Community Redevelopment Plan Amendment (New CRA Plan)

Transcription

1 Community Redevelopment Plan Amendment (New CRA Plan) Satellite Beach Community Redevelopment Agency January 10,

2 Chapter 1- Introduction Stakeholder Interviews May 2 3, 2013 May 23, 2013 Public Workshops May 3, 2013 May 23,

3 Chapter 1- Introduction CRA Plan Objectives Based Upon Interviews and Workshops Review return on investment on CRA projects Conservative, fiscal driven growth Ensure business friendly implementation of building and zoning codes Enhance attractive, small beachside town atmosphere for residents and visitors Attract uses that serve the local community Consider Communities for a Lifetime principles Increase employment Increase tax base 3

4 Chapter 2 Existing Conditions CRA Boundary Boundary adopted 2001 New GIS Map approved by CRA Board August

5 Chapter 2 Existing Conditions Demographics of City and County Households by Type Satellite Beach (Number of Households) % Brevard County (Number of Households) Total households 4, , % Family households 2, , With own children under 18 1, , years Nonfamily households 1, , Householder living alone 1, , Average household size Average family size Source: US Census, 2010 American Community Survey 5

6 Chapter 2 Existing Conditions Demographics of City and County Median Income Satellite Beach $55,552 Brevard County $49,523 Housing Type Satellite Beach Brevard County Total housing units 5, % 267, % Single family 3, % 182, % Multifamily % 60, % Mobile home % 23, % Boat, RV, van, etc % % Source: US Census, 2010 American Community Survey 6

7 Chapter 2 Existing Conditions New CRA Existing Land Use Map Existing Land Use Acres % of Total Area Commercial % Government % Institutional % Light Industrial % Single Family % Multi family % Park % Right of Way % Vacant Commercial % Vacant Single Family % Vacant Multi family % Total % Source: Calvin, Giordano & Associates, Inc. and Brevard Property Appraiser 7

8 Chapter 2 Existing Conditions Zoning New CRA Existing Zoning Map Zoning Designation Acres % of Total Area C, Commercial % ITU, Institutional % LIU, Light Industrial % R1, Single Family Residential % R2, Single Family Residential % R4, Single Family Residential % R5, Single Family Residential % RM1, Two Family Residential % RM2, Multiple Family % Residential RM3, Residential Mixed Use % Total % Source: Calvin, Giordano & Associates, Inc. and City of Satellite Beach 8

9 Chapter 2 Existing Conditions History of CRA Related Planning Efforts 2002 Community Redevelopment Plan Property Acquisition Demolitions Façade and Landscape Grant Market and Economic Study Town Center Mixed Use Overlay District Transfer of Development Rights Program Architectural Design Guidelines Analysis of Mixed Use Potential Business Community Awards Program Pelican Beach Park Hightower Beach Park Gateway Signs Enhanced Beach Access 9

10 CRA Board Priorities for New CRA Plan 1. Faulty Lot Layout (Non conforming Lots) 2. Pay Down Debt CRA Contraction 3. Aesthetics and Safety 4. Community Outreach and Recognition 10

11 1. Faulty Lot Layout Amend zoning code to allow greater flexibility in development Zoning incentives reduced parking stormwater retention off site or sharing reduced setbacks 11

12 1. Faulty Lot Layout Direct assistance on costs Petition City for change of zoning, ROW vacation, variance Costs for obtaining unity of title when expanding their property Partial payment of land purchase, legal costs, closing costs, mortgage interest subsidy Increment rebate for desired construction or businesses Demolition grants Assist in cross parking agreements 12

13 1. Faulty Lot Layout CRA can purchase lands adjacent to non conforming lots to allow expansion of sites Can require land only be used for parking or stormwater Provide a greenspace buffer Transferred in whole or part for cost or less than cost 13

14 1. Faulty Lot Layout Create off site shared stormwater retention area Sell off capacity to property owners Use its capacity as an incentive to be granted to desirable businesses CRA should pursue the creation of shared retention areas on property acquired by the CRA 14

15 3. Aesthetics and Safety Increase safety of main corridors Crosswalks Sidewalk on west side of AIA Shelters/benches on AIA 15

