Item 1BMINUTES OF WORKSHOP OF
AGENDA ITEM #1B
NOVEMBER 10,2014
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 VanLiere, 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
AGENDA ITEM #lB
NOVEMBER 10, 2014
There being no further discussion by the City Commission, Mayor Woods declared the meeting
adjoumed at 6:00 p.m.
ATTEST
Donna L. Bartle, CMC
City Clerk
-2-
Carolyn Woods
Mayor/Presiding Officer
CRA Basics
Ten Reasons to 'Re'deve l op
Remove Slum & Blight
• Create Clean and Safe Places
• Prevent Crime
• Encourage Economic Development
• Build or Enhance Affordable Housing
Fund Streetscape and other Capital
Improvements
• Preserve Historic Buildings/Resources
• Retain and Recruit Business
• Enhance Parks and Recreation
• Increase the Tax Base
ATTACHMENT A
10/27/2014
A GENOA ITEM fl I B
NOVEMBER 10, 20 14
Agenda
• Why Redevelopment?
Wh at are Community Redevelopment
Agencies (CRAs)7
• What can CRAs Do and Not Do?
What are t he "Ru les of Engagement"?
• How to be an effective CRA Leader
• What are the Best Practices?
Getting sta rted -What do we do next?
What is Redeve lopment?
• ANY activity authorized under
Chapter 163, Part Il l, Florida Statutes.
• Re lative to your CRA, activities are
authorized by your approved
Redevelopment Plan and funded by the
increase in assessed values over time, called
increment.
1
What is a CRA?
Depend ent Spec ial District
Created to re move sl um and blight conditions
within a designated district
Boa rd Membe rs appointed by local
government -elected officials or appointees
or both
• Law genera lly says on l y~ Community
Redeve lopment Agency (Board) per
j uri sdiction
Exception -Charter Counties <1.6 million peop le
CRA may have multiple CRA district s
CR legislative Intent
Er:1dicarion of Slum & Blighted A1~
• constitutes a serio us and growing menac e,
Injurious to public hea lth, safety, welfa r e of
re sidents
• contribu tes to sp rea d of disease and crime
• co ns t itutes an eco nomi c and socia l liability,
decreasi ng taX ba se and revenues
• Impairs sound growth
• retards provisi on of decent housing
accomm oda tions
• agg rava t es traffic problems and traffic hazards
AGENDA ITEM# Ill
NOVEM BER 10, 20 14
10/27/2014
Community Redevelopment Agencies
(CRAs.)
• Authorization fo r CRAs was passed In the Redevelopment
Act of 1969 wh ich bec~me Chapter 163 Part Il l of the
Florida Statutes
Not In widespread usc until after 1980 when State of
Florida v. Mia mi Beach wa s decided
As of last review there are 214 CRA Districts registered
with the Florida Department of Economic Opportunity
Currently t he only form ofT3X Increment Districts In
widespr ead usc In tho State of Florida
CRAs may be crened by a City or County to uslst In the
e limin ation of slum andfor blighting conditi ons
State Is not Involved In the creation of CRAs
How is a CR A Created? All Loca l
• Charter counties "de legate" auth ority to citY
CRAs.
• Non charter counties ca n cha llenge the creation
of city CRA by sta tutory process.
• Finding of NecessitY and "blight'' as den ned by
stat ute, not Mr. Webster.
• CRA Board is established.
• Trust Fund Is create d.
• Redeve lopment Plan Is adopted.
• No state approval required, but reporting
requirements.
2
The CRA Board
• The Governing Body
• A board of between 5 and 9 individuals
appointed by the Governing Body
By lnterlocal agreement may Include representatives
of ta xing aut horities
If the Governing Body is only 5 members then it
ca n be the Governing Body+ 2 individuals
appointed by the Governing Body
• Chair and Vice Chair of the CRA des ignated by
Governing Body (not the CRA Board members)
Even If Allowed By Statute ......
Any project or program a CRA
w 1shes to undertalce must be
outlined in the Community
Redevelopment P lan (CRP)
lf IT IS NOT IN THE
PLAN
YOU CAN'T DO IT !!!!!
ACENDA I TEM II 111
NOVEMBER 10,20 14
10/27/2014
The Redevelopment Plan is the
Blueprint for CRA Activities
When writing a Comm unity Redevelopment Plan it is
important to remember:
• If a program or project is contained In tho Plan, it
need not be undertaken.
