Loading...
HomeMy WebLinkAboutM-76-00720 MOW • AL . . .• • r . /-*..r rf. and 13roposals : v I'. V. And re 4. 1....gal Aspect:, and 1;:-.1\‘ 1)..1)).rtynent's Organization Att,.rne•, Previo.ts Year Legislative Effort and tipdate on Major l'r..filed .I...1.tislatke City Issues - L.t..gislative 'tick Siiser State I.ogislaive Program The City ConirriAsion IL+ l'!)7t*1 tiE).3 A CyI idri tLitj is rle.cesiary. to nradior b.t rrt-,titnulato Sliirn and arid redevelop:Tient. to (.....11:2s...-nta plans are contemplated. lb • i? OJ?L (Entire C0:11.tr11,3cliQ3 1975 Proposal.) Make the elirataation of double taxation mandatory at the Cougar levet through creation of special tax districts in the unincorporated areas 3. STATE Ft.INC:\C OE' 911 E:M..._7:?.CENG`i* " (Comrr-Issioner Plummer) The State Legislature has the 911 erie.y should prov-id- :-. • system.. rnight be p nr bit'. to th.r.. decreasing 1-"r:-..-11 4. AD VAL.0.1E:.! TAX ASS1S7?2._ C)••• F.:*_..DERLY (Vice !.!Iyor Gordon) Pro-.-ide an,ad vslo rem. :7.11 program for elderly rrith lova and inzorrie titro:;:'t prop.erty oT other 5. STATE LOW CCST }4.072SING ANC E.' (Mayor Ferro) A sta.te level finance agemcy b.ort_-,_.4.-..ed to provide Low cost to low ar.d 6. 2.2:•7 i:r.C."`..; ZONES (:- • "fr., • tra-:- zone* 7. tc • F3rop0.3.1.1) •t te•:--)rt t. oti iLtt tosta s.....\11-1! 5' TR ANS n01: -7* 70'; ( Entire Commission - 1973 with population of 2.30,000 or mcdite, a direct share is -.ziatritutidn of state gasoline taxes on same basis as counties. 9. GOVSR N E m P k (Mayor Ferre) Provide for Federal and State funded life insurance for all State and Local government employee s killed in line of duty. • DALTh LEAGUE OF CITIES 1976 1. State to finance -ill ' 11 1 " c rnt'rl;e"t: y j 'l '' t r.Ur--1)"rs. Provide tax deferral for the elderly. 3. r`.'stablish foreign trade rrones. 4. frollibition of double taxation in cities mawdatory. 5. Q alcoholic beverage tax available to cities to deal with problems relating to Aru :::ernes' and rehabilitation programs. b. Amend police bill of rights law to provide: a.) b.) c.) d.) e.) definition of interrogation name of compta intant "when complaint is of a criminal naturs't providing for advi..ory only decisions of complaint review board right of officer to appeal to Civil Service or other appropriate agency prohibits officer from filinz cavil action azairst employer except for malicious prosecution 7. Change the Home Rule Bill to provide for 10 days to advertise ordinances instead of 15 days. 8. Provide for Coy.nt-..-:s•ide arrest powers for certain municipal police officers. 9. Require State to Fly for the relocation of publicly' owned utilities required by State hi. -:-.way construction. 1-5 76 r Ccru'NTV 197ts 4. ^in._ !1 ra.,;!)c.'i'.' lbilit. • _t :'..i :'. ,� i .'.•' .•': r�.-'.'1` foe all rc uir_'rentr ••.. 1 ..4. (ma 1933 Pep. Clark) 5. F"'+inent Domain Attorneys F'pN Cc-"rn1 . (Iu 70 1-..:�7. F:ir.?. ire:, C1 :.- :► and Eector) (53 108 Sen. Poston) C. fi,_-13s •`3 Trant ortation Att. (H3 1423 Pep. ozkt:ard) 7. P. d i ..tr ibut i.on relsh--.r than at t**.1,2 `_i- s of in_,-c`io-•,. (IjB 193b F.p. Steinberg) 10. :'-)- ins: tion to r�a_c•? frc- 30 to 15 da ' for reinz,p•_ction after rejection. (e?B 1463 deft ted) (H3 1948 =- p. Steinb4rg) (S1 :n Sen. Poston) 11. Law Enforcet^.ent Ca.