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Table of Contents I. Introduction...4 II. III. Community Redevelopment Act Overview...4 Study Area...7 A. General Description of Area...7 B. Zoning...8 C. General Social History 10 IV. Statutory Analysis 13 A. There are a substantial number of deteriorated or deteriorating structures leading to economic distress...13 B. Two or more factors are exhibited...23 1. Unsanitary or unsafe conditions exist in the Study Area (factor (d))...23 2. The deterioration of sites or other improvements exists in the Study Area (factor (e))...25 3. The residential and commercial vacancy rates are higher in the Study Area than in the remainder of the City of Tallahassee (factor (i))...28 4. The incidence of crime in the Study Area is higher than in the remainder of the City of Tallahassee for aggravated assault (factor (j))...29 C. Summary...31 V. Discussion of whether and how a Community Redevelopment Area at the Project Study Area might impact low income residents...31 VI. VII. Estimation of the net present value of the tax increment a CRA at the Project Study Area would generate...33 Conclusion and Recommendations...34 Appendix A...35 References.38 Page 3 of 39

I. Introduction The Tallahassee City Commission ( City Commission ) is considering designating an area consisting of approximately 410 acres ( Study Area ) as a Community Redevelopment Area ( CRA ) pursuant to the Community Redevelopment Act of 1969. The City Commission has requested a Finding of Necessity be prepared so it can be determined whether the conditions in the Study Area are sufficient for designating the Study Area a CRA. Further, the City Commission requested two additional matters be addressed. The first matter is to address whether and how designating the Study Area a CRA may impact low income residents. The second matter is to estimate the net present value of the tax increment generated by designating the Study Area a CRA. This report addresses the issues described above. II. Community Redevelopment Act Overview The Florida Legislature determined slum and blighted areas: a) constitute a serious and growing menace, injurious to the public health, safety, morals, and welfare of the residents of the state; b) contributes substantially and increasingly to the spread of disease and crime; c) constitutes an economic and social liability imposing onerous burdens which decrease the tax base and reduce tax revenues; d) substantially impairs or arrests sound growth; e) retards the provision of housing accommodations; f) aggravates traffic problems; and g) substantially hampers the elimination of traffic hazards and the improvement of traffic facilities. Fla.Stat. 163.335(1). It was also determined the prevention and elimination of slums and blight is a matter of state policy and state concern as such areas: a) are focal centers of disease; b) promote juvenile delinquency; and c) 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. Id. Therefore, the Florida Legislature enacted the Page 4 of 39

Community Redevelopment Act of 1969 ( CRA Act ) to address slums and blighted areas and the issues caused by the same. The CRA Act authorizes the acquisition, clearance, and disposition of slum and blighted areas and the conservation and rehabilitation of slum and blighted areas. Fla.Stat. 163.335(2). Further, coastal resort and 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 be revitalized and redeveloped in a manner that will vastly improve the economic and social conditions of the community. Fla.Stat. 163.335(4). The Florida Legislature determined tax increment financing (TIF) is an effective method of preserving and enhancing the tax base in areas in which such tax base is declining, and further, the redevelopment of slum and blighted areas will enhance such tax base and provide increased tax revenues to all affected taxing authorities, increasing their ability to accomplish their other respective purposes. Fla.Stat. 163.335(5). In order for a governing body to avail itself of the authority to engage in community redevelopment, it is necessary for the governing body to adopt a resolution, supported by data and analysis, which makes a legislative finding that the conditions in the area meet the criteria described in s. 163.340(7) [ slum area ] or (8) [ blighted area ]. Fla.Stat. 163.355. Further, the resolution is required to include specific statements, namely: 1. One or more slum or blighted areas, or one or more areas in which there is a shortage of housing affordable to residents of low or moderate income, including the elderly, exist in such county or municipality; and 2. The rehabilitation, conservation, or redevelopment, or a combination thereof, of such area or areas, including, if appropriate, the development of housing which residents of low or moderate income, including the elderly, can afford, is necessary in the interest Page 5 of 39

