Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Cra Boundary Expansion topic
No spam. Unsubscribe anytime.
Consultants outline possible CRA boundary expansion; estimate about $4 million TIF over 10 years, board weighs options
Summary
GAI consultants told Palatka CRA members the proposed expansion area is roughly 625 acres with about one-third of parcels vacant and estimated the area could generate roughly $4 million in TIF over 10 years under historical growth assumptions.
GAI consultants told the Palatka Community Redevelopment Agency that a proposed expansion of the CRA boundary would add roughly 625 acres and more than 1,000 parcels to the redevelopment area and could generate about $4 million in tax-increment financing (TIF) over the next 10 years under historical growth assumptions.
John Jones of GAI said the proposed area has high vacancy — about 251 residential vacant parcels and 44 commercial vacant parcels — and a current taxable value of about $64 million. “When we apply a 6.6 percent growth rate to that over the next 10 years, we anticipate the TIF revenue could be about $4,000,000,” Jones said.
Consultants framed the board’s decision as a choice among three options: - Option 1: Expand the CRA, perform a Finding of Necessity study, and update the redevelopment plan to incorporate the new area (would allow county increment participation but provide limited TIF in relation to the area’s needs). - Option 2: Keep current CRA boundaries and update the CRA plan with new projects for existing districts (maintains focus and updates TIF estimates). - Option 3: Make minimal plan updates only to address potential state legislative changes that could limit CRA operations.
Why it matters: expansion would add acreage and parcels that include residential neighborhoods, commercial lots and jurisdictional wetlands. Consultants cautioned that the proposed addition would share the CRA’s existing sunset date (the agency’s operational timeframe currently runs to 2044) because added districts take the agency’s original sunset date, which limits the useful life of newly captured increment.
Board concerns and clarifications: - Several commissioners questioned whether much of the proposed area included county or jurisdictional wetlands and public-housing parcels that do not generate taxable increment. Commissioner Campbell asked whether public-housing parcels shown in the expansion map would contribute increment; the consultant confirmed those parcels likely provide little or no TIF revenue but could be eligible for redevelopment spending if identified in the plan. - Commissioners noted infrastructure costs (utilities/roads) and the limited scale of estimated TIF relative to required investments for large expansions. - Commissioners also raised the risk that state legislative proposals would reimpose restrictions on CRAs; consultants advised updating plans now to preserve eligible projects should the legislature act.
Consultant recommendation and next steps: the consultants provided pros and cons for each option and recommended the board consider whether $4 million of projected increment over 10 years would be sufficient to support meaningful redevelopment in the proposed area. No board vote was taken; commissioners generally expressed reservations about a large expansion and several favored Option 2 (update current CRA plan and projects) at this time. Staff and consultants said they would await direction from the board on whether to proceed with a Finding of Necessity study.