16 3. Aesthetics and Safety Gateway Plan 16

17 3. Aesthetics and Safety 17

18 3. Aesthetics and Safety 18

19 3. Aesthetics and Safety 19

20 3. Aesthetics and Safety 20

21 3. Aesthetics and Safety 21

22 3. Aesthetics and Safety AIA and Shearwater Drive 22

23 3. Aesthetics and Safety 23

24 24

25 3. Aesthetics and Safety AIA and Shearwater Drive 25

26 3. Aesthetics and Safety Wayfinding 26

27 3. Aesthetics and Safety Wayfinding 27

28 3. Aesthetics and Safety Minimum property maintenance requirements 28

29 3. Aesthetics and Safety Minimum property maintenance requirements Protect and enhance property values by preventing neighborhood properties from falling into disrepair The Land Development Code should be amended to include minimum property maintenance requirements such as: Holes and cracks in exterior surfaces Watertight rooftops and adequate gutters Walls, hedges, awnings, and dumpsters to be kept in good repair Removal of dead or dying trees Landscaping to be maintained according to approved site plan Parking areas must be in good repair including striping and stop bars Securing abandoned buildings Registration and maintenance of abandoned property 29

30 4. Community Outreach and Recognition Gathering places Newsletter CRA Project Recognition Festivals Farmer s market 30

31 4. Community Outreach and Recognition Festivals Old Guys Rule Satellite Beach Surfing Event Celebrity surfers and former surf champions would be encouraged to appear and hold surfing clinics Competition for a variety of categories for male and female, senior, adult, and youth categories Participants would become better aware of Satellite Beach surf shops, restaurants, and beaches. A focus on adult surfers would attract participants with great income availability Communities for a Lifetime initiative 31

32 4. Community Outreach and Recognition Festivals Ocean Art Festival In 2012, the City started the first Ocean Reef Beach Festival at Pelican Beach Park The CRA can partner with the City on the Ocean Reef Festival and consider creating an ocean related art and craft festival that evolves into the Ocean Art Festival. Clinics on painting oceanscapes and sea life Underwater photography classes Invite marine artist Wyland 32

33 4. Community Outreach and Recognition Festivals Satellite Beach Space and Air Force Days Appearances by astronauts, memorabilia, education on space exploration, and amateur rocket launching Key activities will include: Show and tell space travel stories Presentations on high school and college student educational opportunities with NASA Displays and discussion on private sector space travel NASA presentation on latest discoveries in space. Model rocket demonstrations 33

34 4. Community Outreach and Recognition Festivals Sand Castle and Music Festival Sand Castles can provide widespread appeal and are a unique form of art. Satellite Beach s ample beachfront provides the perfect setting for sand sculpting, beach concerts and the festival can include: Masters competition Amateur competition Sand sculpting lessons Kids activity areas Musical performances 34

35 4. Community Outreach and Recognition Farmer s Market Contract with vendor to provide event Local community event for residents Weekly or monthly event Fresh seasonal Florida fruits and vegetables direct from the Brevard County area farms Baked goods and locally roasted coffee Flowers and plants Arts and crafts 35

36 Additional Programs Inducement Packages Review by the CRA in terms of the value of the project to the area to ensure conservative, fiscal driven growth Benefits such as increase in tax base number of jobs created potential spin off effects 36

37 Additional Programs Incentives for Existing Property Owners Assist owners of existing commercial properties modernize existing structures and enhance visibility of buildings, area aesthetics and thus property values. Installation of landscaping Parking lot surfacing Parking lot repair/resealing/restriping and façade improvements to the property 37

38 Additional Programs Business Attraction and Retention Increment rebates for each job created Increment rebates or reimbursement for improvements to public infrastructure that may be required for new or expanded development (i.e. sewer upgrades, roadway improvements, etc.) Grants to incentivize attainting voluntary design standards Demolition of existing structures to make way for more functional development 38

39 Additional Programs Review private/partnerships for CRA owned properties Additional code enforcement Underground utilities Develop pier Business directory Economic and job creation incentives Encourage development of high tech, high employment uses 39

40 Chapter 4 CRA Plan Contraction CRA Contraction Seven areas were reviewed for potential removal from the Community Redevelopment Area. Areas were selected based on input from CRA Board members and residents during public meetings and stakeholder interviews. Analysis prepared to show the increment revenue attributable to each project within an area as well as the impact on increment revenue due to the entire area. Impact is shown in taxable value, increment revenue collections for the current fiscal year (2013 based on 2012 taxable values) and the percentage of the CRA s overall increment revenue represented by each project and each area. NOTE: All values were provided by the Brevard County Property Appraiser s Office and/or the Brevard County Tax Collector s Office and thus are subject to the data collection and reporting methods of these offices. 40

41 Chapter 4 CRA Plan Contraction The Areas Reviewed Area 1 Hightower Beach Park Area 2 Oceanfront South of Hightower Beach Park Area 3 Oceanfront South of Jackson Avenue Area 4 North Cassia Boulevard Residential Area 5 Oceanfront North of Cassia Boulevard Area 6 Oceanfront South of Cassia Boulevard Area 7 Skyline Estates 41

