CRAs: CRA Board CRAs: CRA Board Member TrainingMember Training

Redevelopment in a Changing EconomyFlorida Redevelopment Association Annual ConferenceOctober 19, 2011

AgendaAgenda What are CRAs?What are CRAs? Open Government Laws Open Government Laws Public Meeting Protocols & Best Public Meeting Protocols & Best

Practices Practices EthicsEthics What is “Not Legal?”What is “Not Legal?” What are the “Rules of Engagement”?What are the “Rules of Engagement”? How to be an effective CRA LeaderHow to be an effective CRA Leader What are the Best Practices?What are the Best Practices?

Ten Reasons to ‘Re’developTen Reasons to ‘Re’develop Remove Slum & BlightRemove Slum & Blight Create Clean and Safe PlacesCreate Clean and Safe Places Prevent CrimePrevent Crime Encourage Economic DevelopmentEncourage Economic Development Build or Enhance Affordable HousingBuild or Enhance Affordable Housing Fund Streetscape and other Capital Fund Streetscape and other Capital

ImprovementsImprovements Preserve Historic Buildings/ResourcesPreserve Historic Buildings/Resources Retain and Recruit BusinessRetain and Recruit Business Enhance Parks and Recreation Enhance Parks and Recreation Increase the Tax Base of the CRA DistrictIncrease the Tax Base of the CRA District

ANY activity authorized under Ch 163, ANY activity authorized under Ch 163, Part III, Florida Statutes. Part III, Florida Statutes.

Relative to your CRA, activities are Relative to your CRA, activities are authorized by your approved authorized by your approved Redevelopment Plan and funded by the Redevelopment Plan and funded by the increase in assessed values over time, increase in assessed values over time, called increment.called increment.

What is Redevelopment?What is Redevelopment?

What is a CRA? What is a CRA?

Dependent Special DistrictDependent Special District Created to remove slum and blight conditions Created to remove slum and blight conditions

within a designated districtwithin a designated district Board Members appointed by local Board Members appointed by local

government -- elected officials or appointeesgovernment -- elected officials or appointees CRA may have multiple CRA CRA may have multiple CRA districtsdistricts Law generally says only Law generally says only oneone CRA Board per CRA Board per

municipalitymunicipality

How is a CRA Created?How is a CRA Created?All Local All Local

Finding of Necessity and “blight” as defined Finding of Necessity and “blight” as defined by statute, not Mr. Websterby statute, not Mr. Webster

Establish CRA Board Establish CRA Board Create Trust FundCreate Trust Fund Adopt Redevelopment PlanAdopt Redevelopment Plan No state approval required, but reporting No state approval required, but reporting

requirementsrequirements

CRA FactsCRA Facts Chapter 163 Part III was first passed in 1969. At Chapter 163 Part III was first passed in 1969. At

that time, there were 15 legislatively created that time, there were 15 legislatively created Downtown Development Authorities, which Downtown Development Authorities, which collected ad valorem for redevelopment. collected ad valorem for redevelopment.

It wasn’t until State v. Miami Beach It wasn’t until State v. Miami Beach Redevelopment Agency was decided in 1980, that Redevelopment Agency was decided in 1980, that CRAs proliferated. Strand v. Escambia County in CRAs proliferated. Strand v. Escambia County in 2007 affirmed the Miami Beach case.2007 affirmed the Miami Beach case.

Charter counties “delegate” authority to city CRAsCharter counties “delegate” authority to city CRAs Non charter counties can challenge the creation of Non charter counties can challenge the creation of

city CRA by statutory processcity CRA by statutory process

More CRA FactsMore CRA Facts More than 200 CRAs in the state – mostly cities – More than 200 CRAs in the state – mostly cities –

all are dependent special districts created by city all are dependent special districts created by city or county (www.floridaspecialdistricts.org)or county (www.floridaspecialdistricts.org)

The fiscal year of all CRAs is October 1 – The fiscal year of all CRAs is October 1 – September 30September 30

CRAs in Florida have terms from 7-30 years, avg. CRAs in Florida have terms from 7-30 years, avg. 2020

School boards, water management districts, and School boards, water management districts, and most other special districts most other special districts do notdo not pay into CRA pay into CRA trust funds trust funds

CRAs (but not cities or counties) can give public CRAs (but not cities or counties) can give public dollars to private – their mission and process is a dollars to private – their mission and process is a public benefitpublic benefit per the courts and legislature. per the courts and legislature.

The Redevelopment Plan is The Redevelopment Plan is the Blueprint for CRA the Blueprint for CRA

ActivitiesActivities

A publicly drafted master plan for redevelopmentA publicly drafted master plan for redevelopment

Addresses unique Addresses unique customized customized needs of a specific needs of a specific CRA districtCRA district

Sets goals, specifies priorities , identifies projectsSets goals, specifies priorities , identifies projects

Project revenues and expenses – 5 yearProject revenues and expenses – 5 year

Roadmap for private sectorRoadmap for private sector

Living document can be amended without limit Living document can be amended without limit

What is Increment What is Increment Financing? Financing?

