Yellowstone County’s newest Industrial Park, the Lockwood Targeted Economic Development District (Lockwood TEDD) will be home to valued-added industries with over 600 developable acres of prime, planned industrial space. Yellowstone County Commissioners have approved both the Lockwood TEDD Strategic Plan and the Lockwood TEDD Infrastructure Master Plan, initiating the development of an industrial park between I-90/I-94 and the Yellowstone River north of Lockwood. The Lockwood Industrial Park offers acres of planned industrial space. It has excellent access to the Interstate, railroad, and Logan International Airport. It abuts the I-90/I-94 Interchange; it will be bisected by the Billings Bypass; and it straddles the BNSF mainline railroad tracks. It is conveniently located near Billings, the regional hub and the largest city in a 500-mile radius. The Industrial Park is envisioned as a catalyst to stoke the economic vibrancy of Yellowstone County by spurring the expansion of existing industry and facilitating the recruitment of new, value-adding industry to the region.
Development plans call for:
The Lockwood Industrial Park project is a Targeted Economic Development District (TEDD), meaning Tax Increment Financing (TIF) will be used to develop the infrastructure of the area. TIF provides that the increase in property taxes associated with the development of the area is funneled back into the area to finance the infrastructure needed to serve the district. This “increment” is available for this purpose for the duration of the TEDD – 15 years unless extended by bonding.
The Increment is the result of increasing property values because of development within the district. In the early years of the TEDD, there may not be sufficient increment available to finance infrastructure for the initial Industrial Park occupants. It may be necessary for these early-adopters to install and pay for certain infrastructure improvements. However, development agreements can be arranged for these businesses which will provide for reimbursement of qualifying infrastructure expenses once the amount of tax increment is sufficient.
Assume: $2,000,000 dollars of appraised NEW value (above the base taxable value)
Assume: Class 4 property (residential, commercial, industrial) @ 2.20% (2015)
Calculate: $2,000,000 x .022 = $44,000 in taxable value
Assume: A mill levy of 721.78 (Total mill levy for Lockwood, less the 6 mill university levy)
Calculate: $44,000 x 0.72178 = $37,758.32 Tax Increment
So: $37,758.32 is available to invest in public infrastructure every year until the TEDD expires. This also means that the private sector had to FIRST invest $2,000,000 to generate that increment.