The Garden Grove Agency for Community Development is prepared to offer a number of economic incentives to facilitate the economic viability and expedite development in the City of Garden Grove. The exact level and nature of each form of incentive would be negotiated as part of a Disposition and Development Agreement. The typical economic incentives are summarized below:
Competitive Land Value
The Agency has several ways in which it can assist interested developers in acquiring property, including the ability to acquire and sell the property at a value which ensures the economic viability of the development and enhances the ability to obtain construction financing.
Property Tax/Sales Tax Rebates
California Redevelopment Law allows the Redevelopment Agency to finance development projects through a mechanism called tax increment financing. The Agency is able to contribute amounts equal to the increased property tax, sales tax, and other use taxes that are generated from the proposed developments.
Construction of Parking Facilities
The Agency has the ability to finance the construction of a parking structure through the issuance of bonds or certificates of participation. The financing of the parking structure would provide a significant project benefit without contributing to the developer’s debt position on the property. This would assist the developer in obtaining construction financing for the development.
Site Preparation and Construction of Public Improvements
The Redevelopment Agency can assist private developers through various means, including preparation of a development site and the construction of public improvements. The Redevelopment Agency may be able to assist the development through the construction of public facilities which may include such things as public buildings, streets, curbs, gutters, sidewalks, sewers, storm drains, water systems, and street lights.
