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Self-Financing Bonds - A Tool for Economic Success
Self-Financing Bonds- A Tool for Economic Success
“More Jobs, More Business” is the overarching economic development goal of the City of Kannapolis. More than a decade of community investment geared to attracting business and creating jobs has resulted in approximately $1.5 billion of commercial, industrial and residential development throughout the City. The North Carolina Research Campus is the pinnacle of that success and will add an additional $1.5 billion in private investment, bringing with it the opportunity to redevelop a 350-acre mill site and revitalize the City’s downtown and adjacent commercial areas.
The City of Kannapolis is committed to ensuring the successful development of the North Carolina Research Campus. Equally important is the commitment to multiplying the economic impact, job creation, small business opportunities and additional private investment so that the positive impact of the Campus’s development extends throughout Kannapolis and the surrounding regions of the State.
To learn more about the North Carolina Research Campus, visit their website or read the City’s NC Research Campus section. Also view or download the following document:North Carolina Research Campus Construction Schedule.
Self-financing bonds, a new financing option available to local governments in North Carolina since 2004, are a tool to achieve these goals. The unique structure of these bonds will permit the City to fund a portion of the infrastructure improvements related to the development of the Research Campus without raising property taxes. By using self-financing bonds, the City and County can avoid issuing general obligation bonds (which pledge the full faith and credit of the City and County). Further, Self-financing bonds allow the City and the County to own and control the projects that are built with the bonds, as contrasted with traditional “tax rebate” programs which simply give money to developers to use as the developer sees fit.
To learn more about self-financing bonds, view or download the following documents:
Frequently Asked Questions About Self-Financing Bonds
How Self-Financing Bonds Work
Amendment One and North Carolina
How A Self-Financing Bond District is Chosen
Map of the Proposed Self-Financing Bond District Examples of Self-Financing Bonds
Self-financing bonds allow the City of Kannapolis and Cabarrus County, as the governments considering the bond issuance, to:
- Dedicate a portion of Castle & Cooke’s future property taxes to construct a variety of projects such as road improvements, intersection enhancements, street lighting, powerline burying, landscaping, parks, greenways and even stream restoration.
- Capitalize on some of the new property tax revenues generated by the NC Research Campus to meet demands for public safety, schools and other City and County services.
Overall, the use of self-financing bonds allows for the responsible stewardship of public money to construct a portion of the public infrastructure projects associated with the North Carolina Research Campus. Self-financing bonds are a means for local governments to create a public-private partnership which will encourage development of retail, business, residential, educational and civic components. These components combined are the factors that will make the Research Campus a sustainable economic engine providing jobs and attracting new private investment to the region and the State.
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