CRA LEGAL ISSUES
eRA
Legal Issues
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A Question of Delegation
The City of Tampa Experience
Samuel S. Hamilton
Assistant City Attorney
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Office of the City Attorney
City Hall
Tampa, Florida 33602
813/27 4-8996
Fax: 813/274-8809
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A Question of Delegation
The City of Tampa Experience
Speaking Points
History of City CRA Actions
I.
. September, 1982 -
Community Redevelopment Agency of the City of
Tampa created
Downtown Community Redevelopment Area
created and tax increment fund established
Hillsborough County Charter effective
. 1983-1984-
. May, 1985-
. August-
September 1985 -
City validates and issues CRA Bonds
without County objection
Ybor City Community Redevelopment Area
created and tax increment fund established
Downtown Core Community Redevelopment
Area created and tax increment fund
established
. June, 1988
. May - June, 1988 -
. March-
May, 1999 -
Old Tampa Police Department Site
Community Redevelopment Area created
. August, 1999 -
City Contemplates further Redevelopment
actions
II. Delegation Issue
A. Statute - ~ 163.410 - Charter Counties have exclusive authority to exercise
CRA powers, subject to County delegation to Cities
"This section does not affect any community redevelopment
agency created by a municipality prior to the adoption of a
county home rule charter.1!
B. City Position
. Neither Agency nor City Council subject to delegation requirement
. Agency created prior to adoption of County Charter
. City Council declared itself as Agency and, therefore, jurisdictional
boundaries are the same
. ~163.357(1 )(a) - By declaring itself as the Agency the City Council
effectively vested in itself all of the rights, powers and responsibilities
vested in the Agency by the law, which would include the delegation
exemption in ~163.41 O. Although Agency and City are separate
entities, the governing body of the City and the Agency are the same.
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. History of Redevelopment Act
. Act passed before Home Rule Act
. Charter County Delegation provision intended solely to address
Dade County situation resulting from lack of home rule powers
(The FI. Supreme Court determined that Municipal Home Rule
as provided in the 1968 Constitution was not self-executing,
thereby requiring legislation).
. 1983 Amendment to Charter County delegation provision
initiated by Tampa to exempt City from Delegation requirement.
. 9163.358 - Reservation of Powers in relation to Delegation
requirement in light of validation of CRA Bonds
C. County Position
. Delegation exemption provision applies to Agency, not City.
III. Interlocal Agreement
. City/CRA/County Interlocal Agreement Regarding Creation and Expansion of
Community Redevelopment Areas
1. County approves existing CRAs and Tax Increment for Downtown, the
Downtown Core and Ybor City.
2. County approves existing CRA for Old Tampa Police Department Site.
3. City/CRA may extend duration of Tax Increment for existing Ybor City
CRA from 2003 to 2015, but County retains 30% of increment it would
otherwise pay.
4. City/CRA may create a Tax Increment for Old Police Station CRA for up to
26 years with County paying 100% for years 1 through 10 and retaining
20% thereafter.
5. Allows new CRAs for Drew Park, Channelside and another part of Ybor
City for up to 30 years with County paying 100% for years 1 through 10
and retaining 20% thereafter.
6. Requires City to complete a study of a specified area in East Tampa, and
then consider a CRA for such area.
7. City may propose new CRAs in areas where taxable value in the last 5
years has grown less than in rest of City. City and County to negotiate the
boundaries and duration of any new areas and County would pay 100% of
its portion of Tax Increment years 1 through 10 and retain 20% thereafter.
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INTERLOCAL AGREEMENT AMONG THE CITY OF TAMPA,
HILLSBOROUGH COUNTY AND THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF T AlVIP A
REGARDING CREATION AND EXPANSION
OF COlVIMUNITY REDEVELOPMENT AREAS
This Interlocal Agreement ("Agreement") is made and entered into as of this~ day of
(fJarc~ , 2003, by and among Hillsborough County, Florida, a charter county and political
subdivision of the State of Florida (the "County"), the City of Tampa, Florida, a municipal
corporation created and existing under the laws of the State of Florida (the "City"), and the
Community Redevelopment Agency of the City of Tampa, a body politic and corporate created,
existing and operating under Part III of Chapter 163 of the Florida Statutes (the "Agency").
RECITALS
WHEREAS, under the authority of Part III of Chapter 163 of Florida Statutes (the
"Act''), the City has previously created the Agency, which has the authority under the Act to
plan, coordinate, and cause the redevelopment of areas of the City determined under the Act to
be "slum or blighted areas"; and
WHEREAS, the Agency is now implementing "community redevelopment plans" for
three (3) "community redevelopment areas" (as those terms are defined in the Act), and the City
may, from time to time, seek to declare additional areas to be "slum" or "blighted" areas and to
cause the Agency similarly to implement such "community redevelopment plans" within those
additional "community redevelopment areas" to address the identified conditions of "slum" or
"blight" in those areas; and
WHEREAS, the County is of the belief and position that neither the City nor the Agency
legally may create or designate any new "commwiity redevelopment area" without first
obtaining from the County a delegation of power under Section 163.410 of the Act; and
WHEREAS, the City and Agency are of the belief and position that the City has the
power and authority legally to create and designate any new "community redevelopment area"
within the City without first obtaining from the County any approval or delegation of power
under Section 163.410 of the Act; and
WHEREAS, the parties to this Agreement agree that the conflict between the differing
legal opinions is better resolved through negotiation and discussion than by litigation; and
WHEREAS, the parties agree that the establishment of Community Redevelopment
Areas ("CRA"s) and Tax Increment Financing ("TIF") are effective tools for the redevelopment
of slum or blighted areas of the City.
64126.DOC
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NOW, THEREFORE, in consideration of the mutual covenants and conditions contained
herein, the County, the City, and the Agency agree as follows:
Section 1.
Recitals.
The foregoing recitals are true and correct and are incorporated herein by this reference.
Section 2.
Authority.
This Agreement is entered into pursuant to the powers and authority granted to the
parties under the Constitution and laws of the State of Florida, including expressly but not
limited to the authority of Section 163.01, Florida Statutes, and the Act.
Section 3.
Current CRAs.
a. The parties agree that the following existing CRAs, including but not limited to,
the community redevelopment plans and TIFs therefor, were properly established and are
properly operating:
1. Downtown CRA as created by Resolution No. 4912-H of the City
Council ofthe City.
2. Downtown Core CRA as created by Resolution No. 88-1169
of the City Council of the City.
3. Ybor City CRA as created by Resolution No. 88-1178 ofthe City
Council ofthe City.
b. The parties agree that the existing Old Tampa Police Department Site (the
"OTPDS") CRA as created by Resolution No. 99-0748 of the City Council ofthe City, including
but not limited to, the community redevelopment plan therefor, was properly established and is
properly operating.
c. The City and Agency agree that, except as stated below, they will not modify said
existing CRAs so as to increase the boundaries or duration thereof without the approval of the
County.
d. The County agrees that the City may exercise the authority as provided in Section
163.358(2), Florida Statutes, to modify the Community Redevelopment Plan for the Ybor City
CRA, so long as the modification does not increase the area of the existing Ybor City CRA or
extend the duration of the TIF therefor beyond calendar year 2015, and the modification
provides that while the increment for the Ybor City CRA accruable to the County as provided for
in Section 163.387 of the Act shall be calculated pursuant to Section 163.387 of the Act, the
County shall, as consideration for entering into this Agreement, retain thirty percent (30%) of
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such increment. By way of example, the modification to the Community Redevelopment Plan
for the Ybor City CRA shall provide that the tax increment revenues attributable to the Ybor City
CRA shall be paid into the Agency's Redevelopment Trust Fund for the Ybor City CRA in
accordanc'e with the following:
increment revenues from:
(i) City - 100%
(ii) all other taxing authorities subject to the
increment payment requirement, except the
County - 100%
(iii) County - 70% (30% retained by County).
e. The County hereby agrees that the City may exercise the authority as provided in
Section 163.358(2), Florida Statues, to modify the Community Redevelopment Plan for the
OTPDS CRA, so long as the modification does not increase the area of the existing OTPDS
CRA or extend the duration of such Plan for more than thirty (30) years from the date Resolution
No. 99-0748 was adopted by the City Council of the City. The modification may also provide
for the establishment of a TIP for the OTPDS CRA so long as it provides that while the
increment for the OTPDS eRA accruable to the County as provided for in Section 163.387 of
the Act shall be calculated pursuant to Section 163.387 of the Act, the County shall, as
consideration for entering into this Agreement, retain twenty percent (20%) of such increment in
years eleven (11) through thirty (30) of such Plan as modified. By way of example, the
modification to the Community Redevelopment Plan for the OTPDS CRA shall provide that the
tax increment revenues attributable to the OTPDS CRA shall be paid into the Agency's
Redevelopment Trust Fund for the OTPDS CRA in accordance with the following:
increment revenues from:
(i) City - Years 1-30 - 100%
(ii) all other taxing authorities subject to the
increment payment requirement, except the
County - Years 1-30 - 100%
(iii) County - Years 1-10 - 100% (0% retained by County)
Years 11,..30 - 80% (20% retained by County).
