Loading...
02/13/2007 COMMUNITY REDEVELOPMENT AGENCY AGENDA Location: Council Chambers - City Hall Date: 2/13/2007- 1 :30 PM 1. Call to Order 2. Approval of Minutes 2.1 Approve the minutes of the January 29, 2007 CRA meeting as submitted in written summation by the City Clerk I@l Attachments 3. CRA Items 3.1 Adopt proposed Community Redevelopment Agency policy entitled "Use of Tax Increment Funds", dated February 13,2007. I@l Attachments 4. Other Business 5. Adjourn Meeting Date:2/13/2007 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the minutes of the January 29,2007 CRA meeting as submitted in written summation by the City Clerk SUMMARY: Review Approval: 1) Clerk Cover Memo Item # 1 Attachment number 1 Page 1 of 3 COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES CITY OF CLEARWATER January 29, 2007 Unapproved Present: Frank Hibbard J. B.Johnson William C. Jonson Carlen Petersen John Doran Chair/CRA Trustee CRA Trustee CRA Trustee CRA Trustee - departed 2:41 p.m. CRA Trustee Also present: William B. Horne II Garry Brumback Rod Irwin Pamela K. Akin Cynthia E. Goudeau Rosemarie Call City Manager Assistant City Manager Assistant City Manager/CRA Executive Director City Attorney City Clerk Administrative Analyst The Chair called the meeting to order at 1 :30 p.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 2. Community Redevelopment Agency Items 2.1 Approval of 1-16-2007 CRA (Community Redevelopment Aqency) minutes Trustee Jonson moved to approve the minutes of the regular meeting of January 16, 2007, as submitted in written summation by the City Clerk to each Trustee. The motion was duly seconded and carried unanimously. 2.2 Approve the extension of the Aqreement for Development and Disposition of Property between the Community Redevelopment Aqency of the City of Clearwater, Florida and the Balk Company, Inc., effective March 4,2002, and previously extended on January 16, 2007 until the end of business on Monday, February 13, 2007 for the sole and exclusive purpose of considerinq assiqnment of the developer's interest to the Fairway Development Group, Inc. of Sarasota, Florida. The CRA Executive Director and City Attorney are recommending the extension to February 26, 2007 to complete due diligence on the proposed assignment. Robert Murray, principal of Fairway Development Group, is looking at a redesign with a mixed-use project in concert with downtown plans. The assignment could be conditioned on development approval. Trustee Johnson moved to approve the extension of the Agreement for Development and Disposition of Property between the Community Redevelopment Agency of the City of Clearwater, Florida and the Balk Company, Inc., effective March 4, 2002, and previously extended on January 16, 2007, until the end of business on Monday, February 26, 2007, for the sole and exclusive purpose of considering assignment of the developer's interest to the Fairway Development Group, Inc. of Sarasota, Florida. The motion was duly seconded and carried unanimously. Community Redevelopment Agency 2007-01-29 Item # 1 Attachment number 1 Page 2 of 3 2.3 Adopt proposed Community Redevelopment Aqency policy entitled "Use of Tax Increment Funds", dated January 29,2007. Pursuant to indications by the Trustees at recent CRA meetings that there was a desire for a more formal policy to govern the use of TIF (Tax Increment Financing) funds, staff has prepared a TIF utilization policy for the CRA. This was discussed at the January 16, 2007 CRA meeting, after which changes were incorporated to reflect the discussion. This proposed policy represents a synthesis of several Florida CRA policies governing TIF utilization, "best practices" gleaned from annual meetings such as the Florida Redevelopment Association and the Government Finance Officers Association, as well as direct staff experience. It has been "tailored" to fit Clearwater's overall operations and procedures. Comments by the Finance Director and City Attorney have been incorporated. This policy is intended to meet three objectives; 1) establish an empirical basis for the allocation of TIF funds to private and public development projects; 2) provide Trustee guidance to CRA staff on the utilization of TIF funds generated in the CRA; and, 3) allow the public and development interests to understand the process and bases upon which decisions to allocate TIF funds will be made by the CRA. Discussion ensued. Suggestions were made to expand the objectives to include a supportive infrastructure statement and incorporate elements of the visioning process, add a criteria for projects that show an earlier visual improvement, and ensure affordable housing is available to all ranges of household income levels. Concerns with timeframe for project completion and subjectivity of policy were expressed. It was noted all criteria will be used to evaluate proposed projects and TIF will be available for projects considered to be in the City's best interest, not just those with financial needs. Staff will incorporate the suggested changes and bring back a final document. 