Redeveloping Communities in Bay County

Florida enacted the Community Redevelopment Act in 1969 as a counteractive measure to combat increasing occurrences of blight and slum in urbanized areas. A tumultuous period with political and cultural movements, urbanized growth and development trends also shifted during this time. As infrastructure aged, new construction of residential, commercial and governmental buildings built away from the community’s core left behind underutilized and vacant shells. High vacancy rates became a playground for crime and vandalism to areas already hard hit with economic decline.

Florida lawmakers created the Act as a tool to define and address targeted “blight and slum areas,” and authorized counties and municipalities to create Community Redevelopment Agencies (CRA’s). In addition to downtown areas, there are also provisions for waterfront communities with economically and physically distressed coastal and tourist areas.

Setting the Stage for Redevelopment Florida law states that any city or county government may create a CRA as a means of redeveloping areas that meet slum or blighted conditions. In order to do this, they must adopt a “finding of necessity,” a resolution outlining supported findings for a defined area demonstrating that redevelopment is necessary to promote public health, safety and welfare of residents.

CRA’s are separate agencies governed by the [city’s] local governing board, or by a board of commissioners they appoint. They must operate within the established community redevelopment plan, conform to the city or county comprehensive plan, and indicate land acquisition, demolition, improvements, rehabilitation, zoning changes, land use, building requirements and affordable housing (or reason not addressed). Projects must be completed within the lifetime of the CRA, typically 30-40 years.

Funding of CRA’s CRA’s may not levy taxes. Instead, they create a trust fund, funded by tax increment financing (TIF). When redevelopment agencies improve deteriorated areas, property values within those areas rise, resulting in increased property tax revenues. This increase is referred to as tax increment. CRA’s invest property tax revenues that they receive over the base year assessment [the year the CRA was established]. The total tax increment revenues are deposited intothe CRA’s trust fund for use in redevelopment projects only withinthe CRA district.

Redevelopment also serves as a catalyst for private investment byproviding the initial plan and seed money. This can be done throughbuilding or rehabilitating housing, helping small businesses create jobs, revitalizing older retail districts, creating streetscape and communityidentity programs, building roads, parks and other communityfacilities. Revitalizing rundown and blighted neighborhoods canhelp reduce crime and increase opportunity.

CRA’s fund various projects including commercial facade improvements,property purchases for redevelopment, affordable housingand business incentives. Public and private partnership investmentsgenerate economic return, create jobs and promote spendingwithin the district.

So why the controversy?“CRAs have benefited the local economy over the years, drawingdevelopment and investment to Bay County that may not have otherwisebeen realized,” said Bay County Manager, Bob Majka. “Nonetheless,it’s undeniable that the impact CRAs have had on Bay Countygovernmental coffers is significant. In 2018, Bay County will sendmore than $11.3 million in property tax revenues back to the CRAsfor use in those areas only. The reduced revenues are a burden tothe county’s general fund and the additional development creates an unfunded increase in critical governmental services – a cost thatthe entirety of the county bears.” Majka added, “Despite these challenges,Bay County’s property tax rate remains among the very lowestin the state.”

As improvements increase, so does the cost to maintain and providegovernment services. Captured property tax revenues generatedby rising property tax values are invested into a perpetual cycleof development. This poses the question of how services, includingpolice, fire, and public works will be funded for those areas whenthe increase in property taxes is no longer going into the city orcounty’s general fund. CRA’s also capture a portion of property taxesthat numerous taxing authorities rely on for funding.

How businesses and citizens can benefit from CRA fundsBusiness and Residential grant opportunities are available in the followingCRA districts to improve attractiveness of properties.

Panama City CRAs Downtown, Downtown North, St. Andrews and Millville

› Commercial Business Redevelopment matching grant programapplies to exterior renovations or new construction, demolition, signage, electrical work related to exterior features, parking, screening, design assistance, permits and impact fees.

› Residential and Commercial Paint Voucher Programs- awards of up to $900 in vouchers for paint and materials on pre-approved colors needed to perform exterior paint improvements.

› Residential Improvement Assistance Program- matching grantsfor exterior renovations or new construction, demolition, landscaping,electrical work related to exterior features, driveways,fencing, screening, design assistance, permits and impact fees.

› Job Creation Assistance Program- provides incentives for businessesto expand and create jobs that pay Bay county averagewage or greater.

Lynn Haven CRA

› Residential Incentive Program - promotes development of unimprovedlots within the CRA district by incentivizing new detachedsingle-family home construction through pre-determined funding.

› Storefront Assistance Program for commercial property owners-offers matching funds for construction and architectural servicesto return buildings to their fullest potential.

Callaway CRA

› Façade Improvement Program- offers a $5,000 matching grantfor commercial property and business owners for architecturalfeatures, painting, lighting, signage, sidewalks and landscaping.

› Demolition Grant Program- provides for a dollar-to-dollar matchof up to $10,000 to improve attractiveness of properties and eliminateconditions having a negative impact on economic growth.

According to the City of Panama City Beach, the PCB Front BeachRoad CRA has helped increase property values 346 percent over a16-year period. The CRA benefits everyone through infrastructureimprovements including the construction of new roads, sidewalks,bicycle paths, dedicated mass transit lanes, and storm water pondswith pocket parks. Beach access points are being refurbished andutilities are being buried. The CRA improvements correct numerousFront Beach Road problems and increases access, traffic flow andsafety.

The City of Parker’s CRA objective is to build an economically sustainableand attractive mixed-use mainstreet to positively showcasethe city and attract new business and residents.