Section 4. Authorization of Specified New CRAs.
a. The County delegates to the City all the Community Redevelopment Powers
contained in the Act for the following specified new CRAs :
I. Drew Park within the area indicated on the map attached hereto and made
a part hereof as "Exhibit A."
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2. Channelside within the area indicated on the map attached hereto and
made a part hereof as "Exhibit B."
3. Ybor City New, within the area indicated on the map attached hereto and
made a part hereof as "Exhibit C."
b. The City and the Agency agree that the Community Redevelopment Plans,
including any modifications thereto, and the TIPs for the foregoing specified new CRAs shall
have durations of no more than thirty (30) years from the date the Resolutions creating the CRAs
are adopted by the City Council, shall not be modified to expand their area, and the TIFs for such
CRAs shall provide that while the increment for such CRAs accruable to the County as provided
for in Section 163.387 of the Act shall be calculated pursuant to Section 163.387 of the Act, the
County shall, as consideration for entering into this Agreement, retain twenty percent (20%) of
such incremem in years eleven (11) through thirty (30) of such Plans. By way of example, the
Community Redevelopment Plans for such specified new CRAs shall provide that the tax
increment revenues attributable to each respective CRA shall be paid into the Agency's
Redevelopment Trust Fund for the respective CRA in accordance with the following:
increment revenues from:
(i) City - Years 1-30 - 100%
(ii) all other taxing authorities subject to
the increment payment requirement,
except the County - Years 1-30 - 100%
(iii) County - Years 1-10 - 100% (0% retained by County)
Years 11-30 - 80% (20% retained by County).
Section 5. Procedure for Future CRAs.
The City may propose future CRAs in areas not otherwise specified in this Agreement in
which the taxable value of real property has grown at a percentage rate that is less than the
percentage rate of the taxable value of all property in the City for the previous five (5) years.
The City and the County shall negotiate the boundaries and duration of future CRAs and TIFs in
good faith. The increment for such CRAs accruable to the County as provided for in Section
163.387 of the Act shall be calculated pursuant to Section 163.387 of the Act, and the County
shall, as consideration for entering into this Agreement, retain twenty percent (20%) of such
increment in years eleven (11) through thirty (30) of such plan as outlined in Section 4(b) above.
Section 6.
Hope VI Service Area.
The City agrees to complete a redevelopment study of the Hope VI Service Area bounded
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by Osborne Avenue; East Columbus Avenue; North 15 Street; and North 34t Street by
December 31, 2003, to determine the appropriateness of creating a new CRA. The City agrees to
give reasonable good faith consideration to creating a new CRA in the Hope VI Service Area if
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the redevelopment study findings support one.
Section 7.
Exclusive Authority of City and Agency to Operate CRA.
Except as expressly provided in this Agreement, the City and the Agency shall have
exclusive decision making authority for all CRAs and TIFs in the City, and shall be authorized to
exercise any and all powers contained in the Act without approval from the County.
Section 8.
Term.
This Interlocal Agreement shall be effective upon execution by all parties and shall
terminate upon expiration or dissolution of all City CRAs.
Section 9.
Validity ofInterlocal Agreement.
After consultation with their respective legal counsel, the City, the Agency and the
County each represent and warrant to the others its respective authority and power under Florida
law to enter into this Agreement, acknowledge the validity and enforceability of this Agreement,
and waive any future right of defense based on claim of illegality, invalidity, or unenforceability
of any nature. The City, the Agency and the County each hereby represents, warrants, and
covenants to and with each other (i) that this Agreement has been validly approved by its
respective governing body at a duly held public meeting, (ii) that this Agreement constitutes a
legal, valid and binding contract enforceable against the respective party in accordance with the
terms hereof (assuming the due authorization, execution, and delivery hereof by the other parties
hereto), and (iii) that the enforceability hereof is not subject to any impairment by the
applicability of any public policy or police powers.
Section 10. Remedies.
The parties hereto shall be entitled to all remedies at law or in equity,. including
expressly but not limited to injunctive relief and specific performance, in the course of enforcing
this Agreement. However, no party shall take any action or be entitled to any remedy which
would (i) prevent or disrupt the payment of debt service on bonds, notes or other obligations
issued by any of the parties in a manner consistent with thi.s Agreement or (ii) prevent or disrupt
the deposit of "increment revenues" into a "redevelopment trust fund" (as those terms are
defined or used in the Act) which has been established in a manner consistent with this
Agreement.
Section 11. Amendment and Waiver.
Neither this Agreement nor any portion of it may be modified or waived orally. The
provisions hereof may be amended or waived only pursuant to an instrument in writing,
approved by the City, the Agency, and the Board of County Commissioners, and jointly executed
by the parties hereto. This Agreement shall be enforceable by, binding upon, and inure to the
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benefits of, the parties hereto and their respective successors and assigns. Any party to this
Agreement shall have the right, but not the obligation, to waive any right or rights, limitation or
limitationsJ 'or condition or conditions herein reserved or intended for the benefit of such party
without being deemed to have waived other rights, limitations, or conditions. However, any such
waiver shall be valid only if expressly granted in writing.
Section 12.
Third-party Beneficiary.
This Agreement is solely for the benefit of the County, the City, and Agency, and no
right or cause of action shall accrue upon or by reason hereof, to or for the benefit of any third
party. Nothing in this Agreement, either express or implied, is intended or shall be construed to
confer upon or give any person, corporation, or governmental entity or agency, other than the
parties hereto, any right, remedy, or claim under or by reason of this Agreement or any
provisions or conditions hereof.
Section 13.
Nonseverability.
The provisions of this Agreement are declared by the parties not to be severable.
Section 14.
Governing Law: Venue.
This Agreement shall be governed by and construed in accordance with laws of the State
of Florida, and venue for any action arising out of or related to this Agreement shall be in
Hillsborough County, Florida.
Section 15.
Headings.
The headings or captions of sections or paragraphs used in this Agreement are for
convenience of reference only and are not intended to define or limit their contents, nor are they
to affect the construction of or to betaken into consideration in interpreting this Agreement.
Section 16.
Filing.
Pursuant to Section 163.01(11) Florida Statutes, prior to its effectiveness, this Agreement
shall be filed with the Clerk of the Circuit Court of Hillsborough County.
Section 17.
Effect of Execution.
Notwithstanding any other provision of this Agreement, each of the parties to this
Agreement reserves its respective position concerning the authority of the City to exercise the
powers enumerated in the Act, and the execution of this Agreement by a party hereto shall not be
construed as a concession that such party's position is incorrect.
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WHEREFORE, the County, the City and the Agency have executed this Agreement as of
the date above.
ATTESTED:RlC~~
CLERK OF THE CIR~~~~€~...~ T
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Clerk to the
Board of County
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BY:~~Af'~
De uty Clerk /
Approved as to Form:
(1 (JJjjf))JJue Wi
Assistant County Attorney
Attest:
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// Secretary/Assistant Secretary
The execution of this document
was authorized by Resolution No.
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HILLSBOROUGH COUNTY, FLORIDA
By: ~~~ rh/fr
Chairman, Hillsborough County
Board of County Commissioners
CITY OZF .~~:F~~~, ,. 00.
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DICK A. GRECb,'1\1A YOR
CO~TYREDEVELOPMENT
AGENCY OF THE CITY OF TAMP A
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The execLdiOr. lit tillS l.1GcU!"~ier.t wa:i authoqz&c!
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BOl\RD OF COUNTY COMrvl!j::i!UNtriS
H!LLSBOROUGH COUNTY FLORiDA
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Lee:al Issues in Community Redevelopment
Great Cities of Florida
Florida Redevelopment Association
2003 Annual Conference
Tampa, Florida
October 23,2003
MARION 1. RADSON
City Attorney of the
City qf Gainesville
Special Counsel to the Gainesville
Community Redevelopment Agency
Gainesville, Flo~da
************************************************************************
COMMUNITY REDEVELOPMENT AGENCY
I. Redevelopment of Slum and Blighted Areas
A. Problems with redeveloping blighted areas.
1. Building density patterns.
2. Inadequate transportation and parking facilities.
3. Faulty lot layout.
4. Inadequate street layout.
5. Ownership and encumbrances.
6. Inability to acquire and assemble sufficient size property for
redevelopment.
(a) Unwilling Sellers
(b) Economics
B. Problems for cities or counties engaging in redevelopment.
1. Legal restrictions - no public purpose to expend public moneys for
private purpose.
2. Lacks power of eminent domain to acquire property for private
redevelopment.
3. Opposition to changes in zoning and comprehensive plans.
4. Lack of funds - no revenue source.
II. Community Redevelopment Agency (C.R.A.).
A. Authority - State Statute.
Chapter 163, Florida Statutes (~~ 163.330-163.462)
Constitutionality of statute upheld by Florida Supreme Court. The
Supreme Court held that a C.R.A. is authorized to issue bonds to finance
redevelopment projects, and that the expenditure of public funds is in
furtherance of a public purpose. State v. Miami Beach Redevelopment
Agency, 392 So.2d 875 (Fla. 1980).
