Shelby County Solved Constitutional equal protection for developers seeking payments to complete the “culturally responding community engagement” for future property tax revenues first, according to Tennessee Attorney General Jonathan Skulmetti. This may violate the protection warranty.
The solution “does not include explicit race-based standards,” but for approval, Skrmetti said in writing. Opinions published in January The resolution “focuses on the elimination of racial inequality” was mentioned, and it considers historical and current perceptions of discrimination and prejudice and “still considers race considerations in the process.”
District 7 commissioner Henri E. Brooks led the resolution with the aim of including community involvement early in the process when developers apply Tax increase fundinga tool that allows local governments to pay for redevelopment of “devastated” areas with future tax revenues. TIF is based on the theory that improvements increase the value of assets in the region and thus increase property tax revenues, which can be used to repay redevelopment bonds.
The government creates TIFs on the theory that improvements increase the value of the region’s property. The higher value and new tax revenue will be used to repay bonds issued as part of the TIF. Many cities in Tennessee use them differently The degree of success.
Tennessee law requires protection for low-income residents affected by this type of development, but once they are evacuated from their neighborhood during construction and end of development, they cannot return to more expensive housing options. That’s often the case, Brooks writes. Commercial appeal Opinion piece.
“All we’re doing here is to include the public at the beginning of the development process,” Brooks said during the Mayshelby County Commission. Meeting. “What we do is make sure people paying their bills for tax incentives are informed and (and included) (and educated about the process. ”
Brooks could not be immediately contacted for comment.
The Shelby County Board of Commissioners voted 9-4 in May to adopt the new guidelines. This includes the requirement that developers notify community members in writing before seeking TIF approval and the establishment of a community advisory committee consisting of affected community members. The project requires a two-thirds majority vote from the Community Committee before the developer seeks approval from the tax agency committee.
Skrmetti’s opinion, although not problematic with these provisions, emphasizes two requirements: “support concerns that the Commission may consider race in its tax compensation decision.”
According to the guidelines, TIF applicants must include a list of minority and female-owned companies associated with the development team and a percentage of project ownership in their intent. Skrmetti wrote that the TIF developer’s quarterly report should include data on the number of minority-owned contractors involved in the project.
It is not uncommon for local governments to request reports on the involvement of minority businesses in projects that rely on economic development incentives.
Unless a “narrowly tailored” racial classification serves “persuasive government interests” and meets strict scrutiny standards, amendments to Article 14 of the US Constitution are equal to the same, including racial distinctions. It prohibits protection violations.
“At this stage there is nothing to show that the committee can justify racial considerations in this context,” Skrmetti said.
Shelby County is 54% black US Census Data. In 2023, Black residents in Shelby County had a poverty rate of 24.4%, compared to 6.7% of non-Hispanic white residents. University of Memphis.
Prior to approval, the resolution received a pushback from the Economic Development and Growth Engine of Memphis and Shelby County and the Memphis and Shelby County Community Redevelopment Agency, the quasi-governmental agencies reviewing TIF applications. Each letter submitted a letter to the Shelby County Commission, but did not send any representatives to attend the committee’s final review of the May 2024 resolution.
R-Memphis State Assemblyman Mark White requested an Attorney General’s review of the resolution. White represents the 83 districts, including parts of Shelby County.
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