• But if a program or project Is NOT contained in
the Pi an it CAN NOT be underta ke n.
Put every thing you might want to do in the Plan
whether you th in I< you will do it or not.
What is Increment Revenue~
Often referred to as "tax increment
financing" or"TIF"
• Calculated from increases in taxes collected
by certain taxing authorities over what was
collected in an established "base year" and
remitted by those au thorities to the CRA
for u se In financing redevelopment activities.
Not ad valorem tax-''amount equal to"
3
Calculating the rncren1ent Revenue
• All taXable proper ties within tho CRA
• SO% to 95% o f th e difference In va lue betwee n ad
valorem revenues In current yea1· and revenues
calculated for base year when trust fund was
establis hed.
• Generally limited to municipality and county an d
future ad valorem districts though some other
districts may have to contribute
• D oes not lnci\Jde debt se rvice millage
• N o longer than 40 years (or 60 years if created
befo re July I , 2002)
Use of Funds -FS 163 Part Ill
Money In th e redevelopment trust fund may be
expended for undertakings as described In t he
communi ty redevelo pment plan, Including, but not
limited to:
Admin istrative and overhead expenses
b Redevelopment planning, surveys, & financi al ana lysis
Acquisition of rea l property In the CRA district
d. Cleara nce/prep aration & r elocation of occupants
Repayment o f borrowed fund s
All expenses rela ted to bonds/other Indebtedness
,_ Development of affordable housing
Community po licing innovations
AGEN DA ITEM # IB
NOVEM BER 10,20 14
l CULAIIN H
The general f ormula used to calcu late
increment r evenues is:
I = r(0.95n -i)
where: 1 ,000
= lhe increment revenues
r " lho taK rate {mlll~g•) in lhe current ye~r
10/27/2014
0.9Sn • 95% of the assessed valuatio n for th e cutrent year
I " ll•e assessed valuation In the base year
Administrative & Overhead Expenses
• Executive Director
• Technical experts
• Other such agents & employees as requir ed
• Counsel and l egal staff
4
lnsurance
• Rememb er, the CRA is a sepa ra te entity.
• It Is likely (but not Imposs ible) that t he governing
body's Insurance does NOT cover the CRA and
Its Board .
• C heck with the city/county's ca.rrler if the CRA
does not have its own in surance.
Other Expenses lnaement Revenues
Can*t AJy For
• U ses not in plan
Pay Board Me mbers/Commission ers for
their service as a CRA Board member
• Pay for any project or program outside
of the Redevelopment A rea (in general)
There MAY be lega l uses of funds outside t he
Redevelopment Area
AGENDA ITEM fJ IB
NOVEMBER l0,201 4
10/27/2014
What Increment Revenues Can't Pay
For 163.370
•I Construction or CJ<panslon of admlnlstrnli\le buildings for public
bodies or pollee and Ora buildings, unless o.ach e~xlng >uthorlty
~greos or un loss the construCtion or expansion Is contemplated
at part of a community policing Jnno~tlon.
Any publicly owned capita l lmproveme<~u or projecu If •ucl1
projects or Improvements wero scheduled pursuan t to a
provlously approved public apia I Improvement or project
schedule or p~n or the governing body which approved tho
community redevelopment pl~n unless and until removed from
such schedule or pla n or th o govemlng body and 3 years h~vo
eJapstd.
(ie.nornl govemmcnt operating expenses un<el>tnd to tha
plannln8 & c::~rrylna out of a communlry redevelopment plan.
Other Expenses/Best Practices
• Capital expenditures
• Promotion, marketing & events
• Incentives and grants
Code enfo r ceme nt
• Land Acquisition
• C ost sha ring/allocation for services
5
Expenses Requiring Careful
Consideration
Marketing/d irect fund ing of events (AG-20 I 0-40)
• Funding non-proflts or others to und erta l ~c
activities in the CRA Plan (AG-20 I 0-4 0)
Substitution of CRA funding for prior City/County
funding (must be after more than 3 years for CIP)
• Maintenance and repair of CRA Projects
• Community policing
• Reimbursement to City/County of expenses
lnterlocal Agre ements
• 163.387 (J)(b) states: Alternate provi sio ns
contain ed in an inter local agreement between a
taxing authority and the governing body .... may
s upersede tho provisions o f this section with
res pect to that taxing authority. Th e
Commu nity Redevelopment Agency may be an
additiona l party to any suc h agreement.
