Finding of Necessity For South City Study Area

Transcription

1 Finding of Necessity For South City Study Area Community Redevelopment Act Prepared by: Zachary Shrader, Nicole Buehne, Keri Samiec, Jack Zabrowski For: URP6341, Urban Planning Project February 24, 2018 DREAM CONSULTING Zach, Nicole, Keri, Jack

2 Table of Contents! 02 Table of Contents Acknowledgments Dream Consulting Project Team Introduction Community Redevelopment Act of Section , F.S. CRA Study Area Determination Section , F.S. - Finding of Necessity for Blighted Areas Study Area and Methodology Description History Method Blight Findings Blight Factor C: Faulty Lot Layout Blight Factor E: Site Deterioration Residential Deterioration Fences Derelict and Inoperable Vehicles Open Storage Minimum Housing Standards and Dilapidation Trash, Junk and Debris Commercial Deterioration Blight Factor I: Vacancy Rates Blight Factor J: Crime Effects of CRAs on Low Income Households Financial Feasibility NPV Calculation Conclusion Table of Contents

3 Acknowledgments Jack Zabrowski La Crosse, WI Zachary Shrader Tallahassee, FL Keri Samiec Toledo, OH Nicole Buehne Minneapolis, MN The following project team from Dream Consulting (URP6341, Urban Planning Project class) contributed to the fieldwork, analysis and preparation of this report. These team members represent a diverse cross-section of disciplines ranging from real estate to transportation to design. Acknowledgments 3

4 Introduction In January 2018, the Tallahassee City Commission approved a motion to create a Community Redevelopment Area (CRA) for the South City neighborhood of Tallahassee pursuant to Florida s Community Redevelopment Act of The City contacted the Dream Consulting to investigate the proposed area and draft a Finding of Necessity (FON) report. An FON is the first step in determining if a study area meets the criteria of having slum or blight characteristics required to establish a CRA as mandated in Chapter 163 Part III, Florida Statutes. This FON has been prepared based on field observation and data and analysis in order to make a determination that slum or blight exists within the study area. This report includes an assessment of blight factors as defined in Section , Florida Statutes, and a conclusion of findings, associated data and analysis, and photo documentation of our study area. 4

5 Community Redevelopment Act of 1969 The Community Redevelopment Act of 1969 ( Act ), Chapter 163 Part III, Florida Statutes, authorizes local governments to establish community redevelopment agencies to improve slum and blighted areas within their jurisdiction. The Act sets forth the legal process by which local governments may establish community redevelopment agencies and provide financing and regulatory processes to undertake the complex task of overcoming the conditions that contribute to the causes of slum and blight in declining areas of the city. Section , F.S. CRA Study Area Determination Section F.S. Requires local government desiring to establish a community redevelopment agency to adopt, by resolution, a finding that one or more slum or blighted areas exist within its jurisdiction and that the rehabilitation, conservation, or redevelopment of such areas is necessary in the interest of the public health, safety, morals or welfare of the residents in the area. Upon adoption of a redevelopment plan, the City s redevelopment agency can begin implementing the plan, including the creation of a tax increment trust fund for the redevelopment area. The following paragraphs discuss slum and blight as defined in the Florida State Statute: Section (1) F.S. Slum and blighted areas which constitute a serious and growing menace, injurious to the public health, safety, morals, and welfare of the residents of the state; that the existence of such areas contributes substantially and increasingly to the spread of disease and crime, constitutes an economic and social liability imposing onerous burdens which decrease the tax base and reduce tax revenues, substantially impairs or arrests sound growth, retards the provision of housing accommodations, aggravates traffic problems, and substantially hampers the elimination of traffic hazards and the improvement of traffic facilities; and that the prevention and elimination of slums and blight is a matter of state policy and state concern in order that the state and its counties and municipalities shall not continue to be endangered by areas which are focal centers of disease, promote juvenile delinquency, and consume an excessive proportion of its revenues because of the extra services required for police, fire, accident, hospitalization, and other forms of public protection, services, and facilities. Section (2) F.S. Certain slum or blighted areas, or portions thereof, may require acquisition, clearance, and disposition subject to use restrictions, as provided in this part, since the prevailing condition of decay may make impracticable the reclamation of the area by conservation or rehabilitation; that other areas or portions thereof may, through the means provided in this part, be susceptible of conservation or rehabilitation in such a manner that the conditions and evils enumerated may be eliminated, remedied, or prevented; and that salvageable slum and blighted areas can be conserved and rehabilitated through appropriate public action as herein authorized and the cooperation and voluntary action of the owners and tenants of property in such areas. Community Redevelopment Act of

