FERNANDINA BEACH COMMUNITY REDEVELOPMENT AREA. CRA Agency Meeting February 28, 2012
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1 FERNANDINA BEACH COMMUNITY REDEVELOPMENT AREA CRA Agency Meeting February 28, 2012
2 What is a CRA? The Cmmunity Redevelpment Act passed in the Flrida Legislature in It prvided the first pprtunity fr legislative assistance t lcal gvernments in eliminating and preventing blighted cnditins. It allws lcal gvernments t create Cmmunity Redevelpment Areas and Agencies. A Cmmunity Redevelpment Agency is the entity which carries ut redevelpment initiatives and effrts within a Cmmunity Redevelpment Area. Agency r Area? Æ BOTH! A CRA is a dependent special taxing district set up by the City fr the purpse f eliminating slum and blight, enhancing the tax base and encuraging bth public and private imprvements in the CRA Area. Cvered by F.S. Chapter 163 Part III and Chapter 189 CRA s have terms frm 7-30 years with an average f 20 years in Flrida. The CRA s surce f revenue can be used t make public imprvements. CRA s are utilized by ver 200 cities in Flrida t revitalize urban areas. An integral cmpnent f creating a CRA is the preparatin and adptin f a CRA Master Redevelpment Plan, which sets frth the prgrams fr imprvement fr the redevelpment area. In Fernandina Beach, the CRA (agency) is the City Cmmissin.
3 Redevelpment It s the revitalizatin f a public area AND, the preservatin f a cmmunity's histry. It s abut building chesiveness within ur cmmunity It is NOT: Relative t CRA s, it is: O Any activity authrized under Chapter 163, Part III, Flrida Statutes. O O O O It revlves arund a publicly custmized plan, funded by the increase in assessed values ver time, called increment. O O O O O Anything spent utside the plan r area Eminent dmain fr redevelpment purpses General gvernment line items Grants r dnatins t nn-prfits r events that have nthing t d with the redevelpment plan Salaries fr city staff that d nt wrk directly n CRA activities Operatins Maintenance nrmally dne by the City Cmprehensive planning, zning r land use
4 Pwers f a CRA (recmmended reading) F.S Exercise pwers in carrying ut cmmunity redevelpment and related activities F.S Pwers f the cunty and municipalities in CRAs F.S Exercise f pwers in cunties with hme rule charters F.S Exercise f pwers in cunties withut hme rule charters F.S Cperatin by public bdies
5 Hw did we get a CRA? Visin 2000 & Visin 2020: Ensure marina cmpletin Develp a riverfrnt walkway Refurbish the marina withut delay and remve restrictins t flw f river thrugh marina Establish a waterfrnt park, bardwalk/prmenade, and band shell t be used fr gatherings, art cncessins, and musical entertainment Develp a prt f call fr small t medium class cruise ships Ensure that there will be adequate parking fr the Waterfrnt Park and dwntwn Waterfrnt Task Frce Recmmendatins: Rip Rap bulkhead Upgrade electric service and bury utilities N new cruise ships Clean up city prperty Design guidelines and architectural review fr new cnstructin. Enhance the viewing area with a bardwalk and benches alng marina. Open bth Alachua and Beech Streets fr vehicular access t Frnt Street and additinal parking and include pedestrian walkways. Direct PAB t create a new zning fr the waterfrnt, which wuld cmbine the best aspects f IW and C-3
6
7 First Created n March 2, 2004 O Adpted CRA Bundary by Reslutin O Ttaling: 104 Prperties
8 April 20, 2004 O O O Revised CRA Bundary by Reslutin Added residential area t the suth Ttaling: 131 Prperties
9 August 12, 2004 OReslutin : CC directed Staff t revise the CRA bundary by remving nrth and suth Residential Areas and ensuring the City Marina prperties were included
10 Last mdificatin May 3, 2005 O Amended CRA Bundary by Reslutin O Ttal: 56 Prperties O Base Tax Value: $13.6 Millin
11 Blight can be defined as an area including a substantial number f deterirated r deterirating structures, ptentially leading t ecnmic distress r the endangerment f life r prperty. Finding f Necessity (FON) cntains: Identified Cnditins f Blight Prperties within the Redevelpment Area Redevelpment Area Bundaries
12 Redevelpment Plan Generally, Blueprint fr redevelpment & reinvestment in the CRA Base Year + Bundaries nt amendable as part f Plan Sets gals, specifies pririties, + identifies prjects Addresses unique custmized needs Radmap fr private sectr Requirements fund in F.S It s a living dcument which can be amended as needed 20 Year Plan- Adpted in May 2005 Established bjectives and strategies that aim t address blighted cnditins as identified in the Finding f Necessity Study in a manner cnsistent with the cmmunity s visin fr the area. Strategies include a generalized timeframe t assist the City in priritizing initiatives. The timeframes are established as a planning guide. Prjects may be repriritized as funding, partnerships r ther pprtunities becme available.
