1. Presented by: Jeffrey L. Oris, CEcD President Planning and Redevelopment Consultants, Inc. City of Marco Island May 21, 2010 Community Redevelopment Agency Basics

2. Quick Background Authorization for CRA’s was passed in the Redevelopment Act of 1969 which became Chapter 163 Part III of the Florida Statutes As of last review there are 202 CRA Districts registered with the Florida Department of Community Affairs Currently the only form of Tax Increment Districts in use in the State of Florida CRA’s may be created by a City or County to assist in the elimination of slum and/or blighting conditions State is not involved in the creation of CRA’s

3. The Finding of Necessity Governing Body – City or County - must adopt a Finding of Necessity. An in-depth study which outlines the conditions of slum and/or blight in a defined area within the jurisdiction and which declares the need for a Community Redevelopment Agency. Definitions of “slum” and “blight” are contained in Chapter 163 Part III of Florida Statutes

4. Creation of the CRA The CRA is then created by the Governing Body through a resolution accepting the Finding of Necessity and a resolution further declaring the need for redevelopment. The Governing Body then adopts an ordinance appointing a Board of Commissioners of the CRA.

5. CRA Board Options The CRA Board can take several forms including: The Governing Body can sit as the CRA Board An independent Board of no less than 5 no more than 9 persons appointed for staggered terms. If the Governing Body is consists of only 5 members, the CRA Board can be the Governing Body+ 2 independent seats appointed by the Governing Body. By Interlocal Agreement between the Governing Body and one or more taxing authorities, representatives of a taxing authorities may be members of the CRA Board.

6. The CRA Board Subject to Sunshine Laws and Code of Ethics CRA Board members have a term of 4 years Initially some appointments are shorter to provide for staggered terms If a member of the Governing Body, term is concurrent with the term of office Chair and Vice-Chair selected by Governing Body Members can only be removed for:  Inefficiency  Neglect of duty  Misconduct in office

7. The Community Redevelopment Plan The CRA then writes and recommends a Community Redevelopment Plan for approval by the Governing Body. This plan outlines projects and programs that will be undertaken by the CRA to eliminate the slum and/or blighting conditions over a defined period of time not to exceed 40 years.

8. Contents of the Redevelopment Plan Legal Description of Redevelopment Area Diagram and text describing:  Open Space and Street Layout  Approximate number of dwelling units  Property intended for public parks, recreation areas, streets, public utilities and public improvements of any nature

9. Contents of the Redevelopment Plan Limitations on the type, size, height, number, and proposed use of buildings. Property intended for public improvements Identify any publicly funded capital projects to be undertaken within the CRA Contain a detailed statement of the projected costs of the redevelopment Provide a time certain for completing all redevelopment financed by increment revenues

10. A CRA Can … Acquire and hold property Demolish buildings Dispose of property at FAIR VALUE To develop property (including affordable housing) Install, construct, and repair  Streets  Parks  Utilities  Playgrounds  Other public improvements

11. A CRA Can … Carry out a voluntary or compulsory repair and rehab of buildings (Code Enforcement) Solicit proposals for re/development (Developer RFP’s) Borrow money or accept funds/grants from any source (borrowing subject to approval of the Governing Body) Close, vacate, plan, replan streets, sidewalks, other places Enter into contracts and agree to appropriate conditions Petition for changes to land use, zoning Petition for changes to laws and regulations

12. Borrowing Money A CRA can borrow money with the approval of the Governing Body This borrowing can be in the form of: Revenue Bond Bank Loan – including line of credit Loan from Governing Body Repayment period cannot exceed the life of the CRA

13. A CRA CAN’T …. Pay for General Government operating expenses Undertake a project in another public entities Capital Improvement Program unless specifically mentioned as a funding source Repair utilities usually paid by a user fee Reimburse City/County for expenses unless fully documented Pay for any project or program outside of the Redevelopment Area Pay Board Members/Commissioners for their service as a CRA Board member

14. A CRA CAN’T …. Create laws or regulations Regulate land use in any way Utilize the power of Eminent Domain

15. Even If Allowed By Statute…… Any project or program a CRA wishes to undertake must be outlined in the Community Redevelopment Plan (CRP) IF IT IS NOT IN THE PLAN YOU CAN’T DO IT !!!!!

16. The Redevelopment Trust Fund Governing Body creates a Redevelopment Trust Fund by ordinance. Funds allocated are used to carry out activities in the Community Redevelopment Plan. Can obtain funds from:  Donations  Grants  Allocations from Governing Body  Increment Revenues (Tax Increment Financing or TIF)

17. What is Tax Increment Revenue Increases in taxes collected by certain taxing authorities over what is collected in an established “base year” is remitted by those authorities to the CRA for use in financing redevelopment activities.

