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Eustis CRA adopts resolution to clarify tax-increment reimbursement in developer agreement
Summary
The City of Eustis Community Redevelopment Agency voted to adopt CRA Resolution 25-02 clarifying how tax-increment reimbursements apply under an existing developer agreement with North Central Place LLC and establishing the clarification as precedent for similarly structured agreements.
The City of Eustis Community Redevelopment Agency on June 5 adopted CRA Resolution 25-02 to clarify how tax-increment reimbursements apply under a developer agreement with North Central Place LLC.
Sasha (CRA staff) said the resolution “clarif[ies] the intent and the application of the … developer agreement with North Central Place LLC regarding tax increment reimbursement, establishing the clarification as a precedent applicable to all existing agreements based on the same form, affirming the CRA’s intent to transition to a new agreement form, providing for implementation and an effective date.”
The measure codifies direction the board gave at a prior meeting, Sasha said, and was framed as a formal record so the same interpretation could be applied to other agreements that use the same template. Board members discussed earlier concerns about how a future change in property ownership or sale price could affect the incremental tax amount available for reimbursement. Board member Asbodie said he had raised pushback previously but, after meeting with staff and reviewing the resolution’s language, he was satisfied that the resolution addressed his concern that a significantly lower sale price could reduce the available increment.
A motion to approve CRA Resolution 25-02 was moved from the dais and seconded; a roll call vote recorded Ayes from board members Asbodie, Ashcraft, Holland, Lee, Hawkins and Tom. The resolution passed.
The resolution, as read into the record, says the developer will receive tax-increment benefits for any year “as long as the CRA receives that increment” and that the benefit applies regardless of whether the increment is paid by the original developer, a successor owner, or a third party. The resolution also states that tax exemptions, subsidies, or reductions that would reduce the taxable base on the property would affect eligibility, consistent with the clarifications staff included.
Board members indicated they expect to return in a future meeting to consider revisions to the standard agreement form to reduce ambiguity and to transition to a new agreement template.
No public commenters registered for the item during the meeting.
The resolution is memorialized in the CRA minutes and will take effect as provided in the document adopted by the board.
