Downtown & East Town CRA Expansion Plan City of Eustis

Transcription

1 Downtown & East Town CRA Expansion Plan City of Eustis May 2018

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3 Contents 1 Introduction... 1 CRA Overview/History Existing Conditions... 2 Downtown & East Town Community Redevelopment Area Expansion... 2 Existing Land Use... 5 Future Land Use CRA Expansion Redevelopment Plan... 8 CRA Expansion Master Plan Consistency with CRA Goals and Policies Implementation Plan Implementation Plan Estimated Budget TIF Revenue Projections... 14

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5 1 1 Introduction CRA Overview/History The Eustis Downtown and East Town Community Redevelopment Area (CRA) was originally adopted in 1990 as Resolution No The CRA is approximately 1.5 square miles and included historic properties, the downtown commercial area, and a historically minority neighborhood. In the past 28 years, the City has completed projects within the CRA and amended the CRA Plan. The latest revision was adopted in 2016 with the intent to recognize plan implementation efforts realized to date; to assess, revisit and refine the principles and goals of the plan; to eliminate those initiatives proposed in prior versions of the Plan that are complete, not realistic, or are no longer desirable, and to adopt a new implementation plan based on a proposed 30-year extension of the Community Redevelopment Area. In 2018, the City of Eustis Downtown and East Town Redevelopment Agency and Eustis Lake Club LLC executed an Agreement for Development of Property with the intent of redeveloping certain parcels in the City. In this Agreement, the Agency has determined that the use of tax increment revenues to provide financial support for residential development in the Area is appropriate and consistent with the 2008 Downtown Plan and the 2016 Redevelopment Plan. However, a portion of the proposed development is located outside of the CRA. Therefore, this CRA Expansion Plan proposes to expand the original CRA boundary so that the Redevelopment Trust Fund can provide financial assistance to the project.

6 2 Existing Conditions 2 Downtown & East Town Community Redevelopment Area Expansion The proposed Downtown & East Town CRA Expansion (Study Area) is generally located south of Lakeshore Drive, west of the rail line and south of and west of the existing southwest corner of the CRA. A portion of the proposed expansion is located north of Lakeshore Drive. The CRA expansion will add a total of five parcels, totaling 9.9 acres, inclusive of rights-ofway and a portion of the State-owned canal connecting to Lake Eustis. This expansion will result in a total of 1,490 parcels, and approximately acres within the CRA revised boundary. Figure 1 indicates the existing and proposed CRA boundary. Figure 2 provides a more detailed depiction of the proposed expansion including the parcels to be included. The legal description of the CRA expansion is included in Appendix A.

7 Path: \\FL-ORL\projects\ WJ Capital-Eustis Redev\GIS\Project\CRA Boundary.mxd Å õ Legend 44 Existing CRA Boundary Proposed CRA Expansion T S 19 CR 45 2 Å õ E HOR THS NO R WALL ST 452 E PENDLETON AV DR E WILT AV T S 19 LILLY PAD LN N BAY ST W PARK AV T S 19 Å õ W ORANGE AV 44 E CITRUS AV LAKESHORE DR T S 19 1 CITY OF EUSTIS COMMUNITY REDEVELOPMENT AREA CRA BOUNDARY Eustis E ORANGE AV Florida NOTE: THE INFORMATION PROVIDED ON THIS DOCUMENT SHOULD BE TREATED AS CONCEPTUAL ONLY AND MAY BE SUBJECT TO CHANGE 2018 VHB U 1,500 Feet DATE: April 2018 PROJECT NUMBER: PROPOSED EXPANSION 225 E. Robinson St, Suite 300 Orlando, Florida Tel: Fax: CITY OF EUSTIS COMMUNITY REDEVELOPMENT AREA FILE PATH: \\flordata\projects\ WJ Capital-Eustis Redev\graphics\FIGURES\CRA Expansion Plan Date: March 2018