of the public health, safety, morals, or welfare of the residents of such county or municipality. Id. A slum area is an area having physical or economic conditions conducive to disease, infant mortality, juvenile delinquency, poverty, or crime caused by a predominance of buildings or improvements, whether residential or nonresidential, which are impaired by reason of dilapidation, deterioration, age, or obsolescence. Fla.Stat. 163.340(7). Further, a slum area exhibits one or more of the following factors: a) [i]nadequate provision for ventilation, light, air, sanitation, or open spaces; b) [h]igh density of population, compared to the population density of adjacent areas within the county or municipality, and overcrowding, as indicated by government-maintained statistics or other studies and the requirements of the Florida Building Code; and/or c) [t]he existence of conditions that endanger life or property by fire or other causes. Id. In regard to a blighted area, if all taxing authorities subject to Fla. Stat. 163.387(2)(a) ( redevelopment trust fund ) do not enter into an agreement or resolution agreeing the area at issue is blighted, a blighted area is an area in which there are a substantial number of deteriorated or deteriorating structures the conditions of which, as indicated by governmentmaintained statistics or other studies, endanger life or property or are leading to economic distress. Fla. Stat. 163.340(8). Further, a blighted area exhibits two or more of the following factors: a) [p]redominance of defective or inadequate street layout, parking facilities, roadways, bridges, or public transportation facilities; b) [a]ggregate 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) [f]aulty lot layout in relation to size, adequacy, accessibility, or usefulness; d) [u]nsanitary or unsafe conditions; e) [d]eterioration Page 6 of 39

of site or other improvements; f) [i]nadequate and outdated building density patterns; g) [f]alling lease rates per square foot of office, commercial, or industrial space compared to the remainder of the county or municipality; h) [t]ax or special assessment delinquency exceeding the fair value of the land; i) [r]esidential and commercial vacancy rates higher in the area than in the remainder of the county or municipality; j) [i]ncidence of crime in the area higher than in the remainder of the county or municipality; k) [f]ire 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) [d]iversity of ownership or defective or unusual conditions of title which prevent the free alienability of land within the deteriorated or hazardous area; n) [g]overnmentally owned property with adverse environmental conditions caused by a public or private entity; and/or o) [a] substantial number or percentage of properties damaged by sinkhole activity which have not been adequately repaired or stabilized. Id. If all taxing authorities subject to Fla. Stat. 163.387(2)(a) ( redevelopment trust fund ) enter into an agreement or resolution agreeing the area at issue is blighted, a blighted area is any area in which at least one of the factors identified [as (a) through (o) above] is present. Id. III. Study Area A. General Description of Area The Study Area encompasses approximately 410 acres consisting of 609 parcels of real property south of downtown Tallahassee. The Study Area includes 1.25 miles of an autooriented commercial corridor on South Monroe Street, which serves as a gateway into the state capital. The Study Area also includes the historically low-income and minority South City Page 7 of 39

neighborhood located roughly a mile from City Hall. The neighborhood of South City is bounded by East Magnolia Drive on the north, Jim Lee Road on the east, Orange Avenue on the south, and South Monroe Street on the west. It contains a 200-unit public housing complex slated for redevelopment by the Tallahassee Housing Authority. B. Zoning The Study Area consists of four zoning classifications: CU-18, CU-26, CU-45, and RP-1. The central urban (CU) districts allow residential uses and office and commercial activities; encourage infill and intensive development of existing urban areas with readily available services and infrastructure; and allow the siting of land uses within category dependent on-site location criteria. Land use intensity in the central urban districts is intended to be higher due to the presence of required infrastructure and location to employment and activity centers. The central urban districts allow for bonus density or incentives for the creation of low and very low income housing. Emphasis is placed upon the allowance of such complimentary activities and uses as post-secondary institutional, high-density residential, neighborhood commercial, entertainment establishments, and active recreation. The location of such uses close in proximity to this district maximizes opportunities for pedestrian and bicycle traffic, reducing the need for automobile dependency and the demand for parking. The RP-1 district applies to residential development in areas designated residential preservation on the future land use map the goal of which is to preserve single-family residential character, prevent incompatible land uses, and prohibit densities in excess of 3.6 dwelling units per acre. Page 8 of 39

