10-27-14 Workshop MINUTES OF WORKSHOP OF
ATLANTIC BEACH CITY COMMISSION HELD ON OCTOBER 27, 2014
PRESENT: Mayor Carolyn Woods
Mayor Pro Tern Mark Beckenbach
Commissioner Jonathan Daugherty
Commissioner Jimmy Hill
Commissioner Maria Mark
ALSO: Nelson Van Liere, Interim City Manager
Rich Komando, City Attorney
Donna Bartle, City Clerk
Nancy Bailey, Recording Secretary
Call to order.
Mayor Woods called the meeting to order at 4:00 p.m. in the Commission Chamber. She explained the
procedures for the Workshop.
1. CRA 101 Presentation by Steve Lindorff, Planning and Development Director, Jacksonville
Beach; and Carol Westmoreland, Executive Director, Florida Redevelopment Association.
Building and Zoning Director Jeremy Hubsch introduced Mr. Lindorff and turned the meeting over to
him. He also introduced Ms. Westmoreland and explained she would be here shortly, as she was caught
in traffic.
Mr. Lindorff explained his background and experience with Jacksonville Beach in redevelopment and
the Community Redevelopment Agency (CRA). He gave a slide presentation on the CRA (which is
attached to the minutes as Attachment A). Mr. Lindorff answered questions from the Commission.
Ms. Westmoreland explained eminent domain pointing out that the CRA does not have the power to use
eminent domain. Ms. Westmoreland also answered questions from the Commission and she and Mr.
Lindorff further explained the CRA.
Mr. Hubsch stated Mayport Village is also planning to do a CRA at this time.
Mr. Lindorff explained the difference between the definition of a slum and/or a blighted area, which is a
requirement to starting a CRA.
Discussion ensued.
The Commission thanked Mr. Lindorff and Mr. Westmoreland for coming.
Mayor Woods stated they would now need to put it on the agenda for discussion and task staff to do
some of the preliminary research and come back to us and have another workshop and continue moving
forward. Mr. Hubsch stated he would put it on the November 27 agenda.
Adjournment
There being no further discussion by the City Commission, Mayor Woods declared the meeting
adjourned at 6:00 p.m.
ATTEST Carolyn Wood
04/ VZS/Vet. Mayor/Presiding fficer
Donna L. Bartle, CMC
City Clerk
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ATTACHMENT A
10/27/2014
i
Bas
CRA Basics Agenda
D • Why Redevelopment?
• What are Community Redevelopment
Agencies(CRAB)?
• What can CRAs Do and Not Do?
• What are the"Rules of Engagement"?
• How to be an effective CRA Leader
• What are the Best Practices?
•- t- • Getting started—What do we do next?
FLORIDA
ASSOCIATION
Ten Reasons to 'Re'develop What is Redevelopment?
• Remove Slum&Blight • ANY activity authorized under
• Create Clean and Safe Places Chapter 163,Part III,Florida Statutes.
• Prevent Crime
• Encourage Economic Development • Relative to your CRA,activities are
• Build or Enhance Affordable Housing authorized by your approved
• Fund Streetscape and other Capital Redevelopment Plan and funded by the
Improvements increase in assessed values over time,called
• Preserve Historic Buildings/Resources increment.
• Retain and Recruit Business
• Enhance Parks and Recreation
• Increase the Tax Base
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What is a CRA? Community Redevelopment Agencies
(CRAs)
• Dependent Special District
• Authorization for CRAs was passed in the Redevelopment
• Created to remove slum and blight conditions Act of 1969 which became Chapter 163 Part Ill of the
within a designated district Florida Statutes
• Board Members appointed by local • Not in widespread use until after 1980 when State of
pp Y Florida v.Miami Beach was decided
government—elected officials or appointees • As of last review there are 214 CRA Districts registered
or both with the Florida Department of Economic Opportunity
• Law generally says only one Community • Currently the only form of Tax Increment Districts in
g Y Y Y tY widespread use in the State of Florida
Redevelopment Agency(Board)per • CRAs may be created a City or County to assist in the
jurisdiction elimination of slum and/or blighting conditions
Exception-Charter Counties<1.6 million people • State is not involved in the creation of CRAs
• CRA may have multiple CRA districts
CRA Legislative Intent How is a CRA Created? All Local
Eradication of Slum&Blighted Areas
• constitutes a serious and growing menace, • Charter counties"delegate"authority to city
injurious to public health,safety,welfare of CRAs.
residents • Non charter counties can challenge the creation
• contributes to spread of disease and crime of city CM by statutory process.
• constitutes an economic and social liability, • Finding of Necessity and"blight"as defined by
decreasing tax base and revenues statute,not Mr.Webster.
