Downtown
Community Redevelopment Agency
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Frequently Asked Questions about the Community Redevelopment Agency
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2011 CRA Board: Commissioners Dave Netterstorm, Kevin Pruett, Skip Williams, Vice-Mayor Ken Griffin, Mayor Skip Beeler
CRA Administrator: Anthony Caravella, (321) 868-3350, developmentservices@cityofcocoabeach.com
City of Cocoa Beach, P.O.Box 322430, Cocoa Beach, Fl. 32932-2430 |
| What is a Community Redevelopment Area or District? |
| Under Florida law (F.S. Chapter 163, Part III) local governments are able to designate Community Redevelopment Areas, when certain conditions exists. The activities and programs offered within a Community Redevelopment Area are administered by the Community Redevelopment Agency. |
What is a Community Redevelopment Agency? |
| A Community Redevelopment Agency (CRA) is a dependent taxing district established by City government for the purpose of carrying out redevelopment activities that include reducing or eliminating blight, (examples of conditions: susbstandard or inadequate structures, a shortage of affordable housing, insufficient roadways, and inadequate parking,) improving the tax base, and encouraging public and private investments in the CRA. A five- to seven-member CRA "Board," created by the City, directs the Agency. In Cocoa Beach, the Commission is the official Community Redevelopment Agency Board. The CRA Board meets reguarly on the first Thursday of the month at 6:00 PM. |
| Why create a CRA? |
| CRAs are created to assist municipalities in pursuing redevelopment in targeted areas that are characterized by blight and disinvestment per State Statute definition. By establishing a CRA, a local government is given a financial and planning mechanism by which to redevelop areas where private market forces are not working. To document that the required conditions exist, the local government must survey the proposed redevelopment area and prepare a report. CRAs must also adopt Community Redevelopment Plans, which must be consistent with the local government's Comprehensive Plan. |
| Where is Cocoa Beach ’s Community Redevelopment Area or CRA district? |
In 1999, the voters of the City of Cocoa Beach approved a referendum, whereby the City could only establish a CRA, with the approval of a majority of qualified voters casting ballots. On January, 2008, Cocoa Beach voters approved a referendum to establish a CRA in Cocoa Beach. Cocoa Beach has one CRA area, or CRA district - the Downtown CRA District. Resolution No. 2009-20, adopted in 2009, set the CRA Area boundaries. |
| What is a Community Redevelopment Plan? |
| The Community Redevelopment Agency is responsible for developing and implementing the Community Redevelopment Plan that addresses the unique needs of the targeted area. The Plan includes the overall goals for redevelopment in the area, as well as idenitifying the types of projects planned for the area. (Examples: streetscapes and road improvements, building renovations, flood control initiatives, water and sewer improvments, parking lots and garages, parks, sidewalks and street tree plantings.) |
| What are Community Redevelopment Trust Funds, Tax Increments, and Tax Increment Financing (TIF)? |
| Community Redevelopment Trust Funds are created for CRA districts as a means of holding revenues to be reinvested in the CRA.
The tax increment is made up of property taxes contributed by the City and County to the Community Redevelopment Trust Fund. The tax increment is calculated annually based on increases to property values within the designated CRA districts, using the year in which they were established as the “base year.” For example, if an unimproved property was valued at $10,000 in the base year and a new building is built on the property tomorrow, the new value of the property is $15,000. The incremental difference in value (new assessed value – base year value) is $5,000. Taxes collected on the property will be split amongst the City, County and CRA according to these differences in value with the CRA receiving all taxes assessed on the incremental increase of $5,000. Revenues generated by improvements in the CRA districts are to be reinvested in the district to continue to spur redevelopment. |
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| Tax Increment Financing (TIF) is also a revenue mechanism that pledges the anticipated future CRA revenues to pay for debt service, if revenue bonds are obtained. Revenue bonds are used to pay for improvements within the CRA district, as would be outlined in a Redevelopment Plan. |
| Will my taxes rise as a result of creating a CRA? |
| The Downtown CRA does not levy taxes, it redistributes property tax payments that are already made to the City and County.
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| What type of redevelopment activities will happen in the CRA districts? |
| Redevelopment activities will be outlined in the CRA district Redevelopment Plan. The Redevelopment Plan is a document that is approved by both the City and County at the time that the CRA district is created. The Redevelopment Plan outlines the goals and objectives for the district, but more importantly, it outlines programs that allow the goals to be reached. The general goals of a CRA district are to eliminate blight, improve public facilities, create safer traffic flows, preserve and enhance residential neighborhoods, and improve the overall economic viability of the district. Possible programs would include street improvements, park improvements, development of infill housing, recruitment of new businesses and partnerships with job-training and placement services. Most programs are designed to encourage private developers to invest in the CRA district. |
| How does the CRA Process Work? |
Several steps will have to be
accomplished before the Community Redevelopment Area becomes a reality. These
steps are as follows:
1. Adopt the Finding of Necessity Resolution and Report (see documents below.) This will formally identify the blight conditions
within the targeted area and establish the area boundary.
2. Establish a CRA Board. (See document below.)
3. Create a Redevelopment Trust Fund. Establishment of the Trust Fund
enables the Community Redevelopment Agency to direct the increase in real
property tax revenues back into the targeted area.
4. Develop and adopt the Community Redevelopment Plan. The plan
addresses the unique needs of the targeted area and includes the overall
goals for redevelopment in the area, as well as identifying specific projects.
These steps should be taken in partnership with the taxing entities that will contribute to the Redevelopment Trust Fund. The City of Cocoa Beach is legally responsible for the administration, management and funding of the CRA and its projects and activities.
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| What is the timeframe for seeing change? |
| Deterioration of many of the neighborhoods within the district took place over the course of many years. As a result, reversing that process will take a long-term and sustained effort. In the beginning stages of the CRA district, the tax increment is relatively small and the majority of the activities will be related to planning, strategy and goal-setting. As the plan is developed and the increment grows, the opportunities for larger, more visible projects will emerge. Keep in mind that the Downtown CRA district was created in 2009. |
| What is the governance structure of the CRA districts? |
| In Cocoa Beach the CRA district will be governed by the City Commission. The City Commission, sitting as the CRA Board, is responsible for the budget and policies of the CRA district. |