18. Tax Increment Revenues CRA District Assessed Value 2000 Base Year $100,000 value Tax $200.00 City and County Receive $200.00 in tax payments 2005 Year 5 $150,000 value Tax $300.00 City and County Receives $300.00 ($200.00 + $100.00) Redevelopment Trust Fund Receives $100.00 Remits Increase

19. The Redevelopment Trust Fund Money in the Trust Fund may be expended for projects and programs pursuant to an adopted CRP including: Administrative expenses Plans, financial analysis, surveys Acquisition of property in the CRA Site preparation and relocation of occupants Repayment of borrowed funds Development of land

20. At the End of the Fiscal Year Funds left in the Redevelopment Trust Fund on the last day of the Fiscal Year shall be: Returned to the taxing authorities Used to reduce debt Deposited in an escrow account for reducing debt later Appropriated to a specific project contained in the Redevelopment Plan that will be completed within three (3) years

21. Annual Reporting The CRA is required each year to: Submit a report of its activities including a full financial disclosure to the Governing Body and publish in the newspaper a notice that it has done so Prepare an audit and submit a copy of the audit to the taxing authorities and to the State of Florida

22. WHY A CRA? Formal Organization with: Set Plan Defined Goals Built-in Funding Annual Reporting mechanisms Local decision making

23. Other Forms of Redevelopment Downtown Development Authorities Neighborhood Improvement Districts Main Street Programs Special Assessment District

24. Downtown Development Authorities (DDA) Downtown Development Authorities  Created by Special Act of the Legislature (mostly in mid-late 1960’s)  Allowed to have limited Ad-velorem levying capability (subject to referendum)  Created in response to movement of retail centers from downtowns to regional malls and strip shopping centers  Currently 12 registered DDA’s in the State  Work closely with CRA’s and in some cases administer the CRA (less prevalent in recent years)  Independent boards appointed by Governing Body

25. Safe Neighborhood Improvement Districts (NID) Authorized by F.S. 163 Part IV Four different kinds:  Local Government NID  Created by Local Government  Governing Body is Board of Directors or they appoint a 3 to 7 member Board comprised of residents or if a commercial district property owners  Requires advisory council of property owners or residents  May allow NID to levy up to 2 mills  May allow NID to collect special assessment  District may be dissolved by Governing Body upon petition by 60% of resident of the district  Property Owners Association NID  Requires petition by POA  Requires ordinance by local governing body  Requires an association with representation of at least 75% of owners in a defined district  Allows association to collect assessments to implement powers  Exists in perpetuity as long as POA exists

26. Safe Neighborhood Improvement Districts (NID) Authorized by F.S. 163 Part IV Four different kinds (cont.):  Special NID  Requires ordinance by municipality or presentation of a petition to a County signed by 40% of electors in a residential or 20% of property owners in a business area.  Require referendum approved by elector or property owners  May levy up to 2 mills  May impose special assessments  3 member Board of Directors appointed by governing body  10 year lifetime but can be renewed for 10 year increments by referendum  Community Redevelopment NID  Creation must be recommended by a CRA and creation approved by local planning board  Ordinance creating must be adopted by governing body  Allows Redevelopment Trust Fund monies to be used to implement safe neighborhood plan.  CRA is Board of Directors  Requires advisory council of residents or property owners  May be dissolved by governing body at any time.  Governing body must consider dissolution of District if presented with petition by 60% of the residents of a District.

27. Main Street Program National program created as a part of the National Historic Preservation Act of 1966. Administered in Florida by the Bureau of Historic Preservation of the Florida Department of State. Chapter 267, F.S. Non-Profit Corporations - not a Governmental Agency Not created by government Work with a volunteer membership base Often funded through grant from a City/CRA Effect of Main Street is to act as a retail catalyst for the redevelopment area

28. Special Assessment District Chapter 170 of the Florida Statues allows a Governing Body to levy assessments for construction or improvements to: Streets and Sidewalks (lighting, street furniture, drainage, landscaping) Stormwater Systems (canals, marshes, culverts, swales, etc.) Water and Sewer Systems Relocation of Utilities *Off-Street Parking Facilities (including parking garages) *Mass Transportation Facilities Permit Passage and Navigation of Watercraft Assessments may be levied against properties that are adjacent, adjoining, contiguous or which specially benefit by the improvements. * Requires a majority vote of those affecteed.

29. Special Assessment District Chapter 170 also allows any municipality, subject to the approval of a majority of the affected property owners, to levy and collect special assessments against property benefited for the purpose of stabilizing and improving: Retail business districts, Wholesale business districts, or Nationally recognized historic districts, or any combination of such districts This may be undertaken through promotion, management, marketing, and other similar services in such districts Statute does not authorize a municipality to use bond proceeds to fund ongoing operations of these districts.

30. Community Redevelopment Agency Basics THANK YOU ! Presented by: Jeffrey L. Oris, CEcD President Planning and Redevelopment Consultants, Inc. City of Marco Island May 21, 2010