6 Section , F.S. CRA Study Area Determination (Continued) Section (3) F.S. Powers conferred by this part are for public uses and purposes for which public money may be expended and police power exercised, and the necessity in the public interest for the provisions herein enacted is declared as a matter of legislative determination. Section (4) F.S. Tourist areas or portions thereof which are deteriorating and economically distressed due to building density patterns, inadequate transportation and parking facilities, faulty lot layout, or inadequate street layout, could, through the means provided in this part, be revitalized and redeveloped in a manner that will vastly improve the economic and social conditions of the community. Section (5) F.S. The preservation or enhancement of the tax base from which a taxing authority realizes tax revenues is essential to its existence and financial health; that the preservation and enhancement of such tax base is implicit in the purposes for which a taxing authority is established; that tax increment financing is an effective method of achieving such preservation and enhancement in areas in which such tax base is declining; that community redevelopment in such areas, when complete, will enhance such tax base and provide increased tax revenues to all affected taxing authorities, increasing their ability to accomplish their other respective purposes; and that the preservation and enhancement of the tax base in such areas through tax increment financing and the levying of taxes by such taxing authorities therefore and the appropriation of funds to a redevelopment trust fund bears a substantial relation to the purposes of such taxing authorities and is for their respective purposes and concerns. This subsection does not apply in any jurisdiction where the community redevelopment agency validated bonds as of April 30, Section (6) F.S. There exists in counties and municipalities of the state a severe shortage of housing affordable to residents of low or moderate income, including the elderly; that the existence of such condition affects the health, safety, and welfare of the residents of such counties and municipalities and retards their growth and economic and social development; and that the elimination or improvement of such condition is a proper matter of state policy and state concern and is for a valid and desirable public purpose. Section (7) F.S. Prevention or elimination of a slum area or blighted area as defined in this part and the preservation or enhancement of the tax base are not public uses or purposes for which private property may be taken by eminent domain and do not satisfy the public purpose requirement of s. 6(a), Art. X of the State Constitution. 6 Community Redevelopment Act of 1969

7 Section , F.S. - Finding of Necessity for Blighted Areas The paragraph to the right provides the definition of blighted areas as defined in Section (8) of the Florida State Statute, and which are the basis for a Finding of Necessity for a blighted area: Section (8) F.S. Blighted area means an area in which there are a substantial number of deteriorated, or deteriorating structures, in which conditions, as indicated by government maintained statistics or other studies, are leading to economic distress or endanger life or property, and in which two or more of the following factors are present: (a) Predominance of defective or inadequate street layout, parking facilities, roadways, bridges, or public transportation facilities; (b) Aggregate assessed values of real property in the area for ad valorem tax purposes have failed to show any appreciable increase over the 5 years prior to the finding of such conditions; (c) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (d) Unsanitary or unsafe conditions; (e) Deterioration of site or other improvements; (f) Inadequate and outdated building density patterns; (g) Falling lease rates per square foot of office, commercial, or industrial space compared to the remainder of the county or municipality; (h) Tax or special assessment delinquency exceeding the fair value of the land; (i) Residential and commercial vacancy rates higher in the area than in the remainder of the county or municipality; (j) Incidence of crime in the area higher than in the remainder of the county of municipality; (k) Fire and emergency medical service calls to the area proportionately higher than in the remainder of the county or municipality; (l) A greater number of violations of the Florida Building Code in the area than the number of violations recorded in the remainder of the county or municipality; (m) Diversity of ownership or defective or unusual conditions of title which prevent the free alienability of land within the deteriorated or hazardous area; (n) Governmentally owned property with adverse environmental conditions caused by a public or private entity. (o) A substantial number or percentage of properties damaged by sinkhole activity, which have not been adequately repaired or stabilized. Community Redevelopment Act of

8 RA Study Area and Methodology Description History The study area, also known as South City, is located south of The City of Tallahassee, established in 1825, is the the county seat downtown Tallahassee, Florida. Its southern boundary is Orange and only incorporated city in Leon County, following a decision Avenue between S. Adams Street to the west and Jim Lee Road to by the legislature to locate the capital of the new Florida Territory the east. Magnolia Drive comprises the northern boundary before midway between the population centers of St. Augustine and the study area turns north to include 1.25 miles of an auto-oriented Pensacola. The name Tallahassee is a Muskogean language commercial corridor on South Monroe Street, which serves as a word often translated as old fields or old town.1 It was likely an gateway into the state capital. The total area is +/- 410 acres as expression of the Creek people who migrated from areas of Georgia illustrated within the map detailed below. and Alabama to this region in the late 18th and early 19th centuries. As the capital, Tallahassee is the site of the Florida State Capitol, Supreme Court of Florida, Florida Governor s Mansion, and nearly 30 state agency headquarters. The city is also known for its large number of law firms, lobbying organizations, trade associations and professional associations, including the Florida Bar and the Florida Chamber of Commerce. Tallahassee is home to Florida State University, ranked the nation s thirty-third best public university by U.S. News & World Report in It is also home to Florida A&M University, the fifth-largest historically black university by total enrollment. The study area of South City and the Monroe/Adams corridor are historically black communities just one mile from downtown. They are two combined neighborhoods within the South Monroe Sector. Monroe-Adams grew up around the automobile as the northsouth roads became highways. Industries such as distributorships, dairies and bottling plants located in the stretch of roadway along with other automotive-oriented business such as gas stations, restaurants, car sales and automobile repair. To this day, car repair remains among the longs-lasting businesses in the corridor. The most dramatic change in South City occurred in the 1970 s with 0.3mi the development of the Southside Shopping Center. The Town State of Florida, TLCGIS, DigitalGlobe, GeoEye, Microsoft, CNES/Airbus DS South Shopping Center followed shortly thereafter. 1 Encyclopedia Britannica. Tallahassee. 8 Study Area and Methodology

