community redevelopment area: cras and waterfront communities

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1 Community Community Redevelopment Area: Redevelopment Area: CRAs and Waterfront Communities CRAs and Waterfront Communities University of Florida College of Law Conservation Clinic

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Community Redevelopment Area: CRAs and Waterfront Communities. University of Florida College of Law Conservation Clinic. What is a CRA?. - PowerPoint PPT Presentation

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Page 1: Community  Redevelopment Area: CRAs and Waterfront Communities

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Community Community Redevelopment Area:Redevelopment Area:

CRAs and Waterfront CommunitiesCRAs and Waterfront Communities

University of Florida College of Law

Conservation Clinic

Page 2: Community  Redevelopment Area: CRAs and Waterfront Communities

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What is a CRA?What is a CRA? Florida Law (Florida Law (Chapter 163, Part IIIChapter 163, Part III), authorizes ), authorizes

local governments to designate areas as Community local governments to designate areas as Community Redevelopment Areas (CRAs) when certain Redevelopment Areas (CRAs) when certain conditions exist.conditions exist.

The FL legislature adopted the Community The FL legislature adopted the Community

Redevelopment Act in 1969 to help communities Redevelopment Act in 1969 to help communities revitalize downtowns, preserve historic structures, revitalize downtowns, preserve historic structures, and otherwise enhance communities through CRAs. and otherwise enhance communities through CRAs. The Act is discussed in greater detail in later slides. The Act is discussed in greater detail in later slides. Fla. Stat. §163.330 et seq.Fla. Stat. §163.330 et seq.

Simply put, a CRA is a specifically focused financing Simply put, a CRA is a specifically focused financing tool that channels tax increments paid on properties tool that channels tax increments paid on properties within the designated CRA district back into the CRA within the designated CRA district back into the CRA area for redevelopment within the CRA.area for redevelopment within the CRA.

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CRAs & Waterfront CRAs & Waterfront CommunitiesCommunities

CRAs are a viable tool for funding traditional and CRAs are a viable tool for funding traditional and working waterfront preservation, restoration, and working waterfront preservation, restoration, and redevelopment.redevelopment. Traditional & Working waterfronts include:Traditional & Working waterfronts include:

Commercial and recreational fishingCommercial and recreational fishing Catch processingCatch processing Boat buildingBoat building Marinas to accommodate both commercial and non-commercial public Marinas to accommodate both commercial and non-commercial public

accessaccess Commercial ports (trade and cruise ships) Commercial ports (trade and cruise ships) Public recreational beach frontsPublic recreational beach fronts

Certain CRA requirements are waived for waterfront Certain CRA requirements are waived for waterfront areas as part of the initiative to protect working areas as part of the initiative to protect working waterfronts and public access to the waterfront.waterfronts and public access to the waterfront. Fla. Fla. Stat. §163.335 and §163.340Stat. §163.335 and §163.340

With the With the Coastal Zone Management Act of 1972 Coastal Zone Management Act of 1972 (CZMA)(CZMA), Congress established a national policy to , Congress established a national policy to preserve marine natural resources, historic coastal preserve marine natural resources, historic coastal features, and public access to waterfronts.features, and public access to waterfronts. 16 U.S.C. 16 U.S.C. 14511451

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Preserving Waterfronts:Preserving Waterfronts: Character & ResourcesCharacter & Resources

Coastal Zone ManagementCoastal Zone Management

The CZMA provides:The CZMA provides:(a) There is a national interest in the effective management, (a) There is a national interest in the effective management,

beneficial use, protection, and development of the coastal zone.beneficial use, protection, and development of the coastal zone.(c) . . . .increasing and competing demands upon the lands and (c) . . . .increasing and competing demands upon the lands and

waters of our coastal zone occasioned by waters of our coastal zone occasioned by population growth population growth and economic developmentand economic development, [have resulted in] the loss of , [have resulted in] the loss of living marine resources, wildlife, nutrient rich areas, permanent living marine resources, wildlife, nutrient rich areas, permanent and adverse changes to ecological systems, and adverse changes to ecological systems, decreasing open decreasing open space for public usespace for public use, and shoreline erosion., and shoreline erosion.

