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Property tax increment has most revenue potential for an EIFD, thus
this is the focus of HR&As analysis.
An EIFD can capture property tax
growth above a baseline year due to
increases in assessed value (AV).
Assessed value growth is limited to
2% annually per Prop 13 (i.e., less
than inflation, does not generate tax
increment until resold).
Tax increment is generated from
Turnover of existing properties
New construction
Each requires a separate set of
calculation assumptions
Griffith Park
The maximum City of LA EIFD revenue yield within 1 mile of the LA River
could reach $1.3b; the Countys tax increment could yield another $1.2b.
Projected 100% of Tax Increment Property Tax Revenue Yield (30 Year Bond, $M)
Sub-Area
Warner Center
Reseda-Tarzana-Encino
Sherman Oaks
North Hollywood
Griffith Park
Northeast LA
Los Feliz-Silverlake-Echo Park
Lincoln Heights-Boyle Heights
Chinatown-Arts District
Total Within the City of LA
Universal City
Burbank
Glendale
Vernon
HR&A Advisors, Inc.
County Flood
(0.9% of 1%)
$115
$150
$340
$195
$5
$105
$100
$40
$215
$1,265
$0
$90
$50
$5
$105
$140
$315
$185
$5
$95
$95
$35
$200
$1,175
$15
$175
$145
$55
$5
$7
$16
$9
$0
$5
$4
$1
$10
$57
$1
$5
$5
$1
An LA River EIFD would likely include a portion of both City and County
TI; a 75% contribution could yield up to $1.9b from a 30 year bond.
Projected City and County of LA (75% of TI) Property Tax Revenue Yield ($M)
Sub-Area
Warner Center
Reseda-Tarzana-Encino
Sherman Oaks
North Hollywood
Griffith Park
Northeast LA
Los Feliz-Silverlake-Echo Park
Lincoln Heights-Boyle Heights
Chinatown-Arts District
Total City/County Share
30-Year Bond
Year 5 TI
Year 10 TI
$170
$225
$505
$295
$10
$155
$150
$60
$320
$1,895
$6
$6
$14
$7
$0
$4
$4
$2
$11
$53
$10
$13
$30
$16
$1
$8
$8
$4
$22
$112
Per CAO direction, it is assumed that the City and County would contribute less
than 100% of tax increment
This baseline analysis assumes 75% from City and County General Fund tax
increment and 75% of County Flood Control District tax increment.
HR&A Advisors, Inc.
If the City and County of LA, as well as nearby cities were to contribute
75% of their tax increment, a 30-year bond yield could reach $2.3b.
Projected Cities and County of LA (75% of TI) Property Tax Revenue Yield ($M)
Sub-Area
Warner Center
Reseda-Tarzana-Encino
Sherman Oaks
North Hollywood
Griffith Park
Northeast LA
Los Feliz-Silverlake-Echo Park
Lincoln Heights-Boyle Heights
Chinatown-Arts District
Universal City
Burbank
Glendale
Vernon
Total 1-Mile Cities/County
HR&A Advisors, Inc.
30-Year Bond
Year 5 TI
Year 10 TI
$170
$225
$505
$295
$10
$155
$150
$60
$320
$15
$205
$150
$45
$2,310
$6
$6
$14
$7
$0
$4
$4
$2
$11
$0
$6
$4
$1
$64
$10
$13
$30
$16
$1
$8
$8
$4
$22
$1
$12
$9
$3
$136
Areas within 1 mile of the River in the City of LA could generate $60m/
year by the 5th year following EIFD formation and $115m by the 10th.
Millions
Draft Projected
Annual
Increment
(2016 Tax
$) Yield (2016 $)
Projected Cities
and County
of LAProperty
(75% of Tax
TI) Annual
Property
Year 30
$350
$305m
Year 25
$300
$260m
Year 20
$250
$210m
Year 15
$250m
$200
$160m
Year 10
$210m
$150
$115m
$170m
Year 5
$100
$60m
$130m
$95m
$50
$50m
$0
11 13 15 17 19 21 23 25 27 29
Year
LARRMP costs and EIFD Revenues were evaluated for the LA River
within the City of LA, as well as within two North/South sub-districts.
North
South
A River EIFD could fund a small portion of the LARRMP after the
Citys Alternative 20 Local Match and for affordable housing.
Projected EIFD Revenue Yield ($M) & Project Cost (2016 $)
Total 1-Mile Radius
North Sub-Area
South Sub-Area
$1,895
$1,190
$705
$380
$240
$140
Less: Alternative
20 Cost**
$980
$0
$980
Remaining Revenue
Yield
$535
$950
($415)
$5,020
$1,620
$3,400
LARRMP Cost*
The political and procedural steps for implementing an EIFD include the
following.
Finalize EIFD Strategy and Generate Political
and Community Buy-in
Negotiate Participation with County and Other
Cities
City Council and Board of Supervisors
Resolutions to Form EIFD