Title
Review of the Transformational Projects Incentive Program (B)
Explanation
In Fall 2005, while reviewing the University Corners application, the CRA Board asked that the Transformational Projects Incentive program be reviewed in six months. At this time the CRA has received two applications to the program, one for University Corners, and one for Jefferson on Second.
The program was created to help move key sites into redevelopment. These sites, located in various CRA areas, are challenging for a variety of reasons including difficult land assembly, environmental issues, and complex infrastructure or parking needs. The program is structured to explain to developers what the CRA expected and desired from redevelopment projects and to help quantify for the CRA Board which projects merited incentives.
The program lists specific redevelopment goals that projects must meet and provides a points system to evaluate the level of incentives for which the developer can qualify. Each Advisory Board created a unique points system for their area that focused on the issues they believe is key to redevelopment. The program also lists the types of public infrastructure, design, and land assembly expenses for which the CRA will reimburse the developer.
Over the past few years, the CRA has moved to providing only back end incentives for projects. These incentives are paid for from the tax increment generated by the project, rather than having the CRA participate in projects by incurring debt. Since the CRA's ability to borrow is limited and the increment is not large enough to provide front-end infrastructure for the projects, this strategy is the only way the CRA can participate in projects.
Over time, other CRAs have moved to back end incentives for the same reasons. Similar programs exist in Orlando, Ft. Myers, and Daytona Beach. The Development Agreement form is based on a model from Orlando. The push to increase residentia...
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