depth, as the project may not be viable without this extra creative financing option.