13 What is ur CRA trying t achieve? Fernandina Beach adpted its CRA Plan in 2005 which set initiatives t: Act as a catalyst fr change by creating functinal and aesthetic imprvements t spark redevelpment Take a leadership rle in effrts Æ visual evidence that the City believes in itself Generate activity and renewed interest Æ expand recreatinal pprtunities + imprve pedestrian access
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15 FINANCING CRA IMPROVEMENTS
16 What is Tax Increment Financing? Assessed Value (AV) Tax Increment Financing (TIF) is the funding mechanism used t prvide mney fr redevelpment within the CRA n public prjects. It allws fr redistributin f tax revenues generated frm the targeted area. Increased AV frm Develpment New Pst Prject AV Incremental AV Belngs t TIF Authrity BASE AV AV belngs t all taxing districts Ttal AV nw Belngs t all Taxing districts 30 Year TIF Created Terminated Surce: Craig Jhnsn, Indiana University
17 Generally, Hw des TIF Wrk? Ad valrem prperty values are frzen at base year fr the area and tax revenues due t an increase in prperty value in excess f the base year g int a CRA trust fund. Example f hw this shuld wrk assuming cnstant millage rate: Value f All CRA Prperties Base Year 2006 $10,000 value City and Cunty Receive¹ Current Year 2011 $15,000 value City and Cunty Receive¹ Redevelpment Trust Fund Receives² $5.60 ¹ incremental value is multiplied by the current year s millage rate ² CRA fund receives nly 95% f the prperty taxes assciated with the incremental value with 5% ging t the City and the Cunty
18 Fernandina Beach CRA Values 2005 Base Year Value Taxable value in TIF Area Tax Increment Value Ttal City (Final Taxable Value) $13,665,728 $1,847,029, $13,665,728 $14,995,218 $1,329,490 $2,042,725, $13,665,728 $16,263,672 $2,597,944 $2,046,550, $13,665,728 $15,456,047 $1,790,319 $1,890,839, $13,901,085 $12,585,675 $-1,315,410 $1,709,450, $13,901,085 $11,913,688 $-1,987,397 $1,636,799,250
19 CRA Activity FY / / /2010 Revenue City Prperty Taxes Cunty Prperty Taxes Interest Incme Transfer frm General Fund 4, , , , , , , , Ttal Revenue 466, , , , , , , , , , , , , , Expenses Prfessinal Services Zev Chen Rice Architects Manzie E Clinch Kavanaugh Jacbs Other Subttal Prfessinal Services 17, , Training/Travel Ttal Expenses 52, Cash Balance Frward at 9/30/ /2011 Life t Date 21, , , , , , , , , , , , , , , , , , , ,724.66
20 What Can the $ be Spent n? Administrative + Overhead t Carry Out the Adpted Plan Planning, Surveys, and Financial Analysis Reimbursement fr start-up csts Acquisitin f real prperty within the CRA Clearance + Site Preparatin Repayment f lans, advances, bnds, bnd anticipatin ntes, and ther debt Cst f issuance, sale, redemptin, retirement r purchase f agency bnds Affrdable husing within the area Cmmunity plicing innvatins (Cde Enfrcement activities) Anything in the Plan r Finding f Necessity, AND within the adpted bundaries
21 TIF $$ Cannt be spent n *Trust fund mney fr any prject, prgram, dnatin, spnsrship, grant that is nt expended in the CRA and nt clearly in the redevelpment plan.* Cnstructin r expansin f administrative buildings fr public bdies r plice + fire, unless each taxing authrity agrees t such methd f financing fr cnstructin r unless the imprvement is part f a cmmunity plicing innvatin. Prjects under any previusly existing CIP r nn-cra funding plan until they are ff that list fr 3 years General gvernment perating expenses unrelated t planning and carrying ut f the CRA plan
22 ACHIEVING SUCCESS IN THE FUTURE
23 Annual CRA Cycle f Activities OCTOBER: SEPTEMBER: Budget Fee + Reprt due t Special Districts Prgram at DCA NOVEMBER: CRA inf t City fr inclusin in Cmprehensive Annual Financial Reprt (CAFR) APRIL- AUGUST: Take Actin! MARCH 31: CRA Annual reprt t taxing authrity DECEMBER- FEBRUARY Gather yur vlunteersestablish new partnershipsstrategies Actin Plan + any New Events
24 Indicatrs f a Successful CRA: Psitive Cash Flw/ $$$ in its Fund Leadership A shared visin easily identified within the cmmunity Passin fr PARTNERSHIPS Cmmunity Supprt and TRUST It s Transparent Evlve and embrace the next pprtunity Cntinuusly builds supprt fr the prgram Cmmunicatin- Cmmunicatin- Cmmunicatin!
25 Revising the Base Year r Extending Term: 1. Mdify rdinance and cnduct nticed public hearing Cnsider yur Optins: Expand r Cntract Existing Bundaries Extend Term f CRA Re-establish gverning framewrk Opprtunity t Seek Cnsensus fr Change General Updates, Additins, + Edits Recmmend ntice t Nassau Cunty in writing and/r frmal presentatin Applicable Statute: (9-10) Rughly 20 knwn jurisdictins in the State are lking t d this, nw nne have yet! Amending the Plan: Update plan every 5 years t re-set its gals Check fr cnsistency with Cmprehensive Plan Visining, similar t its initial creatin Establish Missin, Gals, and Objectives Revisins by the CRA Agency shuld be sent t PAB and City Cmmissincnduct public hearing, then apprve revised rdinance.
26 Best Practices Understand the Market Review Land Use & Zning Create Successful Partnerships Track Yur Prgress Prmte Prjects and Success Stries Create Themes, Campaigns, Events and Buzz in the district Always separate CRA v. Cmmissin Meetings Maintain separate insurance (errrs/ missins, liability) Mnitr CRA Cntracts Cmplete all apprpriate reprts Use yur legal cunsel Take a cperative apprach t gverning Seek t create dialgue within the cmmunity
27 Discussin & Decisin Pints Review Rles & Respnsibilities CC remain as the CRA Agency? City Manager remain as Directr? Hw ften wuld yu be willing t meet as the CRA bard? Quarterly? Semi-annual? D yu want t re-set the base year? Des the Redevelpment Plan need updating? Enhance prject specificity
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