Special Assessments for Economic Development Projects

<p>Tonald Drump, a national real estate tycoon, is interested in developing an area in Frugal Village, NC. His proposal includes mixed-use residential and commercial development, located just outside the village’s downtown. Drump is an experienced developer and knows that adequate public infrastructure is essential to a successful development project. In particular, he wants to ensure that his properties will be connected to the village’s water and sewer systems. He also wants the streets within the development to be owned and maintained by the village. Finally, experience tells Drump that public sidewalks, street lights, and nearby parkland will enhance the marketability of his properties.</p> <p>In the past, Drump has constructed the necessary infrastructure to support a particular development project and then deeded the infrastructure to the local government. Drump currently is a bit strapped for cash, though. He is trying to capitalize on the recent housing resurgence and is managing numerous development projects around the country. He lacks the financial capital to construct the infrastructure projects to support his development in Frugal Village. Drump approaches village officials to see if they are willing to complete (and fund) the public infrastructure projects that will complement and support his new development.  Village board members are excited about Drump’s proposed development. They believe it is the key to the village’s revitalization and future prosperity. The board members, however, live in Frugal Village for a reason. They are very reticent to spend the public’s funds. They are particularly concerned about using general fund dollars to finance projects that directly benefit only a [...]</p>