Ad valorem property values frozen (base Ad valorem property values frozen (base year) for areayear) for area

Yearly increase in property values Yearly increase in property values applied to millage is “increment”applied to millage is “increment”

95% of amount is sent to CRA trust fund95% of amount is sent to CRA trust fund County and city write check annuallyCounty and city write check annually CRA adopts budget based on amounts CRA adopts budget based on amounts

plus donations, loans, bonds, interest plus donations, loans, bonds, interest

How Can the Funds be How Can the Funds be Spent? Spent?

ANYTHING IN THE PLAN allowed by statute to ANYTHING IN THE PLAN allowed by statute to correct conditions in finding of necessitycorrect conditions in finding of necessity

Reimbursement for CRA Reimbursement for CRA start up costsstart up costs

Administrative and overhead Administrative and overhead to carry out adopted plan to carry out adopted plan

Planning, surveys, and Planning, surveys, and financial analysisfinancial analysis

Acquisition of real property Acquisition of real property in the redevelopment areain the redevelopment area

Clearance and preparation of Clearance and preparation of sites in redevelopment area sites in redevelopment area

Economic Economic development/business development/business incentivesincentives

Streetscape/capital Streetscape/capital improvementsimprovements

Affordable housing within Affordable housing within the areathe area

Community policing Community policing innovationsinnovations

Cost of issuance, sale, Cost of issuance, sale, redemption, retirement, or redemption, retirement, or purchase of revenue bondspurchase of revenue bonds

Repayment of loans, Repayment of loans, advances, bonds, bond advances, bonds, bond anticipation notes, and anticipation notes, and other debtother debt

Powers of a CRAPowers of a CRAChapter 163, Part IIIChapter 163, Part III

(highly recommended reading)(highly recommended reading)

163.358 Exercise of powers in carrying out 163.358 Exercise of powers in carrying out community redevelopment and related activities.community redevelopment and related activities.

163.370 Powers; counties and municipalities; 163.370 Powers; counties and municipalities; community redevelopment agencies.community redevelopment agencies.

163.400 Cooperation by public bodies.163.400 Cooperation by public bodies. 163.410 Exercise of powers in counties with 163.410 Exercise of powers in counties with

home rule charters.home rule charters. 163.415 Exercise of powers in counties without 163.415 Exercise of powers in counties without

home rule charters.home rule charters.

Interlocal AgreementsInterlocal Agreements Alternative provisions to the statute may be Alternative provisions to the statute may be

mutually agreed to by the taxing authorities. mutually agreed to by the taxing authorities. Also, 163.387 (3)(b) states: Alternate provisions Also, 163.387 (3)(b) states: Alternate provisions

contained in an inter local agreement between a contained in an inter local agreement between a taxing authority and the governing body….may taxing authority and the governing body….may supersede the provisions of this section with supersede the provisions of this section with respect to that taxing authority. The community respect to that taxing authority. The community redevelopment agency may be an additional party redevelopment agency may be an additional party to any such agreement.to any such agreement.

Open MeetingsOpen Meetings

Sunshine LawSunshine Law NoticesNotices ProtocolProtocol CivilityCivility Citizen ParticipationCitizen Participation Best PracticesBest Practices

Open RecordsOpen Records

Public AccessPublic Access Home computer communications Home computer communications Dealing with media requestsDealing with media requests Does it have to be in writing?Does it have to be in writing? Do we have to charge for it?Do we have to charge for it? Best PracticesBest Practices

EthicsEthics

Conflicts of interest Conflicts of interest Voting conflictsVoting conflicts Doing business in the areaDoing business in the area Doing business with the Doing business with the

agencyagency

Generally Not CRA Legal Generally Not CRA Legal (check with your attorney)(check with your attorney)

Trust fund money for any project, Trust fund money for any project, program, donation, sponsorship, grant program, donation, sponsorship, grant that is that is notnot expended in the area and is expended in the area and is notnot clearly in the redevelopment plan. clearly in the redevelopment plan.

Exceptions by interlocal agreement **Exceptions by interlocal agreement **

Also not CRA Legal Also not CRA Legal Construction or expansion of administrative Construction or expansion of administrative

buildings for public bodies or police and fire buildings for public bodies or police and fire buildings, unless each taxing authority agrees to buildings, unless each taxing authority agrees to such method of financing for the construction or such method of financing for the construction or expansion, or unless the construction or expansion expansion, or unless the construction or expansion is contemplated as part of a community policing is contemplated as part of a community policing innovation.innovation.

