COMMUNITY REDEVELOPMENT AGENCY AGENDA ITEM SUMMARY

Transcription

1 8B1 COMMUNITY REDEVELOPMENT AGENCY AGENDA ITEM SUMMARY PLACEMENT: DEPARTMENTAL PRESET: 4:30 PM TITLE: APPROVE REPORTING METRICS FOR TAX INCREMENT FINANCING FUNDED CAPITAL INVESTMENT PROJECTS LOCATED WITHIN COMMUNITY REDEVELOPMENT AREAS AGENDA ITEM DATES: MEETING DATE: 4/22/2014 COMPLETED DATE: 4/10/2014 COUNTY ATTORNEY: 3/31/2014 ASSISTANT COUNTY ADMINISTRATOR: 4/7/2014 REQUESTED BY: DEPARTMENT: PREPARED BY: Name: Kev Freeman Community Development Kev Freeman Name: Procedures: None EXECUTIVE SUMMARY: Community Development Director This item identifies metrics that may be used to provide a measure of the return on investment of Tax Increment funded projects within the County s Community Redevelopment Areas. APPROVAL: ACA CA BACKGROUND/RELATED STRATEGIC GOAL: It has always been difficult to provide a quantification of the benefit gained from investing tax funds into capital projects. The majority of capital projects are aimed at resolving immediate maintenance and 805bff45 1 of 11

2 repair issues. This is not necessarily the case when it comes to capital projects that have been identified as part of a Community Redevelopment Area plan. The intent of the Community Redevelopment Area Plan is one of stabilizing and improving the underlying property values and thereby generating a higher quality of life, not only for residents of community redevelopment areas, but for County residents in general. As the performance of Community Redevelopment Areas improve so does their contribution to the welfare of the wider County. The County s seven Community Redevelopment Areas were created and designated between 2000 and Since that time revenue has been specifically targeted to capital improvements and to stabilization projects. An historical analysis is shown and attached to this item. A standard method that is sometimes presented for tabulating a return on investment for real estate investment projects is not suitable for measuring the wider impacts of capital projects. The benefits of a real estate development are often represented through measuring taxable value increase of the property and other metrics such as permit fees and impact fees. These measures are limited to the lot or site being improved and are not suitable for a full return on investment for a capital improvement project located within the right of way, a sidewalk link, storm-water improvement or involving a central sewer extension. ISSUES: A consistent measurement of the performance of investment projects relating to Community Redevelopment Areas has, until now, not been established. To address this issue staff has researched possible measurement monitoring tools (metrics) that would be suitable for investment projects located in the Community Redevelopment Areas. At the same time staff has initiated some data source identification and data collection that could be utilized. The metrics that are recommended to be used and what they are likely to represent are identified: 1. Property Values Property values provide a great opportunity to generate consistent metrics which allow time (yearly) and area (neighborhood or street) comparisons. These comparisons can be easily converted to what are called heat maps. Heat maps are extremely simple to understand. By color coding a range of possible measurements it is easy to display comparative performances; either by looking at adjacent areas or by looking at the same area at different time periods. The underlying data is consistent and comparable from one area to the next. Using the property value metric staff may investigate historical performance and then compare to a point up to the implementation of the project through to completion and beyond. A number of heat maps will then be produced to represent any changes graphically. 2. Building Permits Another excellent method for measuring a return on investment is to utilize the data collected through Building Permits. In addition to the location of permit applications other metrics may be extracted such as; type of permit, date of completion of work and construction cost. All of these data may be represented easily in graphical form. Again, the data allows for consistent 805bff45 2 of 11

3 comparison over a long time frame that may extend well beyond the implementation of the capital improvement project. 3. Residential Property - Occupancy Type/Vacancy/Foreclosure If the intervention area is skewed in terms of its balance between owner-occupied property and rental units then an appropriate measure would be one that assessed the change in such occupancy. It is often the case that an area that has a disproportionate high level of investment/rental properties has a lower property tax valuation and lower perceived quality of life. Data regarding owner occupation may be found from the census and property tax records 4. Tenure of Commercial Property Tenure The type and length of tenure of commercial units within an area can be used to measure the viability of a neighborhood. A commercial area cannot mask easily the market view of its economic fortune. A high percentage of long term vacant units are an indicator of very poor investment potential. Conversely a high level of retail occupancy is an indicator of a stable level of economic potential. A mid-level indicator is that of service uses occupying what should be valuable central area and first floor commercial units. These are metrics where data can be extracted or gathered from existing and available data sets. The methodology, once demonstrated, may also be transferrable to projects that are outside of the County s Community Redevelopment Areas. RECOMMENDED ACTION: RECOMMENDATION Recess as the Board of County Commissioners. Convene as the Community Redevelopment Agency. Adopt the measurement monitoring as identified in this item for capital improvement projects funded by TIF and located within the Community Redevelopment Areas and provide the results of these metrics in the form of an annual report. Adjourn as the Community Redevelopment Agency. Re-convene as the Board of County Commissioners. ALTERNATIVE RECOMMENDATIONS Recess as the Board of County Commissioners. Convene as the Community Redevelopment Agency. Adopt the measurement monitoring as identified by the Community Redevelopment Agency relating to capital improvement projects funded by TIF and located within the Community Redevelopment Areas and provide the results of these metrics in the form of an annual report. Adjourn as the Community Redevelopment Agency. Re-convene as the Board of County Commissioners FISCAL IMPACT: RECOMMENDATION 805bff45 3 of 11

4 N/A Funding Source County Funds Non-County Funds Authorization Subtotal Project Total ALTERNATIVE RECOMMENDATIONS N/A DOCUMENT(S) REQUIRING ACTION: Budget Transfer / Amendment Chair Letter Contract / Agreement Grant / Application Notice Ordinance Resolution Other: ROUTING: _ ADM _ BLD _ CDD _ COM _ ENG _ FRD _ GMD _ GSD _ ITS _ LIB _ MCA _ MPO _ PRD _ USD X CA X ACA _ LEG 805bff45 4 of 11

5 Martin County Community Redevelopment Agency Metrics for Measuring Return on Community Investment Projects 5 of 11

6 Historical Investment Tax Increment Financing 6 of 11

7 Unsuitable Metrics Standard ROI measurement Ad Valorem Tax Impact Fees Permit Fees Property Value Increase Single Point Issues 7 of 11

8 Suitable Metrics Area Property Values Easily Represented Consistent Data Source Area Comparison Year on Year Comparison 8 of 11

9 Suitable Metrics Building Permits Consistent Data Source Area Comparison Monthly/Yearly Comparison Provides $ Investment 9 of 11

10 Suitable Metrics Residential Occupancy Owner Occupied % Rental % Vacant % Distressed % Code Enforcement Cases 10 of 11

11 Suitable Metrics Commercial Tenure Business Licenses Retail % Service % Vacancy % 11 of 11