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1 Community Redevelopment Area: CRAs and Waterfront Communities University of Florida College of Law Conservation Clinic.

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Presentation on theme: "1 Community Redevelopment Area: CRAs and Waterfront Communities University of Florida College of Law Conservation Clinic."— Presentation transcript:

1 1 Community Redevelopment Area: CRAs and Waterfront Communities University of Florida College of Law Conservation Clinic

2 2 What is a CRA? Florida Law (Chapter 163, Part III), authorizes local governments to designate areas as Community Redevelopment Areas (CRAs) when certain conditions exist. Florida Law (Chapter 163, Part III), authorizes local governments to designate areas as Community Redevelopment Areas (CRAs) when certain conditions exist. The FL legislature adopted the Community Redevelopment Act in 1969 to help communities revitalize downtowns, preserve historic structures, and otherwise enhance communities through CRAs. The Act is discussed in greater detail in later slides. Fla. Stat. § et seq. The FL legislature adopted the Community Redevelopment Act in 1969 to help communities revitalize downtowns, preserve historic structures, and otherwise enhance communities through CRAs. The Act is discussed in greater detail in later slides. Fla. Stat. § et seq. Simply put, a CRA is a specifically focused financing tool that channels tax increments paid on properties within the designated CRA district back into the CRA area for redevelopment within the CRA. Simply put, a CRA is a specifically focused financing tool that channels tax increments paid on properties within the designated CRA district back into the CRA area for redevelopment within the CRA.

3 3 CRAs & Waterfront Communities CRAs are a viable tool for funding traditional and working waterfront preservation, restoration, and redevelopment. CRAs are a viable tool for funding traditional and working waterfront preservation, restoration, and redevelopment. Traditional & Working waterfronts include: Traditional & Working waterfronts include: Commercial and recreational fishing Commercial and recreational fishing Catch processing Catch processing Boat building Boat building Marinas to accommodate both commercial and non-commercial public access Marinas to accommodate both commercial and non-commercial public access Commercial ports (trade and cruise ships) Commercial ports (trade and cruise ships) Public recreational beach fronts Public recreational beach fronts Certain CRA requirements are waived for waterfront areas as part of the initiative to protect working waterfronts and public access to the waterfront. Fla. Stat. § and § Certain CRA requirements are waived for waterfront areas as part of the initiative to protect working waterfronts and public access to the waterfront. Fla. Stat. § and § With the Coastal Zone Management Act of 1972 (CZMA), Congress established a national policy to preserve marine natural resources, historic coastal features, and public access to waterfronts. 16 U.S.C With the Coastal Zone Management Act of 1972 (CZMA), Congress established a national policy to preserve marine natural resources, historic coastal features, and public access to waterfronts. 16 U.S.C. 1451

4 4 Preserving Waterfronts: Character & Resources Coastal Zone Management The CZMA provides: (a) There is a national interest in the effective management, beneficial use, protection, and development of the coastal zone. (c)....increasing and competing demands upon the lands and waters of our coastal zone occasioned by population growth and economic development, [have resulted in] the loss of living marine resources, wildlife, nutrient rich areas, permanent and adverse changes to ecological systems, decreasing open space for public use, and shoreline erosion. 16 U.S.C. §1451 (emphasis added) Congress recognized that “important ecological, cultural, historic, and esthetic values in the coastal zone which are essential to the well- being of all citizens are being irretrievably damaged or lost.” 16 U.S.C § 302(e) (emphasis added) 16 U.S.C § 302(e) (emphasis added)

5 5 Who Uses CRAs? CRAs are used in over 140 Florida cities CRAs are used in over 140 Florida cities CRAs are used for improvement and redevelopment from the larger cities of Jacksonville, Tampa (Ybor City) and Orlando (Church Street) to mid-size and smaller cities and communities like: CRAs are used for improvement and redevelopment from the larger cities of Jacksonville, Tampa (Ybor City) and Orlando (Church Street) to mid-size and smaller cities and communities like: Boynton Beach, Ft. Pierce, Boynton Beach, Ft. Pierce, Jupiter, Key West, Panama City, Jupiter, Key West, Panama City, Punta Gorda, Riviera Beach, Stuart, St. Andrews Punta Gorda, Riviera Beach, Stuart, St. Andrews Cortez, and the beachfront in Ft. Lauderdale. Cortez, and the beachfront in Ft. Lauderdale.