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C. General Social History Tallahassee is known for its three main colleges, namely Florida A&M University (a historically African American public university), Florida State University (a predominantly white public university), and Tallahassee Community College (a regional public two-year institution). Blighted areas exist in Frenchtown and FAMU. According to Juanita Gaskin, in Leon County, migration accounted 74 percent of Leon County s population growth between 1970 and 1980, and 66 percent from 1980 to 1990 (Florida Statistical Abstract, 1991). Blacks comprised about 25 percent of this migration stream from 1970 to 1980 but dropped to about 20 percent from 1980 to 1990. Due to annexation, 40,000 residents were added to the population, which added 54 miles square miles to the City of Tallahassee. Page 10 of 39

The South City neighborhood and the commercial corridor that connects it with downtown is a community with a rich cultural history. However, currently South City largely exists as a blighted low income residential area. Monroe Street operates as a destination for car repair services but struggles with a successful variety of commercial development. The Study Area is in stark contrast with downtown Tallahassee and many of the surrounding neighborhoods and various institutions and businesses close in proximity. Directly to the west of South City is the Florida Agricultural and Mechanical University (FAMU) which is the largest historically black college in the United States and is nationally recognized for various academic programs. The history of the area has important ties to the Civil Rights movement and presents a complex social and political history which provides insight into the historic urban form of the city. The Study Area, which consists of a small group of substandard residences occupying approximately 12 acres situated roughly southeast of the Capitol between Lafayette and Gaines Street abutting Seaboard Railroad Line (City Planning Board, 1963, p. 58), is known to be blighted with the greatest decline in residential homes, commercial businesses, and low-income apartment complexes built to provide housing for students and persons below the poverty income level. The South Monroe community is known for its eye sore railroad tracks, Tallahassee coal plant and landfill, and industrial development along Monroe and Adam street. Data for the Study Area regarding population, the local economy, housing, and education was acquired from the U. S. Bureau of Census for 1970, 1980, and 1990 and is set forth in the charts below. Page 11 of 39

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IV. Statutory Analysis The conditions in the Study Area satisfy the criteria set forth in Fla. Stat. 163.340(8). Therefore, the Study Area is a blighted area. The analysis of the criteria is set forth below. A. There are a substantial number of deteriorated or deteriorating structures leading to economic distress. First, the Study Area is an area in which there are a substantial number of deteriorated or deteriorating structures. According to the City of Tallahassee Growth Management Department, within Tallahassee between 2014 and 2017, there was a total of 1,808 private property active code enforcement cases. Of those, 122 of the private properties were located within the Study Page 13 of 39

Area. Many of the properties had multiple violations resulting in a total of 170 active violations. Therefore, there are 170 cases of blight in the Study Area. The type of violations are broken down as follows: Designation Description Number of Active Code Violations C or COP Care of Premises: overgrowth, trash, debris, pools, fences, open storage 79 S or SSB Substandard Housing 57 D or DB Substandard Housing 29 V or IOV Vehicles- inoperable vehicles or vehicles without current tag 3 B Boarded Structure 2 Credits: City of Tallahassee Department of Growth Management A point to note, 88 of the violations are structural in nature while 82 involve properties that can be more broadly characterized as environmental or visual blight. Further, a visual inspection of the Study Area was conducted, and a substantial number of deteriorated and deteriorating structures were identified. Examples of the deteriorated and deteriorating structures are depicted in the photographs set forth below. Page 14 of 39

Credits: Google Maps Credits: Google Maps Page 15 of 39

Credits: Google Maps Credits: Zachary Schrader, URP6341 Page 16 of 39

Credits: Zachary Schrader, URP6341 Page 17 of 39

Credits: Zachary Schrader, URP6341 Page 18 of 39

Credits: Zachary Schrader, URP6341 Page 19 of 39

Credits: Zachary Schrader URP6341 Page 20 of 39

Credits: Zachary Schrader, URP6341 Page 21 of 39

Credits: Zachary Schrader, URP6341 Second, the Study Area is economically distressed according to data from the U.S. Census Bureau American Community Survey. The socio-economic data for the Study Area shows several areas that have higher than average poverty and a lack of economic development. Strikingly, the median household income in the Study Area ($14,802) is 36.8% less than the Page 22 of 39

