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Council weighs 37th Street redevelopment concept, attorney urges caution on CRA approach
Summary
Council members discussed an AI-generated concept for mixed-use development on 37th Street and tools such as tax-increment financing and public-private partnerships; the city attorney advised the council to confirm grant restrictions and the legal test for creating a CRA before proceeding.
Council members spent a large portion of the May 26 meeting reviewing a conceptual vision for 37th Street and talking through financing and legal options to spur private investment.
A council member who presented an AI-generated concept said the city owns four lots on the east side of 37th Street and proposed guiding private development rather than the city directly funding construction. "We could provide land and let the private sector run with it," the council member said, arguing mixed-use development could create permanent space for local food businesses currently operating as food trucks.
Staff described incentive tools the city could use, including property-tax abatements, sales-tax exemptions, impact-fee reductions or deferrals, grants, low-interest loans, public infrastructure investments and, on a larger scale, tax-increment financing (TIF) or a community redevelopment agency (CRA). "Tax increment financing or community redevelopment agency funds—ould help drive a public-private partnership type situation on 37th Street," Presenter (speaker 5) said.
The city attorney cautioned that creating a CRA requires a legal study and a showing of "blight" under Florida law, and that the legislature has tightened rules around CRAs. He recommended the city send a written inquiry to the Florida Department of Economic Opportunity to confirm whether the grant the city used to buy property includes a five-year security interest or other ongoing restrictions. "You have to have a study on a CRA. You have to show blight," the City Attorney (speaker 9) said.
The attorney further told the council the grant documents the staff provided indicate the city received approximately $500,000 in grant funding and spent roughly $465,000 to purchase property; the attorney said a paragraph in the grant raised questions about whether restrictions persist beyond five years and whether the grantor had a security interest for that period.
Council members floated alternatives: selling city-owned lots with contractual restrictions to guide private development, creating a public-private partnership for qualifying projects under section 255.065 of the Florida Statutes (as cited by the attorney), or pursuing a CRA after a multi-year study and possible court validation process.
Council direction and next steps The council asked staff and the city attorney to seek written clarification from the Florida DEO about the grant restrictions and whether the five-year clause creates any lingering limitation. Council members expressed support for a planning process and suggested the city begin preliminary paperwork and public outreach to attract developers, while avoiding committing the city to large up-front investments.
Why it matters 37th Street sits near the planned pier and city-owned parcels that could shape future economic activity. The discussion framed a choice between proactive city guidance and leaving development entirely to private market actors; legal constraints from past grants and state statutes will affect which tools the city may legally use.
What remains unresolved City staff and the attorney did not confirm whether the grant restrictions have expired or whether a CRA is legally feasible; the attorney recommended a written inquiry to DEO and further study before committing to a path.