6 6 Why Use CRAs? CRAs can improve area conditions, including: CRAs can improve area conditions, including: Substandard or inadequate structures Substandard or inadequate structures Inadequate parking Inadequate parking Insufficient roadways Insufficient roadways Shortage of affordable housing Shortage of affordable housing CRAs in Waterfront Communities can be used for: CRAs in Waterfront Communities can be used for: Creating or Preserving Public Access Creating or Preserving Public Access Improving docking facilities Improving docking facilities Building riverwalks or boardwalks Building riverwalks or boardwalks Improving on-street or beach access parking Improving on-street or beach access parking Providing areas for planting native vegetation Providing areas for planting native vegetation

7 7 CRA requirements for Waterfront Communities The CRA Act contains special provisions relative to Waterfront Communities: The CRA Act contains special provisions relative to Waterfront Communities: Fl. Stat : The Legislature found that economically and physically distressed waterfront areas should be revitalized Fl. Stat : The Legislature found that economically and physically distressed waterfront areas should be revitalized Fl. Stat (10) defines CRA to include: Fl. Stat (10) defines CRA to include: a coastal and tourist area that is deteriorating and economically distressed due to outdated building density patterns, inadequate transportation and parking facilities, faulty lot layout or inadequate street layout, or a combination thereof which the governing body designates as appropriate for community redevelopment

8 8 The Design and Planning Committee developed design guidelines for the streetscape, including: increased on-street parking, slowing through traffic, increasing pedestrian safety, and providing areas for planting native vegetation St. Andrews Boardwalk & Pavilion CRAs in Waterfront Communities Public Access

9 9 CRAs in Waterfront Communities Riviera Beach: Working Waterfront The CRA Viking Inlet Plan includes:  Creation of a Public Lagoon  400 Boat Slips  Waterfront Aquarium  An Amphitheater  Marine Sales Center, including boat storage and mechanics

10 10 CRAs in Waterfront Communities Jensen Beach Community Redevelopment District Restoration. Development and Protection of the beach area surrounding the Indian River Lagoon, including increased public access to and education about this valuable aquatic resource increased public access to and education about this valuable aquatic resource Agency has proposed an educational riverwalk which incorporates stormwater retention structures in its design. Agency has proposed an educational riverwalk which incorporates stormwater retention structures in its design.

11 11 Creating a CRA 7 Basic Steps: 1.Research Necessity for a CRA 2.Notify the Public and Taxing Authorities of Intent 3.Present Finding of Necessity at a Public Meeting 4.Legislative Body adopts a Resolution to create a CRA and an overseeing Community Redevelopment Agency 5.Legislative Body creates an Ordinance detailing duties of the Agency and creates a Redevelopment Plan 6.Establish a Trust Fund to finance the CRA

12 12 What is a “Finding of Necessity”? Local Government must survey the proposed redevelopment area to prepare a document (Finding of Necessity) that confirms the required conditions exist to qualify for a CRA: Blight = - Presence of substandard or inadequate structures - Inadequate parking - Insufficient roadways - Shortage of affordable housing

13 13 Research Necessity for a CRA Find Blight in the area Find Blight in the area Show deteriorated buildings are leading to economic distress or endanger life or property AND Show deteriorated buildings are leading to economic distress or endanger life or property AND Show 2 elements of ‘blight’ in area: Show 2 elements of ‘blight’ in area: Defective or Inadequate street layout, parking, etc. Defective or Inadequate street layout, parking, etc. Deterioration of site or other improvements Deterioration of site or other improvements 2002 Legislation made findings of blight more stringent 2002 Legislation made findings of blight more stringent Prove blight through government-maintained statistics or other studies Prove blight through government-maintained statistics or other studies HOWEVER … HOWEVER … What is a “Finding of Necessity”?