42 CRA Contraction Chapter 4 CRA Plan Contraction CRA Contraction Areas Values Area 2001 Taxable Value 2012 Taxable Value 2012 Taxable Value Increment 2012 Increment Revenue Generated % of Total 2012 CRA Increment Revenue Area1 $0 $0 $0 $0 0.00% Area 2 $4,477,100 $16,388,400 $11,911,290 $150, % Area 3 $21,713,020 $39,665,530 $17,952,510 $226, % Area 4 $ 5,247,140 $6,739,320 $1,522,180 $19, % Area 5 $ 7,117,290 $20,981,850 $13,864,560 $174, % Area 6 $8,388,531 $15,183,232 $6,774,701 $85, % Area 7 $4,017,610 $4,505,100 $487,490 $6, % 42

43 CRA Contraction Chapter 4 CRA Plan Contraction CRA Contraction Values Selected Projects Project (Area) 2001 Taxable Value 2012 Taxable Value 2012 Taxable Value Increment 2012 Increment Revenue Generated % of Total 2012 CRA Increment Revenue Majesty Palm (2) $525,000 $8,354,500 $7,829,500 $98, % LasOlasBC (3) $7,376,550 $5,267,960 ($2,108,590) ($26,566) (2.96%) The Oceans (3) $367,500 $12,771,720 $12,404,220 $156, % La Colonnade (5) $ 525,000 $10,710,470 $10,185,470 $128, % Skyline Blvd. (7) $ 3,286,510 $3,682,150 $395,640 $4, % 43

44 Chapter 4 CRA Plan Contraction Highlights Several key condominium projects are providing a significant portion of the annual increment revenue to the CRA as they were developed after the CRA s creation. Three of these projects alone, Majesty Palm, La Colonnade, and The Oceans, account for 42.55% of the CRA s annual increment revenue. Las Olas Beach Club has seen a significant drop in taxable value since This drop of $2,108,590, has led to a loss of $26,566 in increment revenue. The non condominium, residential areas of the north side of Cassia Boulevard and Skyline Estates have taxable values not much higher than in the 2001 base year. 44

45 Chapter 4 CRA Plan Contraction Review Notes and Conclusions It is unlikely that the lenders holding the CRA s debt would be willing to allow the CRA to disrupt the revenue stream by removing parcels from the Redevelopment Area. Non condominium areas are generating minimal increment revenues and have the least likely chance of seeing direct area investment by the CRA. Removal of non condominium areas would have the least immediate impact on CRA revenues and would bolster the City s revenue as housing prices rebound over time. The CRA should continue to review areas for potential to remove them from the CRA. 45

46 Chapter 5 CRA Plan Operation CRA Administration Separate CRA attorney, CRA auditing, and CRA budgeting. Independent CRA Executive Director. Continuous review of CRA boundary consolidation. Review CRA Plan every five years for update potential. Create CRA Capital Improvements Plan. 46

47 Chapter 6 Redevelopment Financial Planning CRA Debt The CRA obtained approval for a line of credit in the amount of $8,000,000 from Bank of America in May 2006: The CRA immediately used this line to borrow $6,250,000. $2,148,444 was utilized to refinance an existing loan from Indian River National Bank. The remainder was used to purchase property and undertake projects. All amounts borrowed were to be repaid within 20 years from date of approval. Amount borrowed was subject to a variable interest rate equal to 63.7% of the One Month LIBOR (London Interbank Offered Rate) PLUS 0.5% with no cap on the amount of interest to be paid over the life of the loan. The loan has a prepayment penalty that essentially guarantees the bank would receive the present value of all interest that would be collected over the 20 year life of the loan if prepayment were to occur. 47

48 Chapter 6 Redevelopment Financial Planning The Interest Rate Swap The interest on the $6,250,000 was immediately subject to an interest rate swap agreement: Under this agreement, the CRA swapped its variable interest rate of 63.7% of the One Month London Interbank Offered Rate (LIBOR) with another party s fixed 4.25% interest rate. These types of swaps are undertaken for various reasons; it is assumed the CRA believed interest rates would increase, in which case this would have kept interest rates at a fixed level below what would have otherwise been required. Such agreements ultimately require the interest paid by both parties of the swap to be equal over the life of the loan. Since the interest rate the CRA swapped is lower than the amount they are paying, the other party to the swap is falling behind. CRA now subject to a monthly principal payment and a quarterly interest payment. 48

49 Chapter 6 Redevelopment Financial Planning The Interest Rate Swap The interest on the $6,250,000 was immediately subject to an interest rate swap agreement: Several early termination formulas in the agreement outline what the CRA would have to pay if various reasons for early termination were to come to fruition. Essentially requires the CRA and other party to be made whole in present value dollars of the interest anticipated to be paid over the life of the loan on the day of termination minus the interest that would be collected if the funds were to be invested in another instrument. 49