2
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B. C.RA. is a public entity created by city or county.
1. Governed by separate appointed body; or
2. Governed by city or county commission acting as the C.RA.
3. Charter County Creation of Community Redevelopment Agency:
~ 163.356(1), F.S., was amended to provide that a charter county
having a population less than or equal to 1.6 million may create
more than on CRA by a vote of at least a majority plus one of the
entire governing body of the charter county.
C. Executive director and public counsel.
1. Appointed by the CRA, or city manager or county manager acting
as executive director.
2. Special outside counsel appointed by the CRA, or city or county
attorney acting as C.R.A. attorney.
D. Powers of C.RA.
1. Develop a redevelopment plan for the redevelopment area for
approval of governing body of city or county.
2. Acquire real property and exercise power of eminent domain, if
granted by governing body.
NOTE: Supreme Court of Illinois held that taking of property for
economic development (not to eliminate slum and blight) by a
regional development authority from an automobile recycling
facility owner for conveyance and use by an operator of a
racetrack facility would not achieve a public purpose and was
unconstitutional under Article V ofthe U.S. Constitution and the
constitution of the State of Illinois. Southwestern Illinois
Development Authority v. National City Environmental. L.L.c.,
768 N.E.2d 1 (1112002). Cert. denied, 123 S. Ct. 88 (U.S. October
7, 2002). But Minnesota appellate court upheld condemnation of
property for redevelopment purposes. Housing and
Redevelopment Authority v. Walser Auto Sales, 630 N.W.2d 662
(Minn. App. 2001), cert. den. 123 S Ct 437 (2002).
3. Solicit proposals for redevelopment.
4. Borrow money.
3
5. Issue revenue bonds, if authorized by governing body.
~
6. Dispose of real property at a value determined to be in the public
interest. Ifless than "fair value" (not same as fair market value),
approval of governing body after a public hearing is required.
S 163.380(2), F.S.
7. Enter into contracts.
III. Community Redevelopment Area.
A. Governing body makes a finding that one or more areas have conditions of
slum and blight.
Pitfall: Needs proper foundation from the start. Landowners may
challenge "blight" designation not only at time of adoption of original
resolution finding blight, but also challenge the original finding of blight
in a de novo hearing at a subsequent eminent domain proceeding, Rukab
v. City of Jacksonville Beach, 811 So.2d 727 (Fla. Dist. App. 1st 2002)
(Author's note: create and maintain good records)
B. Determine area(s) that would benefit from redevelopment.
Determination of redevelopment area is a legislative decision subject to
the fairly debatable standard. Panama City Beach Community
Redevelopment Agency v. State of Florida. 831 So.2d 662 (Fla. 2002).
infra; JFR Investment v. Delray Beach Community Redevelopment
Agency. 652 So.2d 1261 (Fla. Dist. App. 4th 1995).
C. "Slum area"
Pre 2002 statutory amendment (Chapter 2002-294, Laws of Florida):
The area must have had a predominance of buildings or improvements,
whether residential or nonresidential, which, by reason of at least one of
several conditions, is conducive to ill health, transmission of disease,
infant mortality, juvenile delinquency, or crime and detrimental to the
public health, safety, morals or welfare.
Chapter 2002-94, Laws of Florida, as codified in S 163.340(7), F.S.:
Restricts "slum area" to those areas with physical or economic conditions
conducive to disease, infant mortality, juvenile delinquency, poverty, or
crime because there is a predominance of buildings or improvements,
whether residential or nonresidential, which are impaired by reason of
dilapidation, deterioration, age, or obsolescence, and which area exhibits
one or more of the following factors:
· Inadequate provision for ventilation, light, air, sanitation, or open
spaces;
· High density of population compared to the population density
within the county or municipality, and overcrowding, as indicated
4
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by government maintained statistics or other studies and the
requirements of the Florida Building Code; or
. The existence of conditions that endanger life or property by fire
or other causes.
"Blighted area"
Pre 2002 statutory amendment (Chapter 2002-294, Laws of Florida):
Either: (a) An area in which there were a substantial number of slum,
deteriorated, or deteriorating structures and conditions that lead to
economic distress or endanger life or property by fire or other causes or
one or more of the following factors that substantially impaired or
arrested the sound growth of a county or municipality and was a menace
to the public health, safety, morals, or welfare in its present condition and
use:
1.
2.
D.
3.
4.
5.
6.
Or:
Predominance of defective or inadequate street layout;
Faulty lot layout in relation to size, adequacy, accessibility, or
usefulness;
Unsanitary or unsafe conditions;
Deterioration of site or other improvements;
Inadequate and outdated building density patterns;
Tax or special assessment delinquency exceeding the fair value of
the land;
Inadequate transportation and parking facilities; and
Diversity of ownership or defective or unusual conditions oftitle
which prevent the free alienability ofland within the deteriorated
or hazardous areas;
(b) An area in which there existed faulty or inadequate street layout;
inadequate parking facilities; or roadways, bridges, or public
transportation facilities incapable of handling the volume of traffic flow
into or through the area, either at present or following proposed
construction.
7.
8.
(NOTE: for purposes of qualifying for tax credits authorized in Chapter
220, F.S., "blighted area" means an area described in paragraph (a)).
Chapter 2002-94, Laws of Florida, as codified in 9 163.340(8), F.S.:
An area in which there are a substantial number of deteriorated, or deteriorating
structures, in which conditions, as indicated by government-maintained statistics
or other studies, are leading to economic distress or endanger life or property,
and in which two or more of the following factors are present:
. Predominance of defective or inadequate street layout, parking facilities,
roadways, bridges, or public transportation facilities;
. Aggregate assessed values of real property in the area for ad valorem tax
purposes have failed to show any appreciable increase over the 5 years
prior to the finding of such condition;
5
· Faulty lot layout in relation to size, adequacy, accessibility, or usefulness;
· Unsanitary or unsafe conditions;
· Deterioration of site or other improvements;
· Inadequate and outdated building density patterns;
· Falling lease rates per square foot of office, commercial, or industrial
space compared to the remainder of the county or municipality;
· Tax or special assessment delinquency exceeding the fair value of the land;
· Residential and commercial vacancy rates higher in the area then the
remainder of the county or municipality;
· Incidence of crime in the area higher than the remainder of the county or
municipality;
· Fire and emergency medical service calls to the area higher on a
proportional basis than the remainder ofthe county or municipality;
· A greater number of violations of the Florida Building Code in the area
than the number of violations recorded in the remainder of the county or
municipality;
· Diversity of ownership or defective or unusual conditions of title which
prevent the free alienability of land within the deteriorated or hazardous
area; or
· Governmentally owned property with adverse environmental conditions
caused by a public or private entity.
The definition is further amended to provide that the term "blighted area" also
means any area in which at least o'ne ofthe factors identified above are present
and all taxing authorities subject to 9 163.387(2)(a), F.S., agree, either by
interlocal agreement or agreements with the agency or by resolution, that the area
is blighted. Such agreement or resolution shall only determine that the area is
blighted. (NOTE: the subsection is amended to provide that for purposes of
qualifying for the tax credits authorized in Chapter 220, F.S., "blighted area"
means an area as defined in this subsection.)
NOTE: In Panama City Beach Community Redevelopment Agency v. State of
Florida, the Supreme Court validated redevelopment revenue bonds that
involved undeveloped open or vacant land based upon the definition of
"blighted area". However, the definition of "blighted area" was
amended by Chapter 2002-294, Laws of Florida, enacted during the
2002 session.
V. Resolutions, Ordinances, and Notices.
Steps Necessary to Create a Redevelopment Agency
1. Resolution finding slum and blight in a certain area of the community.
· Legislative function subject to the fairly debatable standard. Panama
City Beach Community Redevelopment Agency v. State, supra at 669.
6
. Finding of Necessity: Section 163.355, F.S., was amended to clarify
that no county or municipality may exercise the community
development authority under Part III of Chapter 163 until the
appropriate governing body has first adopted a resolution finding
specified facts. The new amendment requires the resolution, which
must be supported by data and analysis, include a legislative finding
that the conditions in the area meet the criteria of either "slum area" or
"blighted area" as defined above.
2. Public notice of intention to create a redevelopment trust fund.
3. Notice to taxing authority.
. Fla. AGO 2002-60 opines that a taxing authority may not voluntarily
waive the statutory notice requirement.
4. Resolution declaring governing body as C.R.A.
5. Ordinance creating C.R.A.
. Maximum Number ofC.R.A. Commissioners: Section 163.356(2),
F.S., was amended to increase from 7 to 9 the maximum number of
allowable commissioners on the CRA board.