--unicatior 3 and 911 Program rar.d3ted by state, be ft::.dA by the state. (HI 955 F: .. ror-nan and H3r, n - Tawphane -. cire Tax) 12. Land . iiisition for Parks and Recreational Purposes would change the "ta::thg" from "Judicial ratter" to a "policy natter." (H3 1501 Pap. Richard) (H3 1554 Rep. Consodine) (S3 9) Sen. Johnston) 13. ..: __: ran :zement Districts to provi , a study to determine it additional r _s.r.tation is r.:eded for Dade County. (H3 9')4 Pep. Callager, et al.) -- -- 1_ `. !1_!n.-e A�; (H3 n10 rep. Boyd) . ; :% o �iv� �• - - 4,_CL'I:, •!! Cot. i =F�7 t'1,' .i+ 8111`. ': t•t by CrJ. .t'nrJ :. Fi') 64 P:sp. C1..ir :ii-!C, .�:�.. =1.-j7 Sr. Winn. r!;y-s .nhx.;id ht firm C:...,r of bur;1n-,sq at next session. • •• { • . :." :r 1:1 & in third dr qre fi lorty the involy:*a three Of more +•c•rr"a� C'• u. Make procurement by third pa.ty for prostitution a Fei c. Make Assault & flattery on a Police or Fireman a third degree Felony. d. Stiffen the penalty for Possession of motor vehicle without serial number. e. Delete requirement for witness of conviction when convicted felon is charged with unlawful possession of Firearm. . provide for immediate fingerprinting of felons upon convic- tion to be used in scion rsent case to prove identity. g. ?rev Lda for mandatory r.o _i: ication to the arresting agency within 2 h-+'zr:. of an e r from any State Correctional or `'-!ntai in•�titu`_�ort. :.. �^.:.r•-fir '-urn of tog: -'?gi5t_rat on fess to Cities as well :�••��':±.�:' ?r rarity C?r.i-..?d or',aje .ta• 40. stat ': xatton �:�da ory I rohth ♦ . � s C •.•: • • V.•. • '.:. nt of tax d t:.. • • t','ine for erase c z r.2place intangible tax 1c-t ;.;: ::::I: 42b1e tax exemption to $2 ,030 M.. .1 F- _3 W • b. Provide fo: Direct payrent by the State for State rec iiri Police personnel inoontivo 113y. O. Lethal '1e14.0Win Providt. for State t roc''•w::l ") cy2 ._i :,31 Yellowina. 10. 1.. A11 -. L t . to T e to 2,; on seals - .. iton .•. .: , with , D 7 .i let ion of 250.000 or more to t V` - , - d r.tr ib tion of State gasoline Tars selection of r a-,roj,-cts on ::,awy basis as the Counties. . o_ Ferrets 1975 Pr0003als 1. Pr.'•.' c�e ta.: relief for residential property owners in areas where coning has cau ed increased land tax value based upon futur ' use. ^Far. for Federal & State funded life insurance for all 13_11 government employees killed in the line c ..ntenc for any crir..9 committed ' t 7 ; • '�•+� ;�� i_:! c-ctions to enter polling place on F+{`/� '�, -._ remedial }c ,y p G.: i`.1� '1 f . •••� t/i'.� i. ti//,•��-i. .In�� t1`t ��J.i if •oces1ry. i ... 00 D/NATING G"``.. Ctt 1 75 st.ATF, txct5tono %t.8 �• School :"`CiplCiye.as i+ .x. 1.y w. ..h! 1!t .,t.i'''• *. bet--. ' l .!l_ 7-,/C t %:,:.� �1otrd E: .) u ► employee tr.-t:ye Pr•dare Act i..xe:r:pt School Boar and ta:.i adjustment Boards :corn this act. s •;. `.tzri3briented k.,c- -atdon 1t.t_t'u:n power boat rit. :es to for rrarine.oriented creational 01010 ..**01111110 4.1111 •• f the arnotnt collected. Create ho-pitslity c . ``. •r, i. ir,.. rt:. .t r.i:t ; rrore a r _f_Iy. 9. ♦ t• :tl•' t" ] i:r i' �i: e� p;ty t7 relieve local 1 1, `.