16 U.S.C. §1451 (emphasis 16 U.S.C. §1451 (emphasis added)added)

Congress recognized that “important Congress recognized that “important ecological, cultural, ecological, cultural, historic, and esthetic values in the coastal zone which are historic, and esthetic values in the coastal zone which are essential to the well-being of all citizens are being essential to the well-being of all citizens are being irretrievably damaged or lostirretrievably damaged or lost.”.”

16 U.S.C. 1451 § 302(e) 16 U.S.C. 1451 § 302(e) (emphasis added)(emphasis added)

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Who Uses CRAs?Who Uses CRAs? CRAs are used in over 140 Florida citiesCRAs are used in over 140 Florida cities CRAs are used for improvement and CRAs are used for improvement and

redevelopment from the larger cities of redevelopment from the larger cities of Jacksonville, Tampa (Ybor City) and Jacksonville, Tampa (Ybor City) and Orlando (Church Street) to mid-size and Orlando (Church Street) to mid-size and smaller cities and communities like: smaller cities and communities like: Boynton Beach, Ft. Pierce, Boynton Beach, Ft. Pierce, Jupiter, Key West, Panama City, Jupiter, Key West, Panama City, Punta Gorda, Riviera Beach, Stuart, St. Punta Gorda, Riviera Beach, Stuart, St.

Andrews Andrews Cortez, and the beachfront in Ft. Cortez, and the beachfront in Ft.

Lauderdale.Lauderdale.

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Why Use CRAs?Why Use CRAs? CRAs can improve area conditions, CRAs can improve area conditions,

including:including: Substandard or inadequate structuresSubstandard or inadequate structures Inadequate parkingInadequate parking Insufficient roadwaysInsufficient roadways Shortage of affordable housing Shortage of affordable housing

CRAs in Waterfront Communities can be CRAs in Waterfront Communities can be used for:used for: Creating or Preserving Public AccessCreating or Preserving Public Access Improving docking facilitiesImproving docking facilities Building riverwalks or boardwalksBuilding riverwalks or boardwalks Improving on-street or beach access parkingImproving on-street or beach access parking Providing areas for planting native vegetationProviding areas for planting native vegetation

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CRA requirements CRA requirements for Waterfront for Waterfront Communities Communities

The CRA Act contains special provisions relative The CRA Act contains special provisions relative to Waterfront Communities:to Waterfront Communities: Fl. Stat. 163.335: The Legislature found that Fl. Stat. 163.335: The Legislature found that

economically and physically distressed waterfront areas economically and physically distressed waterfront areas should be revitalizedshould be revitalized

Fl. Stat. 163.340(10) defines CRA to include: Fl. Stat. 163.340(10) defines CRA to include: a coastal and tourist area that is deteriorating and economicallya coastal and tourist area that is deteriorating and economically

distressed due to outdated building density patterns, inadequatedistressed due to outdated building density patterns, inadequate

transportation and parking facilities, faulty lot layout or transportation and parking facilities, faulty lot layout or inadequateinadequate

street layout, or a combination thereof which the governing bodystreet layout, or a combination thereof which the governing body

designates as appropriate for community redevelopmentdesignates as appropriate for community redevelopment

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The Design and PlanningThe Design and Planning

Committee developed Committee developed designdesign

guidelines for the guidelines for the streetscape,streetscape,

including: including: increased on-street increased on-street

parking, parking, slowing through traffic, slowing through traffic, increasing pedestrian increasing pedestrian

safety, and safety, and providing areas for providing areas for

planting native vegetationplanting native vegetation

StSt. . AndrewsAndrews

BoardwalkBoardwalk && Pavilion Pavilion

CRAs in Waterfront CRAs in Waterfront CommunitiesCommunities

PublicPublic AccessAccess

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CRAs in Waterfront CRAs in Waterfront CommunitiesCommunities