9 Method To compile this report, Dream Consulting evaluated the study area for evidence of both slum and blight conditions. In accordance with FS , we determined early on in our investigation that our study are does not qualify as slum, due to its lack of physical or economic conditions conducive to disease, infant mortality, juvenile delinquency, poverty, or crime because there is a predominance of buildings or improvements, whether residential or nonresidential, which are impaired by reason of dilapidation, deterioration, age, or obsolescence We instead determined to focus on each of the 15 blight factors as identified in FS (8). We researched and evaluated each factor in accordance with the definitions in the statute and through precedent set by other FON reports conducted in the state of Florida. We collected data through several specific methods as defined below: In situ collection The Dream team visited the study area in January and February 2018 and collected data and evidence that we found to support the finding that blighted conditions exist in the area. We noted our observations and documented evidence with digital photographs. Virtual collection We also made observations and collected data through virtual means such as Google Maps street view and other digital sources. Data sources The various sets of data we collected came from reputable sources such as federal, state, and local governmental agencies, as well as universities. We obtained these data sets through public records requests and open-share services on public websites. With data collected, we analyzed trends and drew conclusions as to which blight characteristics are present within the established study area. Blight factors that we determined to be present within the study area are further explained in the Blight Factor Findings section of this report. Blight factors that we did not find present in the area, we were not able to adequately research due to limited or unavailable data, or that we could not feasibly evaluate within the defined research period, are not addressed in this report. However, any omission of blight factors from this report is not a definitive statement that those factors do not exist in the study area. Blight Factors Required by Statue Blight Factors Required by Statute Meets Criteria (8)(a) Defective/Inadequate Transportation Facilities Inconclusive (8)(b) Depreciating Assess Property Values Inconclusive (8)(c) Faulty Lot Layout Tallahassee Land Development Code; Tallahassee and Leon County GIS: Future Land Use Story Map; Tallahassee and Leon County GIS: Property Carousel; Leon County Code of Laws; Florida Statute; FEMA (8)(d) Unsanitary/Unsafe Conditions Inconclusive (8)(e) Site Deterioration Tallahassee Land Development Code, Tallahassee Code of Ordinances, Photographic evidence from site visits (8)(f) Building Density Patterns Inconclusive (8)(g) Falling Lease Rates Inconclusive (8)(h) Tax or Special Assessment Delinquency Inconclusive (8)(i) Vacancy Rates U.S. Census Bureau, 2010 Census, U.S. Department of housing and urban development, Comprehensive housing market analysis Tallahassee, Florida (8)(j) Crime Incidents Tallahassee Online Police Statistics (TOPS); Florida Department of Law Enforcement Uniform Crime Report: GIS analysis (TOPS), Tallahassee Reports (8)(k) Fire/Emergency Medical Service Calls Inconclusive (8)(l) Florida Building Code Violations Inconclusive (8)(m) Diversity of Ownership or Defective or Unusual Conditions of Title Inconclusive (8)(n) Governmentally Owned Property with Adverse Environmental Conditions (8)(o) Properties Damaged by Sinkhole Activity Inconclusive Inconclusive Methodology 9

10 Blight Findings Blight Factor C: Faulty Lot Layout Section (8)(c), F.S., Faulty lot layout in relation to size, adequacy, accessibility, or usefulness was observed throughout the study by assessing zoning and land use consistency, existence of landlocked parcels and parcels within a floodplain. Zoning and Land Use Consistency Per the Future Land Use Story Map published on the Tallahassee and Leon County Geographic Information Systems (GIS), a future land use district boundary called Central Urban will cover a majority of the study area. 1 The Central Urban land use district boundary, as seen in Figure B, represents older developed portions of the community that are primarily located adjacent to or in close proximity to the urban core and major universities and is intended to provide a variety of residential types (up to 45 dwelling units per acre), employment (includes light manufacturing), office and commercial activities. 2 The Central Urban land use is further divided into three Central Urban Zones, CU-18, CU-26, and CU-45, as seen in Figure C: Future Zoning District Boundary Map. The three zones intends a range of medium to high density of 4 to 45 dwelling units per acre, business (including light manufacturing) up to 60,000 sq. ft,; and up to 60,000 sq. ft. for commercial uses. 3 Further, the zones intend adequate accessibility to service and pedestrian and bike mobility. Thus, future planning is required to comply with the future zones intent to support accessibility. In the next section, we will identify how the existing parcel layout and presence of landlocked parcels limit accessibility throughout the study. Figure B: Central Urban Coverage 1 Tallahassee and Leon County GIS. Future Land Use Story Map. Found on 2 Tallahassee and Leon County GIS. Future Land Use Story Map. Found on 3 Tallahassee Land Development Code Chapter 10 Article IV. Division 3. Sec Blight Findings: Blight Factor C

