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Westgate CRA authorizes study of TIF rebate for proposed Westgate Gardens redevelopment
Summary
The Westgate/Belvedere Homes CRA voted 4-0 to authorize staff to study and negotiate a tax-increment financing rebate for the Terra/Frisbie Group's proposed Westgate Gardens, a mixed-income redevelopment of the former Palm Beach Kennel Club site. Staff said projected revenue gaps tied to required workforce units drive the request.
The Westgate/Belvedere Homes Community Redevelopment Agency voted unanimously Nov. 4 to authorize staff to study and negotiate a tax-increment financing (TIF) abatement or rebate for a proposed redevelopment of the former Palm Beach Kennel Club site at 1111 Congress Avenue.
Elize9e Michel, the agency's executive director, presented the application from Terra and the Frisbie Group for a three-phase project to be called Westgate Gardens. The developers propose redeveloping about 42 of the site's 47 acres; Phase 1 would occupy roughly 16 acres at the north end and include about 400 multifamily units arranged in garden-style buildings, with parking on the site perimeter.
Michel told the board the project must provide 20% of units at workforce housing rents to qualify for the CRA density-bonus pool: 10% for households at 60—-80% of area median income (AMI) and 10% at 80—-100% AMI. Because those units would be rented below market, staff said the developers estimate the first stabilized year (projected 2029) would generate $1,039,249 in TIF revenue but show a revenue gap of roughly $690,245. The developers asked the CRA to rebate about 66.4% of the TIF generated by the development (the CRA would retain about 33.6%) to close that gap; the requested term is 20 years or until the CRA sunsets, subject to Palm Beach County approval.
On a motion by Ruth Haggerty and seconded by Joanne Rufty, the board authorized staff to study, negotiate, and discuss the feasibility and terms of a TIF abatement or rebate with Palm Beach County administration. The motion passed 4-0.
Michel said additional steps would be required before any rebate is granted: county approval, a detailed pro forma analysis to substantiate the claimed gap, and formal resolutions and interlocal and developer agreements to set terms. The board did not vote on an agreement or on a specific dollar figure at the meeting; it authorized staff only to pursue study and negotiation and return with findings and recommendations.
The request was presented to board members as a financing mechanism commonly used by other Palm Beach County CRAs, and Michel noted contributions to affordable housing are consistent with the CRA Redevelopment Plan and Florida statutory guidance for community redevelopment agencies (F.S. 163).
Next steps: staff will analyze the project pro forma, negotiate proposed terms with county administration and the developer, and report back to the CRA board if it recommends a formal rebate or other incentives.