2.4 Discussion regarding the CRA Six-year Plan CRA Executive Director Rod Irwin reviewed the CRA Six-year Plan, which includes all known expenses, revenues, and projections for anticipated needs. In response to a question, Finance Director Margie Simmons said only 50% of the TIF (Tax Increment Financing) from a project would be used for that project and the CRA will last until at least 2019. It was noted this six-year plan is a framework, not a budget or commitment. It was suggested more discussion is needed regarding expenditures, retail incentives, and property acquisition prior to formalizing the Plan. It was requested funds for streetlights and sidewalks be included. As the implementation guidelines are determined and more information is available, staff will bring forward an update. In response to a question, Mr. Irwin said the East Gateway project report will come forward at the end of the year. Trustee Jonson moved that the CRA identify $250,000 out of the balance anticipated at the end of this year to go to completion of sidewalks and resolving deficiencies in streetlights in the CRA area and to have that in the current year budget. Community Redevelopment Agency 2007-01-29 ltem # 1 Attachment number 1 Page 3 of 3 It was suggested more information regarding the actual needs for downtown street lights and sidewalks be obtained prior to setting a specific dollar amount. Trustee Jonson withdrew his motion. 3. Other Business - None. 4. Adjourn The meeting adjourned at 2:52 p.m. Chair Community Redevelopment Agency Attest: City Clerk Community Redevelopment Agency 2007-01-29 ltem # 1 Meeting Date:2/13/2007 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Adopt proposed Community Redevelopment Agency policy entitled "Use of Tax Increment Funds", dated February 13,2007. SUMMARY: Pursuant to indications by the Board at recent CRA meetings that there was a desire for a more formal policy to govern the use of TIF funds, staff has prepared a TIF utilization policy for the CRA. This was discussed at the January 16th and January 29th, 2007 CRA meetings, after which changes were incorporated to reflect the discussion. This proposed policy represents a synthesis of several Florida CRA policies governing TIF utilization, "best practices" gleaned from annual meetings such as the Florida Redevelopment Association and the Government Finance Officers Association, as well as direct staff experience. It has been "tailored" to fit Clearwater's overall operations and procedures. Comments by the Finance Director and City Attorney have been incorporated. This policy is intended to meet three objectives; 1) establish an empirical basis for the allocation of TIF funds to private and public development projects; 2) provide Board guidance to CRA staff on the utilization of TIF funds generated in the CRA; and, 3) allow the public and development interests to understand the process and bases upon which decisions to allocate TIF funds will be made by the CRA. Review Approval: 1) Clerk Cover Memo Item # 2 Attachment number 1 Page 1 of 6 Community Redevelopment Agency Use of Tax Increment Funds Policy February 13, 2007 I. Purpose Statement The purpose of this policy is to: A. Guide Community Redevelopment Agency (CRA) Board and staff in preparing analysis and recommendations regarding the use of Tax Increment Financing (TIF)1 as well as negotiating contract terms with developers; B. Guide CRA staff in negotiating Term Sheets and proposed Development Agreements with developers seeking TIF assistance; e. Provide framework within which the CRA Board and the CRA staff can evaluate and compare proposed uses of TIF; and D. Inform the development community and the public of the CRA's position on the use of TIF and the process through which decisions regarding the commitment of the funds are to be made. II. Redevelopment Objectives The use of TIF funds is intended to facilitate the following redevelopment objectives: A. Implement redevelopment projects that meet and further the objectives of, and are consistent with the principles and goals in, the Clearwater Downtown Redevelopment Plan, adopted by the City Commission on December 4,2003 (Plan), and as subsequently amended. B. Expand the Downtown Clearwater economic base to create increased employment, economic activity, and sustainable development. e. Provide an increased array of housing types that are affordable to all ranges of household income levels. D. Insure adequate public infrastructure within the Downtown that is supportive of the Clearwater Downtown Redevelopment Plan. 1 For purposes of this Policy, "Tax Increment Financing" means the use of funds in the CRA Community Redevelopment Trust Fund to provide project financial assistance. Item # 2 Attachment number 1 Page 2 of 6 E. Create a distinctive, vibrant Downtown consistent with Clearwater's vision to: i. Provide a safe, comfortable and walkable Downtown. ii. Provide a vibrant Downtown that is mindful of its heritage where everyone can feel welcome and all elements of city life come together. III. General Guidelines in the Use of Tax Increment Financing A. Private Developments The use of TIF to incentivize and/or assist private development in the redevelopment area shall be determined as follows: 1. TIF will only be used when a clearly defined redevelopment objective is served and only to the degree necessary to accomplish that development objective. 2. TIF will only be used to assist private development when it is demonstrated by both the developer and CRA/City staff analysis that "but for" the amount of tax increment assistance being requested the redevelopment project as a whole, or the portion thereof directly related to the redevelopment objective, would not occur. 