Playing Smart

Playing Smart changelabsolutions.org | kaboom.org 184 Zimmerman J. Opening School Grounds to the Community After Hours: A Toolkit on Joint Use. Oakland, CA: Public Health Law & Policy, 2010. Available at: www.phlpnet.org/healthy-planning/ products/joint_use_toolkit. 51 Because a revenue bond is only secured by the projected revenues of the project and not the full taxing authority of the government, it is not considered as low risk an investment as a general obligation bond. While it may have a slightly higher interest rate than a general obligation bond to offset this slightly less dependable source of repayment, it is usually seen as the second most secure type of bond. 52 This program requires Congress to reauthorize it, which happened most recently through the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Pub. L. No. 111-312, 124 Stat. 3296 (2010). For more information on the program extension and available funds, see Letter from Arne Duncan, U.S. Secretary of Education, to Chief State School Officers (March 11, 2011). Available at: www2.ed.gov/policy/gen/ guid/secletter/110311.html. 53 Bond funds can be used to renovate and repair buildings, purchase equipment and update technology, install energy-efficient or renewable energy systems, develop curricula, and conduct teacher training. New construction is ineligible for QZAB funds. 54 U.S. Department of Education, Qualified Zone Academy Bonds, www.qzab.org/what_is.asp (last visited Nov. 3, 2011). 55 Each state is eligible for funds based on the percentage of the state’s population below the federal poverty line. 56 Hundreds of impoverished urban and rural communities have been designated as Empowerment Zones (EZs) or Enterprise Communities (ECs). EZs and ECs are eligible for special wage credits, tax deductions, bond financing and capital gains to encourage public-private partnerships that will stimulate economic development and job growth. To find these communities, go to the U.S. Department of Housing and Urban Development’s locator website: http://egis.hud.gov/ezrclocator (last visited Nov. 3, 2011). 57 For a full listing of federal programs available to state and local governments; public and private for-profit and nonprofit organizations and institutions; specialized groups; and individuals, go to the Catalog of Federal Domestic Assistance Homepage: www.cfda.gov (last visited Nov. 3, 2011). 58 The Trust for Public Land, Land and Water Conservation Fund, www.tpl.org/what-we-do/policy-legislation/federal-fundingprograms/land-and-water-conservation.html (last visited Nov. 3, 2011). 59 U.S. Department of the Interior, National Park Service, Land and Water Conservation Fund, www.nps.gov/ncrc/programs/lwcf/ fed_state.html (last visited Nov. 3, 2011). 60 The U.S. Department of Agriculture Rural Development also offers loans to towns and rural areas to build community facilities. To learn more about the Community Facilities Direct and Guaranteed Loans Program, go to U.S. Department of Agriculture—Community Facilities Direct and Guaranteed Loan Program: www.rurdev. usda.gov/HAD-CF_Loans.html (last visited Nov. 3, 2011). 61 A frontier area is a county with a population density of fewer than six people per square mile. 62 To find the contact information for your state Department of Education, go to the U.S. Department of Education’s online searchable database: www2.ed.gov/about/contacts/state/ index.html (last visited Nov. 3, 2011). 63 Cooper T and Vincent J. Joint Use School Partnerships in California: Strategies to Enhance Schools and Communities. Berkeley, CA: Center for Cities & Schools and Public Health Law & Policy, 2008, p. 12. Available at: http://citiesandschools. berkeley.edu/reports/CC&S_PHLP_2008_joint_use_with_ appendices.pdf. 64 There are other terms used to describe development-associated fees, including developer fees, development impact fees, capital recovery or expansion fees, mitigation fees, facility or capacity fees, or system development charges. 65 Some states may have laws or court cases that severely restrict the imposition of impact fees on developers. 66 To see the types of facilities funded by impact fees levied in different states, see the summary chart on page 3 of the latest fee impact survey conducted by Duncan Associates, available at: http://impactfees.com/publications%20pdf/2010_survey.pdf (last visited Nov. 3, 2011). 67 It should be noted that while zoning bonuses are popular with developers, neighborhood residents don’t favor them because of the potential impacts of more density. 68 Special purpose districts have many different names depending on the type of service or infrastructure they provide and where in the country they are established. Some of the common names include: special improvement districts, community facilities districts, benefit assessment districts, special benefit districts, special assessment districts, and special services districts. 69 Some state laws allow two or more public agencies (e.g., city or county governments, transportation districts, park districts) to enter into an agreement to form a Joint Powers Authority (JPA) so they can coordinate activities and resources to provide services across local jurisdiction boundaries. 70 Depending on your state, a redevelopment agency may be called something else, for example, an urban renewal agency, a brownfields redevelopment authority, or an office of community renewal. 71 The developer can be a for-profit company or a nonprofit organization. 72 For accounting purposes, lease payments are generally not considered debt and therefore do not trigger any state or local laws that may limit the amount of debt a school or public entity may incur. 73 Hassel et al., supra note 49, at 4. 74 The law limits the amount of bonds that can be issued in each state to $10 multiplied by that state’s population. In addition, the lease term for the facility must be the same as the term to repay the tax-exempt bond by the developer. At the end of the lease term, control of the property must automatically revert to the district. At the time of this writing, the ability to issue these bonds has been extended through 2012. 75 For examples of state laws enabling private-public partnerships to build schools, see Virginia’s Public-Private Education and Infrastructure Act of 2002, Va. Code Ann. §§ 56-575.1 et seq. (2011) (available at: www.dgs.state.va.us/PPEA/tabid/62/ Default.aspx) and North Carolina’s Public-Private Partnerships (PPP) for Schools, N.C. Gen. Stat. § 115C-531 (2011). Available at: www.ncleg.net/gascripts/BillLookUp/BillLookUp. pl?Session=2005&BillID=s2009. 76 The type of nonschool use that would be permitted on the site can be specified in the agreement between the school district and developer so that it is compatible with the primary use of the facility by students. 77 See, e.g., Eggers WD and Dovey T. Closing America’s Infrastructure Gap: The Role of Public-Private Partnerships. Deloitte Research, 2007. Available at: www.deloitte.com/ assets/Dcom-UnitedStates/Local%20Assets/Documents/ us_ps_PPPUS_final%281%29.pdf; Johnson KA and Moser EH. The Six Habits of Fiscally Responsible School Districts. Midland, MI: Mackinac Center for Public Policy, 2002, pp. 15–16. Available at: www.mackinac.org/archives/2002/s2002-06.pdf; Evergreen Freedom Foundation. School Director’s Handbook: School Construction. Evergreen Freedom Foundation, 2011. Available at: www.myfreedomfoundation.com/pdfs/Construction.pdf.

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