14 14 Waterfront CRAs Requirements may be less stringent because of statutory support for coastal revitalization: A coastal resort or tourist area that is deteriorating and Economically distressed due to outdated building density patterns, inadequate transportation and parking facilities, faulty lot layout or inadequate Street layout could [through CRAs] be revitalized and redeveloped to improve the economic and social conditions of the community. FL Stat.§ Findings and declarations of necessity FL Stat.§ Findings and declarations of necessity

15 15 Who Approves Establishing a CRA? Requirement of County Approval In a county that is a charter county, the local municipality may be required to gain county approval. In a county that is a charter county, the local municipality may be required to gain county approval. County approval may be a requirement for unincorporated municipalities County approval may be a requirement for unincorporated municipalities If the county is non-charter, county approval may not be required before establishing a CRA. If the county is non-charter, county approval may not be required before establishing a CRA.

16 16 The Next Steps to Establish a CRA Notify Public and All Taxing Authorities of Intent Notify Public and All Taxing Authorities of Intent Registered Mail Registered Mail Publication in Newspaper Publication in Newspaper Copy of Notice in Clerk’s Office Copy of Notice in Clerk’s Office Present Finding of Necessity at a Public Meeting Present Finding of Necessity at a Public Meeting Provides an opportunity for feedback Provides an opportunity for feedback The City Council Adopts a Resolution creating a CRA and an overseeing Community Redevelopment Agency The City Council Adopts a Resolution creating a CRA and an overseeing Community Redevelopment Agency Specifies the redevelopment boundary area Specifies the redevelopment boundary area Determines the membership of the CRA Agency Determines the membership of the CRA Agency

17 17 The Next Steps to Establish a CRA Council Passes an Ordinance detailing the duties of the Agency to oversee the CRA Council Passes an Ordinance detailing the duties of the Agency to oversee the CRA Determine powers, duties, and procedures Determine powers, duties, and procedures Agency must consist of 5-9 members Agency must consist of 5-9 members As of 2006, Agency no longer has power of eminent domain As of 2006, Agency no longer has power of eminent domain Create a Redevelopment Plan Create a Redevelopment Plan Consistent with the Comprehensive Plan Consistent with the Comprehensive Plan Offer maximum opportunity for redevelopment by private enterprise Offer maximum opportunity for redevelopment by private enterprise Make provision for community parks and recreation areas Make provision for community parks and recreation areas Provide a feasible method to relocate displaced families Provide a feasible method to relocate displaced families

18 18 Administration of the CRA: Three Bodies The Community Redevelopment Agency The Community Redevelopment Agency An Agency required under the CRA Act and created by the local government to administer the CRA district An Agency required under the CRA Act and created by the local government to administer the CRA district The CRA Board The CRA Board A 5 to 9 member board also created by the local government, directs the agency with the support of Advisory Boards for each CRA district A 5 to 9 member board also created by the local government, directs the agency with the support of Advisory Boards for each CRA district Advisory Board Advisory Board Members are appointed by the Agency to develop annual work plans with input from members of the public interested in redevelopment projects in the CRA. Members are appointed by the Agency to develop annual work plans with input from members of the public interested in redevelopment projects in the CRA. Periodically review the Redevelopment Plan to recommend any changes to the long-term plan. Periodically review the Redevelopment Plan to recommend any changes to the long-term plan.