• impairs sound growth • CM Board is established.
• retards provision of decent housing • Trust Fund is created.
accommodations • Redevelopment Plan is adopted.
• aggravates traffic problems and traffic hazards • No state approval required,but reporting
requirements.
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The CRA Board The Redevelopment Plan is the
Blueprint for CRA Activities
• The Governing Body
• A board of between 5 and 9 individuals When writing a Community Redevelopment Plan it is
appointed by the Governing Body
•
important to remember:
By interlocal agreement may include representatives If a program or project is contained in the Plan,it
of taxing authorities need not be undertaken.
• If the Governing Body is only 5 members then it • But if a program or project is NOT contained in
can be the Governing Body+2 individuals the Plan it CANNOT be undertaken.
appointed by the Governing Body • Put everything you might want to do in the Plan
• Chair and Vice Chair of the CRA designated by whether you think you will do it or not.
Governing Body(not the CRA Board members)
Even If Allowed By Statute What is increment Revenue?
Any project or program a CRA • Often referred to as"tax increment
wishes to undertake must be financing"or"TIF"
outlined in the Community • Calculated from increases in taxes collected
Redevelopment Plan (CRP) by certain taxing authorities over what was
collected in an established"base year"and
IF IT IS NOT IN THE remitted by those authorities to the CRA
PLAN for use in financing redevelopment activities.
YOU CAN'T DO IT "I" • Not ad valorem tax—"amount equal to"
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Calculating the Increment Revenue
• All taxable properties within the CRA The general formula used to calculate
• 50%to 95%of the difference in value between ad increment revenues is:
valorem revenues in current year and revenues
calculated for base year when trust fund was
established. I = r(O.95n - i)
• Generally limited to municipality and county and loOo
future ad valorem districts though some other where
districts may have to contribute
• Does not include debt service millage I =the increment revenues
• No longer than 40 years(or 60 years if created r =the tax rate(millage)in the current year
before July I,2002) 0.95n =95%of the assessed valuation for the current year
i =the assessed valuation in the base year
Use of Funds— FS 163 Part III Administrative &overhead Expenses
Money in the redevelopment trust fund may be • Executive Director
expended for undertakings as described in the
community redevelopment plan,including,but not • Technical experts
limited to: • Other such agents&employees as required
Administrative and overhead expenses
Redevelopment planning,surveys,&financial analysis • Counsel and legal staff
Acquisition of real property in the CRA district
Clearance/preparation&relocation of occupants
Repayment of borrowed funds
r All expenses related to bonds/other indebtedness
v, Development of affordable housing
Community policing innovations
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Insurance What Increment Revenues Can't Pay
For 163370
• Remember,the CRA is a separate entity. Construction or expansion of administrative buildings for public
bodies or police and fire buildings,unless each taxing authority
• It is likely(but not impossible)that the governing agrees or unless the construction or expansion is contemplated
body's insurance does NOT cover the CRA and as part of a community policing innovation.
its Board. Any publicly owned capital improvements or projects if such
Check with the city/county's carrier if the CRA projects or improvements were scheduled pursuant to a
• previously approved public capital improvement or project
does not have its own insurance. schedule or plan of the governing body which approved the
community redevelopment plan unless and until removed from
such schedule or plan of the governing body and 3 years have
elapsed.
General government operating expenses unrelated to the
planning&carrying out of a community redevelopment plan.
Other Expenses Increment Revenues
Can't Pay For Other Expenses/Best Practices
• Capital expenditures
• Uses not in plan • Promotion,marketing&events
• Pay Board Members/Commissioners for
• Incentives and grants
their service as a CRA Board member
• Pay for any project or program outside • Code enforcement
of the Redevelopment Area(in general) • Land Acquisition
•There MAY be legal uses of funds outside the • Cost sharing/allocation for services
Redevelopment Area
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Expenses Requiring Careful Powers of a CRA 10/27/2014
Consideration Chapter 163,Part III(highly recommended reading)
• Marketing/direct funding of events (AG-2010-40) • 163.345—Encouragement of private enterprise.
• 163.358—Exercise of powers in carrying out
• Funding non-profits or others to undertake redevelopment and related activities.
activities in the CRA Plan(AG-2010-40) • I63.360(7)(d)Community Redevelopment Plans
for prior City/County maximum opportunity for rehabilitation and
• Substitution of CRA funding P tY ty redevelopment by private enterprise.
funding(must be after more than 3 years for CIP) • 163.370(2)(c)Powers;counties and municipalities;
• Maintenance and repair of CRA Projects community redevelopment agencies.
• 163.380—Disposal of Real Property.