median household income for Tallahassee ($40,203). The low household income may be partly explained by the higher prevalence of single member households (27.5%) and perhaps more importantly, single-parent households (48.3%) in the Study Area. The unemployment rate in the Study Area (22.1%) is significantly greater than the unemployment rate in Tallahassee (8.7%). Further, 61.2% of residents in the Study Area receive benefits from the Supplemental Nutrition Assistance Program compared to only 15% for the total jurisdiction. Many of the households in the Study Area are also burdened with a lack of affordable housing and as much as 40% of households are spending more than half of their income on rent and utilities alone. In sum, the Study Area has a substantial number of dilapidated and deteriorating structures which has caused economic distress. Households are struggling to have enough disposable income to take on the challenge of refurbishing blighted properties on their own. Therefore, the first part of Fla. Stat. 163.340(8) is satisfied. B. Two or more factors are exhibited. Four (4) of the fifteen (15) factors are exhibited, namely: 1) unsanitary or unsafe conditions (factor (d)); 2) deterioration of site or other improvements (factor (e)); 3) residential and commercial vacancy rates higher in the area than in the remainder of the county or municipality (factor (i)); and 4) incidence of crime in the area higher than in the remainder of the county or municipality (factor (j)). Each of the factors exhibited is analyzed below. 1. Unsanitary or unsafe conditions exist in the Study Area (factor (d)). First, the Study Area lacks fire hydrants at 3900 Commonwealth Boulevard which renders fire suppression more difficult (City of Tallahassee Utilities, 2018). Second, the sewer system is inadequate in major areas of the Study Area. There is only one pressurized main sewer line and only one lift station in the Study Area. Id. The latter can create sewage disposal issues Page 23 of 39

and drainage issues. Third, FEMA mapping shows that 30% of the Study Area is located in a floodplain (Tallahassee-Leon County Planning Department, 2003). According to the South Monroe Sector Plan, 55% of structures are located within a 100 Year Flood Hazard Area. Id. The latter in conjunction with the drainage issues described above renders the Study Area prone to flooding. Lastly, the Study Area lacks adequate healthcare. According to the 2012 Census, 13% percent of infants were below birth weight in the Study Area which is the highest rate in Leon County. Id. Further, there are no hospitals located in the Study Area. Id. The graphic set forth below illustrates water, sewer, and wastewater infrastructure in Tallahassee. The graphic set forth below illustrates fire hydrant infrastructure in Tallahassee: Page 24 of 39

The graphic set forth below illustrates stormwater infrastructure in Tallahassee. In sum, unsanitary and unsafe conditions exist in the Study Area. 2) The deterioration of sites or other improvements exists in the Study Area (factor (e)). Page 25 of 39

As set forth in the map below, a significant number of structures were built during the 1970s or earlier. Many of the structures are in a state of disrepair as demonstrated by the number of code enforcement violations described above and the photographs set forth above. Source: Tallahassee -Leon County Planning Department (December 2, 2015) Further, there are 609 properties located in the Study Area (Leon County Property Appraiser, 2018). Of the 609 properties located in the Study Area, 166 are vacant. Id. Therefore, 27.3% of the properties located in the Study Area are vacant. In the City of Tallahassee as a whole, there are 107,578 properties. Id. Of the 107,578 properties, 12,664 are vacant. Id. Therefore, only 11.8% of the properties located in the City of Tallahassee as a whole are vacant. The latter calculation considers all properties located in the City of Tallahassee, including the properties located in the Study Area. If the properties located in the Study Area are excluded from the calculation, the vacancy rate is 11.7%. In any event, the overall vacancy rate is considerably Page 26 of 39

higher in the Study Area. The charts set forth below indicate the number of vacant properties in the Study Area, in the City of Tallahassee as a whole, and the City of Tallahassee excluding vacancies in the Study Area by category. Number of Vacant Properties in Study Area Vacant Residential 129 Vacant Commercial 38 Vacant Governmental 26 Vacant Institutional 3 Vacant Industrial 0 Total: 196 Credits: Leon County Property Appraiser, 2018 Number of Vacant Properties in City of Tallahassee as a Whole (includes properties located in Study Area) Vacant Residential 10,042 Vacant Governmental 1,162 Vacant Commercial 1,068 Page 27 of 39

