Transportation Development District

A Transportation Development District (TDD) is a separate political subdivision of the state that may be created for the purpose of issuing bonds, levying taxes, and applying special assessments or tolls to finance transportation-related improvements. A TDD may finance transportation improvements outside of its boundaries so long as the improvements directly benefit the TDD.

Sections 238.200 through 238.275 RSMo.

Eligible Activities
Transportation Development Districts may be utilized to fund, promote, plan, design, construct, improve, maintain, and operate transportation-related projects. Eligible projects include but are not limited to the following:
  • Airport
  • Bridges
  • Bus stops
  • Docks
  • Hangars
  • Highways
  • Interchanges
  • Intersections
  • Mass transit
  • Parking lots
  • Railroad
  • Rest areas
  • Roads
  • Signalization
  • Signing
  • Terminals
  • Any similar or related improvement or infrastructure project
Eminent Domain
If approved by the local transportation authority or the Missouri Highways and Transportation Commission, the District may use the power of eminent domain to acquire land for District projects.

The following sources of revenue may be utilized by CIDs organized as either political subdivisions or nonprofit corporations:
  • Sales Tax - may be imposed in increments of one-eighth of one percent (1/8%) up to a maximum of 1% upon approval of a majority of qualified voters in the district.
  • Property Tax - may be levied with the approval of at least 4/7 of the qualified voters within the district and may impose a property tax not to exceed the annual rate of $0.10/$100.00 assessed.
  • Special Assessments - may be imposed for improvements that specifically benefit properties within the district. Majority voter approval is required. More than one special assessment may be imposed within the district.
  • Bonds, notes, and other obligations - May be issued to finance the transportation-related improvements. Term cannot exceed 40 years.
The following sources of revenue are available only to CIDs organized as political subdivisions:
  • Property Tax - may be imposed if approved by majority vote of qualified voters in the district
  • Sales Tax - may be imposed in one-eighth of one percent increments up to a maximum of 1% if approved by majority vote of qualified voters in the district
Qualified voters are defined as registered voters living in the district or, if there are no registered voters, the property owners within the district.

Approval Process
Transportation Development Districts may be created by a petition filed with the Circuit Court of the county in which the district is located. The petition shall consist of at least 50 registered voters within the proposed district or all owners of real property within the district if there are no registered voters in the district boundaries.

A Transportation Development District petition may also be filed by the governing body of a city, or by 2 or more local transportation authorities (i.e., cities) by adoption of resolutions calling for the joint establishment of a district and then filing a petition with the Circuit Court requesting the creation of a district. The Circuit Court shall hear the case and determine whether the petition is defective, or the district is illegal or unconstitutional, or constitutes an undue burden on any property owner or is unjust and unreasonable. If the court determines the petition is valid, it may enter judgment declaring the district formed.

Board of Directors
Because a Transportation Development District is a separate political subdivision of the state, it has its own board of directors that serves as its governing body. Directors are elected by qualified voters within the district if it was created by petition of registered voters, property owners or the governing body of a city. If created by petition of two or more local transportation authorities, the board of directors consists of the presiding officers of the local transportation authorities and a 2nd representative of each local transportation authority.

Transportation Development District Policies
The City of Springfield answers the TDD petition in court and can effectively block a TDD by refusing to enter into a contract with the TDD. The following policies apply to those TDDs where the city participates in the TDD establishment by virtue of the financed project(s) being city-initiated or the TDD is part of a larger public / private partnership.
  • The city will consider supporting the establishment of Transportation Development Districts to finance public improvements and /or public services that will directly benefit the property owners, business owners, customers, and residents of the district.
  • Transportation Development Districts formed for the purpose of financing public improvements will terminate when the public improvement expense has been reimbursed unless the TDD is also intended to fund ongoing maintenance.
  • The developer and/or TDD will be responsible for paying for the district public improvements and seeking reimbursement through district revenues. The city will not typically provide upfront financing.
  • The developer and TDD will enter into a cooperative agreement with the City of Springfield detailing the eligible TDD projects, financing arrangements and reimbursement schedule.
  • To ensure consistency and ease of administration, developers will use the city's preferred cooperative agreement forms.
  • If the city administers the TDD sales tax, the city will typically deduct 1½% from district revenues collected for its Administrative Fee.
  • The TDD will comply with all applicable open meetings and open records laws.
General Policies
All projects will be reviewed for consistency with both the policies for the desired incentive as well as the general policies listed on the Overview and General Policies page.