Florence city council recently discussed Transportation Improvement Districts (TIDs) and whether the city might consider creating one next fiscal year.
During the meeting on Feb. 5, council members heard from former State Representative Sal Santoro and Wade Williams, a consultant with Cincinnati-based Montrose Group, who helped Boone County establish a TID, becoming the first to do so last year.
In 2022, the state legislature passed HB274, a bill introduced by Santoro. Aimed at streamlining processes and funding for transportation-related projects, the bill allows for the creation of TIDs by counties and larger cities.
Santoro said TIDs are a tool used in other states to give local entities more control of transportation-related projects and to streamline the processes and cut the long wait for project approval, funding and completion.
“It’s a way for local control and local funding along with the state — you get your projects built quicker,” Santoro said.
He said he researched how other states used TIDs, including Ohio, Indiana and North Carolina, and decided to expand on what projects could be included.
“They’re building roads, and the developers like that,” Santoro said. “But in my bill, I have roads, and I have the infrastructure, because if you build a road, and you don’t have water, gas, sewer, you can’t build an industrial park, you can’t do anything.”
What is a TID?
Williams shared an outline of how TIDs are created and governed and what they can and cannot do.
TIDs can be created by a single county, a group of up to three counties, or by a single city if its population is at least 20,000, he said.
The role of a TID is to coordinate and fund transportation projects within a specific area. It is governed by a board appointed by the local legislature (county or city). For a city-created TID board, there must be five voting members, all residents of the city, plus one non-voting member from the county planning commission.
These boards can work on the finance, construction, maintenance, repair or operation of a selected project. They can be involved in the funding, including receiving and accepting local, state and federal grants. They also can issue revenue bonds and can acquire, hold or dispose of property.
There are a few restrictions — The board cannot use condemnation or disturb a utility or common carrier for a project. It does not have the power to levy taxes or make assessments, Williams said.
How does a TID work?
Williams recommended the city include the entire city in its TID. He said city council would be involved in all aspects.
“The council actually approves the board of trustees. The board of trustees then goes out and evaluates projects, comes up with a list of projects,” Williams said. “The board must hold a public hearing and get comments before authorizing the project. Once that is authorized, it comes back to this council for approval.”
A TID allows for funding flexibility, he said. Funds could come from Kentucky Transportation Cabinet grants, federal programs for regional infrastructure, TIF revenue, local and regional collaborations and even some private investment by those who would benefit from improved infrastructure. A city or county could also appropriate funds.
“You can bring in multiple sources of funding,” said Williams. “So a state may not be eligible for a federal grant, but you could be through this TID district. There’s no special assessments or taxes and things like that you can do. So, it must live on its own as a project. I think that’s an important point.”
In his presentation, Williams emphasized the broad nature of projects allowed as part of the TID. These could include:
- A highway or parking facility
- Freight rail tracks and related freight rail facilities
- Other approved transportation projects such as bridges, tunnels, overpasses, interchanges or approaches determined necessary for road and highway safety
- Service facilities and administration, storage and other buildings, property and facilities determined necessary for the operation of the project
- All property and rights that must be acquired for the construction, maintenance or operation of the project
The city’s commitment
In addition to a board, a person or people would be needed to oversee projects and work with the board on behalf of the city, said Williams. This could be done using staff already in place, but positions also could be created. The city would likely also need to contract with professional services such as economic or transportation planning experts.
Florence Public Services Director Eric Hall serves as a non-voting member of the Boone County TID Board. His department would have the most involvement in the projects coming through a city TID. Council members asked him what that could mean for his staff.
“Within the last six years, we’ve gone from an average of 28 to over 50 projects a year that we’re currently managing, and I don’t see any of that changing,” Hall said. “Our city continues to grow and develop, and there will always be different opportunities for those projects, and things don’t get any younger. So, projects have to continue to be replaced. We need to stay ahead of the game.”
While other communities have hired multiple people to oversee the TID, Hall said for now, he would request one person who could serve as a project manager. Later, if the TID is successful and there is money coming in to fund projects, staff could be added.
What projects could a TID benefit?
Williams identified some pressing Florence projects that could be facilitated using the TID.
High-priority items include:
- Funding for recommendations from the traffic study currently underway
- A connector from Hopeful Church Road to I-75
- Old Hopeful Church Road improvements (adding lanes, curb work, storm sewers, etc.)
- Evergreen Drive improvements (curbs, sidewalks, storm sewers, infrastructure)
Additional projects with potential:
- Improving stacking and traffic flow in areas such as Houston Road and KY 18
- Making Behrens Drive Right in/out and remove barricade devices along Houston Road so that inside lanes could stack further back
- Changing traffic flow configuration on Mall Road and KY 18
- Enhancing the connector road that runs parallel to Mall Road