Is there a limit to the amount of land that may be included in a project development district?

Yes. The total land area within all county or municipal project development districts may not exceed 5 percent of the total land area in the taxing unit that establishes the district.

Note that if a municipality establishes a project development district, the land included in the municipality’s district does not count against the 5 percent of unincorporated land in that county that may be included in a project development district established by the county. Also, land in a county district that is subsequently annexed by a municipality does not count against the municipality’s 5 percent limit unless the county and municipality have entered into an increment agreement—whereby the municipality agrees that the municipality’s property taxes collected on part or all of the incremental valuation in the district will be paid into the reserve increment fund for the district.