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Revised Ruling May Help Projects
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Published: September 29, 2007
Updated: 09/29/2007 12:13 am
TAMPA - The financing of several high-profile city projects could be on firmer ground after the Florida Supreme Court on Friday revised an earlier ruling that cast those plans in doubt.
City attorneys were reviewing the court's amended ruling late Friday afternoon, but City Attorney David Smith said the court's decision seems to preserve existing financing agreements.
In an earlier ruling, the Supreme Court had ruled that local governments, including cities, counties and school districts, must obtain voter approval before issuing any debt backed by taxpayer dollars. The ruling targeted tax increment financing - a tool used by municipalities statewide, including Tampa, to designate blighted areas as Community Redevelopment Areas.
There was concern that the court's initial ruling would be applied retroactively, jeopardizing numerous Tampa projects. Friday's ruling indicated that the initial decision would not apply retroactively to bonds and other obligations already issued.
Smith said the ruling might help financing the city was planning to get, but hadn't been finalized. Generally, court rulings do not impair contracts or other agreements that are based on the case-law in place at the time the project is approved, he said.
A $40 million line of credit that the city is relying on to pay for numerous downtown projects hasn't technically been issued, but the city developed plans based on the assumption that the line of credit would be available. Smith said he's unsure whether the court's ruling Friday will allow the city to proceed, but the ruling seemed to be favorable to the city. He said additional clarification from the court should help.
The city has been hoping to use the $40 million to pay for a redesign of Curtis Hixon Park, improving Ashley Drive and converting some downtown one-way streets into two-way thoroughfares.
Smith questioned, however, whether the court's ruling would help with the financing of Central Park Village, a project to turn around the dilapidated public housing complex. The city is yet to enter into a financial agreement on the project.
Tampa has nine CRAs, which garner more money for reinvestment as property values within their boundaries increase.
Hillsborough County does not have any projects that would be affected by the court's ruling, Deputy County Administrator Wally Hill said.
The court's ruling does not settle the case that sparked concern about how governments finance certain projects, Strand v. Escambia County. Justices will hear arguments on some remaining issues Oct. 9.
Reporters Ellen Gedalius and Rich Shopes contributed to this report. Reporter Anthony McCartney can be reached at (813) 259-7616 or amccartney@tampatrib.com.
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