11 Figure C. Future Zoning District Boundaries Blight Findings: Blight Factor C 11

12 Blight Findings Irregular Lots and Landlocked Parcels The eastern portion of the study area is dominated by a single-family rectangular lot configuration approximately.2 to.4 acres in size. However, one lot within this cluster is approximately 7.5 acres in size. The lot is identified as Lot A in Figure D. The area is inhabited by a single familyresidential unit and two additional dwellings under the same owner.1 The parcel is a part of the Residential Preservation (RP) district, specifically the RP-1 designation, which protects the residential character from incompatible land uses. 2 If the parcel was not designated as RP-1 then the parcel may be considered faulty due to size and usefulness. The parcel does not conform to the existing single-family lots. Further, if the parcel was divided, it may yield a landlocked parcel. As seen in Figure E, several landlocked parcels exist within the study area. A legal dictionary defines a landlocked parcel as a parcel that has no access or egress to a public street and cannot be reached except by crossing another s property. 3 Per 205 Florida Code Chapter 704 on Easements4, a landlocked owner may have vested easements rights or right of necessity if a land is used for a dwelling(s), agricultural, timber raising and/or cutting purpose and is shut off or hemmed in by lands, fencing, or other improvements by other persons. According to the Florida Statute (2), Florida would not award a statutory right of necessity to a commercial parcel owner, thus limiting the use. In addition to the overall difficulty in acquiring access, landlocked parcels negatively impact the adjacent parcels use, increase congestion on the adjacent parcels local roadway, reduce overall values for resale and increase the number of difficulties in lending for development on the parcel. In an article in the Herald Tribune regarding landlocked parcels, Professor Michael Allen Wolf from the Levin College of Law at the University of Florida, said, We can t get public service access to it. We can t put out a fire on the property. We can t get the police to come if there s a crime. He expresses, above all reasons, the limitation on accessibility to public services is a major reason to not landlock a property. With that being said, 60 parcel within our study area are landlocked. Within the sixty landlocked parcels5, approximately 50 are undeveloped. The number of undeveloped landlocked parcels are significant because it limits potential future development due to the stated limitations. Thus, landlocked parcels affect not only accessibility, but overall usefulness to Figure D: Lot A the owner. 1 Tallahassee and Leon County GIS. Property Carousel. From 2 Tallahassee Land Development Code. Chapter 10 Section 170 Residential Preservation District 3 US Legal Landlocked Law and Legal Definition at 4 Florida Statute. (2017). Title XL Real and Personal Property. Chapter 704 Easements. Found on 5 Amy Renink. (July 23, 2007). Landlocked property owners find they cannot build on their own land. Herald Tribune. 12 Blight Findings: Blight Factor C

13 Figure E. Landlocked Parcels in Study Area Blight Findings: Blight Factor C 13

14 Blight Findings Floodplains According to the Federal Emergency Management Agency (FEMA)1, a large swath of land that is susceptible to flooding traverses the study area as seen in Figure F. Approximately, 41% of the total land area within our study area is classified as AE, which is within the 100-year floodplain, and A or B, which is within the 500-year floodplain. According to the National Flood Insurance Program (AFIP) Specific Rating Guidelines published in April 2016, zone AE is considered a high risk for flooding, while zone A and B is identified as a moderate flooding risk. Development on parcels fully or partially within high and moderate risk flood zones pose a difficulty for an owner limiting the lot s size, use and adequacy. As seen in Figure F, the majority of parcels in the southern portion of our study area are in high risk zones. High risk parcels require specific construction standards, special certificates, and higher insurance rates. Some specific construction standards include flood resistant materials for all subfloor construction, water resistant utility lines or special accommodations, and building the lowest floor above the flood protection elevation2. In pursuit to create a more desirable and developable lot, some parcel owners may take extreme measures to alter a flood hazard area through dredging, filling, and excavating. In order to avoid these flood zones, some parcel owners may choose to alter a flood hazard area through dredging, filling, and excavating in pursuit to create a more desirable and developable lot. Owners may also pursue smaller building designs in order to accommodate the limited lot size. Figure F. Flood Risk 1 Federal Emergency Management Agency. National Flood Hazard Layer. 2 Leon County Code of Laws. Chapter 10 Land Development Code. Article VIII Floodplain 14 Blight Findings: Blight Factor C

15 Blight Factor E: Site Deterioration Section (8)(e), F.S., Deterioration of site or other improvements. Residential Deterioration The City of Tallahassee Code Enforcement Office has identified a list of the most common residential building code violations 1. Using this list as a reference along with the descriptions provided by the City, the project team looked for evidence of code violations during field visits. Descriptions of the common violations are quoted from the Code Enforcement Office s list below, along with documented examples from the study area. Specific applicable codes are also cited form both the Tallahassee Code of Ordinances and the Tallahassee Land Use Development Code. Fences 2 Fences must be constructed of approved materials and must be kept in good repair. Use of materials such as barbed wire, razor wire and electrified fencing are prohibited within residentially zoned areas. Multiple instances of chain link fencing in disrepair were noted. Though not in the residentially zoned sections of our study area, we also noted a predominance of barbed and razor wire fencing in commercial areas that border residential neighborhoods. February 10, 2018, E. Harrison St. Between Adams St and S. Monroe Street. February 10, 2018, Dantzler St, Between E. Magnolia Dr. and Kilpatrick Ct. Multiple instances of chain link fencing in disrepair were noted. Though not in the residentially zoned sections of our study area, we also noted a predominance of barbed and razor wire fencing in commercial areas that border residential neighborhoods. 1 City of Tallahassee. Common Code Violations. Accessed February 17, Tallahassee Land Development Code Chapter 3, Article VII.- FENCES AND WALLS. Sec Erection and maintenance of fences/walls. Blight Findings: Blight Factor E 15