.
AGENDA ITEM fl I ll
NOVEMBER 10,2014
10/27/2014
Powers of a CRA
Chapter 163, Part Ill (hiollly recommended reading)
• I 63.345 -Encouragement of private enterprise.
I 63.358-Exercise of powers In carrying out
redevelopment and related aetlv ltles.
• 163.360(7)(d) Community Redeve lopment Plans
maximum opportunity for rehabilitation and
redevelopment by pnvate enterprise.
163.370 (2)(c) Powers; counties and municipalities;
community redevelopment agencies.
163.380-Disposa l o f Real Property.
• 163.400 Cooperation by public bodies.
• 163.4 10 Exercise of powers In counties with homo rule
charters.
163.4 15 Exercise of powers In counties wit hout home
rule charters .
Reporting Requirements -
Remember all (lve of tl1em
Copy of Proposed and Final Budgets poltcd on olflcia l
Wl!bs•tc (1wo dl1'fr prior/30 doyr afl~r) (Seplelnbtr/October)
Spacial district repordng to the Florida Deponmonl of
Economic Opportunf!y (DEO). Dirision o(({jmmun/!y
De•elopment Spcdol Districts ln(ormodon Prorrom (December)
Annual Report to governing body-(March 31)
Audit (separate or City/County) to each taX Ing ~uthority
and 1oAudi1or Cenetol (4S days ofler comllfedon or june 30)
Annual Financl~i Repor-t (AFIVCAFR) to tl1c florida
Department of Financial Sel"!lces -City or County functi on
Ounc 30)
6
Amending the Redevelopment Pf~n
II, at any t kno after tho approval ol a plan, tho governing body fe els It
necessary to modify or am and !he approved plan, It may duo so
upon r ecom me ndation from tho CRA.
• T ho CAA recommendation m ay Includ e a chanto In tho boundarltl1
or tho redeve lopment.,.,. (to add or cwcludo land). or may Include
tho development 3nd lrnplemenlation o l community policing
Innovations.
• Tho tQYI!l'n lng body must hold a public hearing on tho proposed
nlodiOcadon after a public notice ha s been publ"hed In a newspaper
o ( 1cncral circu lation In tl1e arta In which t.h c agency operator and
th e t:ll<lng authorities that collect a millage within the CAA are
nouned by rcgiSicrcd mall.
• I( UIO mod lOcation Includes cxponslon or thu CAA boundaries, a
Anding of Necessity n•ust be prcp;~red and >doptcd lllrough the
samo procedures as If It were • new CRA.
At the End of the Fiscal Year
In a C RA t here is no car r yo ver
into t h e next fisca l year of an
"Und es ig nated Fun d Ba lance"
AGENDA ITEM# I B
NOVEM BER 10,2014
10/27 /201 4
At the End of the Fiscal Year
Fund s left in the Red eve lopm ent Trust
Fund on th e las t day of the Fiscal Year shall
be:
Return ed to the taX ing authori t ies
• Used t o reduce debt
Deposited in an escrow account for
reducing debt later
• Appropriated to a specific project
contained in the Redevel opment Plan that
w ill be comp leted withi n t hree (3) years
Even If Allowed By Statute ••••••
Any project or program a CRA
w1shes to undertake must be
outlined in the Communi9'
Redevelopment Plan (CRP)
IF IT IS NOT IN THE
PLAN
YOU CAN'T DO IT !!!!!
..
7
The "Rules" of Engagement
Open Meetings-"Sunshine Law"
Open Reco rds -FS 119.01
• Et hi cs/Co nflicts of Inte res t/Gifts
Rece nt Amendments
SB 2/HB 7131 Com prehensive Eth i cs Reform
HB 1075 Public Records Exception for "Agency"
Em ployee Misconduct
Why Private Sector Investment Doesn't
Occt.tr Without Public Assistance
• Investo r s perceive an Inadequate Return on
Investment (ROI)
Understand how Invest ors measure ROI
Learn to adl ust the Imbalance between cost and
revenues
• Lenders perceive an unacceptable leve l of rislc
Understa nd how lend ers evaluate risk
Learn to reduce r isk of default and foreclosure
AGENDA ITEM # I R
NOVEMBER 10,20 14
10/27/2014
Why is the Public Sector
Concerned~
• Attract private investme nt (capital) into
s lu m or blighted areas
Increase the tax base
• In vestment won't occur without public
assistance
Redevelopment -a Contact Sport
• Chapter 163, Part Ill encourages gove rnment to
I nvest~ funds with private eote r pr~ to
ultimately bring an area back to life.