•'.... •h* U ,:. ti:1 „ ..,�,.�.+ l7. 1 1 111 ti 41, .car out-of-s`3te adoption ttt.• .t'..r.cy inves'14ates. f , - ) increa red payments tocover actual costs, :,t of living ei:iere''s .; "Yp: "r-eYmb-ur::errn..'nf rates, c) ic Jr s`andards and enro"c�ment ,:,-"a. ring to p)+y:.ical plants, c0verar A c,.."e• �. t;a ��•-;.��t1N`1C C�``'1Ct' . • c Z: .. ft• r t.... relief •?. Y �: ..lu :� :�n►i • 4 re sy tern. T. t'► 1. rrri�,�.. c. --- `•s :d the rnotori st a:-? patrol on I-95. c• .,•sj, u7t of atternat'�:', to autorno5'le travel for visitors. • • .' 1' :� Zn is. ;tt i recreational. projects as i • 1 • a" veal 8. 19. • 'Ht� +C►:ic+� t; t, bJards bo.s-'i iR�i at alai tax of "i'D'ItsrtY Tax Retie r'rnviie for a tax ee ti t. f-�•�_ St�a 1o3t reverttt' by :.,._._ -'.0.:11 �[:`ary stamp taxes to funds t....trib+ltt'd through ?ri::. 20. Support . of tr+srrtari r.� 3� 1rc•=. • ►qr t� that the State r. lintain its financial support -or J i4e County .:'.ir.^. n Services which , -� 4.tat rt : po7�ibility. 1-5-76 IATION 197S L101S ►TZVt PROPOSAL emu& The purpose a this paper is to outline recommended legislative changes to stimulate private interest and to provide fund!ng resources for redevelopment of slum and blighted neighborhoods into viable col lni• ties of housing, commercial and mixed use areas. I I . RgCOMMSNMT IDN I 1. A Constitutional Amendment and State legislation is deemed r.!cessary to provide a combination St tax incentives, tax increment secured bond issues and tax abatement that would offer sufficient encouragement and incentive for private clearance, rehabilitation and redevelopment of slum and blighted areas within the community. Several states have passed legislation Which could act as a guideline for this program. They are as foilowss a. r IS3Ot1RI PLAN The local governing body would designate a local private redevelopment Corporation who would pay general ad valorem taxes to all taxing bodies at • rate based on the assesssent for land only in the year immediately prior to the acquisition by the local governmental Redevelop- ment Agency and for a period of 10 years after the date of acquisition. For the next period of 1S years the Redevelopment Corporation would pay general ad valorem taxes to all taxing bodies at • rate not to exceed SO% of the total assessed valuation of the land and improvements. After this period the general ad valorem taxes are assessed at 1001% valuation. This financing arrangement is preceded by declaration of the governing body that the area to be redeveloped is blighted and requires clearance, rehabilitation. and redevelopment and would also approve specific redevel- opment and rehabilitation plan to be presented by the designated private Development Corporation. The above tax relief would provide the necessary incentive and capitalisation for the redevelopers to proceed with the project. b. CALIFOR U ,PLAN This plan provides that all property assessments within the project area be frozen at the time of the adoption of the redevelopment plan by the governing body. All existing tax agencies then continua to collect taxes based on the frozen assessment only, even though they con- tinuo to levy taxes on total assessments as and when they increase. The taxes levied by taxing