3. Tax Increment Financing will only be used in cases when: (i) the CRA has the financial capacity to provide the needed project financial assistance; (ii) the CRA deems it fiscally prudent to provide such assistance; and (iii) the developer can clearly demonstrate to the satisfaction of the CRA that the proposed redevelopment project will be able to meet the financial and public purpose commitments outlined in the redevelopment agreement between the CRA and the developer. 4. The CRA and the City will seek opportunities to recapture the amount of the project financial assistance, to the maximum extent feasible, after allowing the developer a reasonable return. B. Public Improvements The use of TIF to fund public infrastructure improvements developed by the City of Clearwater (City) and/or the CRA that are funded (partially or wholly) by tax increment funds will be prioritized using the CRA's Five Year Capital Plan and the City's Capital Improvement Plan2. Criteria for evaluating proposed projects shall include: 2 Use of tax increment funds to pay for infrastructure projects in the City's CIP will comply with the limitations set forth in s. 163.370(2), Florida Statutes. 2 Item # 2 Attachment number 1 Page 3 of 6 1. The project's consistency with the Clearwater Downtown Redevelopment Plan; 2. The project's strategic importance i.e. its need to proceed prior to the implementation of other high priority projects in achieving the objectives of the Plan; 3. The project's costlbenefit ratio; 4. The project's ability to leverage other public funds and/or private investment. 5. The project's ability to provide an early visual improvement to the Downtown redevelopment district. IV. Evaluation Criteria for Private Project Assistance Requests Requests for TIF funds should be consistent with the following evaluation criteria: A. Compliance with the Clearwater Downtown Redevelopment Plan - All projects must be consistent with and further the objectives of the Clearwater Downtown Redevelopment Plan. A developer seeking project financial assistance must demonstrate that the project is in compliance with the then current version of the Downtown Redevelopment Plan including statements justifying the public purpose of any proposed development. B. Need for Public Assistance - The need for public assistance must be demonstrated and documented by the developer to the satisfaction of CRA/City staff and the CRA. Documentation must demonstrate that "but for" the amount of tax increment assistance being requested the development project as a whole, or the portion thereof directly related to the redevelopment objective, would not occur. All such documentation, including development budgets, cash flow projections, market studies and other financial and market information, must be submitted by the developer in accordance with the CRA's requirements in order to be considered for funding. The request for project financial assistance must be based on financial considerations, so the developer must demonstrate to the satisfaction of the CRA the profitability and feasibility of the project (i.e. gross profit, cash flow before taxes, cash-on-cash return, IRR, etc.), both with and without TIF. In determining the timing and magnitude of TIF assistance, however, the staff shall in the first instance be directed by the Board desire that not 3 Item # 2 Attachment number 1 Page 4 of 6 more than fifty (50) percent of the anticipated Tax Increment Fund yield over the first five stabilized years of operation of a project be considered for project assistance. However, the Executive Director may recommend a higher percentage in any particular case where the financial and/or public benefit circumstances support a higher allocation. This fifty (50) percent threshold shall not apply to public-private partnerships, joint ventures or other similar joint development projects where the CRA is investing in or acquiring public facilities/improvements (i. e. public parking) and utilizing TIF to fund the facilities/improvements. e. Amount of Public Assistance versus Private Investment - A redevelopment proposal requesting TIF assistance must maximize the ratio of private investment to public assistance. Public assistance as a percentage of total development costs will be determined for each project (or discrete portion of the project receiving Tax Increment Financing assistance) and compared to other redevelopment projects or subprojects of similar scope and magnitude in the downtown redevelopment area, whenever possible. D. Term of Public Assistance - The length of the term of the TIF assistance shall be kept to the minimum necessary to achieve the desired result. The proposed term of any TIF assistance shall be fully documented and presented to the CRA Board. E. Development Benefits and Costs - The direct and indirect benefits of the proposed redevelopment project shall be determined and quantified to the extent possible. Benefits may include, but are not limited to: (i) employment (i.e., number of jobs retained or created, percentage of jobs held by City residents, wage and salary information, etc.); (ii) tax base effect (i.e., estimated market value of new development, new property taxes generated, etc.); (iii) housing stock created