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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