agencies over and above the frossn base would be remitted to the local governmental Redevelopment Agency to be utilised in the financing of the redevelopment program. If the Redevelopment Agency can establish with some certainty that added taxes would be forthcoming, it may then mil bonds based an projected income to fund project cos. Once the redevelopment is completed and the increased taxes are fathoming to the Redevelopment Agency the increased revenues would be used to retire the bonds and upon repayment of the bond issues the increased tax revenues wools then be distributed to the appropriate taxing bodies. If the local governing bodies so choose, an alternative to redistribution of the increased tax revenues would by to use these funds for other public purposes including subsidies to commercial and residential renewal devel.. cements which are in the public interest, though may not be economically feasible, due to inflated prices of land, objectives of the plan (low and moderate income housing), or other reasons. • Both of these plans have been utilized extensively in both states• and have been up -held as constitutional. initially, F.D.D.A. considered seeking an amendment to Florida Statute 163.330, "Community Redevelopment Art of 1969". to provide for the implementation of both procedures, but it is now felt that Articia vi2, Section 4 and 1C, Taxations will have to be amended to allow implementation of such procedures by the Florida Legislature. I21. ACTION TO aE TAK FNi 1. A proposed constitutional amendment will be introduced in the 1976 session as set forth in Exhibit I attached hereto. (Amend Article VII• Section 4 and Section 10) In the went the same is passed it will be placed on the ballot in 1976. If passed the 1977 Legislature will be asked to enact implement- ing :egisiation. 2. F.D.D.A. will actively seek the support of all city and county -overnments within the counties wherein the presently existing 14 Downtown Siecial Tax Districts are situated, and will further seek the support of the 1Qgislat ive delegations in such counties as co-sponsors of the proposed constitutional amendment. E 142111T I SI a RY.LAT1No To TAX PXLIEP ?Nfl F17 tirrirVtI.OPM17,;:t CF !'n AND ist.1GHTEo CA IROP0SED TEXT ( lloriTi Constitution, Artirle ViI ) jLCI:ON 4. T,ixationi assesstrents, Oy general taw regulations shall prescribed whirh shall ser-ur a just valuation of all property for ad valorp, taxation, providpd; (a) Agricultural land or land used exclusively for not commercial recreational purposes may be classified by general law and assessed solely on the basis of charter or use. (b) Pursuant to general law tangible personal property held for sale as stork in trade and livestocx may be valued for taxation at a specified percentage of its value. (AMENDMENT 10. 