or enhanced (number of new rental or ownership units, sale price or rental rates of units, etc.); and (iv) other benefits relating to the CRA's and City's redevelopment objects. Direct costs of the proposed redevelopment to both the CRA and the City shall also be identified. Such costs shall include, but are not limited to: (i) additional required infrastructure; (ii) proposed waiver of fees; (iii) ongoing expense impact on the CRA and/or City budget. The timeframe used for these cost estimates shall equal the time frame of the proposed Tax Increment Financing assistance and shall separately identify any projected recapture of Tax Increment Financing funds. F. Recapture of Public Subsidy - It is the CRA's goal to recapture as great a percentage as feasible of the TIF assistance. Methods to recapture shall include, but shall not be limited to: long-term ground leases; loans; sale and/or refinancing provisions; and, equity participation, to the extent 4 Item # 2 Attachment number 1 Page 5 of 6 permitted by law. V. Economic Analysis and Risk Assessment Process A. Proposed uses of TIF will be subject to rigorous economic analysis and risk assessment. CRA and City staff, as well as consultants when necessary, will conduct the analysis and assessment process. Analysis and assessment reports to the CRA Executive Director will include: 1. Public Purpose served by the requested financial assistance to the project; 2. Demonstrated need for public investment or subsidy (the "but for" test); 3. Developer's financial capacity and experience; 4. Risks associated with the project; 5. Impacts on the CRA capacity of the Redevelopment Trust Fund, taking into account current and future demands on money in the Fund; 6. Impacts, be they positive or negative, on other private sector projects where TIF has been or is being provided or committed; 7. Ratio of the amount of public financial assistance to private investment3. 8. Action to be taken by the CRA as recommended by the CRA Executive Director and/or consultants. B. Projects requesting TIF funding may, at the discretion of the CRA Executive Director, be subjected to a more extensive review and evaluation, including appropriate market analysis. VI. Use of City and County Portion of TIF Not withstanding any provision of this policy, the portion of TIF received by the CRA representing the Pinellas County tax levy on properties in the CRA area shall only be expended on uses authorized for such purpose by the Board of County Commissioners. Currently, authorized uses are: capital improvements; land acquisition; and, environmental remediation (Ordinance 7153-03, as amended by Ordinance 7231-03). 3 "Private investment" refers to land, soft and hard construction costs appropriate to the type of development contemplated, which shall be solely determined by the CRA. 5 Item # 2 Attachment number 1 Page 6 of 6 Not withstanding any provision of this policy, the portion of TIF received by the CRA representing the City of Clearwater tax levy on properties in the CRA area shall only be expended on uses authorized for such purpose by the Clearwater Downtown Redevelopment Plan, effective February 3, 2004. Currently, authorized uses are: CRA area brownfields environmental cleanup; CRA building fa<;ade improvement program; downtown land acquisition; CRA redevelopment incentive funding; retail lease /location incentives; CRA affordable and transitional housing project expenditures identified for TIF in the CIP of the Downtown Redevelopment Plan; and, CRA revolving loan fund. VII. Documentation of Tax Increment Financing Assistance Redevelopment Agreement - TIF assistance will be provided to a redevelopment project only through and in accordance with the terms of a Redevelopment Agreement entered into between the developer and the CRA. Interlocal Agreement- Any participation by the City will be subject to and governed by an interlocal agreement between the City and the CRA. VIII. ChangeslWaiver This policy may be changed or waived by the CRA board on a case-by-case basis as deemed appropriate. 6 Item # 2 Attachment number 2 Page 1 of 6 Community Redevelopment Agency Use of Tax Increment Funds Policy 2007 I. Purpose Statement The purpose of this policy is to: A. Guide Community Redevelopment Agency (CRA) Board and staff in preparing analysis and recommendations regarding the use of Tax Increment Financing (TIF)1 as well as negotiating contract terms with developers; B. Guide CRA staff in negotiating Term Sheets and proposed Development Agreements with developers seeking TIF assistance; e. Provide framework within which the CRA Board and the CRA staff can evaluate and compare proposed uses of TIF; and D. Inform the development community and the public of the CRA's position on the use of TIF and the process through which decisions regarding the commitment of the funds are to be made. II. Redevelopment Objectives The use of TIF funds is intended to facilitate the following redevelopment objectives: A. Implement redevelopment projects that meet and further the objectives of, and are consistent with the principles and goals in, the Clearwater Downtown Redevelopment Plan, adopted by the City Commission on December 4,2003 (Plan), and as subsequently amended. B. Expand the Downtown Clearwater economic base to create increased employment, economic activity, and sustainable