6. Resolution approving a redevelopment plan.
. Modification of a CRA.~lan: In addition to requiring the governing
body to hold a public hearing on any modification to a CRA plan, a
new subsection (3) to Section 163.361(2), F.S., was added to provide
that, in addition to the notice requirements provided in Section
163.346, F.S., prior to the modification to a CRA plan that expands the
boundaries of the area or extends the time certain set forth in the plan,
the CRA shall report the proposed modification to each taxing
authority.
. Contents of the CRA Plan: Previously, Section 163.362(10), F.S.,
required that CRA plans include a time certain for completing all
redevelopment financed by increment revenues, not to exceed 30
years. The amended provision requires that for any CRA created after
July 1, 2002, the time period for completing all redevelopment
financed by tax increment revenues must occur no later than 40 years
after the fiscal year in which the plan is initially approved or adopted.
7. Ordinance establishing a redevelopment trust fund.
Chapter 2002-294, Laws of Florida, as codified in 9 163.387, F.S. now
provides:
. A community redevelopment trust fund shall be established only after
approval of the CRA plan.
7
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· For any CRA created after July 1,2002, each taxing authority shall
make the annual appropriation for a period not to exceed 40 years after
the fiscal year in which the initial CRA plan was approved or adopted.
· Revised the exemption for special districts and deleted the exemption
to those special districts created prior to July 1, 1993.
· Deleted the required date by which a local government must establish
procedures by which a special district may submit a written request to
be exempted from contributing tax increment revenues.
· Clarified that moneys in the redevelopment trust fund may be
expended for a list of undertakings of a community redevelopment
agency "including, but not limited to". These purposes include, for
example: administrative and overhead expenses; planning costs;
acquisition of real property in the redevelopment area; repayment of
principal and interest for loans and bonds; and the development of
affordable housing.
v. Tax Increment Financing (TIF) - The Key to Community Redevelopment (~
163.387, F.S.)
A. TIP - Incremental increase in ad valorem revenue over the tax base in the
redevelopment area established as of the date of adoption of the ordinance
creating the trust fund.
B. TIP - Moneys deposited in. the trust fund are dedicated to pay any
indebtedness, including revenue bonds and notes.
C. Debt does not constitute a debt of the creating governing body or the state.
Revenue bonds are payable solely from TIP in the trust fund.
D. Calculation of TIP:
Current Assessed Value
- Base Year Assessed Value
(Remainder) x Current Millage = TIP
E. Underlying theory: Increase in assessed value is attributable to
redevelopment activities.
F. For any CRA created after July 1, 2002, taxing authorities are only
required to make appropriation to the CRA for a maximum of 40 years.
Chapter 2002-294, Laws of Florida, as codified in ~ 163.387(2)(a)
G. Current issue: In an expanding redevelopment area, is the assessed value
of the expanded area calculated back to the original date ofthe
establishment of the original trust fund or the date the expanded area is
included?
8
Author's opinion: date the expanded area is included.
VI. Requests for Proposals for Redevelopment Projects..
1. Notice of invitation to submit proposals.
2. Request for proposals.
VII. The Development and Disposition Agreement.
A. Negotiate the development of the property.
FACTORS:
1. Project financing.
2. Specific type of development and use of property.
3. Time tables for commencement and completion of construction.
4. Government commitments:
(a) Infrastructure
(b) Zoning Caveat: Unlawful to contract away police powers.
Hartnett v. Austin, 93 So.2d 86 (Fla. 1956); Chung v. Sarasota
County, 686 So.2d 1358 (Fla. Dist. App. 2d 1996); agreement to
support rezoning is unenforceable. Morgran Company v. Orange
County, 818 So.2d 640 (Fla. Dist. App. 5th 2002); .
(c) No Waiver of Police Powers. To avoid contract zoning issues,
it is advisable to expressly state that any agreement does not
confer any development rights, and that the local government does
not waive its police powers.
5. Fayade or other easements or property rights.
6. If conveyance of property by C.R.A., consider use of right of
reverter and restrictive covenants to limit use of property or return
property in the event the proj ect is not commenced..
7. Penalties or other remedies for late or lack of performance; and
incentives for early or superior performance.
B. Written agreement.
1. Development agreement.
. .
2:. . Fayade easement. [Appendix A]
. ,
9
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3. Air rights easement. [Appendix B]
4. Interlocal agreement for services.
5. Interlocal agreement for lending of funds. [Appendix C]
In Fla. AGO 2001-30, the Florida Attorney General opines that a
city may lawfully loan money to a C.R.A. for the purpose of
making a loan to a private business; In Fla. AGO 2002-52, the
Florida Attorney General opines that a city may lawfully make an
interest-free loan to the C.R.A. for projects declared by the City to
be a public purpose.
6. Incentive programs. CRA rebates to developer TIF attributable to
a project that meets certain desirable criteria, i.e., meets numerous
goals of the plan (Appendix D).
VIII. Hot Topic
A. Police Services.
Issue: May tax increment moneys be used to fund "additional" police
services in the community redevelopment area?
k
Author's opinion: Yes
Authority: 1) ~ 163.370(1)(P), Power ofCRA's: "to develop and
implement community policing innovations"; and 2) ~ 163.387 (6)
provides that trust funds may be expended on a non-exclusive list",i.e.,
"including, but not limited to..." L~apter 2002-294, Laws of Florida
Caveat: The power to approve the development of community policing
innovations remains with the city or county governing bodies.
~ 163.358(5)
B.
Advertising
Issue: Whether it is a legitimate use of CRA funds to advertise and
promote the CRA district?
Answer: Yes, in the 8th Judicial Circuit.
Authority: Adams v. City of Gainesville and the CRA, Case No. 2001-
1560-CA, Div "J", decided December 11, 2002. Held: The expenditure
of money by the City and CRA for a promotional campaign for the
downtown redevelopment area was for a valid and proper public purpose
with only an incidental benefit to private enterprise.
OL-It;
~ I~?; .181- ~ it eJJG fJ6/.1 ~un~ h:J-
10
IX. Conclusion.
C.R.A. can be a catalyst for development of undesirable areas (from the perspective of
developers) due to location, inadequate infrastructure, or economic conditions. TIF can
be leveraged with other public/private funds to generate an incentive package that is
attractive to developers. Community as a whole can benefit from an enhanced tax base
and the elimination of slum and blighted areas.
11
TABLE OF AUTHORITIES
CASES
Adams v. City of Gainesville and the CRA, Case No. 2001-1560-CA, Div "J", decided
December 11, 2002...................................................................................... .................. 10
Chung v.Sarasota County, 686 So.2d 1358 (Fla. Dist. App. 2d 1996)............................... 9
Hartnett v. Austin, 93 So.2d 86 (Fla. 1956)........................................................................9
Housing and Redevelopment Authority v. Walser Auto Sales, 630 N.W.2d 662 (Minn.
App. 2001), cert. den. 123 S Ct 437 (2002)..................................................................... 3
JFR Investment v. Delray Beach Community Redevelopment Agency. 652 So.2d 1261
(Fla. Dist. App . 4th 1995)................................................................................................ 4
In'veI/11 ~ Morgran Company v. Orange County, 818 So.2d 640 (Fla. Dist. App. 5th 2002)............. 9
Hh/ItI' Panama City Beach Community Redevelopment Agency v. State of Florida. 831 So.2d
~. 662 (Fla. 2002) ............................................................................................................ :1, 6
~/~ Rukab v. City of Jacksonville Beach, 811 So.2d 727 (Fla. Dist. App. 1st 2002)............... 4
Pr~ Southwestern Illinois Development Authority v. National City Environmental. L.L.C.,
768 N.E.2d 1 (Ill 2002). Cert. denied, 123 S. Ct. 88 (U.S. October 7,2002). ................3
State v. Miami Beach Redevelopment Agency. 392 So.2d 875 (Fla. 1980) ...................... 2
STATUTES
S 163.340(7)......................................... ........... ...... ........ ..................... ....... ........ ............ ...... 4
. ~ 163.340(8)........................................................................................................................ 5
S 163 .356( 1). ....... ...... ..... ..................... ............. ................................... ..... ..... ........ ..... .......... 3
~ 163 .358( 5).............. ..................... .......... ................ .................... ............. ......... ..... .......... 10
~ 163.370(1)(p)................................... ............... ......... ................................ .............. ........ 10
~ 163.380(2)........ .......... ...... ................... ....................... ......... ......... .......... ........... ............... 4
~ 163.387 (6)....... ~. .... .... ...... .. ... ... .. . .. .. . .. .. ........ ... .. ... .. .... .... . ........... .. . .. .... ...... .. .... ....... ... ..... 10
S 163.387(2)( a) ............................................................................................................... 6, 8
~ 163.387, F.S. ... ..................... .......... ............. ............ ..... ........ ............. ........................ ....... 7
~ ~ 163.330-163.462......................................................................................... ................... 2
Chapter 2002-294, Laws of Florida ........... ...... ......... ................................................. passim
Chapter 220, F. S. ............................................................................................................ 5, 6
Section 163.346................................................................................................................... 7
Section 163.355................................................................................................................... 7
Section 163.356(2) ............ ..... ......... .................. ........ ................ .... ............ .......................... 7
Section 163.361 (2) .............................................................................................................. 7
Section 163.3 62( 1 0) ...........:................................................................................................ 7
OTHER AUTHORITIES
Fla. AGO 2001-30 ............................................................................................................ 10
Fla. AGO 2002-52 ............................................................................................................ 10
Fla. AGO 2002-60 .. ........ ........ ... .... .... ... ............ ... .... ..... ................ .............................. ........ 7
12
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~is-fustIument Prepared By:
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/ City of Gainesville, Florida
/ PO Box 490, Sta. 48
: Gainesville, FL 32602
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Tax Parcel No. 14565 & 14567 ;-...