1) (c) For the Porpose_of encouraging the reclamation, redevelopment. rehabilitation, conservation, elimlnatOn and prevention of obsolete, decadent, deteriorated, slum or bliahted arpas, within legislative standards for dettrminipg theta f9n44ionfA a2nera1 "-w malt provide for classification of asseSgments tp be limited for 4 prescribed period to pre-existing valuestpd for special utilization of ally increased to Teveveilrom reJbILttitit or develpp7entft of the lands devoted to any $uctimmea6 and of the Azgruements therpon. tv such method or metkpdsa _for inch wriodm periods of time.apd upon such terms# cqp4itjoji jpd renEictiops as mats be prescrjbed. rXHII (page 2) SECTION 10. Pled:lino credit, ,.e i r•er . hr state nor any county, school district, municipality, snr,•i-a1 district, or agency of any of them, shall become a joint owner with, or stork holder* of, or give, lend or use its taxing power or credit to aid any corporation, assiriation, partnership or persons but this shall not prohibit laws Authorizing* (AMf I.bMENT ?:f). 2 (r) the issuance and sale by any county, municipality, special district or other local governmental body of (1) revenue bonds to finance or re -finance the cost of capital projects for airports or port facilities or urban rerlanation and redevelopment oroiects, or t2) ,,..(remainder of paragraph unchanged. `:OTE: Underlined sections ( ) reflect additions (amendments) to the existing language in the 1968 Florida Constitution. edelpmen Offering teecial incentive% to devetopers, Chapter 3b3, that Urban ticctrvc'trrpmerlt Comor itions OW, ha"; ptOveti to t)e tt rnt!;or tot tO!. ►ectevoir7;7r`1C'rlt 6}t St 1. outs Cdristrecli..-1 on down, ,:':n :;Its'. under 353 ties h,,l n !iv- t„r,nr; (ir('r't(•r o:"•r the, Tx,; tC't't tt1;1.1 on site'; V,'%t +rt! 3r>�� 1`.`c1'i rot, ava lla t`'E' 11',hrl;lltl to f ttt` ri(Netr);)'•4-,nt teas t1(er1 c' con,••u-'"•tn, the t• i•tits, c)frE,rs th' lt' , . 00 �' f,;,'tv1't !; }�tt,• ('f train, r/'!>"f!,.1 ..,, •'1 ;,r r,•t,(.''.! The, tt' •. et t"3 ^, ricer• .1V.+. ' the t) ,; nt....n ^•ea "the r,:m31n;.,.i ;sort: not pre',''c 'y \': eat." included in an ordlr,,,'f, rna -;red PI, 13/1. ftttet,vp!tp'nhrit rropos-i%, me n', being ec.. r.100nrnz, In t'ssr'nC''. .`,� r'OVic!E."`, in,.rrttives whiCh CP1n bra ur','_' wi'h r1 t'i5souri Citic's having pc,p,ilat;c"n o! 350.r''!9 or more !St. Loots end Krinsls City? Un'ctr.r this Icti.v, a private developer' mu"t set UP rvdtevolopr'1on• corporation wh ch c; n submit pans for the. Cteriran::(-, rr.;)t;ln•,cn7 rot on traction or rf.."fiab:iitat :1n of any !.'F•...; or poit1ons of *teas 'drs;ona'ed by the Mayor of the City end th' fl •rcl ttr ie,H,-,rryien at; • t)t'I:ihte.il und�rr 3t>3 StruC:ures r'n)' t'rr built for comrrc? c1;t'• rr. ; ;,:!nt,3', in�'u~'►iat, trecreatit. -13' r"r :54:c; Once a pro;e•r:t is aapprovc:(t by the City, he private redevolciritrr..nt corporation then ins the,. rj j1•t! to C'9cru''e tr-ctperty by 1J )"to . lrj /alit C.)ty'f. ;" I::'er c)+ erin01t dvma!n, , .'ce:,s..lry tins not often been ne7r scary in St 1 even though the • r 'o C.rty nrtiuirilrt by a redcve!,,p.).".-nt COT pcf;tt.1 tr1 tins usually bf.r,•1 ,., •t,:, tC>rrT of i 1?t; nor •+,t if.'r Qt S!r 1•' r lh(! �t:r ,. .. t "r lt!! t`r,t tin U'401n 1(•0.4%%('Cr'-.._ ^' CIOnf,.i.• 4.1• tt!', yr+'',; i 7rU"' !!.. • (r...:#.r.S'• (;* t,r. teat prc;1` •' ''•i':s tare•', t110 1:1^c! only. k (ir tt,r, r".:.; • 1 t, yf,: t'ti r.., Uf)r!'1 frith lane* are t>. .'•rt clri h'ti c)nty ;•'•. • • y th;a t1,. tr;, r. (,•i t<hc' 1.'rt ! . 't "''•,'o'.'''-n"•ri! • at..i to t)'. i'a•ct et toll rctt• i t,. • City cif ;;t 1 (;;) t, 1;)r ttrrs 1ir:•t ''!!'""t't :" f +'S tt>r! • •') fY` t* r• ;t (.