A tax increment financing district in North Little Rock would add $261 million a year to the state’s gross domestic product and provide $26 million annually to public schools, according to an economic analysis by the Institute of Economic Advancement at the University of Arkansas at Little Rock. The City Council approved the boundaries of the proposed district, which would include residential and commercial developments, in late 2006. In May the council agreed to the university study, which was paid for by the developers. The economic analysis is required by the state to determine how much debt can be issued by the TIF district. State law allows bonds to be issued based on estimates of the initial tax revenue and the new tax revenue that would be generated upon development. The council could approve a bond issue before the first of the year. The North Little Rock TIF would have 19.5 mills of property tax available, not including 25 mills set aside for schools by the state constitution, and 9.3 mills dedicated to debt service of North Little Rock School District No. 1. The district would include the Rockwater Village development of 55 acres, with about five blocks fronting the Arkansas River. The development will include 175 single-family homes and up to 250 condominiums, along with retail and commercial space.
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