Section 5, Township 10 South, Range 20~st '>
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RECORDED IN OFFICIAL RECORDS
INSTRUMEN\ # 1688989 6 P6S
2000 JUN 23 10:57 AM BK 2297 PG 2532
J. l<. "BUDDY" IRBY
CLERK OF CIRCUIT COlRT
ALACHUA COUNTY,FLORIDA
CLERK3 . Receipt~019562
p-D 0.70
By:
__ _____-:D.C.
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....
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/. .......................... FA,9AJiB<<SEMENT
~~ .rA~E EASEMENT. made this :l/1l'~ of -::r\'". _ , 2000. by McGurn .-.-
Investmen~C<lfupany. whose post office address is P.O. B~~ 2900. Gainesville, Florida (GRANTOR) and
GAINESVJI.J.E COMMUNI1Y REDEVELOPMENT AGENCY. a public body corporate and politic of the
State of Flqr{da and the designated Community Redevel*n1ent Agency of the City of Gainesville, whose post
office addr~\ is P.O. Box 490, Mail Station 48, GaincsVmcf. Florida 32602 (GRANTEE).
. . '. \~~"'" . .' ........'..... ..,i . '.
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GRANTOR and O~Eit3:ve"executed an Agr;einent for Deve}~pment of Property (AGREEMENT). dated
August 24, 1998, wh'hejn GRANTOR has a~~d'io convey a Fa~a4e'..~sement on the property to be
developed as "Union Str~l-Station.:.!ocatetrat 201 SE 1st Street;.~d "".
............. -"'"
GRANTOR and GRANTEE desire to set forth the t.~S'-and conditions ()fthe Fas:ade Easement in this
.' .
agreement; ............. ,"'."-" \.
r',. .......... -..-.-..... -'-" ....
In consideration of the c~rc:~;'c~~ditions and a~eetfte~ts contained in 'tlf~ AGREEMENT and as contained
below. the parties agree a~.,.foUows: ..-......1 ~ \ \,
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1. .The foregoing recitals ai:,~ i7orporated here ,y.. reference as though fu~}Y s~t forth as the agreements of the
parties. . ", i \ ~. .' !
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2. GRANTOR grants to G~E , an easement ~r'i1i~pmpt5s'e"~f ensuri~ th~"'preservation and
maintenance of the Union Street Station Building Fa~a-d~ located upon th~_ft)l1owiPg.~described property in
Alachua County. Florida: '-'-... .-....-,' !'\
-"'....... .'
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All of Block Four (4), Range One (1) of the Map of Gainesville, Florida, ~s record~ in the ~blic
Records of Alachua County, Florida, in Deed Book "B", Page 383, less tJ\e right-of-"ay for Second
Avenue as recorded in Official Records Book 208, Page 150; together fith that i>.~,c5~the forty foot
(40') street lying between Block 4, Range 1 and Block 5, Range 1 of~ginalpaineS~\le as per Deed
Book "H", Page 383 of the Public Records of Alachua County, Floyaa, c10sfi by City"ofGainesviUe
Ordinance #2304. . ...' l
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APP ~ ND IX ,,~.;.:. -.~-:::~:-.;::::~:~~.. \. '\
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i J:" The term of this easement eonunen~;;'; with the execution date hereof and continues for a period not less that
j .... 20 years from the date of substantial coi}ipletion of Union Street Station, or the life of the GRANTEE'S
r I obligation to pay the Grant Award pursqa~t to the AGREEMENT, whichever is longer.
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\ ~ 4. The Union Street Station Building F.ayad'~ will be constructed substantially as shown in Attachment uA"
\.. \ which is made part of this easement bl refere'~e.":.
\. \. ... ........ .
\_" 5. GRANTOR shall be solely respbl'!:>il5l~ for the construction, maintenance and preservation ofthe Union
....:.-$treet Station Building Fayade aQtl.ahall indemnify and hold the GRANTEE and the City of Gainesville, their
"'~tG.ted and appointed officials, e~ployees and agents harmless from aU costs, attorneys' fees and claims of
da~.to.p....~son, property o~.~r.~J1li$~.~.r~~ulting from the construction, maintenance or preservation of the
Fa~de. ........." .::i' .......,. ......-.-.
,........ '--..
6. GRANTOR ~r{~il at all tim:.~..maitrtiin.tfiera~i~ good repair and in safe condition. GRANTOR shall
also comply w\1h aU othe~.1.aws, ordinances and regulati.ot}s pertaining to the construction, maintenance and
preservation 01 the F!l.a,rc1e. \:....
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7. GR.ANioo/shaU provi'de GRANTEE with a certificat~. ~f insurance eviden~ing GRANTEE as an
additional ~arped insured to the extent of GRANTEE'S int~r~st in this Fayade Easement. Furthermore, Grantor
shall main~iIj. the certificate in full force, and provide evi;e~ce when requested, for the duration of the
E ~ i . t
asement. '; ; ... r
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8.' In the e~~~~ of damage resulting from' casu~l~'f~ss tol'n extent requiring repair or reconstruction o~th~
Fayade, any repii-r or reconstruction shall 'ge-stibject to the provisions of this easement.
"'- .... ......... . ..-
-. .....-. .-...- "
9. Without the prl();~~p;e'ss~:itten consent oft1>~'ciRANTEE, GrV.;NrOR will not undertake nor permit to
be undertaken, any alte?atiQP.., modificatioI!!_~n1itruction, remode1in!, '~xtension, demolition or reconstruction
of the improvements on the property;'wfiich would materially al!,er-or c~nge the appearance ofthe Fayade
during the life of the easement. ........-........-.... .........
....-. '.
10. GRANTOR shall hav.e the right to insYill'bi.'iilding and tenantsi~~"&e.il-k long as such signage meets all
applicable signage ordin~c~s of~e-e~' of Gainesville,jnah:iafng the Do~own Advisory Design Guidelines.
'" '.. .-.-' .-., ..- '" ".
", .- ,., \ \
11. GRANTOR shall have '\pe right to ins~n.HV ~t and other equipment on1jthF roof of the building as long as
it is located or screened so a\to mi!}imi'ze the vie"'!'Pfthe equipment from th1 aliJoining public rights-of-way
and the ground floor of adjoin~ng..properties. No ~.rl~enna, dish or other equ.i'Pm~t shall be installed that will .
substantially change the view 6f \he roofline from ird"JQining public rights..<l'f-way. and extend'more than 15 feet
above the roofline; except with t~ written permissidJ}. "Of-tbe G~E. The GRANTEE acknowledges that
the 25-foot lighting rod required for the building which.is ~urreniiy located o~l"fue ~~'I:,theast stair tower is
hereby permitted. ....,."... ! ....
-..~... .-..-' : -'.
. -"",to. _..... .: '..
12. At the GRANTEE'S sole discretion, the GRANTOR may be permitted to ma)Ce sucli.,alterations,
modifications or remove the improvements, when the GRANTEE determines ~t granting such permission
would not undermine the goals set forth or referred to in the AGREEMENT. / ....
J' \
,. ,flO.... -.
, . .. .,~. "
13. If the GRANTOR fails to maintain and preserve the Fayade, GRANTOR agreelto a re~ction in the Grant
Award in proportion to the amount ofimprovements and the length oftitfte the improvements are not
maintained relative to the required maintenance period as set forth in-the AGREiMENT.
...._ .. 1-'.
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i JA. GRANfOR has mortgaged the Uni~~ Stree' Sta.ion property '0 Firs' Union National Bank and this F.yade
I lEasemen' is subjec' to such mortg.ge. IiillANfOR has assigued its righ', ti.le and interes. in the
i (AGREEMENT to First Union Nation.1 t\#< as .ddition.l colla.eral with the consen' of GRANTEE as
\: evidenced by the certain Consen' d..ed ~o\(,ember 24, 1998 recorded in O.R. Book 2217, P.ge 2732 of the
\. Public Records of Alachua County, Flonda.\ .
~. l, ! .... ..
"\ IS. GRANfOR may crea.e one or m/re c~~iniums on .11 or . portion of the Union Stree' Station property
\\ and any Declaration of Condominiuln yro1 be subjec..O the provisions of this F.yade Easemen'.