Projects under any previously existing CIP or non Projects under any previously existing CIP or non CRA funding plan until they are off that list for CRA funding plan until they are off that list for three years three years

General government operating expenses unrelated General government operating expenses unrelated to planning and carrying out the community to planning and carrying out the community redevelopment planredevelopment plan

Exceptions by inter local agreement **Exceptions by inter local agreement **

What Redevelopment is What Redevelopment is NotNot Anything spent outside the plan or the areaAnything spent outside the plan or the area Eminent domain for redevelopment purposesEminent domain for redevelopment purposes General government line itemsGeneral government line items Grants or donations to non-profits or events Grants or donations to non-profits or events

that have nothing to do with the that have nothing to do with the redevelopment planredevelopment plan

Salaries for city or county staff that do not Salaries for city or county staff that do not work on CRA activitieswork on CRA activities

Maintenance normally done by city or countyMaintenance normally done by city or county Comprehensive planning, zoning or land use Comprehensive planning, zoning or land use

regulationregulation

Indeed, it has been said that democracy is the worst form of government except all those other forms that have been tried from time to time.

-- Winston Churchill

Redevelopment - a Contact Redevelopment - a Contact SportSport

Chapter 163, Part III encourages government to Chapter 163, Part III encourages government to invest invest publicpublic funds with funds with private enterpriseprivate enterprise to to ultimately bring an area back to lifeultimately bring an area back to life

Local funds, generated by cities and counties, can Local funds, generated by cities and counties, can be a political footballbe a political football

Diverse groups have vastly differing ideas on how Diverse groups have vastly differing ideas on how to use the moneyto use the money

Lack of vision, leadership, buy-in, and responsible Lack of vision, leadership, buy-in, and responsible implementation can lead to mission driftimplementation can lead to mission drift

Public does not understand the ‘Who, What, Public does not understand the ‘Who, What, When, Where and How’ of the processWhen, Where and How’ of the process

‘‘Is there a sound bite?’Is there a sound bite?’Message can be complex/create Message can be complex/create

misunderstandings by citizens who don’t hear misunderstandings by citizens who don’t hear the rest of the storythe rest of the story. .

What do CRAs do? “CRAs use, for a limited What do CRAs do? “CRAs use, for a limited period of time, tax revenue increases within a period of time, tax revenue increases within a deteriorating area to transform it into one deteriorating area to transform it into one that again contributes to the overall health of that again contributes to the overall health of the community.”the community.”

Things to Know About Your Things to Know About Your CRACRA

What is the history of your CRA? What is the history of your CRA? What has been accomplished?What has been accomplished? What are the current projects?What are the current projects? What programs does the CRA offer?What programs does the CRA offer? What’s in the plan? Read it in entirety.What’s in the plan? Read it in entirety. How much money is in the trust fund?How much money is in the trust fund? How much does the county v. city contribute?How much does the county v. city contribute? How much longer has the CRA to operate?How much longer has the CRA to operate? When was the last time the plan was amended?When was the last time the plan was amended?

How to be a ‘CRA Leader’How to be a ‘CRA Leader’

Do your homework (benefit from FRA Do your homework (benefit from FRA experience)experience)

Seek out comment from citizens, businesses – Seek out comment from citizens, businesses – build consensusbuild consensus

Adopt the shared vision and make a personal Adopt the shared vision and make a personal commitment to itcommitment to it

Explain ‘Who, What, When, Where and How’ as Explain ‘Who, What, When, Where and How’ as many times as necessarymany times as necessary

Utilize cost benefit analysis at each phaseUtilize cost benefit analysis at each phase Get out of the way – steer don’t rowGet out of the way – steer don’t row Work for redevelopment success, not creditWork for redevelopment success, not credit

Successful CRAsSuccessful CRAs Vision Vision Leadership Leadership Plan the work, then work the planPlan the work, then work the plan A passion for partnershipsA passion for partnerships Community support and trustCommunity support and trust Patience and the “guts” to stick with itPatience and the “guts” to stick with it Wisdom to evolve and embrace the next Wisdom to evolve and embrace the next

opportunityopportunity

Building the ConsensusBuilding the ConsensusTo Vision or Not to Vision . . .To Vision or Not to Vision . . .

No one right way to build consensus No one right way to build consensus You can over think it – ask yourself:You can over think it – ask yourself:

Is it time to get the community involved?Is it time to get the community involved? Is it time to move charge forward regardless?Is it time to move charge forward regardless?

