Episode 110 – Interview with Tyler Cobb on Arizona’s New SAID Legislation (Part 2)
In Episode 110 of the Land to Lots™ Podcast, Carter Froelich continues his conversation with Tyler Cobb, Partner at Taft Law in Phoenix, Arizona, and the principal architect of Arizona House Bill 2999, on how a State Affordability Infrastructure District, or SAID, is formed, governed, and used to finance public infrastructure.
Tyler makes the case for the tool in plain terms, starting with the $5 million public infrastructure threshold and the prospect of tax-exempt, 30-year, non-recourse debt held off the developer’s balance sheet, set against the real work of forming and administering a district for 30 years or more. He then walks through the improvements the SAID Act makes eligible that the CFD Act did not, including development impact fees, rail crossings and spurs, communications infrastructure, and remediation costs, and explains why impact fee financing changes the math for both builders and the jurisdictions collecting those fees.
Carter and Tyler then discuss the mechanics of forming a district, including the prohibition on overlapping a CFD with outstanding bonds, the certifications and same-day jurisdiction notice required with the petition, the 30-day window for a city to object, the Arizona Finance Authority’s ministerial review and 30- to 60-day formation timeline. They also cover the acreage-elected three-member board and how governance shifts to residents over time, the stakeholder work with the League of Cities and Towns, the 10-year sunset on new district formation, and the eligible improvements that were considered and left out of the final bill.
- How the three-member acreage-elected board is seated, when staggered annual elections begin, how governance transitions from landowners to residents, and why the legislature attached a 10-year sunset to new district formation
- How Tyler frames the case for a SAID in a two-minute pitch, including the $5 million public infrastructure threshold and the trade-off between tax-exempt, non-recourse, 30-year debt and the ongoing work of administering a separate political subdivision.
- Which improvements the SAID Act makes eligible that the Arizona CFD Act did not, including development impact fees, rail crossings and spurs, communications infrastructure, and remediation costs.
- Why remediation eligibility matters for infill and industrial projects in older parts of Phoenix where cities require developers to replace existing infrastructure as a condition of the development agreement.
- How impact fee financing works, why fees running from $10,000 to more than $100,000 per lot come due when a builder pulls permits, and why homeowners frequently pay for infrastructure they never see built.
- What the formation petition requires, including 100 percent landowner consent, no overlapping CFD with outstanding bonds, a certification that formation does not affect entitlement or development specification documents, and same-day notice to the local jurisdiction.
- Why jurisdiction notice is not jurisdiction approval, and how the 30-day objection window lets a city raise a concern without holding up the application.
- How the Arizona Finance Authority’s review works as a ministerial completeness check rather than a discretionary negotiation, including the Arizona bond counsel statement requirement and the 30- to 60-day formation window.
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- Track Your Reimbursable Costs Utilizing The Launch Reimbursement System™ (“LRS”) – Never lose track of your district eligible reimbursable costs and have Launch manage your district’s costs reimbursement tracking, preparation of electronic reimbursement submittal packages and processing of your reimbursement requests with the district, jurisdiction and/or agency. Contact Curry Froelich for more information.
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Carter Froelich, CPA
480-828-9555 | carter@launch-dfa.com
Carter Froelich hosts the Land to Lots™ podcast powered by Launch Development Finance Advisors. Carter shares how he and his team help their clients finance infrastructure, reduce costs, and mitigate risks all with the goal of enhancing project profitability.