8 Path: \\FL-ORL\projects\ WJ Capital-Eustis Redev\GIS\Project\2018 CRA Expansion Parcels.mxd Legend Existing CRA Boundary N BAY ST 2018 CRA Expansion FERRAN PARK DR W MAGNOLIA AV W ORANGE AV SHARPS CR LAKESHORE DR KING S T S BAY ST MORIN ST MELODY CR W LEMON AV SMITH ST SCHULTZ ST CITY OF EUSTIS COMMUNITY REDEVELOPMENT AREA CRA EXPANSION - PARCELS Eustis W KEY AV AL DONNELLY ST W KEY AV CA N 2 ST W WARD AV Florida NOTE: THE INFORMATION PROVIDED ON THIS DOCUMENT SHOULD BE TREATED AS CONCEPTUAL ONLY AND MAY BE SUBJECT TO CHANGE 2018 VHB U 300 Feet DATE: April 2018 PROJECT NUMBER: E. Robinson St, Suite 300 Orlando, Florida PROPOSED EXPANSION PARCELS Tel: Fax: CITY OF EUSTIS COMMUNITY REDEVELOPMENT AREA FILE PATH: \\flordata\projects\ WJ Capital-Eustis Redev\graphics\FIGURES\CRA Expansion Plan Date: March 2018

9 Existing Land Use 5 Four of the five parcels in the CRA expansion are currently vacant, accounting for over 55 percent of the total area, or approximately 76 percent of the developable land area. For the purposes of classification, the Lake County Property Appraiser does consider parcel as Vacant. However, even though there are no buildings on site, there are two existing boat ramps on site. The one developed parcel is the Sharp s Mobile Home Park, which the Lake County Property Appraiser considers a Commercial use, even though there are dwelling units on the site. Table 1 below identifies the existing land uses within the CRA expansion. Table 1: Existing Land Use Study Area Existing Land Use Acres Percent of Study Area Manufactured Home Park % Vacant % State-Owned Canal % Rights-of-Way % Future Land Use Approximately 45% of the CRA expansion area is currently designated as Public/Institutional. This is consistent with the municipally-owned parcels. The areas designated as Mobile Home/Recreational Vehicle and Industrial General correspond to the privately-owned parcels south of Lakeshore Drive within the expansion area. Table 2: Future Land Use Study Area Future Land Use Acres Percent of Study Area Industrial General % Mobile Home/Recreational Vehicle % Public/Institutional % Residential Suburban % No FLU %

10 3 CITY OF EUSTIS COMMUNITY REDEVELOPMENT AREA CRA EXPANSION - EXISTING LAND USE Eustis Florida NOTE: THE INFORMATION PROVIDED ON THIS DOCUMENT SHOULD BE TREATED AS CONCEPTUAL ONLY AND MAY BE SUBJECT TO CHANGE 2018 VHB DATE: April 2018 PROJECT NUMBER: E. Robinson St, Suite 300 Orlando, Florida Tel: Fax: FILE PATH: \\flordata\projects\ WJ Capital-Eustis Redev\graphics\FIGURES\CRA Expansion Plan

11 Path: \\FL-ORL\projects\ WJ Capital-Eustis Redev\GIS\Project\Future Land Use.mxd Legend Existing CRA Boundary 2018 CRA Expansion Central Business District Commercial General N BAY ST Industrial General Mobile Home/Recreational Vehicle Public/Institutional Residential Suburban FERRAN PARK DR W MAGNOLIA AV W ORANGE AV SHARPS CR S BAY ST MORIN ST MELODY CR KING S T LAKESHORE DR W LEMON AV SMITH ST SCHULTZ ST CITY OF EUSTIS COMMUNITY REDEVELOPMENT AREA CRA EXPANSION - FUTURE LAND USE Eustis W KEY AV AL DONNELLY ST W KEY AV CA N 4 ST W WARD AV Florida NOTE: THE INFORMATION PROVIDED ON THIS DOCUMENT SHOULD BE TREATED AS CONCEPTUAL ONLY AND MAY BE SUBJECT TO CHANGE 2018 VHB U 300 Feet DATE: April 2018 PROJECT NUMBER: Future Land Uses 225 E. Robinson St, Suite 300 Orlando, Florida Tel: Fax: CITY OF EUSTIS COMMUNITY REDEVELOPMENT AREA EXPANSION FILE PATH: \\flordata\projects\ WJ Capital-Eustis Redev\graphics\FIGURES\CRA Expansion Plan Date: April 2018

12 2 CRA Expansion Redevelopment Plan 8 CRA Expansion Master Plan The expansion of the CRA will allow for the redevelopment of the Sharp s Mobile Home Park. This project is bisected by Lakeshore Drive, with parcels north of the road located within the existing CRA, while parcels south of the road are located within the proposed CRA expansion. The CRA expansion Master Plan (Figure 5) identifies a development program of 86 single family lots and a commercial building at the northwest corner of Lakeshore Drive and S. Bay Street. A commercial use is already existing at this location. The proposed plan utilizes 3 of the 5 parcels in the CRA expansion. There is currently no plan for the other two parcels, but the City has determined it is in the best interest of the City and its residents to include these parcels in the CRA to incentivize future development on vacant parcels. Figure 5: Proposed CRA Expansion Master Plan

