Hogansville City Council was unanimous Monday night in a decision to join the Troup County Commission in applying for a Tax Allocation District.

The TAD, which is not a tax but a development tool, was the focus of a discussion county leaders had Saturday with city councils from Hogansville, LaGrange and West Point, and county school board.

West Point already received permission from the General Assembly to create a TAD and received voter approval in a November referendum.

“Frankly, I’m embarrassed that I’ve been commission chairman for four years and am just proposing this now,” said Commission Chairman Ricky Wolfe, who traveled to Hogansville on Monday night to address council at its regular meeting.

“There hasn’t been a TAD in Georgia that we know of that has failed,” Wolfe said. “We should have done this four years ago.”

A tax allocation district sets aside a specific area, allowing bonds to be floated for infrastructure improvements and building projects. Taxes collected on the revitalized property pay off the bonds - neither the city or city residents are on the hook for the tax money, something Wolfe stressed to council members and Hogansville residents Monday.

Although the city wouldn’t immediately collect the raised property taxes, the city still would benefit from sales tax collected from commercial establishments and job creation associated with the growth.

Wolfe also assured residents that council still would approve all proposed projects in the city.

“The council will decide whether or not to use the TAD” on a project-by-project basis, he said.

City Manager Bill Stankiewicz cited the Silver Companies, a Maryland-based developer who backed out of a 1,000-acre residential and commercial development four years ago after the cost of needed infrastructure proved too high. He said council could have used the TAD designation to give the developer a way to pay for the water and sewer improvements that were needed.

“Normally, developers are able to find credit” for projects, Wolfe said. But in the recent sour economy, the TAD is the best way to allow the developer to build without putting the city on the hook for any money.

Hogansville also voted Monday night to follow Troup County and LaGrange’s lead, raising its hotel-motel tax from 5 percent to 8 percent. Recent legislation allows local governments to decide on the increase, which in Hogansville’s case will go to the local downtown development authority and tourism projects.

“This is a tax that’s primarily paid for by visitors,” Stankiewicz said, meaning it’s not a tax passed on to local residents.

Jennifer Shrader may be reached at jshrader@ lagrangenews.com or at (706) 884-7311, Ext. 236.