development. e. Provide an increased array of housing types that are affordable to all if broad range~ of household income levels. D. Insure adequate public infrastructure within the Downtown that is supportive of the Clearwater Downtown Redevelopment Plan. 1 For purposes of this Policy, "Tax Increment Financing" means the use of funds in the CRA Community Redevelopment Trust Fund to provide project financial assistance. Item # 2 Attachment number 2 Page 2 of 6 E. Create a distinctive, vibrant Downtown consistent with Clearwater's vision to: 1. ii. Provide a vibrant Downtown that is mindful of if's heritage where everyone can feel welcome and all elements of city life come together. III.1lI. General Guidelines in the Use of Tax Increment Financing A. Private Developments The use of TIF to incentivize and/or assist private development in the redevelopment area shall be determined as follows: 1. TIF will only be used when a clearly defined redevelopment objective is served and only to the degree necessary to accomplish that development objective. 2. TIF will only be used to assist private development when it is demonstrated by both the developer and CRA/City staff analysis that "but for" the amount of tax increment assistance being requested the redevelopment project as a whole, or the portion thereof directly related to the redevelopment objective, would not occur. 3. Tax Increment Financing will only be used in cases when: (i) the CRA has the financial capacity to provide the needed project financial assistance; (ii) the CRA deems it fiscally prudent to provide such assistance; and (iii) the developer can clearly demonstrate to the satisfaction of the CRA that the proposed redevelopment project will be able to meet the financial and public purpose commitments outlined in the redevelopment agreement between the CRA and the developer. 4. The CRA and the City will seek opportunities to recapture the amount of the project financial assistance, to the maximum extent feasible, after allowing the developer a reasonable return. B. Public Improvements The use of TIF to fund public infrastructure improvements developed by the City of Clearwater (City) and/or the CRA that are funded (partially or wholly) by tax increment funds will be prioritized using the CRA's Five Year Capital Plan and the City's Capital Improvement Plan2. Criteria for evaluating proposed projects shall include: 2 Use of tax increment funds to pay for infrastructure projects in the City's CIP will comply with the limitations set forth in s. 163.370(2), Florida Statutes. 2 Item # 2 Attachment number 2 Page 3 of 6 1. The project's consistency with the Clearwater Downtown Redevelopment Plan; 2. The project's strategic importance i.e. its need to proceed prior to the implementation of other high priority projects in achieving the objectives of the Plan; 3. The project's costlbenefit ratio; 4. The project's ability to leverage other public funds and/or private investment. 5. The project's ability to provide an early visual improvement to the Downtown redevelopment district. IV. Evaluation Criteria for Private Project Assistance Requests Requests for TIF funds should be consistent with the following evaluation criteria: A. Compliance with the Clearwater Downtown Redevelopment Plan - All projects must be consistent with and further the objectives of the Clearwater Downtown Redevelopment Plan. A developer seeking project financial assistance must demonstrate that the project is in compliance with the then current version of the Downtown Redevelopment Plan including statements justifying the public purpose of any proposed development. B. Need for Public Assistance - The need for public assistance must be demonstrated and documented by the developer to the satisfaction of CRA/City staff and the CRA. Documentation must demonstrate that "but for" the amount of tax increment assistance being requested the development project as a whole, or the portion thereof directly related to the redevelopment objective, would not occur. All such documentation, including development budgets, cash flow projections, market studies and other financial and market information, must be submitted by the developer in accordance with the CRA's requirements in order to be considered for funding. The request for project financial assistance must be based on financial considerations, so the developer must demonstrate to the satisfaction of the CRA the profitability and feasibility of the project (i.e. gross profit, cash flow before taxes, cash-on-cash return, IRR, etc.), both with and without TIF. In determining the timing and magnitude of TIF assistance, however, the staff shall in the first instance be directed by the Board desire that not 3 Item # 2 Attachment number 2 Page 4 of 6 more than fifty (50) percent of the anticipated Tax Increment Fund yield over the first five stabilized years of operation of a project be considered for project assistance. However, the Executive Director may recommend a higher percentage in any particular case where the financial and/or public benefit circumstances seem to support a higher allocation. This fifty (50) percent threshold shall not apply to public-private partnerships, joint ventures or other similar joint development projects where the CRA is investing in or acquiring public facilities/improvements (i. e. public parking) and