13 3 Consistency with CRA Goals and Policies 9 The 2016 CRA Plan provided goal updates based on the original 1990 Plan goals. During its review of the 1990, 2008, and 2009 plans, and CRA accomplishments to date, the City determined consolidation of certain goals, addition of new goals, and the adoption of fiscal policies, an implementation plan, and revised redevelopment budget was necessary to guide the redevelopment of revitalization of the CRA. The proposed redevelopment identified in Chapter 3 is consistent with the identified 2016 goals of the CRA Plan. These goals are identified below: Leverage City and CRA resources to support private investment and redevelopment efforts on identified catalyst sites and other sites where redevelopment is feasible. The proposed CRA expansion is located in the southwestern Catalyst Site, as depicted in the map provided in the 2016 CRA Plan and shown below in Figure 6. Figure 6: 2016 CRA Plan Catalysts Sites Continue to upgrade, enhance, and unify the waterfront and integrate it into the downtown. The Lake Eustis lakefront should be developed to make it more accessible

14 to the public and to encourage access to the City s business district, park, recreation areas, and community facilities from the lake itself. 10 The CRA expansion plan includes a sidewalk and boardwalk along the lake connecting to the commercial building and the downtown. One of the municipally-owned parcels west of the proposed development is located on the lake and can act to provide additional public water access. Support aesthetic improvements to private property throughout the CRA with architectural design guidelines, property enhancement grants, and other tools to support high-quality development. The proposed development will enhance the aesthetic of the parcels. Currently these parcels are either vacant, or occupied by outdated mobile homes or impounded vehicles, and contain cracked, unrepaired pavement. With the incentives provided by the CRA, the proposed development will enhance the aesthetics and the quality of development in the area just west of downtown. Continue to enhance streetscapes throughout the CRA, including plantings, sidewalks, street furniture, wayfinding signage, lighting, utility infrastructure, multimodal transportation enhancement, and other improvements. As described in the 2018 Finding of Necessity, the location of the proposed expansion, and the adjacent area existing within the CRA currently lacks a connected multimodal transportation network. Sidewalks, if they exist, are not connected. The proposed redevelopment provides for enhanced pedestrian connectivity throughout the project and connecting to downtown. The proposed CRA Expansion is also consistent with the Fiscal Policies of the 2016 CRA Plan 3. Actively market the Redevelopment Project Area to private-side developers.

15 The CRA expansion plan is based on an Agreement for Development (Agreement) between the City of Eustis and a private developer, Eustis Lake Club LLC. The Agreement states the project would not be possible without the City s/cra s funding mechanisms. Part of the development is on land currently owned by the City. Using this land to incentivize private development is consistent with the fiscal policies in the adopted CRA Plan Provide financial assistance, as permitted, by the Act, to encourage private-side developers to complete those certain private actions and activities as outlined in the Plan. The CRA expansion plan is based on the Agreement between the City of Eustis and Eustis Lake Club LLC, which states the project would not be possible without the City s/cra s financial assistance. Part of the development is on land currently owned by the City. Using this land to incentivize private development is consistent with the fiscal policies in the adopted CRA Plan. Fiscal Policy for Public/Private Redevelopment Activities: The public/private activities proposed for the Eustis CRA are for primarily mixed use, commercial and residential development, and may include, but are not limited to: On-site infrastructure upgrades; i.e. water supply from main, drainage to main sewer line, etc.; Rehabilitation, repairing, remodeling, and site improvements to existing buildings throughout the Redevelopment Project Area (both commercial and residential); Development of currently undeveloped land; Costs of engineering, architectural, or professional studies related to economic development of the Area; Land assembly, site preparation, building demolition, and, where and when necessary, environmental remediation; Public utilities: removal and/or burying of overhead utility service, storm sewer installation, drainage improvements, and replacement of water lines, sanitary sewers, and other sewer and water system components;

16 Street work, including street lighting replacement and/or upgrading in both residential and public use areas, as well as curb and gutter construction, repair, or replacement, sidewalk and pedestrian walkway construction, repair, or replacement; 12 Costs of rehabilitation, reconstruction or repair or remodeling of existing public or private buildings, including residential structures, fixtures, or leasehold improvements; Marketing of properties; Financing costs, including those related to the issuance of obligations; Interest cost incurred by a redeveloper related to the construction, renovation or rehabilitation of a redevelopment project; Relocation costs to the extent that a municipality determines that relocation costs shall be paid or is required to make payment of relocation costs by federal or state law. As outlined in the Agreement for Development, the CRA funding utilized for this project is consistent with the activities described in this Fiscal Policy of the adopted CRA Plan.