16 Blight Findings Derelict and Inoperable Vehicles 1 A derelict/inoperable vehicle is one that does not display a current license tag and/or is not equipped with all parts required to legally and safely operate on public streets and/or cannot be driven under its own power. Derelict/inoperable vehicles cannot be stored except in a fully enclosed, legally constructed building. During site visits, we observed several instances of inoperable vehicles parked in yards, curb sides, and outside of approved structures. During site visits, we observed several instances of inoperable vehicles parked in yards, curb sides, and outside of approved structures. February 10, 2018, Pontiac Dr. Between Hiawatha Dr. and Orange Ave. Open Storage 2 Open storage is prohibited. Generally, any equipment, materials or furnishings that would ordinarily not be used outdoors may not be stored outdoors. For example, you may not keep indoor furniture, household appliances, auto parts or building materials outside. We observed many violations related to the improper storage of items, particularly furniture that is not meant for the outdoors being left in yards, driveways or porches. It was difficult to document many of these instances, as people were out in their yards and it would not have been appropriate to take photographs. February 10, 2018, S. Monroe St. Near Perkins St. February 10, 2018, Polk Dr. and S. Meridian St. February 10, 2018, Pontiac Dr. Between Hiawatha Dr. and Orange Ave. 1 Tallahassee Land Development Code Chapter 20, Article IVI.- ABANDONED AND NON OPERATING VEHICLES. Sec Time limit for leaving on porperty; exceptions. code_of_ordinances?nodeid=ptiicogeor_ch20trve_artivabnove_s20-134tilileprex 2 Tallahassee Land Development Code Chapter 10, Article VII.- SUPPLEMENTARY VIOLATIONS. Sec Accessory uses. ARTVIISURE_S10-412ACUS 16 Blight Findings: Blight Factor E

17 Minimum Housing Standards and Dilapidation 1 All wood, siding, shingles, roof covering, railings, walls, ceilings, porches, doors, windows, screens and any other exterior parts of residential structures must be maintained in weather-tight, rodent proof, sound condition and in good repair. Our observations found multiple instances of houses in disrepair and in various states of dilapidation. A particularly dense area of these occurrences is along Putnam Street on the south end of the study area. It is possible that all or part of this damage resulted from recent heavy tropical storm activity. February 10, 2018, Putnam St. Between Texas St. and Dantzler St. February 10, 2018, Putnam St. Between Texas St. and Dantzler St. February 10, 2018, Putnam St. Between Texas St. and Dantzler St. February 3, 2018, E. Magnolia Near Dantzler St. 1 Tallahassee Land Development Code Chapter 3, Article IX.- HOUSING. Sec Maintenance. DIV2HOCO_S3-488MA Blight Findings: Blight Factor E 17

18 Blight Findings Trash, Junk and Debris 1 Junk, trash and debris are prohibited from being left in the yard and must be disposed of properly. This includes, but is not limited to, junk, auto parts, appliances, furniture, building materials, tires, trash such as discarded paper, cardboard, plastics, etc., and debris such as tree trimmings and fallen limbs. We observed several instances of storm debris and fallen trees that had not yet been properly disposed of. There were also instances along S. Meridian St. where two vacant lots had essentially become dumping locations for trash and other discarded items. February 10, 2018, S. Meridian St. Between Wallis and Norma Streets. February 10, 2018, Putnam Dr. Near Mexico Ln. February 10, 2018, S. Meridian St. Between Wallis and Norma Streets. February 3, 2018, Perkins St. Between S. Adams and S. Monroe Streets. We observed several instances of storm debris and fallen trees that had not yet been properly disposed of. There were also instances along S. Meridian St. where two vacant lots had essentially become dumping locations for trash and other discarded items. 1 Tallahassee Code of Ordinances Chapter 21, Article XI.- SOLID WASTE COLLECTION AND DISPOSAL. Sec General Prohibitions Blight Findings: Blight Factor E

19 Commercial Deterioration In the commercial sections of our study area, there were several observed instances of failure to complete ordinary maintenance. Ordinary maintenance is defined in the Tallahassee Land Use Code as work which does not require a construction permit and that is done to repair damage or to prevent deterioration or decay of a building or structure or part thereof as nearly as practicable to its condition prior to the damage, deterioration, or decay. 1 An example of such damage includes unaddressed graffiti and needed facade improvements, which was the most common instance of failure to complete ordinary maintenance that we observed. February 10, 2018, S. Monroe St. and E. Harrison St. February 10, 2018, S. Monroe St. and E. Harrison St. February 10, 2018, Perkins St. Between S. Adams and S. Monroe Streets. February 3, 2018, S. Meridian St. and Yaeger St. February 10, 2018, S. Monroe St. Between Oakland Ave and Harrison St. 1 Tallahassee Land Development Code Chapter 10, Article V.- Special Overlay Districts and Areas. Sec Definitions. ARTVSPREOVDIAR_DIV2HIPRHIPRDIHIPROVZO_S10-316DE Blight Findings: Blight Factor E 19