Identify easy-to-understand measurement Identify easy-to-understand measurement for progress and successfor progress and success

Continuously build support for the Continuously build support for the programprogram

The Municipal CycleThe Municipal Cycle

October – False StartOctober – False Start November/December – Where is Everyone?November/December – Where is Everyone? January – Angst!!!!January – Angst!!!! February through June – The Real DealFebruary through June – The Real Deal July/August – At Last Staff Can Get July/August – At Last Staff Can Get

Something DoneSomething Done September – It’s the Budget, Stupid!September – It’s the Budget, Stupid! Start All Over Again . . .Start All Over Again . . .

The BudgetThe Budget

AdministrationAdministration StaffStaff ConsultantsConsultants

District Capital ImprovementsDistrict Capital Improvements Community Policing/Other InitiativesCommunity Policing/Other Initiatives Business/Economic DevelopmentBusiness/Economic Development MarketingMarketing

Advertising/Public RelationsAdvertising/Public Relations Special Events – Whole BudgetSpecial Events – Whole Budget

Good IdeasGood Ideas Be realistic about what can be Be realistic about what can be

accomplished, but…accomplished, but… . . . be . . . be boldbold in setting goals in setting goals

Mission, Goals, Objectives – keep them up Mission, Goals, Objectives – keep them up frontfront

Understand the private sector/profit motiveUnderstand the private sector/profit motive Annual strategic planning workshop (two Annual strategic planning workshop (two

hours)hours) Let the annual budget tell the storyLet the annual budget tell the story Communicate, Communicate, CommunicateCommunicate, Communicate, Communicate

Best PracticesBest Practices Understand the MarketUnderstand the Market Review Land Use & ZoningReview Land Use & Zoning Create Successful PartnershipsCreate Successful Partnerships Track Your ProgressTrack Your Progress Promote Projects and Success StoriesPromote Projects and Success Stories Create Themes, Campaigns, Events, and Create Themes, Campaigns, Events, and

“Buzz” in the district“Buzz” in the district

More Best PracticesMore Best Practices

Always separate CRA v. Commission Always separate CRA v. Commission meetings meetings

Consider joint procedures for CRA and Consider joint procedures for CRA and city, eg. Personnelcity, eg. Personnel

Maintain separate insurance Maintain separate insurance (errors/omissions, liability)(errors/omissions, liability)

Monitor CRA contractsMonitor CRA contracts Complete all appropriate reportsComplete all appropriate reports Use your legal counsel - pay now or pay Use your legal counsel - pay now or pay

more latermore later

Amending a PlanAmending a Plan Update plan every 5 yrs / re-set goalsUpdate plan every 5 yrs / re-set goals Must be consistent with the Comprehensive Plan Must be consistent with the Comprehensive Plan

(but not a required element)(but not a required element) Amendment process is similar to creation of CRAAmendment process is similar to creation of CRA Proposed by the CRA Board, sent to local Proposed by the CRA Board, sent to local

planning agency, to governing body, notices, planning agency, to governing body, notices, public hearing, governing body, then charter public hearing, governing body, then charter county approvescounty approves

OptionsOptions Expand or contract boundariesExpand or contract boundaries Extend term of CRAExtend term of CRA General updates, additions, editsGeneral updates, additions, edits

FRA Can HelpFRA Can Help Legislative Legislative News ClipsNews Clips Web, facebook, TwitterWeb, facebook, Twitter Technical Assistance Technical Assistance Legal Opinions Legal Opinions Professional Development and TrainingProfessional Development and Training Certification ProgramCertification Program

The Future . . . The Future . . . Inter local agreements will be used more to Inter local agreements will be used more to

outline who pays for what, when, how and outline who pays for what, when, how and why why

Cooperative instead of competitive approach Cooperative instead of competitive approach to governingto governing

Dialogue, not monologueDialogue, not monologue

Strong legislative defense - any changes to Strong legislative defense - any changes to the redevelopment act should empower, not the redevelopment act should empower, not limit.limit.

•Florida Chapter of the American Planning Florida Chapter of the American Planning

AssociationAssociation

www.floridaplanning.orgwww.floridaplanning.org

•International Council of Shopping Centers International Council of Shopping Centers

www.icsc.orgwww.icsc.org

•Urban Land Institute www.uli.orgUrban Land Institute www.uli.org

•Florida Brownfields Association www.fba.orgFlorida Brownfields Association www.fba.org

•Florida League of Cities www.flcities.comFlorida League of Cities www.flcities.com

•Florida Association of Counties Florida Association of Counties

www.flcounties.comwww.flcounties.com

Florida Redevelopment Florida Redevelopment AssociationAssociation

850.701.3608850.701.3608

www.redevelopment.netwww.redevelopment.net

Carol Westmoreland, Executive Carol Westmoreland, Executive DirectorDirector

cwestmoreland@flcities.comcwestmoreland@flcities.com

Jan Piland, Executive AssistantJan Piland, Executive Assistant

jpiland@flcities.comjpiland@flcities.com