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Court Ruling Delays Encore Housing Project

Rendering from Tampa Housing Authority

The Ella, a proposed 160-unit retirement complex, is the first building to receive funding at the Encore, a mixed-income community being built at the former Central Park Village public housing site. The Ella will have 144 dedicated affordable housing units for residents 55 and older.

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By JOHN W. ALLMAN

The Tampa Tribune

Published: July 28, 2008

TAMPA - It's been a year since residents moved out of Central Park Village to make way for a new mixed-income neighborhood called Encore.

The project, delayed by a court ruling, has yet to break ground. And it still lacks the money needed to cover infrastructure and other costs.

There is some good news - just not enough of it.

Officials from the Tampa Housing Authority and Bank of America, co-developers of Encore, learned last week that they likely will receive $20 million in tax credits to put toward construction.

The credits will be turned into dollars to help build the Ella, one of four mixed-income buildings envisioned for the site.

The 160-unit Ella will dedicate 144 apartments for residents 55 and older who live 60 percent or more below the median income.

What's the downside?

Officials submitted two applications to receive tax credits - one for the Ella and another for the Tempo, a 203-unit building with 142 dedicated affordable units and no age restrictions.

The Tempo isn't expected to receive any tax credits. Its construction cost is estimated at about $20 million.

That's in addition to about $22 million needed to make necessary infrastructure improvements, such as building roads and storm sewers and erecting streetlights across the 28-acre complex.

Where that money will come from is not known.

"It's a bigger-than-normal hurdle," said Roxanne Amoroso, senior vice president for Bank of America's Community Development Corp., "but we're absolutely committed to making it work."

Construction Delayed

The Ella and Tempo were expected to be built simultaneously to help replenish the affordable housing lost when Central Park Village closed.

The former housing property had about 1,300 residents in about 380 apartments - all of whom were relocated by the authority, either to other public housing or federally subsidized Section 8 homes.

Officials originally expected to see low-income residents moving into Encore by late 2009 - about 18 months after construction began. Instead, it's likely that the first units won't be available until late 2010 or early 2011.

Encore, and its buildings, streets and other amenities, are named after iconic recording legends and musical terminology, a nod to the area's rich history of showcasing such greats as James Brown, Ray Charles and others during segregation.

Eight more buildings - including a grocery store, hotel and market-rate condominiums - have been proposed for the site. Most would be built by private developers.

Officials also are refurbishing Perry Harvey Sr. Park and restoring a neighborhood church to serve as a black history museum.

Encore's development is just one piece of the Central Park Community Redevelopment Area, a 143-acre revitalization project from Interstate 275 to Nuccio Parkway between Cass Street and the Interstate 4 interchange.

City officials are hopeful that the creation of new streets, such as a proposed Ray Charles Boulevard, and an improved park will spur interest - and possibly retail and commercial growth.

"They're really going to start building the neighborhood and put the first pieces of that neighborhood in place," said Mark Huey, the city's economic development administrator. "That's what's really going to start to create some momentum for more investment when those sorts of amenities are available for people to see."

Waiting For A Ruling

For 11 months, the project has been stymied by a pending Florida Supreme Court ruling on how local governments can finance public improvements.

Typically, redevelopment projects rely on tax-increment financing, a taxing structure that allocates money for infrastructure in anticipation of future tax revenue.

In September, the court unanimously ruled that counties, school districts and municipalities had to get voter approval before issuing debt.

The justices reconsidered the issue in October, but the court recessed last month without a final ruling. They won't reconvene until September.

"It was a huge disappointment that the Supreme Court didn't see this was an important enough issue, an urgent enough issue to act within session," said Leroy Moore, vice president of the housing authority.

Moore said he remains hopeful that the court will exempt community redevelopment areas from its earlier decision and allow tax-increment financing to be used.

"Our commitment to this project is such, we will get it developed one way or another," Moore said.

That's one reason the news of tax credits last week came as a welcome surprise.

The projects weren't as lucky in 2007, when neither the Ella nor the Tempo was approved for funds.

Tax credits are allocated by the Florida Housing Finance Corp. through a competitive process in which agencies across the state submit applications for funding. Each project receives a lottery number. The lower numbers, typically, mean a better shot at receiving the credits.

Considering All The Options

About 294 projects competed this year, Moore said. The Ella was ranked No. 23; the Tempo drew No. 195.

Agencies that receive the credits turn around and sell them to banks and other investors for cash, Moore said. The money must be used to build affordable housing.

Tempo's failure to receive funding - coupled with the outstanding infrastructure improvements - may force the authority and bank to look elsewhere for money.

Amoroso said officials are looking at a variety of financing options, including Bank of America loaning the money for infrastructure needs.

Moore said there are other options, such as reducing the amount of infrastructure to lower the cost. Officials also could try to secure bonds through the Hillsborough County Housing Finance Authority or appeal to city and county officials for help.

Whatever it takes, he said.

"We've never let a project not get built," Moore said. "That's very important to us."

Reporter John W. Allman can be reached at (813) 259-7915 or jallman@tampatrib.com.

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