20 Blight Findings Blight Factor I: Vacancy Rates Section (8)(i), F.S., Residential and commercial vacancy rates higher in the area than in the remainder of the county or municipality. In 2009 Leon county had 122,463 total housing units, 108,643 occupied (88.7%), 13,820 (11.3%) vacant. Homeowner vacancy rate of 2.7% 1 and renter vacancy of 9.1% 2. In 2010 Leon County had 124,136 total housing units, 110,945 occupied, 13,191 vacant, Homeowner 2.7% and Rental 11.7%. Of the vacant houses, 12.8% For sale, and 51.1% For rent. The vacancy rate for Leon county is approximately 10.6%, this is found by dividing the total number of Vacant housing units by Total housing units. 3 Comparatively, Census tract 10.01, closely representing the Tallahassee Southside Study area had 1,131 total housing units, 976 occupied and 155 vacant (Homeowner 8.2% and Rental 8.4%). Of the vacant houses 9.7% For sale only, 48.4% For rent. The vacancy rate for Census tract is 13.7%. The overall vacancy rate for South City study area (census tract 10.01) is significantly higher than the remainder of Leon county, 13.7% compared 10.6% and respectively. Even larger differences are present in Homeowner Vacant rates, 8.2% in the study area compared to 2.7% for Leon County. As illustrated in the photos of the field survey there is a significant number of vacant or abandoned or dilapidated houses in the study area. 4 In regards to rental vacancy rates again the study area is trending opposite of the greater Tallahassee Housing Market Area (HMA). The rental housing market in Tallahassee is currently balanced with a with an estimated rental vacancy rate of 5.8% down from 11.7% in Strong demand for housing exists just outside the study area as students at Florida State University and Florida Agricultural and Mechanical University are concentrated in western Tallahassee directly adjacent to the western border of the Southside study area. The student housing apartment market segment is tight with a 2.6% vacancy rate, units built post 2010 have a less than 1% vacancy rate. 5 The overall vacancy rate for South City study area (census tract 10.01) is significantly higher than the remainder of Leon county, 13.7% compared 10.6% and respectively. 1 The homeowner vacancy rate is the proportion of the homeowner inventory that is vacant for sale. It is computed by dividing the number of vacant units for sale only by the sum of the owner-occupied units, vacant units that are for sale only, and vacant units that have been sold but not yet occupied, and then multiplying by 100. This measure is rounded to the nearest tenth. 2 The rental vacancy rate is the proportion of the rental inventory that is vacant for rent. It is computed by dividing the total number of vacant units for rent by the sum of the renter-occupied units, vacant units that are for rent, and vacant units that have been rented but not yet occupied; and then multiplying by 100. This measure is rounded to the nearest tenth. (Source: U.S. Census Bureau, 2010 Census.) 3 U.S. Census Bureau, 2010 Census Factfinder 4 U.S. Census Bureau, 2010 Census Factfinder 5 U.S. Department of housing and urban development, Comprehensive housing market analysis Tallahassee, Florida. December 1, Blight Findings: Blight Factor I

21 Blight Factor J: Crime Section (8)(j), F.S., Incidence of crime in the area higher than in the remainder of the county or municipality. Crime is a significant problem within Tallahassee and the study area. The Florida Department of Law Enforcement released crime data for 2015 and Leon County leads the state of Florida in crime rate for the second year in a row. The crime rate 1 per 100,000 residents increased by 5.7% over 2014 numbers. The crime rate in the state of Florida fell by 3.1% and also fell in 47 of the state s 67 counties. 2 In 2016 the crime rate in Tallahassee was 6,726.8 (per 100,000) with a population of 186,975. This gives Tallahassee the 23rd highest crime rate of any municipality in the state of Florida. This represents a 9% increase over the 2015 crime rate and 13.7% increase since In comparison Leon County s crime rate with Tallahassee was and without Tallahassee it was 2, Leon County as a whole also realized a 6.8% increase in crime rate, without Tallahassee included this statistics drops to and only a 0.7%. (see Table 1) Tallahassee and our study area are trending higher in crime rate contrary to the overall decline in Leon county (without Tallahassee) and the state of Florida. The crime rate in 2016 for Florida was , which was a 4.4% decrease from January - December 2016 Total Crime % Index Change Crime Rate Per 100,000 % Rate Change Annual Report Year Index 2015 / 2016 Population 2015 / 2016 Florida ,160 3, , , Leon County ,060 5, , (w/tallahassee) Tallahassee Police Dept ,610 6, , , Table 1: 2016 Crime Incidence of Florida, Leon County and Tallahassee Year Entire City of Tallahassee Study Area Calls For Service 166,054 (0.89 per capita) Calls For Service 5,031 (1.84/per capita) Table 2: Comparison of Calls for Service City of Tallahassee and Our Study Area. 4 Calls For Service 171,052 (0.91 per capita) Calls For Service 5,754 (2.10/per capita) The increasing crime rate in our study area opposed to decreasing crime rate in Leon county as a whole represents a problem in attracting investors for redevelopment projects. 1 Crime rate is an indicator of reported crime standardized by population. Florida s UCR Program uses the standard of 100,000. The 2016 crime rate of 3,787.6 is properly interpreted as 3,787.6 crimes occurred for every 100,000 people in Florida. Population data are from the Bureau of Economic and Business Research 2 Tallahassee Reports June 5, Florida Department of Law Enforcement Uniform Crime Reports Annual Archives 4 Using a total population for the City of Tallahassee of 186,975 and a total population of 2,740 for the Monroe/Adams & South City Study Area Blight Findings: Blight Factor J 21