'. '. : ,
". '. l ,1"
'1Q,.l3RANTEE acknowledges tha( GRANfOR may retain the righ"o paymen' of the Gran' Award under the
A~ notwithstandin~ !\l!ll1:.'LlJ.nion Stree' Station property has been decl.red · condominium.
............ :::: J'......... ..............
17. GRANTEE .gr~~~Jlo..o amend or .ccep" sil,..,nder of this F ."de Easemen' withou' the prior written
permission of G~OR. .............- ..........-...-. '->"
I .......... -..,.....
18. In the evei' ofa ~,l'i~1t IDlder this F.y.de Easemenl;.JI!e parties shall be entitled.o.1l rights .nd remedies
set forth in t1je A9REEMENT. "",\
, ' ~ ~
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19. No pro-lisj6n of this F.yade Easemen' nor any .ct of tr,b l:ity of G.inesville or GRANTEE sh.1l be deemed
or conslrUe4 ~y any of the parties, or by third parties, '0 cr;a'!' any rel.tionship of third-p'rty beneficiary, or of
princip.l or~~en', or of limi.ed or general partnersbip, ofof loin' venture, or of any .ssoci..ion or rel..ionship
involving th~.~ityofGainesville or GRANTEE. ./ i.
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. ". .... . ....,. . .
20. All notice~~Ursuan"o this F .yade E..~.nl'shall b, by certified m.il, return recelp. r~uesled, .ddressed
th fi 11 . ,..... .-' I
to e 0 oWlng: .... -'" ............ ,.
.. ......-..,--..'. ..
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If to GRANTE~:" Executive Dil'ec{or .i '
~...~ ' .
"-'CctmmunliY Redevelopment Ag~CY .
P.O. Box 490 ............ .
Gainesville, FloriOa .32'602 .
................. .' 00.' -. "
..... . -.... ....
with a copy to: {~........ cj~-Att~mey.s Office .............. '\\"
". '."'1>.0. Box 1110. _ ,.......... ........
\. G.ines~I]s.-F1"'* 32602 Ii \
Ifto GRANfOR: ' " l/;G;;:' Investm~\ Company ! ,
'.' . , ; r
". 1! .0. Box 2900 \ \ ..' ;
\.oainesville, Floridi'32602 ....J'.... (
". .....-. ....-..., ) ::\
"- . '. '. .
21. The .erms of this F.y.de Easemen' shaU be con,m;~ in .ccordance wjtli'ihe I.~~.,of the State of Florida.
. -'-. ....., :....
. -,.~. ...... : '..
22. All provisions of this F."de Easemen' shaU coostrued to be covenants runn\#g witJi.,the land and with
every part thereof and in.erest therein, and .U provisions sh.U be hinding on th~'parties h~lo. and on their
suceessors and assigns, specific,Uy including any condominium associ.tions ot eondnminI\UD uni. owners. All
pres en' and future condominium uni. ownerS and condominium associ.ti~h'U be p'~',lo and comply
with the provisions of this easemen~ ! i \)
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GffICIAl RECORDS INS1RUMEN1 ~ 0001688989 6 p9S
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I IN.~s V/lIEIU)OF. ihe said ~R bas caused these presents to be executed under seal on the day
. ,i ;riid year aforesaid. \ \.
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f ; . Signed, sealed and delivered } \
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STATEOFELORJl)A.' \\
COUNTY cfr ~CHUA \\
i / ~ ~ :J.p:1d
The foregoin~instrument was acknowledged before me th~ 'Vol. <I- day of ~ i--<-- · ~. by
Kenneth R.\1-1cGum. Presideot ofl'deGum Investment Cojuriany. a Florida Cd{pontion, on behalf of the
COIjlOIation\~.~ is personally known to me. ,/,/ / .~ a ' /
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'e " COMloll:SSlON' CCI24013lt.'.' "
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This instrument prepared by:
City of Gainesville
P.O. Box 1110
Gainesville, FL 32602-1110
Easement for Air Rights.
This agreement ("Agreement") is made on -'1lllllQ.h ) I ~ 1999, between the
Gainesville Community Redevelopment Agency, a public body corporate and politic ("Grantor")
and McGurn Investment Company, a Florida Corporation ("Grantee")
Recitals
Grantor and Grantee have executed an Agreement for Development of Property, dated
August 24, 1998, wherein Grantor has agreed to convey an easement for air rights to
accommodate an over-street walkway between property to be developed as "Union Street
Station," located at 201 SE 1 sl Street and an existing parking garage, located at 220 SE 2nd
Avenue; and
pursuant to ~ 163.380, Fla. Stat., Grantor has advertised for and accepted proposals for
the use of the air space, and has approved the proposal submitted by Grantee; and
Gra1.1tor and Grantee desire to limit the use and occupancy of the airspace to a pedestrian .
. walkway under the terms and conditions set fort~ .in this agreement; . .
In consideration of the covenants, conditions and agreements contained below, the
parties agree as follows:
1. The foregoing recitals are incorporated here by reference as though fully set forth here as
agreements of the parties.
2. Grantor grants to Grantee an exclusive easement appurtenant ("Easement") in certain air
rights for the benefit of Grantee's parcels and use by Grantee for the construction, operation and
maintenance of a pedestrian walkway within the area described as follows and as further
depicted on Attachment "A" to this Agreement:
Air rights comme!1cing 17.55 feet and ending 45 feet above the highest point on
the street lying within the following described parcel of property ("Premises")
lying and being in Section 4, Township 10 South, Range 20 East, Alach~a
County, Florida:
Commence at a found nail and disk marking the southwest corner of Block 4,
Range 1 of the Map of Gainesville, Florida, as recorded in Deed Book "R". Page
383 of the Public Records of Alachua County, Florida and the North Right-of-
Way Line of Southeast 2nd Place; thence along said North Line North 88 degrees,
44' 25" East a distance of 207.76 feet to a found nail and disk marking the West
Right-of-Way Line of Southeast 2nd Street; thence North 01 degrees 52'24" West
a distance of 171.70 feet to a found nail and disk marking a point on the South
Right-of-Way Line of Southeast 2nd Avenue and the Point of Beginning, thence
along said Right-of-Way Line South 88 degrees 54'57" West a distance of 7.86
APPENDIX "B"
"
feet, thence North 11 degrees 32'28" East a distance of 68.59 feet to the North
Right-of-Way Line of said Southeast 2nd Avenue, thence along said Right-of-
Way Line North 89 degrees 01'47" East a distance of 17.41 feet, thence South
11 degrees 32'28" West a distance of 68.56 feet to a point on said South Right-
of-Way Line, thence along said Line South 88 degrees 57'02" West a distance of
9.56 feet to the Point of Beginning, containing 1,165 square feet more or less.
Grantor also grants to Grantee reasonable rights of ingress and egress upon the Premises as are
necessary for the construction, maintenance, repair or replacement of the walkway, subject to
normal coordination with the City for any necessary closing of all or part of the street. The
Easement shall remain in existence unless terminated as provided in this document.
3. The term of this Agreement commences with the execution date of this Agreement and
expires in accordance with the provisions contained in paragraphs 9 and 10 below.
4. Subject to the rights of Grantee pursuant to the terms of this Agreement, the City of
Gainesville, its successors and assigns, reserves the right to the full use and enjoyment of the
Premises for use as a public right-of-way.
5. Grantee shall be solely responsible for the use and enjoyment of the Easement and shall
indemnify and hold Grantor and the City of Gainesville, their elected and appointed officials,
employees and agents harmless from all costs, attorneys' fees and claims of damage to person,
property or premises resulting from the use, occupancy and possession of the air rights over the
Premises by Grantee or the rights of ingress and egress over the Premises as provided in
paragraph 2.
6. Grantee shall provide Grantor with a 'certificateof insurance evidencing Grantor and the'
City of Gainesville as additional insureds on Grantee's comprehensive liability insurance policies
prior to Grantee commencing construction of the walkway in amounts satisfactory to Grantee.
Furthermore, Grantee shall maintain that certificate in full force, and provide evidence when
requested, for the duration of the Easement.
7. Grantee shall at all times maintain the walkway in good repair and in safe condition;
furthermore, Grantee shall also comply with all other laws, ordinances and regulations pertaining
to the location, use, and occupancy of the walkway. In the event of an emergency where the
walkway is damaged in a way that imperils the public safety, the City, after a reasonable attempt
to notify Grantee, may repair or remove the walkway and charge Grantee for such repair or
removal. Grantee agrees to pay for such emergency repair or removal within 30 days of receipt
of invoice.
8. . In the event the Premises are subjected to ad valorem taxation or fees by any
governmental entity as a consequence of this Agreement, Grantee, upon receipt of Grantor's
written notice and demand, shall promptly pay that tax or fee and provide Grantor with evidence
. of that payment. Grantee may however contest the imposition of ad valorem tax and Grantor
shall cooperate with Grantee in any such contest. . . ... .' .