17 4 Implementation Plan 13 Implementation Plan Development of the CRA expansion is anticipated to proceed in accordance with the conditions identified in the Agreement for Development of Property (Agreement) between the City of Eustis and Eustis Lake Club LLC. This Agreement includes details on the proposed development program, site plan, financial assistance, project schedule, and estimated budget. Estimated Budget The Agreement identifies two alternatives. One alternative does not include the CRA expansion. To determine the estimated budget solely for the CRA expansion, the estimated budget for the alternative not including the CRA expansion and subtracted from the overall development s estimated budget, including the land in the original CRA boundary. The Agreement identifies a total development estimated budget of $21,174, and an alternate project budget of $12,924, Based on these estimates, the budget for the CRA expansion is estimated to be $8,249,692.17; however, it is part of the overall proposed development, which is approximately $21.1 million. It is anticipated that the Tax Increment Financing (TIF) revenue generated within the CRA expansion area, as well as the Redevelopment Trust Fund established in the original CRA, will contribute to the development costs of this project, as described in the Agreement. Eligible costs including, but are not limited to, demolition and site clearing, new roads and sidewalks, utilities and infrastructure, and vertical construction costs.

18 5 TIF Revenue Projections 14 The 2016 CRA Plan established a methodology for estimate Tax Increment Financing (TIF) revenues. This section will identify the TIF revenues estimated based on the CRA expansion for the parcels to be included in the CRA, as well as combining these estimates with the projections identified in the 2016 CRA Plan. The established methodology 1 includes periodic spikes in income in the timeline to represent anticipated increases in increment from anticipated development in the catalyst sites within the district. The following projections use the same assumptions for growth rate and mil rate established in the methodology for the 2016 CRA Plan. Since the proposed development is within an identified catalyst site, this analysis assumes the redevelopment of the portion currently within the CRA is included in one of the periodic spikes (e.g. 2018). The Agreement identifies property acquisition, real estate, site preparation, financing, construction, professional services, administration, governments, and sales costs. The taxable value of the CRA expansion parcels were estimated using construction costs identified in the Agreement as the estimated building value, and 2017 land values from Lake County Property Appraiser data. Furthermore, one of the City-owned parcels within the expansion is included in the proposed development; therefore, it is anticipated this will become a privately-owned parcel and will be taxable. The other two City-owned parcels do not currently have any development proposed; therefore, they are assumed to stay as public lands and retain their tax-exempt status. A change in this scenario would increase the taxable land within the CRA expansion, and thus increase the TIF projections Redevelopment Plan, page 35

19 The base year for the TIF revenue projections for the CRA expansion (Table 3) is Table 4 compiles the revenue projections in the adopted 2016 CRA Plan and the projections for the expansions to provide the total TIF revenue projection for the revised CRA boundary. 15 The CRA expansion is projected to add $4,098,114 to the CRA funds in the next 30 years, increasing the overall projected CRA funds to $56,071,627.

