A CRA is a dependent taxing district set up by the City (called the "governing body") for the purpose of

eliminating slum and blight, enhancing the tax base and encouraging both public and private

improvements in the CRA Area. The CRA is governed by State Statutes, Chapter 163, Part III. The CRA’s

source of revenue, with which it can deploy to make public improvements, is derived from tax increment.

CRA’s have been used by many cities in Florida to revitalize urban areas such as the one being

considered in Fernandina Beach. Other city examples include Ft. Lauderdale (beach), Hollywood (beach),

Delray Beach, Pompano and Sarasota.

An important part of creating a CRA is the preparation and adoption of a CRA Master Redevelopment

Plan, which sets forth the programs for improvement for the redevelopment area.

The Redevelopment Plan is a legal document that is required by State law to be approved by the City and

the County. The plan sets forth the goals and objectives of the plan, generally to eliminate blight and to

improve the economic conditions. Most importantly it sets forth the many programs for improvement.

These programs may include street improvements, park improvements, marketing programs, housing

programs, retail assistance and many others. The redevelopment plan will include a financing program

and implementation schedule.

A Charrette is a public planning process in which the City invites as many citizens as possible to

participate in developing a plan for the area being considered for redevelopment. In a Charrette,

everyone’s opinion is considered important and no idea is a bad idea. It is a very democratic process in

which every citizen is encouraged to participate. A Charrette usually takes place over a short period of

time and urban design professionals act as facilitators. After a day-long public planning meeting in which

the public creates design teams and forwards their ideas for the future of the area, the consultants

synthesize the ideas into a common plan. The citizens are asked to plan without constraints of existing

codes and plan for what they want their area to become in 20 years. It is a long-range planning endeavor.

Tax increment is the property taxes contributed by the City and County (and any other contributing taxing

districts) to the CRA Trust Fund. The contribution is based upon only new values of real estate created

within the CRA Area after its creation. For example, if a vacant piece of land is valued at $100,000 and a

new building is constructed on the land and the result is that the new building including the land value is

valued at $1,100,000 then the incremental difference in value is $1,000,000. Taxes collected by the City

and County (and the other contributing authorities) will be distributed to the CRA according to the

difference between the new taxable value and the base year value of the CRA. The value is discounted

by 5%. Typically in the early years of a CRA the tax increment is small but as new projects are built and

as existing properties make improvements, then the tax increment rises. Tax increment financing is the

pledging of future revenues of the CRA to pay the debt service on revenue bonds. The proceeds of the

bonds pay for improvements in the CRA, those which are identified in the CRA Redevelopment Plan.

A CRA is a useful tool for a city to use in order to make changes in an economically dysfunctional

area. While it is not the only tool the city has, it has proven to be a successful method to upgrade a

depressed area. Many other cities have utilized their CRA to make significant improvements in their older

urban areas, both commercial and residential. Examples of cities include Ft. Lauderdale, Hollywood,

Delray Beach, and West Palm Beach. Because the CRA receives contributions from both the City and

County, the funds can be concentrated on a small area for projects that positively impact the area over a

short period of time. In addition the CRA projects can also have great impact in attracting new private

capital and new building projects to the area. By creating a CRA, the City sends an important message to

the current property owners and residents, that it will invest both time and money in improving the area.

The CRA has a Board of Commissioners, either five or seven members that govern the activities of the

CRA. The most common composition of commissioners is for the City Commission to sit as the CRA

board. Some cities in Florida have elected to add two other members, which they appoint.

Under any one of the methods of composition, the City Commission still has great authority in overseeing

the affairs of the CRA. The City Commission must approve the annual budget and approve any financial

activities, such as the issuance of a revenue bond for public improvements. The financial books of the

CRA are merged with the books of the City for each fiscal year.

CRA funds can be used for only those programs written into the Redevelopment Plan. Typically these

programs include street improvements, land acquisition, park improvements, parking, lighting, marketing,

housing, and many others which qualify under the plan.

If a CRA is successful by its redevelopment efforts, traffic may increase.

 A successful CRA area will concurrently provide better pedestrian walkways, transit and even parks.

And a successful CRA area will provide better access to shopping and entertainment, relieving the local

residents of having to drive to another part of the County to shop, dine and entertain themselves.

 Traffic trips can actually be reduced for the local residents who chose to walk or ride transit instead of drive.

Traffic trips may increase as a result of others in the City wishing to visit a dynamic and beautiful area of the

City, but the trips usually occur during the non peak hours at nighttime. As specific redevelopment projects

are identified and integrated into the plan, related modifications to vehicle and pedestrian spaces and

movements will be studied.

No, quite the contrary. Redevelopment reduces crime since there are many more people on the street

walking and socializing in a successful urban environment. Criminals do not like to carry on their activities

when a lot of people are around. Every pedestrian becomes a citizen on patrol, watching out for his or her

neighbors.

No. A CRA does not levy taxes; it only receives contributions from existing taxing authorities such as the

City and County. The tax millage rates set by the taxing authorities are not affected by the existence of a

CRA.  However, the increased taxes, due to property value increase within the CRA zone, will not go to the general fund;

 thereby indirectly  increasing the burden to the general tax base.

Historically it has been shown that property values have risen in successful CRA districts. In very

successful cities, such as Delray Beach, values doubled over a ten year period. Residential property

owners were exuberant since their homes increased in value but their taxes rose at a maximum of 3%

annually, if  Homesteaded.

The CRA has the legislative authority of eminent domain to acquire property. It is an option that may be part of the

redevelopment plan.

It is a possibility and certainly one that has been encouraged by many successful CRA’s in Florida.

Residential redevelopment is important since it will bring new consumers to the area that will help, along

with the existing residents, to support new retail and new employment. In addition, the residential

development does not impact traffic as significantly as other uses such as retail and office. Residential

development also produces more people to utilize the wider urban sidewalks associated with a dynamic

urban village.

Many CRA plans of other cities attempt to encourage retail such as grocery stores, books, restaurants,

art, music, apparel, antiques, home accessories, and many other varieties to serve the local residents.

Much of the retail may be tucked into mixed-use buildings. The development of quality retail depends

upon the ability to encourage people of all ages to live in the area.

Many CRA plans of other cities discourage large areas of asphalt parking and encourage structured

parking. In addition, good planning encourages parking on the street so that a shopper or visitor can have

easy access to a shop for a short period of time. The on-street parking also provides a buffer between the

pedestrian and the moving vehicles in the street.

Historically, urban residential does not contain many families with school-age children. Urban residents

tend to be childless but range in age groups from the young professional and downtown workers to

middle aged professionals to retirees and second home residents.

The City Commission is expected to make its final approval of the Plan on June 1, 2004