9. In the event of substantial destruction of the walkway, Grantee shall serve Grantor with
written notice of Grantee' 5 election whether or not it chooses to rebuild the walkway and of its
need to use the air space which is the subject of the Easement. If Grantee elects not to rebuild
the walkway, or if Grantee does not so elect within 90 days, or if Grantee does not commence to
so rebuild within 12 months of the date of destruction, or if any Mortgagee or Condominium
Association does not elect to cure pursuant to paragraph 12 below, the Easement and any rights
2
that Grantee shall possess by virtue of this Agreement shall automatically cease and terminate
without further notice.
10. In the event of Grantee's noncompliance with any of the specific conditions and
restrictions contained in this Agreement, Grantee, upon receipt of Grantor's written notice and
. demand for compliance, shall provide Grantor with evidence of Grantee's compliance within 90
days of said receipt. If compliance cannot be reasonably completed within said 90 days, Grantee
shall provide Grantor with evidence that work toward compliance has commenced and that
compliance will be complete within a reasonable time. In the event Grantee fails to submit such
evidence of compliance to Grantor within the time allowed, and if any Mortgagee or
Condominium Association does not elect to cure the condition pursuant to paragraph 12 below,
the Easement and any rights that Grantee shall possess by virtue of this Agreement shall
automatically cease and terminate without further notice.
11. Any rights derived by Grantee pursuant to this Agreement shall be solely for Grantee, its
successors and assigns.
12. Grantor acknowledges that Grantee shall be mortgaging the Union Street Station
property, which includes the over-street walkway, and collaterally assigning all rights of Grantee
under this Agreement, to a financial institution. Grantor further acknowledges that Grantee may
create one or more condominiums on all or a portion of the Union Street Station property, that
the over-street walkway might be common area and that all or part of Grantee's rights under this
Agreement might be assigned to the Condominium Association(s). Grantee shall not encumber
the over-the-street walkway or assign all or part of Grantee's rights under this Agreement without
the written consent of the Grantor, which shall not be unreasonably withheld or delayed. Grantor
shall not iIppose any additional obligations, requirements, costs or fees merely as a condition of
such consent. .
If Grantee creates one or more Condominium Associations, it shall include in the condominium
documents a requirement that upon assignment of this Agreement to the association(s), the
association(s) must assume all obligations of Grantee under this Agreement, including but not
limited to providing indemnification and proof of insurance pursuant to paragraphs 5 and 6.
Grantor agrees not to terminate this Agreement in the event of default or substantial destruction
of the over-street walkway without providing 60 days written notice to any Mortgagee or
Condominium Association(s). Said Mortgagee or Condominium Association(s) shall give
Grantor written notice of its election to cure or rebuild within the 60 day notice period and shall
be granted a reasonable time to cure the default and/or commence rebuilding. Grantor may
terminate this Agreement if such notice is not received or if the cure or rebuilding has not been
completed within a reasonable time.
13. Grantor agrees not to amend or accept a surrender ofthis Agreement without the prior
written permission of any Mortgagee or Condominium Association(s) consented to by the
Grantor pursuant to paragraph 12, which permission shall not be unreasonably withheld or
delayed. - -. .. .-..
14. No provision of this Agreement nor any act of the City of Gainesville or Grantor shall be
deemed or construed by any of the parties, or by third parties, to create any relationship of third-
party beneficiary, or of principal or agent, or of limited or general partnership, or of joint
venture, or of any association or relationship involving the City of Gainesville or Grantor.
3
15. All notices pursuant to this Agreement shall be by certified mail, return receipt
requested, addressed to the following:
If to Grantor: Executive Director
Community Redevelopment Agency
P.O. Box 490
Gainesville, Florida 32602
With a copy to: .City Attorney's Office
P.O. Box 1110
Gainesville, Florida 32602
If to Grantee: McGurn Investment Company
P.O. Box 2900
Gainesville, Florida 32602
16. The terms of this Agreement shall be construed in accordance with the laws of the State
of Florida.
In Witness, the parties here have duly executed this Agreement as of the date written above.
STATE OF FLORIDA
COUNTY OF ALACHU~
GAINESVll..LE COMMUNITY
REDEVELOPMENT AGENCY
/W~f;~
Wayne Bowers
Executive Director
WITNESSES
~1?uJ@-,
C\) ?r0
Appr~e~as, to torm and le~y
By.{ 'd. IN.t.a )7l. ca, )
Attorney for Gainesville Community
Redevelopment Agency
This instrument was executed before me on the 1..1- day of nt~ , 1999. by Wayne
Bowers, Executive Director of the Gainesville Community Redevelopment Agency.
....'$.:r;:;,..... Conchi M. Ossa .. j) . - Ci
!.rK~~ MYCOMM1SS10NICC696966 EXPIRES ~ >n. V,.Y.V,,)
't~.&::l December 1, 2001 C
"'{if.0}.~.., SONOEDlliRUTROYfMlJNSW,NCf.INC NOTARY PUBLI
L Personally known
_ Produced
as identification.
Accepted and agreed to:
WITNESS
McGURN INVESTMENT COMPANY
Kenneth R. McGurn. President
4
ST ATE OF FLORIDA
COUNTY OF ALACHUA
This instrument was acknowledged before me on the _ day of ' 1999,OY
Kenneth R. McGurn, President of McGurn Investment Company, a Florida corporation, on
behalf of the corporation. He is personally known to me.
NOTARY PUBLIC"
5
IHTERLOCALAGREEMENT
BorroweT:
Gainesville Community Redevelopment Agency
Lender:
City of Gainesville
..
For value received, Borrower agrees to pay to Lender the principal sum of One Million
Four Hundred Thousand Six Hundred Dollars and no cents, plus a proportional
share of the Lender's financing costs as more particularly described below, with interest
thereon as specifically identified in Exhibit A.
UNDERL YING BORROWING
Borrower understands that the proceeds derived from this borrowing have in turn been
borrowed by the Lender as a participant in a First Florida Governmental Financing
Commission (FFGFC) bond issue. Borrower understands the tax-exempt nature of the
FFGFC's bond issue and the federal and contractual requirements imposed on tax-
exempt funds. Borrower represents that no use will be made of the proceeds received
hereunder that would endanger the tax-exempt nature of the FFGFC .bond issue or the
Lender'"s participation .in said bond issue. Borrower further represents that Borrower
reasonably expects and will make diligent effort to expend all borrowed funds within
three years of receipt. If Bdrrower is unable to expend allJunds within this time period, ' ,
'Borrower will reimburse t.ender for Borrowe~s share of any and' all arbitrage rebate to
the federal government that may become due in the course of investment activity
involving the proceeds of the FFGFC bond issue or the Lende~s share thereof. The
Lender shall determine the amount of the arbitrage rebate and notify Borrower at least
30 days prior to the due date.
CASH PROCEEDS
Borrower understands that the cash to be received on the Note is $1,400,600, and that
the difference between the face value of the Note and the $1,400,600 to be delivered to
Borrower in cash represents the estimated financing costs of the bond transaction,
,charged pro rata to the portion of the Lende~s proceeds retained by Ihe, Lender and the
Lender's proceeds passed to Borrower and which are the subject of the Note.
The proceeds of the loan will be deposited in a capital projects fund of the Lender
designed solely and specifically 10 account for the receipt and expenditure of funds
related to the courthouse Parking Facility 'project financed by the loan. All Interest
earned on the proceeds will remain in this fund, and can be used forn" purp?se other
than payment of project costs or debt service on thIs loan. Expenditures fo~ proJ~ct costs
wm be from this capital projects fund, and will be authorized by the Execubve Director or
his designee~
1
Prepared by City of Gainesville Finance Department
O:!/!81lJ2
APPENDIX "C" .
PAYMENTS
Borrower agrees to execute the promissory note attached as Exhibit B. Borrower
understands that Lender is committed to a repayment schedule as defined in the.
underlying FFGFC bond covenants. Borrower further understands that the FFGFC
bond Issue is a serial issue, and that principal payments as well as interest payments
are .payable throughout the duration of the bond issue. Borrower agrees to repay to the
Lender the Borrowe~s proportionate share of the Lentle~s participation in the FFGFC
bond issue. Such payments will be made to the Lender three business days before the
Lender Is required to make each and every paymenl A schedule of the Lende~s
repayment dates. the Borrowe~s proportionate obligation under the terms Of the FFGFC
bond Issue applicable to the Lender. and the interest rates on each serial bond
repayment date are attached to the Note as Exhibit A and are hereby Incorporated by
reference. The note will be repaid from the Downtown Tax Increment Fund previously
established by the Lender or capital projects funds.
GENERAL TERMS
The Note Is not payable on demand. Borrower may repay the Note in full at any time
without penally, by paying the present vaiue of all future bond payments either directly to
the Lender or into a defeasance trust fund, at the optlon of the Borrower.
. .
~ .
. for the~City of Ga'inesville (~e.nder)
Thomas . Bussing.
PO BoX 490
Gainesville FL 32602
~
-
Attest: Clerk of the commission(seal)
i/~r/2z
Date
for Gainesville community Redevelopmenf AgencY (Borrower).
