TDD or Transportation Development Districts are an effective tool for funding public transit projects that benefit specific areas. The TDD Act, sections 238.200, et. seq., RSMo, provides guidelines for forming districts to govern transportation development through a standardized public process. This process includes a variety of public involvement including voting, petitions and property owners within the designated project area. This process is also overseen by the local court system. A TDD can propose and enact an increase to sales tax, real property tax, tolls, and/or special assessments of real property to raise funds for the development project. A few examples of TDD’s in action include the Kansas City Streetcar, the Loop Trolley in the St. Louis area and US 36. The US 36 project was the physically largest TDD in the state and used sales tax as a tool to generate funds.
“We had to overcome a great amount of resistance to gain trust with business and property owners in the area to get this project done,” said Attorney Doug Stone, regarding his work on the TDD to fund the Kansas City Streetcar. Stone went on to describe the overall success of the project and the increased development within the TDD.
TDD’s are political subdivision of the state. They often operate within multiple governing bodies’ jurisdiction such as between multiple cities and counties. Directors of TDD’s are regarded as public officials and are therefore subject to conflict of interest regulations.
The TDD Educational Event is part of an educational series offered by Missouri Public Transit Association. Sign up now for our next education event, Getting on Board with Purchasing and Procurement, scheduled for Wednesday, May 2, 2018.