Vacant Industrial 244 Vacant Institutional 148 Total: 12,664 Credits: Leon County Property Appraiser, 2018 Number of Vacant Properties in City of Tallahassee (excludes properties located in Study Area) Vacant Residential 9,913 Vacant Governmental 1,136 Vacant Commercial 1,030 Vacant Industrial 244 Vacant Institutional 145 Total: 12,468 Credits: Leon County Property Appraiser, 2018 3. The residential and commercial vacancy rates are higher in the Study Area than in the remainder of the City of Tallahassee (factor (i)). Residential vacancy in the Study Area is 21.2% and commercial vacancy in the Study Area is 6.2%. In the City of Tallahassee as a whole, residential vacancy is 9.3% and commercial vacancy is 0.993%. The latter calculation considers all properties located in the City of Tallahassee, including the properties located in the Study Area. If the properties located in the Page 28 of 39

Study Area are excluded from the calculation, the residential vacancy remains unchanged at 9.3%, however, the commercial vacancy rate decreases to 0.963%. In any event, the residential and commercial vacancy rates are higher in the Study Area than in the remainder of the City of Tallahassee. 4. The incidence of crime in the Study Area is higher than in the remainder of the City of Tallahassee for aggravated assault (factor (j)). Data regarding Crimes of Violence was obtained from City of Tallahassee Police Department records and data sources for the time period January 1, 2015 through January 1, 2018. Crimes of Violence include aggravated assault, assault, battery, bomb threats, child abuse, homicide, stalking, suspicious person/incident/vehicle, grand theft, tag/registration violation, wanted persons, weapons violation, trespassing, and armed robbery. Data regarding Non- Violence Crimes and Non-Emergency matters was also acquired, however, the data indicated none of the Non-Violence Crimes or Non-Emergency matters were higher in the Study Area than the remainder of the municipality. Therefore, only data regarding Crimes of Violence will be analyzed. In the City of Tallahassee as a whole, the Crimes of Violence categories with the most calls are: 1) suspicious persons (52,688 calls); 2) battery (6,690 calls); and 3) trespassing (6,268 calls) (City of Tallahassee Police Department, 2018). In the Study Area, the Crimes of Violence categories with the most calls are: 1) suspicious person/incident/vehicle (1,639 calls); 2) aggravated assault (468 calls); and 3) battery (321 calls). Id. The total number of calls received for each category is set forth in the chart below. The most significant statistic regards the number of calls received for aggravated assault. The City of Tallahassee received a total of 589 calls for aggravated assault. Of the 589 calls received by the City of Tallahassee, 468 of the calls regarded the Study Area and only 121 calls regarded the remainder of the City of Tallahassee. Given the Page 29 of 39

same, 79.5% of aggravated assault calls received by the City of Tallahassee regard the Study Area. Therefore, the incidence of at least one crime, namely aggravated assault, is higher in the Study Area than in the remainder of the City of Tallahassee. Crimes of Violence Calls City of Tallahassee South City Aggravated Assault 589 468 Assault 535 22 Battery 6,990 321 Bomb Threat 13 0 Child Abuse 391 21 Homicide 47 2 Stalking 322 14 Suspicious Person/Incident Vehicle 52,688 1,639 Grant Theft 3,941 111 Tag/Registration Violation 4,451 104 Wanted Person 3,846 193 Weapons Violation 912 64 Warrant 41 4 Trespassing 6,268 205 Armed Robbery 356 7 Credits: City of Tallahassee Police Department Page 30 of 39

