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Court To Review Tax Funding Ruling

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By ELLEN GEDALIUS The Tampa Tribune

Published: September 21, 2007

TALLAHASSEE - The Florida Supreme Court will reconsider a landmark decision that could have a detrimental impact on local government's ability to finance major projects.

The justices on Thursday unanimously granted rehearing requests from Attorney General Bill McCollum and associations representing Florida's cities, counties, community redevelopment agencies and school boards, all appearing on a 'friend of the court' basis. Oral argument is set for Oct. 9.
Tampa officials welcome the rehearing.

'That's good news,' City Attorney David Smith said.
Tampa officials have been worrying about the implications of the ruling on some of the city's projects, including Central Park Village, a redesign of Curtis Hixon Park, the Heights housing development project and others.

The city had planned to use money generated in tax increment finance districts to back loans to build the projects. The city council has approved a $40 million line of credit to pay for Curtis Hixon Park and other projects.

The court's ruling, however, suggested the city wouldn't be able to proceed with those plans unless a referendum is held.
Mayor Pam Iorio has said she would look elsewhere for money for the park, but other projects would be in limbo until either the court clarified its opinion or referendums were held.

If the justices stick with their new ruling, local referendums will be required for tax increment financing, backed by taxes generated from redevelopment and improvement programs.

McCollum's rehearing request focuses on a single issue: whether the new decision is retroactive to existing bonds and certificates.

Smith said he hopes the court clarifies that issue. If the court rules that previously issued obligations are still valid, that could help the city complete its $40 million in projects. Other projects, however, such as Central Park Village, likely still would be in limbo.

Information from The Associated Press was used in this report.

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