In March of 2010, the Redevelopment Agency created the Legacy-Crossing Community Development Project Area. Community Project Areas are commonly referred to as CDA. This project area was created to allow incremental property taxes, generated in this area, to be used to finance and or construct needed infrastructure in the area to assist with development.
What is a CDA? (Community Development Project Area)
LEGACY CROSSING COMMUNITY DEVELOPMENT PROJECT AREA (CDA)
WHAT IS A CDA?
Under Utah Law, Centerville City (through its Redevelopment Agency) can create a community development project area or CDA. A CDA is an economic development tool which allows the City to capture a specified portion of the property taxes from new growth in a specific geographic location. These incremental taxes can be used to promote economic development within the area through such things as the funding of 1) public infrastructure, 2) development incentives, 3) land acquisition, etc.
HOW DOES BEING INCLUDED IN THE CDA AFFECT MY TAXES?
Property included in a CDA will not experience any direct tax impact from being included in the CDA. The mechanics of a CDA affect the end-use of new tax dollars in future years but has no real effect on raising or lowering the tax rate in the area. The only potential tax impact from a CDA would be the indirect increase to property values from surrounding growth within the area that might occur because of the CDA. Taxes from property within the greenbelt classification will not change until such property is ultimately taken out of greenbelt and reclassified if/when that occurs.
HOW WILL I BENEFIT FROM THE CDA?
Any tax increment generated within a CDA can be used to fund projects or provide incentives within the CDA. This has at least two major impacts upon property owners. First, tax increment dollars used to spur economic development on eminent projects will enhance the marketability and economic potential of other properties within the CDA and surrounding areas. Second, the inclusion of your property within the CDA enhances the ability to provide economic incentives or public infrastructure assistance to future projects within the CDA because the CDA vehicle is already in place.