Riviera Beach:Riviera Beach:Working WaterfrontWorking Waterfront

The CRA Viking Inlet Plan includes:

Creation of a Public Lagoon

400 Boat Slips

Waterfront Aquarium

An Amphitheater

Marine Sales Center, including boat storage and mechanics

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CRAs in Waterfront CRAs in Waterfront CommunitiesCommunities

Jensen Beach Jensen Beach Community Redevelopment District Community Redevelopment District

Restoration. Development and Protection of the beach Restoration. Development and Protection of the beach areaarea

surrounding the Indian River Lagoon, includingsurrounding the Indian River Lagoon, including increased increased publicpublic accessaccess to and education about this to and education about this

valuable aquatic resource valuable aquatic resource Agency has proposed an educational Agency has proposed an educational riverwalkriverwalk

which incorporates stormwater retention structures which incorporates stormwater retention structures in its design. in its design.

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Creating a CRACreating a CRA

77 Basic StepsBasic Steps::1.1. Research Research NecessityNecessity for a CRA for a CRA

2.2. Notify the Public and Taxing Authorities of Notify the Public and Taxing Authorities of IntentIntent

3.3. Present Present Finding of NecessityFinding of Necessity at a Public at a Public MeetingMeeting

4.4. Legislative Body adopts a Resolution to create Legislative Body adopts a Resolution to create a CRA and an overseeing Community Redevelopment a CRA and an overseeing Community Redevelopment AgencyAgency

5.5. Legislative Body creates an Ordinance Legislative Body creates an Ordinance detailing duties of the Agency and creates a detailing duties of the Agency and creates a RedevelopmentRedevelopment PlanPlan

6.6. Establish a Trust Fund to finance the CRAEstablish a Trust Fund to finance the CRA

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What is a “Finding of What is a “Finding of Necessity”?Necessity”?

Local Government must survey the proposedLocal Government must survey the proposed

redevelopment area to prepare a document redevelopment area to prepare a document (Finding(Finding

of Necessity) that confirms the required conditionsof Necessity) that confirms the required conditions

exist to qualify for a CRA:exist to qualify for a CRA:BlightBlight = =

- Presence of substandard or inadequate structures- Presence of substandard or inadequate structures

- Inadequate parking- Inadequate parking

- Insufficient roadways- Insufficient roadways

- Shortage of affordable housing - Shortage of affordable housing

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Research Necessity for a CRAResearch Necessity for a CRA Find Blight in the area Find Blight in the area

Show deteriorated buildings are leading to economic Show deteriorated buildings are leading to economic distress or endanger life or property distress or endanger life or property ANDAND

Show 2 elements of ‘blight’ in area:Show 2 elements of ‘blight’ in area: Defective or Inadequate street layout, parking, etc.Defective or Inadequate street layout, parking, etc. Deterioration of site or other improvementsDeterioration of site or other improvements

2002 Legislation made findings of blight more stringent2002 Legislation made findings of blight more stringent Prove blight through government-maintained Prove blight through government-maintained

statistics or other studiesstatistics or other studies

HOWEVER …HOWEVER …

What is a “Finding of What is a “Finding of Necessity”?Necessity”?

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Waterfront CRAsWaterfront CRAsRequirements may be Requirements may be less stringentless stringent because of because ofstatutory support for coastal revitalization:statutory support for coastal revitalization:

A coastal resort or tourist area that is deteriorating A coastal resort or tourist area that is deteriorating andandEconomically distressed due to Economically distressed due to outdatedoutdated buildingbuildingdensitydensity patternspatterns, , inadequateinadequate transportationtransportation andandparkingparking facilitiesfacilities, , faultyfaulty lotlot layoutlayout or or inadequateinadequateStreet layoutStreet layout could [through CRAs] be revitalized could [through CRAs] be revitalized andandredeveloped to improve the economic and socialredeveloped to improve the economic and socialconditions of the community.conditions of the community.

FL Stat.§163.335 Findings and declarations of FL Stat.§163.335 Findings and declarations of necessitynecessity

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Who Approves Establishing Who Approves Establishing a CRA? a CRA?