utilizing TIF to fund the facilities/improvements. e. Amount of Public Assistance versus Private Investment - A redevelopment proposal requesting TIF assistance must maximize the ratio of private investment to public assistance. Public assistance as a percentage of total development costs will be determined for each project (or discrete portion of the project receiving Tax Increment Financing assistance) and compared to other redevelopment projects or subprojects of similar scope and magnitude in the downtown redevelopment area, whenever possible. D. Term of Public Assistance - The length of the term of the TIF assistance shall be kept to the minimum necessary to achieve the desired result. The proposed term of any TIF assistance shall be fully documented and presented to the CRA Board. E. Development Benefits and Costs - The direct and indirect benefits of the proposed redevelopment project shall be determined and quantified to the extent possible. Benefits may include, but are not limited to: (i) employment (i.e., number of jobs retained or created, percentage of jobs held by City residents, wage and salary information, etc.); (ii) tax base effect (i.e., estimated market value of new development, new property taxes generated, etc.); (iii) housing stock created or enhanced (number of new rental or ownership units, sale price or rental rates of units, etc.); and (iv) other benefits relating to the CRA's and City's redevelopment objects. Direct costs of the proposed redevelopment to both the CRA and the City shall also be identified. Such costs shall include, but are not limited to: (i) additional required infrastructure; (ii) proposed waiver of fees; (iii) ongoing expense impact on the CRA and/or City budget. The timeframe used for these cost estimates shall equal the time frame of the proposed Tax Increment Financing assistance and shall separately identify any projected recapture of Tax Increment Financing funds. F. Recapture of Public Subsidy - It is the CRA's goal to recapture as great a percentage as feasible of the TIF assistance. Methods to recapture shall include, but shall not be limited to: long-term ground leases; loans; sale and/or refinancing provisions; and, equity participation, to the extent 4 Item # 2 Attachment number 2 Page 5 of 6 permitted by law. V. Economic Analysis and Risk Assessment Process A. Proposed uses of TIF will be subject to rigorous economic analysis and risk assessment. CRA and City staff, as well as consultants when necessary, will conduct the analysis and assessment process. Analysis and assessment reports to the CRA Executive Director will include: 1. Public Purpose served by the requested financial assistance to the project; 2. Demonstrated need for public investment or subsidy (the "but for" test); 3. Developer's financial capacity and experience; 4. Risks associated with the project; 5. Impacts on the CRA capacity of the Redevelopment Trust Fund, taking into account current and future demands on money in the Fund; 6. Impacts, be they positive or negative, on other private sector projects where TIF has been or is being provided or committed; 7. Ratio of the amount of public financial assistance to private investment3. 8. Action to be taken by the CRA as recommended by the CRA Executive Director and/or consultants. B. Projects requesting TIF funding may, at the discretion of the CRA Executive Director, be subjected to a more extensive review and evaluation, including appropriate market analysis. VI. Use of City and County Portion of TIF Not withstanding any provision of this policy, the portion of TIF received by the CRA representing the Pinellas County tax levy on properties in the CRA area shall only be expended on uses authorized for such purpose by the Board of County Commissioners. Currently, authorized uses are: capital improvements; land acquisition; and, environmental remediation (Ordinance 7153-03, as amended by Ordinance 7231-03). 3 "Private investment" refers to land, soft and hard construction costs appropriate to the type of development contemplated, which shall be solely determined by the CRA. 5 Item # 2 Attachment number 2 Page 6 of 6 Not withstanding any provision of this policy, the portion of TIF received by the CRA representing the City of Clearwater tax levy on properties in the CRA area shall only be expended on uses authorized for such purpose by the Clearwater Downtown Redevelopment Plan, effective February 3, 2004. Currently, authorized uses are: CRA area brownfields environmental cleanup; CRA building fa<;ade improvement program; downtown land acquisition; CRA redevelopment incentive funding; retail lease /location incentives; CRA affordable and transitional housing projectsi expenditures identified for TIF in the CIP of the Downtown Redevelopment Plan; and, CRA revolving loan fund. VII. Documentation of Tax Increment Financing Assistance Redevelopment Agreement - TIF assistance will be provided to a redevelopment project only through and in accordance with the terms of a Redevelopment Agreement entered into between the developer and the CRA. Interlocal Agreement- Any participation by the City will be subject to and governed by an interlocal agreement between the City and the CRA. VIII. ChangeslWaiver This policy may be changed or waived by the CRA board on a case-by-case basis as deemed appropriate. 6 Item # 2