• Local funds, generated by cities and counties, can be
a po litica l footba ll.
• Diverse groups have vastly differing ideas on how
to uso the money.
• Lack of vision, leadership, buy-In, an d r esponsibl e
Implementation can lead to mission drift.
• Public docs not understan d the 'Who, What, When,
Where and Why' of the process.
8
ll Who, What, When, Where and Why
"CRAs use redeve lopment funds, for a
l imited period of t ime, within a
deteriorating area, t o transform it into on e
that again contributes to the overall hea lth
of the com munity."
Hom ework:
Things to Know About Your CRA
What Is the history o f your CRA1
• What has been accomp lishcdl
• What are the cu rrent projects!
• What program s does the CRA offer!
• What's in the plan? Read It in enti rety.
• How much money is in the trust fundi
• How much docs the county v. city contribute!
• How much longer has th e CRA to operate?
• When was the las t time the pl an was amend ed!
AGEN DA IT EM ff Ill
NOVEMBE R 10,20 14
10/27 /2014
How to be a 'CRA Lead er'
• Do your homework (b eneflt from FRA experience).
• Seck input from ci ti ze ns, bu sinesses -build
consensus.
Adopt the shared vision and make a personal
co mmitment to it.
Exp laln'Who,What.Whefi,Wiiere &Wily' as ma ny tim es
as necessary
• Get out of the way-steer don't row.
Work for red evelopmen t success, not credit.
Successful CRAs
• Vision
• Leade rship
• Plan the work, then work the plan
• A passio n for partnerships
• Community su pport and tru st
• Patience and t he "guts" to stick with It
• Wisdom to evolve and em brace t he next
opportunity
9
Building the Consensus
To Vision or Not to Vision ...
• No one right way to bui ld co nsens us
• You can over think it-ask yourself:
Is It time to get the community Involved?
Is It time to move charge forward rega rdle ss?
Id entify easy -to-understa nd
measurement for progress and success
• Continuously build support for the
program
Best Practices
• Understa nd the Market
• Review Land Use & Zoning
• Create Successfu l Partnerships
• Track Your Progress
• Promote Projects and Success Stories
• Create Themes, Campa i gns, Events, and
"Buzz" in the dist rict
j
AGENDA ITEM# 1B
NOVEMBER 10,2014
10/27/2014
Good Ideas
• Be realistic about what can be accomplished,
but ...
. . . be bold In setting goals
• Vision, Mission, Goals, Objectives-keep
them up front
Understand the private secto r/profit motive
Annual stra tegic planning wor1<Shop (two
hours)
Let the annual budget tell the story
Communi cate, Comm unicate, Communicate
More Best Practices
• Always separate CRA vs. Commissio n meetings
• Consider joint procedu res for CRA and city,
e.g .. Personnel Policies
• Maintain separa t e insurance
(errors/omissions, liability)
• Monitor CRA contracts
• Complete all appropriate reports
• Use your legal counse l ·pay now or pay more
later
10
First things first! Getting staned ..•...
163.355 Finding of necessity by coun ty or n>unltipallty.-
No county or municipality sh3U exercise the community
r~dcvclopment authority conferred by this part until ar~r tho
govemlng body hat adopted a resolution. supported by dJtn ~nd
onalysls. which mal<os • l~slauvo nndlng that tl10 conditions In tho
aru meet tho criteria deset1bed In l.J.6l,3~0(1) or (B).ll1e
rotoludon must state thac:
(I) Ono or more slum or bltefn.ed areu. or one or moro areas
In whld1 there h a shora.go of housing affo rdable to residents o r
low or onodcrato Income. Including 1.hc otdor1y. o•lst In 1uch
county or municipality: and
(2) The rehablllcallon, conservation. or rcdovolopment. or~
combi nation thereof. of such area or ar~s.lncludlng.lf
appropriate. tho dcvelopme11t of housing which residents of low
or moderato lncomo,lnclud lns lloo old erly, all afford, Is necessary
In Ule Interest of tho public h~ltl1, safety, morals. or welfare of the
rosid ents or su ch county or munklpality.