Requirement of County Approval Requirement of County Approval In a county that is a charter county, In a county that is a charter county,

the local municipality may be the local municipality may be required to gain county approval.required to gain county approval.

County approval may be a County approval may be a requirement for unincorporated requirement for unincorporated municipalities municipalities

If the county is non-charter, county If the county is non-charter, county approval may not be required before approval may not be required before establishing a CRA.establishing a CRA.

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The Next Steps to The Next Steps to Establish a CRAEstablish a CRA

Notify Notify Public and All Taxing Authorities of Public and All Taxing Authorities of IntentIntent Registered Mail Registered Mail Publication in NewspaperPublication in Newspaper Copy of Notice in Clerk’s OfficeCopy of Notice in Clerk’s Office

Present Present Finding of NecessityFinding of Necessity at a Public at a Public MeetingMeeting Provides an opportunity for feedbackProvides an opportunity for feedback

The City Council Adopts a The City Council Adopts a Resolution Resolution creating a CRAcreating a CRA andand an overseeing an overseeing Community Redevelopment AgencyCommunity Redevelopment Agency Specifies the redevelopment boundary areaSpecifies the redevelopment boundary area Determines the membership of the CRA Determines the membership of the CRA

AgencyAgency

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The Next Steps to The Next Steps to Establish a CRAEstablish a CRA

Council Passes an Ordinance detailing the Council Passes an Ordinance detailing the duties of the Agency to oversee the CRAduties of the Agency to oversee the CRA Determine powers, duties, and proceduresDetermine powers, duties, and procedures Agency must consist of 5-9 membersAgency must consist of 5-9 members As of 2006, Agency no longer has power of As of 2006, Agency no longer has power of

eminent domaineminent domain Create a Redevelopment PlanCreate a Redevelopment Plan

Consistent with the Comprehensive PlanConsistent with the Comprehensive Plan Offer maximum opportunity for redevelopment Offer maximum opportunity for redevelopment

by private enterpriseby private enterprise Make provision for community parks and Make provision for community parks and

recreation areasrecreation areas Provide a feasible method to relocate displaced Provide a feasible method to relocate displaced

familiesfamilies

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Administration of the CRA:Administration of the CRA:Three BodiesThree Bodies

The Community Redevelopment AgencyThe Community Redevelopment Agency An Agency required under the CRA Act and An Agency required under the CRA Act and

created by the local government to administer created by the local government to administer the CRA districtthe CRA district

The CRA BoardThe CRA Board A 5 to 9 member board also created by the local A 5 to 9 member board also created by the local

government, directs the agency with the support government, directs the agency with the support of Advisory Boards for each CRA districtof Advisory Boards for each CRA district

Advisory Board Advisory Board Members are appointed by the Agency to develop Members are appointed by the Agency to develop

annual work plans with input from members of annual work plans with input from members of the public interested in redevelopment projects the public interested in redevelopment projects in the CRA.in the CRA.

Periodically review the Redevelopment Plan to Periodically review the Redevelopment Plan to recommend any changes to the long-term plan.recommend any changes to the long-term plan.

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Establish a Trust Fund to finance the CRAEstablish a Trust Fund to finance the CRA No money from tax increment financing No money from tax increment financing

may be spent or collected until the Fund is may be spent or collected until the Fund is establishedestablished

Money through taxing authorities is Money through taxing authorities is deposited by Jan 1deposited by Jan 1stst of each year of each year

Examples of what the Fund may finance:Examples of what the Fund may finance: Incentives for restoration or redevelopmentIncentives for restoration or redevelopment Administrative and overhead expensesAdministrative and overhead expenses Redevelopment planning, surveys, analysis, etc.Redevelopment planning, surveys, analysis, etc. Acquisition of real property in the CRAAcquisition of real property in the CRA Clearance and preparation of any area for Clearance and preparation of any area for

redevelopmentredevelopment Provide matching funds for Community Block Grants Provide matching funds for Community Block Grants Transportation ImprovementsTransportation Improvements

The Next Steps to The Next Steps to Establish a CRA Establish a CRA

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How are CRAs Funded?How are CRAs Funded?Redevelopment Trust FundsRedevelopment Trust Funds

The principal funding source is a Trust The principal funding source is a Trust Fund set up to receive annual Tax Fund set up to receive annual Tax Increment Financing (TIF).Increment Financing (TIF).