In sum, four (4) of the fifteen (15) factors are exhibited, and therefore, the second part of Fla. Stat. 163.340(8) is satisfied. C. Summary The conditions in the Study Area satisfy the criteria set forth in Fla. Stat. 163.340(8), and therefore, the Study Area constitutes a blighted area. V. Discussion of whether and how a Community Redevelopment Area at the Project Study Area might impact low income residents A CRA is a powerful financial tool that local governments can use to address blight in their jurisdiction through TIF. However, according to Kristen Erickson (2011), author of Protecting Low Income Residents During Tax Increment Financing Redevelopment, of the Washington University Journal of Law and Policy, reduced federal funding for redevelopment and services to the poor has led communities to rely on an increase in the property tax base and sales taxes by replacing low income residential housing with higher income residential housing and commercial development (p.213). Redevelopment of a community in this context is synonymous with gentrification and can result in forced migration of low income residents. The Page 31 of 39

Merriam Webster Dictionary defines gentrification as the process of renewal and rebuilding accompanying the influx of middle-class or affluent people into deteriorating areas that often displaces poorer residents. Displacement occurs in a CRA when structures deemed slum are demolished and middle income housing is built or commercial establishments are developed and low income housing is not replaced. Forced migration has many consequences. When affordable housing is destroyed, the constricted market makes finding new living arrangements, even of the same quality, more costly for low income families. Relocation can cause loss of access to one s job and dissolve social networks of support. It leads to concentration of poverty and further isolation which exacerbates existing issues impacting not only those residents but the city as a whole. Additionally, there can be limited tax revenue available to the community during a TIF project. As the population increases due to the redevelopment, municipal services, such as schools, are required to operate under a pre-development tax base. Low income residents are more likely to rely on public services and may suffer (Erikson p. 218). On the other hand, in the article How A CRA Promote Integration in a Gentrifying Neighborhoods (2016), Josh Silver asserts that a CRA can be designed to mitigate displacement so the entire community can benefit from the positive aspects of gentrification such as increased tax revenue. The designation of an area as a CRA can impact low income residents positively if steps are taken to ensure responsible redevelopment such as TIF statutes or initiatives specifically directed at low income residents, venues for citizen and nonprofit participation, and the setting aside a portion of the bond to be used for school district improvements. At the state level, Erikson offers California as an example of successfully protecting low income residents where statutory provisions were put in place so that local governments must offer incentives to Page 32 of 39

developers for production of affordable housing, childcare facilities, or set aside a certain percentage of their units for low income, very low income, or elderly. The provisions also require that at least 20% of the increment be designated for preserving, improving, and increasing low income housing at affordable rates (p.203). Thus, a CRA incorporating targeted TIF requirements can counterbalance the potential negative effects of gentrification to lift all residents, and in turn, the city at large. VI. Estimation of the net present value of the tax increment a CRA at the Project Study Area would generate The total certified market value of all property located in the Study Area is $78,650,084.00 (Leon County Property Appraiser, 2018). The current mileage rate for the City of Tallahassee and Leon County were utilized, namely 4.1 mils and 8.31440, respectively. Id. The calculation assumes a growth rate of 4.5% which is the growth rate established by a prior redevelopment plan prepared for an area located downtown Tallahassee (Tallahassee Community Redevelopment Agency, 2004). A discount rate of 3.15% was used to calculate Net Present Value (NPV). The latter amount is the prevailing bond rating for a city in Florida with an AA rating, which is the rating assigned to the City of Tallahassee, and a term of 30 years (FMS Bonds, Inc., 2018; Tallahassee Investor Relations, 2018). Based upon the foregoing, the NPV of the tax increment a CRA at the project Study Area would generate is $15,419,102. The calculation is attached as Appendix A. Page 33 of 39

VII. Conclusion and Recommendations The conditions in the Study Area satisfy the criteria set forth in Fla. Stat. 163.340(8). Therefore, the Study Area constitutes a blighted area. Given the same, the City Commission may avail itself of the authority to engage in community redevelopment, i.e. the Study Area is eligible for a CRA designation, if it: 1) adopts a resolution establishing a legislative finding that the conditions in the area satisfy the criteria described in Fla.Stat. 163.340(8); and 2) the following statements are included in the resolution: 1. One or more slum or blighted areas, or one or more areas in which there is a shortage of housing affordable to residents of low or moderate income, including the elderly, exist in such county or municipality; and 2. The rehabilitation, conservation, or redevelopment, or a combination thereof, of such area or areas, including, if appropriate, the development of housing which residents of low or moderate income, including the elderly, can afford, is necessary in the interest of the public health, safety, morals, or welfare of the residents of such county or municipality. Fla.Stat. 163.355. Page 34 of 39