Chapter 163.340(8) Definitions
• (8) "BIIgllted am" means an a~ In which thoro aro a subsl;lntl al
numbe r of doterlonted. or deteriorating structurns, In which
conditions, as lndlcal.ed by governmont-ona lnmlned sCltlstlcs or other
stud let, aro leading to emnomlc dlstr~IS or endanger nr., or
property. and In which two or mor~ or the followln: factors aro
prosenc
(a) Prtdomlnance of delc!ctlva or Inadequate stree tlayou ~
p~rkln: f•cilltlcs. roadmys, brldgu. or public t.r.Jnspon:atlon
facllltlc•:
(b) AQycpto auened values of reA l property In tho are<~ for od
valorem tlX purposes have failed to show any appreciable lntrca•c
over tho s years prior to the flndlng or such conditions:
(c) F;.ulty lot layout In re lulon to silO, ad cqoncy. occeulbillty, or
uscfulnou:
(d) UnsaniQry or unsafe conditions:
.
AGEN DA ITEM II Ill
NOVEM BER 10,201 4
10/27/201 4
Chapter 163.3-i0{7) Definitions
(7) "Slum arm" mranson orca havl~~g physical or economic
condfllons conducive to dlseuo.lnf:mc mortality, juvenile
dollnqueiiC)'. poverty, or crltna bcause there Is a prcdomfn3ncc o r
bulldlnj!S or Imp rovements. whether rnsltlentl:l l or nonresidential,
which arc lonp~frcd by reason of dil~pld~tlon.detorloral.lon. :ljle. or
obsolescrnce, and Cllol'>lbltln: one or onorc or the following facton:
(a) ln1dequ1to provision for vcmil>l.lon.lf&ht. air, unlcn lon. or
open spaces:
(b) Hlgh density of popululon, compared to the population
density of adjacent arc.1s wltl>ln the county or municipality; and
over<rowdlng.aJ Indicated by governm ent·malntalnod sl.<lt~dcs or
other studio• ond the requirements of tho Rortda Oulldlng Code:
or
(c) Tile existence of conditions tll:lt end~nger lifo or property
by Oro or other causl!!.
Chapter 163.340(8) Definitions
(o) Dcterloratlon of silo or other Improvements;
(f) lnadequ~to and outdated building density patterns; (g)
F~IIJng lease rates per sq u~ro foot o f orncc,commcrcla l, o r
Industrial space compared to the r~malndcr of the county
or municipality;
(g) F~lllng lease rates per square foot of office. commercial,
or Industrial space compared to the rema inder or the
county or municipality:
(h) Tax or spedal assessment delinquency e~cccdlng the
farr v<lue or the land;
.
11
Chapter 163.3..0(8) Definitions
(1) Rcsldentl~l and commercial vac3n<:y tatcs higher In the
area than In the remainder of the county o r municipality;
(I) Inciden ce of crime In tho area higher tha n In tho
remainder of the county or municipality:
(I<) Fi re and e mergency medica l service call s to the area
proportlonatcly higher than In th () rema ind er of the county
or municipality ;
(I) A greater number of violations of the f lorida Building
Code In tho ~rea tha n the numb er· o f violations record ed In
th e remainder of thQ county or municipa lity:
AGENDA ITEM II Ill
NOVEM il ER 10,201 4
10/27 /2014
Chapter 163.l40(7) Definitions
(m) Diversity of owner5 hlp or defective or unusua l
conditions of title which prevent the free alienability o f land
within the deterio!'11tcd or ha zard ous area; o r
(n) Govcrnmenally owned property with adverse
environmcn~<~l conditions Guscd by ~ public or private entity.
However, tho term "blishted area" also melrl'ls any area In which
at least one of tho f•etors identified In puaffllph• (a) through {n)
aro present and all taxing authorities subject ro s. 163.387(2)(a)
agrctl, either by lnterlocai agreement or agreements with th e
agency or· by resolution, that tho araa Is bllg11tod . Such agre ement
or resolutio n shall only determine that the area Is blighted. For
purpose$ of qualifying for the t:~x credits authorized In chap ter
120, "blighted area" means an area as defined In this subsection.
12