22 Blight Findings Figure G. Incidents of Reported Crime within our study area for February February 2018 A clustering of calls for Police service is present to the southeast of the intersection of East Magnolia Drive and South Monroe Street. Concentration of crime is elevated in our study area compared to others area of Tallahassee. 1 1 Tallahassee Online Police Statistics (TOPS) 22 Blight Findings: Blight Factor J

23 Effect of CRAs on Low Income Households Low income households are affected in many ways by Community Redevelopment Authority (CRA) interventions; displacement, forced migration and the accompanying psychological trauma have been documented following CRA enactment (Geotz 2013). Tax Increment financing (TIF) can be used to address blight and lift up distressed areas but if guidelines are not in place low income residents can suffer. Displacement of Low Income Residents One of the most detrimental effects of CRA s is displacement of low income residents, possibly temporary, but usually permanent due to gentrification or worse, commercial development. Displacement due to gentrification or improvement to a district to conform to middle class tastes takes place to due increased demand for rehabilitated housing. Essentially low income residents are priced out of their neighborhoods after redevelopment due to rising property taxes. This forced migration transfers low income residents to nearby neighborhoods, further concentrating poverty as affordable housing is destroyed and not replaced. The demand for affordable housing increases due to the decreased supply and thus forces market price higher. Low income residents are then forced to pay a high price for lower quality housing. Accompanying forced migration is psychological trauma former residents are forced to deal with. Displaced residents can never become productive members of society if they cannot secure their basic need for safe and affordable housing. Tax Increment Financing Generally CRA s are the only entities which use tax increment financing (TIF). TIF s were historically developed to address blight and areas of economic depression as a tool to assist with lifting up of these areas, however TIF s through lack of structure and guidance have had the negative side effects of; gentrification displacement of low income citizens, increased cost of living for displaced families, and development of greenfields (Erickson 2011). 1 TIF s have been used to develop suburban commercial areas and greenfields lacking any trace of blight or need of redevelopment. The original concept of a TIF has been distorted by market forces. Torres (2011) had this to say about CRA s effects low income residents socio-economic status, The redevelopment plans have promised increased jobs and opportunities for all residents in the redevelopment area, yet benefits seem to have eluded the low income residents who could benefit the most from increased job opportunities. A lack of private sector investment creates the need for government intervention, this has historically focused on physical and infrastructure projects and not the uplift or betterment of residents. 2 Torres (2011) concludes that A CRA that balances physical advances and social investments is needed. Simply investing in physical alone will not offer and improved quality of life. This negative aspect of urban development was bore-out in the urban renewal movement which focused on highway infrastructure projects through distressed neighborhoods causing; displacement, loss of mobility, further distress and resultant crime. Goetz (2013) found that, Residents overall view of displacement and relocation is strongly colored on neighborhood restructuring generally. These findings suggest that it is not only important to consider changing the built environment but engaging and establishing programs and protocols to ensure that current residents are not displaced and can quickly move back into their former neighborhoods. Protection of Low Income Residents TIF s, even with all their flaws as previously mentioned, present an opportunity for local governments to undertake comprehensive urban redevelopment; however TIF s lacking statutory guidance can be used inappropriately. It is important that municipalities make this a priority from the outset. TIF s in Florida lack guidelines to protect low income residents as explained by Hipler (2007) 3, Local government officials decide which geographic areas need TIF for development. If funds are misused or poorly applied, no public official is accountable. TIF does not require voter approval. The public does not have a voice in development. This study makes it clear that Florida does not have clear guidelines protecting low income residents in CRA s. In the absence of statutory guidelines protecting displaced low income CRA residents it will be important to craft protections for these vulnerable groups. An example of statutory protections for low income residents, Section of California s Health and Safety Code offers model legislation in protecting low income residents in a state statute requiring: Developers to set aside a certain percentage of units for moderate, low and very low income residents. Requiring 20% of increment be used to improve, increase and preserve low income housing. Replacement of low and moderate income properties if they are destroyed. In summary, without proper guidelines a CRA can displace and cause hardship to low income residents. This effect can be prevented by requiring developers to set aside a certain percentage of units for moderate, low and very low income residents. Requiring 20% of increment be used to improve, increase and preserve low income housing and replacing razed low and moderate income properties. 1 Erickson, K. (2011). Protecting low income residents during tax increment financing redevelopment. Wash. UJL & Pol y, 36, Torres, C. (2011). Evaluating the potential effectiveness of community redevelopment agencies to improve socio-economic conditions within the redevelopment area: a case study in Gainesville, Florida. Effects of CRAs on Low Income Households 23 3 Hipler, H. (2007) Tax Increment Financing in Florida: A Tool for Local Government Revitalization, Renewal, and Redevelopment in Florida bar Journal.

