Fort Walton Beach Council agenda — 04-10-12 cra — reading text

improvements, business retention and expansion, and infrastructure improvements are essential to build on the redevelopment efforts. A 2007 update to the CRA Plan began to change the focus of planning and development to a more mixed -use district with greater residential density - recognizing that successful urban centers require both residential and business development. With little vacant land throughout the CRA and the City, growth is possible primarily through increased density and infill development. This 2012 update to the CRA Plan continues to focus on more effective and efficient approaches to the development of mixed -use areas and smart growth through a comprehensive improvement program. Growth and redevelopment slowed significantly in the CRA with the economic decline beginning in 2008 and into 2012, but the lag gave the CRA an opportunity to re- evaluate priorities and position itself to focus more on specific strategies to truly achieve widespread economic revitalization in the CRA. The focus has shifted from trying to " force" a desired development pattern to instead, realizing and forecasting the natural development pattern and providing the tools necessary to accommodate and compliment redevelopment. In the remaining years of the CRA, much is left to be accomplished. 1. 4 The Need for a CRA Plan Updat To bring forth the new priorities and strategies, the CRA Board of Commissioners directed staff to begin updating the existing CRA Plan, last updated in 2007, in part because much of the information in that plan is now outdated; but also because many of the recommendations from the 2007 CRA Plan have either been implemented or are no longer applicable as the economic climate of the area has changed. The 2012 CRA Plan includes all elements required by Chapter 163, F. S. ( Florida Statutes), for a community redevelopment plan. Short- term ( up to five years) and long -term ( up to 10 years) capital improvement projects are identified in this plan as a means to address current issues, as well as continue to address issues 2012 Community Redevelopment Plan Packet Pg. 26  8. 1. a identified in the prior CRA Plans. The Finding of Necessity documentation prepared for the 1982, 1998, and 2007 CRA Plans is hereby adopted by reference into the 2012 CRA Plan. Concepts for creative funding options, including private orjoint public/private developments that further the goals and objectives of this Plan, are also identified. Other recommendations identify programs and strategies to assist in the overall revitalization of the Fort Walton Beach CRA. This CRA Plan does not recommend any changes to the current CRA boundaries or to the duration of the CRA. The provisions of this Plan shall remain in effect, and serve as a guide for the future redevelopment activities in the entire designated Fort Walton Beach CRA Area through December 31, 2026, when the CRA sunsets. Since the enactment of the Community Redevelopment Act of 1969, local governments have utilized the designation of redevelopment areas as an effective method to address blighted conditions within their communities. To understand the purpose and effectiveness of Community Redevelopment Areas, one must understand the process local governments complete to designate Community Redevelopment Areas, 2012 Community Redevelopment Plan Packet Pg. 27  8. 1. a The CRA Process Contents: Kees to Success for a Community Redevelopment Area ( CRA)? what is Tax Increment Financing ( TIF)? a The Fort Walton Beach CRA TIF Fund Aan The CRA Budget Process acm U The language of the Community Redevelopment Act provides three crucial " keys" to inspire the local government' s success in addressing blighted conditions within their community rm Local self-determination; An emphatic directive to maximize private enterprise participation in the redevelopment efforts; and '^ e A method for funding without raising additional taxes. Local self -determination lays out the framework for the local government to create a separate legal entity call a Community Redevelopment Agency ( CRA) via Ordinance and following the requirements of Chapter 163, Part III, F. S. The directive to maximize private enterprise participation in redevelopment results in initiating programs and projects to stimulate private sector participation. The CRA should attempt to identify the impediments to private enterprise fulfilling its roles so that private enterprise can apply its resources to assist in ameliorating the area' s economic shortcomings as well as to operate a profitable venture for itself. The third " key ", Tax Increment Financing ( TIF), is the primary method of funding for projects and programs setup by the CRA though a Redevelopment Trust Fund. 14 2012 Community Redevelopment Plan Packet Pg. 28  8.8. 1.1. aa Authorized under the Community Redevelopment Act of 1969, ( Section 163. 330, F. S.), the Community Redevelopment Area functions as a Tax hrerement Financing PoATIFAV District. Often referred to as 1a ,, JAV Aftm b Wts Tae : gemrxedby TIF," it is a method to pay for h: m„• m• nal". k redevelopment through the e, o yrw Q r ^ 9a wwsiafim annual increase in ad valorem o.•. av rm 9 +9• nrY tax revenue. The process for calcualatingcalcualating TIETIE revenuerevenue , , avNNva requiresrequires firstfirst establishingestablishing aa TIFTIF ntnt Termm,Termm, ioonioon DateDate basebase assessedassessed valuevalue ( ( BaseBase CreationCreation DateDate aFaF AV).AV). ThisThis isis thethe totaltotal assessedassessed valuevalue ofof thethe propertyproperty withinwithin thethe districtdistrict atat thethe datedate thethe RedevelopmentRedevelopment TrustTrust FundFund isis established.established. AtAt thatthat point,point, thethe incremental incremental increaseincrease inin assessedassessed valuevalue overover thethe lifelife ofof thethe TIETIE willwill continuecontinue toto generategenerate adad valoremvalorem revenue,revenue, whilewhile thethe excessexcess ( ( IncrementalIncremental AV)AV) willwill bebe distributeddistributed toto thethe TIFTIF N0vN0Nv agency agency ( ( CRA)CRA) andand thethe BaseBase AVAV amountamount willwill continuecontinue toto bebe distributeddistributed toto thethe originaloriginal taxingtaxing rere agencies.agencies. TheThe revenuerevenue collectedcollected isis usedused toto paypay forfor qualifyingqualifying programsprograms andand projectsprojects withinwithin thethe TIETIE districtdistrict ( ( CRA).CRA). AtAt thethe sunsetsunset ofof thethe TIF,TIF, thethe totaltotal revenuerevenue collectedcollected throughthrough thethe assessedassessed valuevalue ( ( PostPost TIFTIF AV)AV) willwill onceonce againagain bebe distributeddistributed toto eacheach ofof thethe taxingtaxing agenciesagencies accordingaccording toto theirtheir right.right. TIFTIF revenuesrevenues maymay bebe expendedexpended byby aa CRACRA asas describeddescribed inin thethe CRACRA PlanPlan forfor thethe followingfollowing purposes,purposes, including,including, butbut notnot limitedlimited to:to: AdministrativeAdministrative andand overhead overhead expenses expenses necessarynecessary oror incidentalincidental toto thethe implementation implementation ofof aa communitycommunity redevelopmentredevelopment planplan adoptedadopted byby thethe CRA;CRA; ExpensesExpenses ofof redevelopmentredevelopment planning,planning, surveys,surveys, andand financialfinancial analyses,analyses, includingincluding thethe reimbursementreimbursement ofof thethe governing governing bodybody oror thethe CRACRA forfor suchsuch expensesexpenses incurredincurred beforebefore thethe CRACRA PlanPlan waswas approved approved andand adopted;adopted; TheThe acquisitionacquisition ofof realreal propertyproperty inin thethe redevelopmentredevelopment area;area; TheThe clearanceclearance andand preparationpreparation ofof anyany redevelopment redevelopment areaarea forfor redevelopmentredevelopment andand relocationrelocation ofof sitesite occupantsoccupants withinwithin oror outsideoutside thethe CRA;CRA; TheThe repaymentrepayment ofof principalprincipal andand interestinterest oror anyany redemption redemption premiumpremium forfor loans,loans, advances,advances, bonds,bonds, bondbond anticipationanticipation notes,notes, andand anyany otherother