Funding the Downtown Development Authority

The funding used by the DDA is derived from increases in real estate taxes, which increase annually. A zero baseline established when the DDA was created provides the starting point for their revenue, and as SEV and taxable value increase, revenue is generated. This revenue is based on the SEV of all property within the district, which includes the city limits only. It does not include the entire city but primarily retail and industrial areas. Reed City and Osceola County are recipients of tax revenue up to the baseline.

The Reed City Downtown Development Authority was established by the City Council in 1986. It hasn’t always been easy keeping the DDA “in the black.” Soon after it was established, Nabco, a major plant within the city burned down. Soon after, Gardner-Denver (otherwise known as Cooper Industries) left town. Although Nabco moved into the vacant Cooper Industries facility, those setbacks put the DDA below the baseline until January 1993 when the tax value finally rose above the baseline.