_/lv~~.,~
Wayne Bo ers, Executive Director
PO BoX 490
Gainesville FL 32602
l.1-h L{-ll~
Date
2
prepared by City of Gainesville Finance Department
03118102
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COLLEGE PARK UNIVERSITY HEIGHTS AREA
REDEVELOPMENT
INCENTIVE PROGRAM
CITY OF GAINESVILLE
COMMUNITY REDEVELOPMENT AGENCY
Historic Thomas Center
306 N.E. 6th Avenue
Post Office Box 490, Station 48
Gainesville, FL 32602
352-334-5029 (phone)
352-334-2132 (fax)
NDIX "D"
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I. Introduction
The College Park/University Heights Redevelopment Plan ("Plan") states as its goal to "Establish the
College Park/University Heights Special District as a thriving mixed-use, high density, safe and
convenient urban neighborhood and commercial district serving the diverse needs of the University
Community and the central core of the City." The Plan identifies specific needs of the district.
"Foremost is improvement of infrastructure such as road conditions, sidew~lk conditions, lighting and
stormwater management. Secondly, attention to the physical design ofthe'Special District will
improve transportation mobility, discourage criminal activity and attract new residents, businesses and
customers to the area. Finally, this Plan encourages housing redevelopment in order to provide greater
housing opportunities within walking and biking distance to the University of Florida campus."
These incentives are intended to encourage redevelopment in the College Park University Heights
Redevelopment District that complies with the goals of the Plan and the College Park and University
Heights Special Area Plans, increases the diversity of uses, and increases the residential component
of the redevelopment area and enhances the livability of existing residential units and viability of
existing corrunercial usage. It also intends to reduce the cost of development in the redevelopment
area by offering to reimburse for various charges and public infrastructure improvements associated
with new development.
Toward that end, this Redevelopment Incentive Program includes a menu of items that can be
tailored to each project:
. Water and wastewater meter costs and connection fees
. Tap charges (required when a project must tap into the line--not meter or connections costs)
. Meter fees (gas or electric)
. Undergrounding utilities
. Placement of utilities in buildings to avoid large surface-mounted facilities on site
. Utility enclosures (intended to reduce clutter of utility boxes in pedestrian areas)
. Streetscaping and upgraded lighting to CPUH design criteria and other applicable standards
. Development of stormwater at off-site locations if possible or on-site if necessary
. Curb and gutter, sidewalks
. Parking
. Dumpster enclosures
It is intended that an applicant may request any or all of the above incentives, subject to available
funding, qualification, and execution of formal agreements as necessary. Each project will be
evaluated to determine the incentives the project qualifies for,. and the applicant must then select the
type for which they will apply. Approval of an application under this program in no way grants a
project vested rights for "development or grants any third-party benefit.
The eRA reserves the right to set priorities among applications under consideration if necessary .
The CRA also reserves the right to revoke or change this package of incentives at any time and for
any or no reason. The CRA may reject an application if the applicant does not provide additional
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information requested, or if circumstances change during consideration. The CRA may offer these
or other incentives for projects that the CRA initiates.
For any grants awarded under this program, the CRA will establish separate accounting systems in
the district's trust fund for each project grant. The CRA will use only those funds in the account
established to receive tax increment revenues for that specific project to repay the loan or
indebtedness, if any, incurred by the CRA to provide a grant to that specific project. If the CRA
chooses to repay a loan earlier, it may use other available funds in the d~~trict to do so.
II. Eligibility
In order for a project to be eligible for a grant, the applicant must submit a request and that request
must be approved prior to any actions being taken, or work commencing or being completed by the
applicant, related.to that grant. No grants will be considered or approved for actions or work which has
commenced or been completed. Projects must be eligible for a grant award of $50,000 using the
formula in the program to be considered for a grant. Grants smaller than $50,000 will not be
considered.
Funding of grants for new construction under this program may exceed available funds in any one-
year's deposit of tax. increment for the College Park University Heights Redevelopment District (total
tax. increment less operating overhead and less any debt). Therefore, the CRA may, at its sole
discretion and subject to approval by the City Commission, borrow against the anticipated tax.
increment revenues to be generated by the project for which the funding request is made. The
developer will be required to agree not to ask for, apply for or accept any exemption from City and/or
County ad valorem taxes related to the project or project site. If, during the life of any note the CRA
executes to provide funding for the grant, some or all of the project or project site becomes subject to
City and/or County ad valorem tax. exemptions, the developer will be required to agree to pay the CRA
an amount equal to the proportionate reduction in tax increment revenues. The developer wiil further
agree that in the event some or all ofthe project/project site is transferred by developer to a type of
ownership that is exempt, in whole or in part, from City and or County ad valorem taxes, the developer
will be required to pay to the CRA, at the time of transfer, the amount of debt, if any, still outstanding
on the note.
Applicants for this program are advised that there will be default language in the development
agreement that protects the CRA from changes within the project after approval and that incentives can
be withdrawn if default occurs.
Any assumption of debt including the length of time for which the CRA will borrow (loan maturity) in
order to provide a grant to a project will be subject to authorization by the City Commission. The
applicant must demonstrate that the project would not be feasible but for the grant amount requested.
Grants under this program will also be limited as follows:
1. Grants under this program are limited by the amount equal to 100% of the tax. increment
revenues generated by the project for up to 5 years, or 50% of the tax. increment revenues
generated by the project for up to 10 years, or 25% of the tax. increment revenues generated by
the project for up to 20 years (subject to debt services costs and debt service reserves if paid as
an up front, lump sum grant).
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Grant approvals will be based on the ability to borrow, policies and procedures of the CRA, and the
City of Gainesville and state and federal law as may be applicable.
III. Disbursements
. Grant payments may be annually, as draws or installments during the construction of the project or
as a lump sum payment when the City of Gainesville Building Department has issued, for all units,
certificates of occupancy for completed units or certificates of completion for units which are ready
for tenant/owner finishes before occupancy.
. The lump sum grant would be limited to the CRA's borrowing potential based on the amount of tax
increment revenues generated by the project as described in Section III above. The applicant must
demonstrate that the project would not be feasible but for the grant amount requested. That amount
is further limited to the amount demonstrated by the construction proforma or the statutory life of
the agency, whichever is less.
. Annual payments will be made at the beginning of each tax. year as payment from the previous tax
year, and may be prorated as appropriate. The annual payments will be up to and not exceed the
tax. increment to be generated by the redevelopment as described in Section ill above.
. Lump sum grant payments will be made when the City of Gainesville Building Department has
issued, for all units, certificates of occupancy for completed units or certificates of completion for
units which are ready for tenant/owner finishes before occupancy and/or subject to an agreement
between the applicant andthe CRA and CRA po~icies concerning debt finan<::ing.
IV. Application Process
. Applicant (property owner or agent with property owner's written consent) will submit an
application to CRA staff including:
. Description of the proposed project including location, preliminary design, square footage
of commercial, and/or number of residential units;
. Description of how the project implements the redevelopment plan based on the selection
criteria listed in Section V;
. Current tax.able value for the property; .
. Estimated taxable value after construction of the entire project;
. Construction pro forma demonstrating the that the project would not be undertaken but for
the public funds necessary to make the project fmancially feasible;
. List of those items on the incentives menu that are requested for the project;
. The amount of grant requested and substantiated by the construction proforma;
. Description of permits and fees, to be reimbursed by the grant, and associated costs;
. Information about any governmental approvals required, including land use and zoning
changes etc.; and
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. Other information as requested by staff considering the particular project.
. Staffwill review the application, and a recommendation will be made to the College Park
University Heights Advisory Board based on an evaluation of the information provided in the
application and in response to the Selection Criteria listed below.
. The College Park University Heights Advisory Board will review the application, and make a
recommendation to the CRA based on an evaluation of the information provided in the application
and in response to the Selection Criteria listed below.
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. Based on the recommendation by CRA staff and the College Park University Heights Advisory
Board, the eRA may accept or reject the application, or may approve the application with changes
or conditions.
Following approval the staff shall prepare or cause to be prepared a grant agreement with the property
owner/developer, which must be entered into before any disbursement of funds by the CRA.
V. Selection Criteria
Projects seeking incentives must address issues identified in the College Park University Heights
Redevelopment Plan. Requests for incentives will be evaluated on the following criteria. A project
must meet five of the criteria listed below. Does the project:
. Support the redevelopment of West University Avenue as a pedestrian oriented corridor
. .. Redevelop surface parking lots, blighted, or uriderutilized sites
. Encourage mixed-use parking structures .
. Address district-wide stormwater deficiencies
. Create significant improvements to the public infrastructure
. Include pedestrian and bicycle safety improvements
. Encourage a variety of housing types and prices within the district
. Encourage the redevelopment of specific sites to discourage criminal activity
. Encourage mixed-use development in the district where appropriate
. Encourage the development of a mix of businesses to serve the needs of the residents of the
district, adjacent neighborhoods and institutions
. Advances affordable housing goals in the district
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