APPENDIX A Growth Rate: 4.50% 0.045 Tax Increment Financing* City Mill Rate: 4.1 mils 0.0041 County Mill Rate: 8.3144 mils 0.0083144 Discount Rate: 3.15% 0.0315 Year No. Year Annual Increase in Assessed Value Increment Annual Incremental Increase City County Gross Incremental CRA Revenue Net (95%) Incremental Increase Present Value 1 (base) 2017 $ 78,650,084 $ - $ - $ - 2 2018 $ 82,189,338 $ 3,539,254 $ 3,539,254 $ 14,511 $29,427 $ 43,938 $ 41,741 $ 40,466 3 2019 $ 85,887,858 $ 3,698,520 $ 7,237,774 $ 29,675 $60,178 $89,853 $ 85,360 $ 80,226 4 2020 $ 89,752,812 $ 3,864,954 $ 11,102,728 $ 45,521 $92,313 $37,834 $130,942 $ 119,308 5 2021 $ 93,791,688 $ 4,038,877 $ 15,141,604 $ 62,081 $125,893 $187,974 $178,575 $ 157,741 6 2022 $ 98,012,314 $ 4,220,626 $ 19,362,230 $ 79,385 $160,985 $240,370 $228,352 $ 195,550 7 2023 $102,422,868 $ 4,410,554 $ 23,772,784 $ 97,468 $197,656 $295,125 $ 280,369 $ 232,763 8 2024 $107,031,897 $ 4,609,029 $ 28,381,813 $116,365 $235,978 $352,343 $334,726 $ 269,405 9 2025 $111,848,333 $ 4,816,435 $ 33,198,249 $136,113 $276,024 $412,136 $ 391,530 $ 305,500 10 2026 $116,881,508 $ 5,033,175 $ 38,231,424 $156,749 $317,871 $474,620 $450,889 $ 341,073 Page 35 of 39

11 2027 $122,141,175 $ 5,259,668 $ 43,491,091 $178,313 $361,602 $539,916 $ 512,920 $ 376,147 12 2028 $127,637,528 $ 5,496,353 $ 48,987,444 $200,849 $407,301 $608,150 $577,742 $ 410,745 13 2029 $133,381,217 $ 5,743,689 $ 54,731,133 $224,398 $455,057 $679,454 $ 645,481 $ 444,890 14 2030 $139,383,372 $ 6,002,155 $ 60,733,288 $249,006 $504,961 $753,967 $716,269 $ 478,604 15 2031 $145,655,624 $ 6,272,252 $ 67,005,540 $274,723 $557,111 $831,834 $790,242 $ 511,907 16 2032 $152,210,127 $ 6,554,503 $ 73,560,043 $301,596 $611,608 $913,204 $867,544 $544,820 17 2033 $159,059,582 $ 6,849,456 $ 80,409,498 $329,679 $668,557 $998,236 $948,324 $577,363 18 2034 $166,217,264 $ 7,157,681 $ 87,567,180 $359,025 $728,069 $ 1,087,094 $ 1,032,739 $ 609,556 19 2035 $173,697,040 $ 7,479,777 $ 95,046,956 $389,693 $790,258 $ 1,179,951 $ 1,120,953 $ 641,418 20 2036 $181,513,407 $ 7,816,367 $102,863,323 $421,740 $855,247 $ 1,276,986 $ 1,213,137 $ 672,968 21 2037 $189,681,511 $ 8,168,103 $ 111,031,427 $455,229 $923,160 $ 1,378,389 $ 1,309,469 $ 704,224 22 2038 $198,217,179 $ 8,535,668 $ 119,567,095 $490,225 $994,129 $ 1,484,354 $ 1,410,136 $ 735,203 23 2039 $207,136,952 $ 8,919,773 $ 128,486,868 $526,796 1,068,291 $ 1,595,087 $ 1,515,333 $ 765,923 24 2040 $216,458,114 $ 9,321,163 $ 137,808,030 $565,013 $1,145,791 $ 1,710,804 $ 1,625,264 $ 796,400 25 2041 $226,198,730 $ 9,740,615 $ 147,548,646 $604,949 $1,226,778 $1,831,728 $ 1,740,142 $ 826,653 26 2042 $236,377,672 $10,178,943 $ 157,727,588 $646,683 $1,311,410 $ 1,958,093 $ 1,860,189 $ 856,695 27 2043 $247,014,668 $10,636,995 $ 168,364,584 $690,295 $1,399,850 $ 2,090,145 $ 1,985,638 $ 886,543 28 2044 $258,130,328 $11,115,660 $ 179,480,244 $735,869 $1,492,271 $ 2,228,140 $ 2,116,733 $ 916,214 Page 36 of 39