24 Financial Feasibility A unique financing opportunity is afforded to CRAs through the use of government issued bonds payable from ad valorem tax revenue. Fla. Const. art VII, 12 states that local governments are only able to issue bonds that mature more than one year after issuance if voters approve that issuance through a referendum. However, through the Community Redevelopment Act, local governments are authorized to fund CRAs using TIF revenue. Furthermore, per the Florida Supreme Court s ruling in Strand v. Escambia County, local governments that establish budgets using projected revenues for the repayment of debt using TIF, may exercise its home rule powers to borrow money and repay the debt without holding a referendum. 1 bonding capacity is attractive to businesses because funds from bonds can be used by developers to pay for incentives to attract businesses to an area. Funds from bonds can also be used to remediate blight within the CRA, with the desired outcome of attracting even more business to the area. Bonds are also attractive to developers because they are tax exempt, which allows for lower interest rates to be paid on the bonds and increased savings for the developer. 2 To determine the value of the bonds to be issued, CRAs must calculate the net present value (NPV) of the property in the area. NPV is the difference between the present value of cash inflows and the present value of cash outflows over time. 3 The value is calculated using the following formula: NPV= {After-Tax Cash Flow / (1+r)^t} - Initial Investment In order to calculate the NPV for our study area, we began by determining our timeline to complete all redevelopment financed by increment revenue. According to Florida Statute Title XI Chapter (10), the minimum time is 30 years after the fiscal year in which the plan is approved, adopted or amended while the max is 40 years after the fiscal year. For planning purposes, we provided a range for the City of Tallahassee s review. Next, we obtained the total assessed value of properties This in Leon County through a 2015 parcel data published by the Florida Waste Management District. The parcel data included assessed values gathered directly from the Florida Department of Revenue s Tax Dataset. Through a query of the county s data in GIS, we captured our study area s total 2015 assessed value. From here, we compounded the 2015 assessed value three times by the consumer price index 4, which was 2.1% as of January 2018, to obtain the estimated future value of properties within our study area. Hereafter, we continued to compound the estimated value of property by 2.1% for 40 years, which again is the maximum time we may complete our redevelopment financed by increment revenues. With the future estimated value of property to 2058, we calculated the incremental values per year. The calculation required subtracting the years estimated future values with our base assessed value. We assumed our base value to be 2018 s estimated value, which is the year we are assuming the CRA will be approved. Once all of the incremental values are calculated, we acquired the ad valorem tax from the incremental value. In this calculation, we multiplied the incremental value per year by the sum of the millage rate for Tallahassee (4.1) and Leon County (8.3) 5 ; and then multiplied by 95%. Last, the NPV equation was applied to the sum of the estimated ad valorem taxes for 40 years. The R in the equation is equal to the AAA Rated Municipal bonds issued by Florida. As of February 8, 2018, the AAA municipal bonds were 2.95% 6. A sample of our calculation may be found in the table below = The Base Year Estimated Future Value of Properties in Study Area 2015 $59,059, $60,299, $61,566, Financial Feasibility Incremental Value Ad Valorem Revenue from the Increment 2019 $62,858,930 $1,292,887 $10, $64,178,968 $2,612,924 $21, $65,526,726 $3,960,683 $32, $66,902,787 $5,336,744 $44, $135,618,658 $74,052,615 $614, $138,466,650 $76,900,606 $638, $141,374,449 $79,808,406 $662, $144,343,313 $82,777,270 $687,051 NPV Min. 30 Years $3,622,877 Max. 40 Years $5,625,166 Through the calculation of the net present value, we could determine the estimated value of the issued bonds incremental revenue collected between 30 to 40 years. With that being said, if the City adopts the Community Redevelopment Plan in 2018, we project that the City will collect between $3,622,877 to $5,625,166 through issued bonds. The projected incremental revenue is an estimate, which may fluctuate from this range due to unforeseeable factors. 1 Hawkins (2018). Community Redevelopment Agencies, in Land Use Law With a Florida Focus Excerpt for Use in Erickson (2011). Protecting Low Income Residents During Tax Increment Financing Redevelopment, in Washington University Journal of Law & Policy 3 Investopedia. February 15, Bureau of Labor Statistics. Consumer Price Index as of January Leon County Appraiser FMS Bonds. AAA Rated Municipal Bonds issued by Florida as of 2/18/2018 from fmsbonds.com/market-yields/

25 Conclusion Our study area suffers from; inconsistent land use, faulty lot layout, multiple landlocked parcels, deteriorated residential and commercial structures, higher crime and vacancy rates than comparable areas of the city of Tallahassee. Our Findings of Necessity meet or exceed the following Florida statutory criteria of blight for: Faulty lot layout in relation to size, adequacy, accessibility, or usefulness Deterioration of site or other improvements Residential and commercial vacancy rates higher in the area than in the remainder of the county or municipality Incidence of crime in the area higher than in the remainder of the county of municipality Given these blighted conditions we recommend adoption of the Finding of Necessity for the Tallahassee South City study area. Conclusion 25