50 Chapter 6 Redevelopment Financial Planning Early Debt Payment Notes If the CRA were to pay the loan off early (Principal as of Jan 1, 2013 is approximately $4,760,700): It would be subject to early termination fees from Bank of America on the principal amount. (Bank of America has indicated in a recent that it would not seek this penalty fee at this time. This could change in the future.) Due to the low One Month LIBOR, it would be subject to an early termination formula under the swap agreement recently estimated at $1.4 million. This amount will lessen as remaining life on the loan reduces, the principal amount reduces, and if interest rates rise. 50

51 Chapter 6 Redevelopment Financial Planning Potential Debt Actions Due to the significant costs to terminate the loan early, it is not advisable for the CRA to pay the debt off at this time. If the CRA is interested in taking additional action on the debt, the following actions might be undertaken: Set aside funds in an escrow account to use for future debt payment. Accelerate the undertaking of desired capital projects so that when early termination costs of the loan are in at an acceptable level, all funds can be dedicated to such payments. CRA can wait for a reduction in interest rates to a point that neutralizes the early termination costs and can refinance the debt. 51

52 Chapter 6 Redevelopment Financial Planning Increment Revenue Projections Increment Projections anticipate a slight lag by the Property Appraiser in recognizing the drops in value due to limited number of sales. 5% for FY 14 2 %forfy15 1% for FY % for FY % thereafter Also of note, condo sales and commercial sales prices are not expected to keep pace with increase in single family home prices (the value increases most often publicly reported). Important as the CRA has few single family homes and is predominately commercial and condominium. 52

53 Chapter 6 Redevelopment Financial Planning Increment Revenue Projections Value Fiscal Taxable Assumed Value Millage Tax CRA Tax Year Percent Year Year Year Value Change (%) Increment Rate Increment Increment Change Change 2001 Base Year 124,686, Year ,035,560 $71,349, $946, $898, Year ,233,782-5% $61,547, $816, $775,444 -$123,493-14% Year ,509,106-2% $57,822, $766, $728,516 -$46,928-6% Year ,334,197 1% $59,648, $791, $751,511 $22,994 3% Year ,177,539 1% $61,491, $815, $774,735 $23,224 3% Year ,901,090 2% $65,214, $864, $821,648 $46,913 6% Year ,699,112 2% $69,012, $915, $869,500 $47,852 6% Year ,510,085 3% $74,823, $992, $942,713 $73,213 8% Year ,495,388 3% $80,809, $1,071, $1,018,122 $75,409 8% Year ,660,250 3% $86,974, $1,153, $1,095,794 $77,672 8% Year ,010,057 3% $93,323, $1,237, $1,175,796 $80,002 7% Year ,550,359 3% $99,864, $1,324, $1,258,198 $82,402 7% Year ,286,870 3% $106,600, $1,413, $1,343,072 $84,874 7% Year ,225,476 3% $113,539, $1,505, $1,430,492 $87,420 7% Year ,372,240 3% $120,686, $1,600, $1,520,534 $90,043 6% Year ,733,407 3% $128,047, $1,698, $1,613,278 $92,744 6% Year ,315,409 3% $135,629, $1,798, $1,708,805 $95,526 6% Year ,124,872 3% $143,438, $1,902, $1,807,197 $98,392 6% Year ,168,618 3% $151,482, $2,008, $1,908,541 $101,344 6% Year ,453,676 3% $159,767, $2,118, $2,012,925 $104,384 5% Cumulative Increment Revenue $24,455,757 53

54 Chapter 6 Redevelopment Financial Planning Illustrative Funding Strategy Included in the Plan Amendment is an Illustrative Funding Strategy. This spreadsheet is designed to: Show potential revenue, debt service, administrative costs and capital project expenses over the remaining life of the CRA. Meets several Statutory requirements including: , Fla. Stat. Formulate a workable program for redevelopment (9), Fla. Stat. Show detailed costs of redevelopment Illustrate that the majority of increment revenue funds will not be available immediately but are instead much more significant towards the end of the CRA s life, thus larger projects get pushed out to a much later date. 54

55 Chapter 6 Redevelopment Financial Planning Illustrative Funding Strategy ImportanttonotethattheIllustrativeFunding Strategy is NOT a plan for the CRA to follow. The CRA will set its actual strategies on an annual basis through the annual budgeting process. The Illustrative Funding Strategy is just that, illustrative. It is designed for the reasons set forth in the previous slide and should not be used as a guide for setting priorities or for annual funding needs. 55

56 CRA Plan Amendment Process CRA transmits to the Comprehensive Planning Advisory Board Comprehensive Planning Advisory Board rules on consistency with Comprehensive Plan CRA formally transmits to Council Notices to taxing authorities 15 days in advance of hearing Advertisements in newspaper 10 days in advance of hearing Council has two readings of ordinance and a hearing 56