• Community policing • 163.400 Cooperation by public bodies.
• Reimbursement to City/County of expenses • 163.410 Exercise of powers in counties with home rule
charters.
• 163.415 Exercise of powers in counties without home
rule charters.
Interlocal Agreements Reporting Requirements—
Remember all five of them
• 163.387(3)(b)states:Alternate provisions Copy of Proposed and Final Budgets posted on official
contained in an inter local agreement between a website(two days prior/30 days after)(September/October)
taxing authority and the governing body....may Special district reporting to the Florida Department of
supersede the provisions of this section with Economic Opportunity(DED).Division of Community
respect to that taxing authority The governing Development Special Districts Information Program(December)
Annual Report to g body—(March 31)
Community Redevelopment Agency may be an
additional party to any such agreement. Audit(separate or City/County)to each taxing authority
P rtY Y and to Auditor General(45 days after completion or June 30)
s Annual Financial Report(AFR/CAFR)to the Florida
Department of Financial Services—City or County function
(June 30)
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Amending the Redevelopment Plan At the End of the Fiscal Year
• If,at any time after the approval of a plan,the governing body feels it Funds left in the Redevelopment Trust
necessary to modify or amend the approved plan,t may due so Fund on the last day of the Fiscal Year shall
upon recommendation from the CRA.
y
• The CRA recommendation may include a change in the boundaries be:
of the redevelopment area(to add or exclude land),or may include • Returned to the taxing authorities
the development and implementation of community policing • Used to reduce debt
innovations.
• The governing body must hold a public hearing on the proposed • Deposited in an escrow account for
modification after a public notice has been published in a newspaper reducing debt later
of general circulation in the area in which the agency operates and
• Appropriated to a specific project
the taxing authorities that collect a millage within the CRA are contained in the Redevelopment Plan that
notified by registered mail.
If the modification includes expansion of the CM boundaries,a will be completed within ree(3)years
Finding of Necessity must be prepared and adopted through the
same procedures as if it were a new CRA
At the End of the Fiscal Year Even If Allowed By Statute
carryover Any project or program a CRA
In a CRA there is no Carr
y wishes to undertake must be
into the next fiscal year of an outlined in the Community Plan(CRP-)
"Undesignated Fund Balance" IF IT IS NOT IN THE
PLAN
YOU CAN'T DO IT ""ni
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The "Rules" of Engagement Why is the Public Sector
Concerned?
• Open Meetings-•"Sunshine Law"
• Open Records—FS 119.01 • Attract private investment(capital) into
slum or blighted areas
• Ethics/Conflicts of Interest/Gifts
• Increase the tax base
• Recent Amendments `
• Investment won't occur without public
SB 2/HB 7131 Comprehensive Ethics Reform assistance
HB 1075 Public Records Exception for"Agency" n 'S
Employee Misconduct
Why Private Sector Investment Doesn't
Occur Without Public Assistance Redevelopment - a Contact Sport
• Investors perceive an inadequate Return on „ • Chapter 163,Part III encourages government to
Investment(ROI) invest public funds with private enterprise to
Understand how investors measure ROI ry ultimately bring an area back to life.
Learn to adjust the imbalance between cost and • Local funds,generated by cities and counties,can be
revenues a political football.
• Lenders perceive an unacceptable level of risk • Diverse groups have vastly differing ideas on how
Understand how lenders evaluate risk to use the money
Learn to reduce risk of default and foreclosure • Lack of vision,leadership,buy-in,and responsible
implementation can lead to mission drift.
• Public does not understand the'Who,What,When,
Where and Why of the process.
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Who,What,When,Where and Why How to be a 'CRA Leader'
"CRAB use redevelopment funds,for a • Do your homework(benefit from FRA experience).
limited period of time,within a <_ • Seek input from citizens,businesses—build
deteriorating area,to transform it into one consensus.
that again contributes to the overall health
• Adopt the shared vision and make a personal
commitment to it.
of the community." lain Who,What When,Where&
Fxp � Why as many times
as necessary
• Get out of the way—steer don't row
• Work for redevelopment success,not credit.
Homework:
Things to Know About Your CRA Successful CRAB
• What is the history of your CRA? • Vision
• What has been accomplished? • Leadership
• What are the current projects? • Plan the work,then work the plan
• What programs does the CRA offer? • A passion for partnerships
• What's in the plan? Read it in entirety. • Community support and trust
• How much money is in the trust fund? • Patience and the"guts"to stick with it
• How much does the county v.city contribute?
• How much longer has the CRA to operate? • wisdom to evolve and embrace the next
• When was the last time the plan was amended?
opportunity
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Building the Consensus Good Ideas
To Vision or Not to Vision . . .
