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Redevelopment Dollars Q & A

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The Tampa Tribune

Published: September 23, 2007

What is a community redevelopment district?

In 1969, the Florida Legislature passed a bill enabling local governments to create community redevelopment districts and community redevelopment agencies to work in those districts. Currently, there are more than 178 CRAs operating across the state.

These districts allow cities to keep a portion of the money generated by rising property values or increased tax rates and use it for redevelopment. In most cases, the districts encompass certain neighborhoods or the downtowns; but in New Port Richey and Port Richey, for instance, the district boundaries and city limits are the same.

CRA projects must have a public purpose with the intent to alleviate blight. Examples are streetscapes, restoration of historic buildings, parking lots and garages, neighborhood parks, sidewalks and tree plantings. CRAs are not state supervised; but the taxing authority, in most places the county, must initially approve economic studies offering evidence of blight, as well as a blueprint for spending the money.

Typically, the CRA term is limited to 30 years but can be extended to 40.

Who controls redevelopment spending?

Overseeing each district is a community redevelopment agency, typically a five- to seven-member board comprised of city council members and/or others appointed by the city government.

In most situations, CRA boards are advised by a panel of volunteers who have a stake in the community's redevelopment.

What is tax increment financing?

It's a way to fund CRA projects. Here's how it works: The value of real property in the district is determined on a fixed date, usually when the CRA is established. As the value of the real property appreciates, the tax revenue on the appreciated portion of the value (the so-called increment) is set aside for CRA projects.

City and county tax increases within the district after the base year are deposited in the CRA fund. In theory, as property tax proceeds increase because of redevelopment projects, the amount of money available to the city for redevelopment purposes also increases.

Information from the Florida League of Cities; compiled by Christian M. Wade

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