29 2045 $269,746,193 $11,615,865 $ 191,096,109 $783,494 $1,588,849 $ 2,372,344 $ 2,253,726 $ 945,720 30 2046 $281,884,771 $12,138,579 $ 203,234,687 $833,262 $1,689,774 $ 2,523,037 $ 2,396,885 $ 975,078 Total: $30,275,104 $28,761,349 $15,419,102 *Source: Leon County Property Appraiser, 2018; FMS Bonds, Inc., 2018 (30 years and AA rating); Tallahassee Investor Relations, 2018. Page 37 of 39

References City of Tallahassee Police Department. (2018). Records for January 1, 2015 through January 1, 2018. City of Tallahassee South City. (2015). Technical Assistance Panel. Retrieved from http://northflorida.uli.org/wp-content/uploads/sites/36/2012/09/uli-south-city-tap- FINAL.pdf City of Tallahassee Utilities. (2018). Utility Data. Retrieved from http://www.talgov.com Gaston, J. & Clare, D. K. (2000). African-American Residential Segregation Patterns in Metropolitan Tallahassee, Florida: 1970 to 1990. Negro Educational Review, 51(½), 3-22. Erickson, K. (2011) Protecting Low Income Residents During Tax Increment Financing Redevelopment. Washington University Journal of Law & Policy, 36, 213-220. FMS Bonds, Inc. (2018). Municipal Market Yields. Retrieved from https://www.fmsbonds.com/market-yields/ Merriam-Webster. (2018). Gentrification. Dictionary. Retrieved from https://www.merriamwebster.com/dictionary/gentrification Leon County Property Appraiser. (2018). Frequently Asked Questions. Retrieved from http://www.leonpa.org/_dnn/general-info/faq#millage_rates Leon County Property Appraiser. (2018). Property Data. Retrieved from http://www.leonpa.org/_dnn/downloads/downloads-page Silver, J. (2016). How CRA Can Promote Integration in Gentrifying Neighborhoods. Shelterforce, The Voice of Community Development. Retrieved from https://shelterforce.org/2016/12/19/how-cra-can-promote-integration-in-gentrifyingneighborhoods/ Tallahassee Community Redevelopment Agency. (2004). Downtown Community Redevelopment Plan. Retrieved from http://www.talgov.com/uploads/public/documents /cra/pdf/dcrp.pdf Tallahassee Investor Relations. (2018). Bond Ratings. Retrieved from https://www.tallahasseebonds.com/tallahassee-bond-investors-fl/bond-ratings/i478 Tallahassee-Leon County Planning Department. (2003). South Monroe Sector Plan. Retrieved from http://www.talgov.com/uploads/public/documents/planning/pdf/npss-smonroe.pdf Page 38 of 39

Tallahassee-Leon County Planning Department. (2011). Monroe-Adam Corridor Action Plan. Retrieved from http://www.talgov.com/uploads/public/documents/planning/pdf/compln/ monroe-action-plan.pdf U.S. Bureau of the Census. (1993). 1990 census of population and housing: Census tracts. Washington, D.C: U.S. Government Printing Office. U.S. Bureau of Census. (1983). 1980 census of population and housing: Census tract. Washington, D.C: U. S. Government Printing Office. U.S. Bureau of Census. (1972). 1970 census of population and housing: Census tracts. Washington, D.C: U. S. Government Printing Office. Page 39 of 39