19 19 Establish a Trust Fund to finance the CRA No money from tax increment financing may be spent or collected until the Fund is established No money from tax increment financing may be spent or collected until the Fund is established Money through taxing authorities is deposited by Jan 1 st of each year Money through taxing authorities is deposited by Jan 1 st of each year Examples of what the Fund may finance: Examples of what the Fund may finance: Incentives for restoration or redevelopment Incentives for restoration or redevelopment Administrative and overhead expenses Administrative and overhead expenses Redevelopment planning, surveys, analysis, etc. Redevelopment planning, surveys, analysis, etc. Acquisition of real property in the CRA Acquisition of real property in the CRA Clearance and preparation of any area for redevelopment Clearance and preparation of any area for redevelopment Provide matching funds for Community Block Grants Provide matching funds for Community Block Grants Transportation Improvements Transportation Improvements The Next Steps to Establish a CRA

20 20 How are CRAs Funded? Redevelopment Trust Funds The principal funding source is a Trust Fund set up to receive annual Tax Increment Financing (TIF). The principal funding source is a Trust Fund set up to receive annual Tax Increment Financing (TIF). TIF is any increase (the increment) in CRA District property taxes collected by the County over and above the amount of taxes collected in the base year. TIF is any increase (the increment) in CRA District property taxes collected by the County over and above the amount of taxes collected in the base year. These incremental funds are returned to the CRA District and deposited into the Trust Fund to be used only by the District for projects in the CRA District. These incremental funds are returned to the CRA District and deposited into the Trust Fund to be used only by the District for projects in the CRA District.

21 21 Valid Uses for TIF Monies Redevelopment Trust Funds can be expended for specific redevelopment purposes in the CRA districts for things like: Administrative and overhead expenses Administrative and overhead expenses Redevelopment planning, surveys, and financial analysis Redevelopment planning, surveys, and financial analysis Acquisition and disposal of property Acquisition and disposal of property Preparing land for redevelopment, including clearance, relocation of owners and occupants, and site preparation of redevelopment area property Preparing land for redevelopment, including clearance, relocation of owners and occupants, and site preparation of redevelopment area property Public utilities Public utilities Appropriated to a specific redevelopment project to be completed within 3 years of the date of appropriation Appropriated to a specific redevelopment project to be completed within 3 years of the date of appropriation Deposited in an escrow account to later reduce any indebtedness that increment revenues are pledged Deposited in an escrow account to later reduce any indebtedness that increment revenues are pledged Develop affordable housing for residents of the area, and more. Develop affordable housing for residents of the area, and more.

22 22 More on Funding for a CRA Funding the CRA Tax Increment Financing Tax Increment Financing Revenue comes from 50-95% Revenue comes from 50-95% of tax increment within the of tax increment within the redevelopment area redevelopment area Other Available Funds Other Available Funds Florida Community Development Block Grant (CDBG) Florida Community Development Block Grant (CDBG) provides funding for new sidewalks, underground utilities, trees and facade renovations. provides funding for new sidewalks, underground utilities, trees and facade renovations. Facade Renovation Grant Program Facade Renovation Grant Program provides up to $5,000 per store front provides up to $5,000 per store front Florida Historic Preservation Grants Florida Historic Preservation Grants

23 23 After the CRA is Established Money from the Fund is used to finance restoration and redevelopment of the commercial area Money from the Fund is used to finance restoration and redevelopment of the commercial area Matching Funds Matching Funds Bonding Bonding The CRA exists until it expires or is dissolved The CRA exists until it expires or is dissolved Use it for things like: Use it for things like: Transportation & Parking Transportation & Parking Sidewalks, crosswalks, medians, and turn lanes Sidewalks, crosswalks, medians, and turn lanes Adequate parking Adequate parking Waterfront Boardwalks Waterfront Boardwalks Landscaping Landscaping Improve facades (paint, fencing, & flower barrels) Improve facades (paint, fencing, & flower barrels) Underground utility lines Underground utility lines Seawalls and Bulkheads Seawalls and Bulkheads Commercial Public Infrastructure Commercial Public Infrastructure Maritime Museum Maritime Museum Public Docks and Slips Public Docks and Slips Encourage renovations through incentive Encourage renovations through incentive

24 24 Why Not Your Community?

25 25 Thank You for Your Time Please feel free to ask any questions.


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