TIF is any increase (the increment) in TIF is any increase (the increment) in CRA District property taxes collected by CRA District property taxes collected by the County over and above the amount of the County over and above the amount of taxes collected in the base year. taxes collected in the base year.

These incremental funds are returned to These incremental funds are returned to the CRA District and deposited into the the CRA District and deposited into the Trust Fund to be used Trust Fund to be used only by the only by the District District for projects in the CRA District.for projects in the CRA District.

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Valid Uses for TIF MoniesValid Uses for TIF Monies

Redevelopment Trust Funds can be Redevelopment Trust Funds can be expended for specific redevelopment expended for specific redevelopment purposes in the CRA districts for things purposes in the CRA districts for things like:like: Administrative and overhead expensesAdministrative and overhead expenses Redevelopment planning, surveys, and financial analysisRedevelopment planning, surveys, and financial analysis Acquisition and disposal of property Acquisition and disposal of property Preparing land for redevelopment, including clearance, Preparing land for redevelopment, including clearance,

relocation of owners and occupants, and site preparation of relocation of owners and occupants, and site preparation of redevelopment area propertyredevelopment area property

Public utilitiesPublic utilities Appropriated to a specific redevelopment project to be Appropriated to a specific redevelopment project to be

completed within 3 years of the date of appropriationcompleted within 3 years of the date of appropriation Deposited in an escrow account to later reduce any Deposited in an escrow account to later reduce any

indebtedness that increment revenues are pledgedindebtedness that increment revenues are pledged Develop affordable housing for residents of the area, and Develop affordable housing for residents of the area, and

more.more.

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More on Funding for a More on Funding for a CRACRA

Funding the CRAFunding the CRA Tax Increment FinancingTax Increment Financing

Revenue comes from 50-95%Revenue comes from 50-95% of tax increment within the of tax increment within the redevelopment arearedevelopment area

Other Available FundsOther Available Funds Florida Community Development Block Florida Community Development Block

GrantGrant (CDBG) (CDBG) provides funding for new sidewalks, underground provides funding for new sidewalks, underground

utilities, trees and facade renovations.utilities, trees and facade renovations. Facade Renovation Grant ProgramFacade Renovation Grant Program

provides up to $5,000 per store frontprovides up to $5,000 per store front Florida Historic Preservation GrantsFlorida Historic Preservation Grants

2005 2010 2020

Years

Pro

per

ty T

axes

($)

Post-CRA

Pre-CRA

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After the CRA is After the CRA is EstablishedEstablished

Money from the Fund is used to finance Money from the Fund is used to finance restoration and redevelopment of the restoration and redevelopment of the commercial areacommercial area Matching FundsMatching Funds Bonding Bonding The CRA exists until it expires or is dissolvedThe CRA exists until it expires or is dissolved

Use it for things like:Use it for things like: Transportation & ParkingTransportation & Parking

Sidewalks, crosswalks, medians, and turn lanesSidewalks, crosswalks, medians, and turn lanes Adequate parkingAdequate parking Waterfront BoardwalksWaterfront Boardwalks

LandscapingLandscaping Improve facades (paint, fencing, & flower barrels)Improve facades (paint, fencing, & flower barrels) Underground utility lines Underground utility lines Seawalls and BulkheadsSeawalls and Bulkheads

Commercial Public InfrastructureCommercial Public Infrastructure Maritime MuseumMaritime Museum Public Docks and Slips Public Docks and Slips Encourage renovations through incentiveEncourage renovations through incentive

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Why Not Your Why Not Your Community?Community?

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Thank You for Your TimeThank You for Your Time

Please feel free to askPlease feel free to ask

any questions.any questions.