20 Table 3: Tax Increment Revenue Projections (CRA Expansion Only) YEAR EXPANSION INCREMENT OVER BASE DEPOSIT INTO FUND TAXABLE VALUE 2017 $343, $6,051,892 $5,708,800 $71, $6,293,968 $5,950,876 $74, $6,545,726 $6,202,634 $77, $6,807,555 $6,464,463 $80, $7,079,858 $6,736,766 $83, $7,363,052 $7,019,960 $87, $7,657,574 $7,314,482 $91, $7,963,877 $7,620,785 $94, $8,282,432 $7,939,340 $98, $8,613,729 $8,270,637 $102, $8,958,279 $8,615,187 $107, $9,316,610 $8,973,518 $111, $9,689,274 $9,346,182 $116, $10,076,845 $9,733,753 $121, $10,479,919 $10,136,827 $126, $10,899,116 $10,556,024 $131, $11,335,080 $10,991,988 $136, $11,788,483 $11,445,391 $142, $12,260,023 $11,916,931 $148, $12,750,424 $12,407,332 $154, $13,260,441 $12,917,349 $160, $13,790,858 $13,447,766 $167, $14,342,493 $13,999,401 $174, $14,916,192 $14,573,100 $181, $15,512,840 $15,169,748 $188, $16,133,354 $15,790,262 $196, $16,778,688 $16,435,596 $204, $17,449,835 $17,106,743 $213, $18,147,829 $17,804,737 $221, $18,873,742 $18,530,650 $230,734 TOTAL DEPOSIT $4,098,114 Notes: 1) Tax Increment Revenue projections for CRA Expansion used 2017 as the base year. 2) Estimated assessed values for CRA Expansion uses land values provided by Lake County Property Appraiser plus construction costs identified in the Agreement between City of Eustis and Eustis Lake Club LLC. 3) City-owned parcels east of proposed development assumed to remain publicly owned and retain taxexempt status. 16

21 YEAR Table 4: Tax Increment Revenue Projections (Revised CRA Boundary: Original + Expansion) ORIGINAL EXPANSION TOTAL TAXABLE INCREMENT TAXABLE VALUE TAXABLE VALUE VALUE OVER BASE DEPOSIT INTO FUND 1990 $36,752,072 $36,752, $75,274,636 $343,092 $75,274,636 $38,522,564 $479, $86,285,622 $6,051,892 $92,337,514 $55,242,350 $687, $89,737,047 $6,293,968 $96,031,015 $58,935,851 $733, $93,326,529 $6,545,726 $99,872,255 $62,777,091 $781, $97,059,590 $6,807,555 $103,867,145 $66,771,981 $831, $109,941,973 $7,079,858 $117,021,831 $79,926,667 $995, $114,339,652 $7,363,052 $121,702,704 $84,607,540 $1,053, $118,913,238 $7,657,574 $126,570,812 $89,475,648 $1,114, $123,669,768 $7,963,877 $131,633,645 $94,538,481 $1,177, $128,616,558 $8,282,432 $136,898,990 $99,803,826 $1,242, $133,761,221 $8,613,729 $142,374,950 $105,279,786 $1,310, $139,111,670 $8,958,279 $148,069,949 $110,974,785 $1,381, $144,676,136 $9,316,610 $153,992,746 $116,897,582 $1,455, $150,463,182 $9,689,274 $160,152,456 $123,057,292 $1,532, $156,481,709 $10,076,845 $166,558,554 $129,463,390 $1,612, $162,740,978 $10,479,919 $173,220,897 $136,125,733 $1,694, $169,250,617 $10,899,116 $180,149,733 $143,054,569 $1,781, $176,020,641 $11,335,080 $187,355,721 $150,260,557 $1,870, $183,061,467 $11,788,483 $194,849,950 $157,754,786 $1,964, $190,383,926 $12,260,023 $202,643,949 $165,548,785 $2,061, $197,999,283 $12,750,424 $210,749,707 $173,654,543 $2,162, $205,919,254 $13,260,441 $219,179,695 $182,084,531 $2,267, $214,156,024 $13,790,858 $227,946,882 $190,851,718 $2,376, $222,722,265 $14,342,493 $237,064,758 $199,969,594 $2,489, $231,631,156 $14,916,192 $246,547,348 $209,452,184 $2,607, $240,896,402 $15,512,840 $256,409,242 $219,314,078 $2,730, $250,532,258 $16,133,354 $266,665,612 $229,570,448 $2,858, $260,553,548 $16,778,688 $277,332,236 $240,237,072 $2,991, $270,975,690 $17,449,835 $288,425,525 $251,330,361 $3,129, $281,814,718 $18,147,829 $299,962,547 $262,867,383 $3,273, $293,087,307 $18,873,742 $311,961,049 $274,865,885 $3,422,482 TOTAL DEPOSIT $56,071,627 Notes: 1) Projections for 2016 CRA boundary are based on table provided in adopted 2016 CRA Plan. 2) Tax Increment Revenue projections for CRA Expansion used 2017 as the base year. 3) Estimated assessed values for CRA Expansion uses land values provided by Lake County Property Appraiser plus construction costs identified in the Agreement between City of Eustis and Eustis Lake Club LLC. 17

22 Appendix A: CRA Expansion Legal Description 18