• No one right way to build consensus • Be realistic about what can be accomplished,
• You can over think it—ask yourself: but...
... be bold in setting goals
Is it time to get the community involved? • Vision,Mission,Goals,Objectives—keep
Is it time to move charge forward regardless? them up front
• Identify easy-to-understand • Understand the private sector/profit motive
measurement for progress and success • Annual strategic planning workshop(two
• Continuously build support for the hours)
program • Let the annual budget tell the story
• Communicate,Communicate,Communicate
Best Practices More Best Practices
• Understand the Market • Always separate CRA vs.Commission meetings
• Review Land Use&Zoning • Consider joint procedures for CRA and city,
`„ e.g..Personnel Policies
• Create Successful Partnerships • Maintain separate insurance
• Track Your Progress (errors/omissions,liability)
• Promote Projects and Success Stories • Monitor CRA contracts
• Create Themes,Campaigns, Events,and • Complete all appropriate reports
"Buzz"in the district • Use your legal counsel-pay now or pay more
later
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First things first!Getting started Chapter 163.340(7) Definitions
• 163.355 Finding of necessity by county or municipality.—
No county or municipality shall exercise the community • (7) "Slum area"means an area having physical or economic
redevelopment authority conferred by this part until after the conditions conducive to disease,infant mortality,juvenile
governing body has adopted a resolution,supported by data and delinquency,poverty,or crime because there is a predominance of
analysis,which makes a legislative finding that the conditions in the buildings or improvements,whether residential or nonresidential,
area meet the criteria described in g 163.340(7)or(8)..The which are impaired by reason of dilapidation,deterioration.age.or
resolution must state that obsolescence,and exhibiting one or more of the following factors:
(I) One or more slum or blighted areas,or one or more areas (a) Inadequate provision for ventilation,light.air,sanitation,or
in which there is a shortage of housing affordable to residents of open spaces;
low or moderate income,including the elderly,exist in such
county or municipality;and (b) High density of population,compared to the population
(2) The rehabilitation,conservation,or redevelopment,or a density of adjacent areas within the county or municipality;and
combination thereof,of such area or areas,including if overcrowding,as indicated by government-maintained statistics or
appropriate,the development of housing which residents of low other studies and the requirements of the Florida Building Code;
or moderate income,including the elderlls can afford,is necessary or
in the interest of the public health,safety,morals,or welfare of the
residents of such county or municipality. (c) The existence of conditions that endanger life or property
by fire or other causes.
Chapter 163.340(8) Definitions Chapter 163.340(8) Definitions
• (8) "Blighted area"means an area in which there are a substantial (e) Deterioration of site or other improvements;
number of deteriorated,or deteriorating structures,in which
conditions,as indicated by government-maintained statistics or other (f) Inadequate and outdated building density patterns;(g)
studies,are leading to economic distress or endanger life or Falling lease rates per square foot of office,commercial,or
property,and in which two or more of the following factors are industrial space compared to the remainder of the county
present or municipality;
(a) Predominance of defective or inadequate street layout. (g) Falling lease rates per square foot of office,commercial,
parking facilities,roadways,bridges,or public transportation
facilities; or industrial space compared to the remainder of the
(b) Aggregate assessed values of real property in the area for ad county or municipality;
valorem tax purposes have failed to show any appreciable increase (h) Tax or special assessment delinquency exceeding the
over the S years prior to the finding of such conditions; fair value of the land;
(c) Faulty lot layout in relation to size,adequacy,accessibility,or
usefulness;
(d) Unsanitary or unsafe conditions;
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Chapter 163.340(8) Definitions Chapter 163340(7) Definitions
(i) Residential and commercial vacancy rates higher in the (m) Diversity of ownership or defective or unusual
area than in the remainder of the county or municipality; conditions of title which prevent the free alienability of land
(j) Incidence of crime in the area higher than in the within the rn deteriorated Governmentally owned or hazardous area:or
remainder of the county or municipality; (n) Governmentally owned property with adverse
environmental conditions caused by a public or private entity.
(k) Fire and emergency medical service calls to the area
proportionately higher than in the remainder of the county
or municipality; • However,the term"blighted area"also means any area in which
at least one of the factors identified in paragraphs(a)through(n)
(I) A greater number of violations of the Florida Building are present and all taxing authorities subject to s.I 63.387(2)(a)
Code in the area than the number of violations recorded in either interlocal agreement the remainder of the county or municipality; agrnc or by that the area agreements�agreement
by blighted. agreement
or resolution shall only determine that the area is blighted.For
purposes of qualifying for the tax credits authorized in chapter
220,"blighted area"means an area as defined in this subsection.
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