(1' !" I'r!!tt'):) in t!�)Lr'(>�• taia "• 1 r 0' •' a!) t' .. 1."ti )' t t talc' 10•t,l: ,r (rn;,•r}.,•. In tit. , ti. "; ttir' Ci,y ••IrFis distributed to the various public V1nnclos to the tette propOrtion et normal prop itty tatrnc Co'por:1'I»nri are limited tr) an 1?rnnua1 tOturt► of Et;, rtn invr':,'mt. r t There it rtso a V Imitation on the intntest rate payab!A On dr,hr,^t'.!rr' ; is,ur'd by the chrpOtatinrt. Once t1 site• is teler.tect, 9 redevetoprneht pr(1t1ot:11 is written Into a Contract, through Pn ordinance, between the City of 3t. LOW'S rind the c!ev_lorer. tterrlq spptled Out In tft9 ordinance include Such details as timQ limits, eesCrip ibn of the devetos,ment, urban design, relocation procedures and delinoation of puh!ic improvements to be mrtde Corre!'-,tc•d to the rcdevetopment. Periphntat t,tr•,►'t and tra t!ic improvements, es well as cutlers, are commonly part of the dovcturir>r'% responsihitity. !tut make pubic irnp!overrents have not been necessary so tar under the program. 'this t)rc>-it"r;• v.'s publisher jointly by: Union I; l' ctr+^ Cornjlrtny 1 Drive C3102 City Plan C:o'nrtis5ion 34? C►vi, Cour% Ettci;t. 63101 0o::r1'.,>.vn `;'•t 1 OttiS• IOC. 407 N 1 icth.h Street C3101 I1ru'1K:in:1! Itu:i tors 1 evolotrnent Corrirtintiirin 410 row grown 44.'09. G3t0i •1(.'irn;it:1• Ut)'at.r • nd1 Kav;;.t►,fit11, Arctli/recto 31Et t•:. hir,t:1 Str•r:at C3101 R Sample Moe 3r)tI c pc i r{.tt 10.().1t !within the rr,....ty tiitC;,tit:11(•i2 fO{- ;( f'I(,' ()T) , f....' irld dc:!)'•)" �t•111 v :)::�'. `,' r ;� �i�� ! t.)!$31.59 c,i ft , $1C,8C1;i3O;!0 vti'ith ir1!nte•: r r.•�,�rr• end tilt!,- rnir:,:E'ilotir!ry. , t' S t,Y1G,C1,i2 us(', th,.; t.`' . i t+.nntr;t rc`.!t .`;,tit"t, r�.v•. �;. Ut In St. l tni):i, tho Currt!(it Cr`,,'•�t�'•,r:Ci ra tt:.-; Cf t) t:lxlrrJ iivericiQs i re $ 100 P SV:itiSed Vati,lit.ioni with �" );�! ty t?{•!"l:i litssest,ect at ci;1proxi!`!;'.tt.t i ).. of VAue. tarriinus taxi ; a f' .." 1;. an t arttingy it tiixE'Ct at the full rAt(', 1!t!• tut.trt• t,.II'(!.! r! woufd pay $505.1 i4 in r '<! t •• �„ ti:r�!', annua!ty; ti')'.'.c'v'Jr, t!'� f�'t .'J�' durirvo tt((. fir;,t 10 ye;-;.!;.,<,:.,,{ 1t,`, i., •. ..) , of t`t� Proit,Ct, the rt :�?rVr �'S'if t. :). +•,iy farnOtti! t rt tit r t!`,{', r,r tit0t1 %P F'.'1,')!':lfty du.ir"I ttit' ft!st 10 y'., tr 11{i., t'.r1)litt t)L! p fit vir{''1: t "'�r; ,t) rr2(, t _it tali !ht.! i1r, t ,,• '�r• r.t 1� y r..r rs hE. t' I1 (in(,. >t t t,) ilrlfi(f'r!iy T$ r• . 1 r, -it• Ir ru„'rlClil 1,:'!,);1tCt t, • ( -Id of t'')- w i r t t• (•, tr•vt•trtt)t•r Ct� r• + titr•t tr �`, �•. r �)n+l:);i. 1{�a, rr)rf,avptrJ')trr rt .n Cn•t •;, t ' . • t' , .• 't y. Pt t.', �,"!it�)._,�•' ' ,.t i.ya,•r.+', ttft'r ft? y,,ors, .! UnpDrM)&ed Dovtopmen! OPPortunit los Downtown S. lOuft4 is on thr thresho!? Como!ele rrvi!nlization, Private tlo'.-.!s bavc, investr.d nr!nt-ty tIlltt bit1fon (.1,..!LI-; in fir_../ corl-,!rti(1.1 Ant! #Y1,-,iof Wry • *`11r1 4*,1-v1 r,‘:!'').1 0. thy; • • 't! !`le tv;1.1e! C.nro, !1!-i!!0dS r'r(s a to!,1"V ,,171):,t1 t,hvirctirrIrtit Of th-' corninct riorrizIH ;Inc! L-.1!*t tit t1C,.."1*.IVOS tby :,251 NO:7vn t1.1.: t30:.Ch • S!10:t:•~1 stootter's ri,v,2r!ront Cf1S--Cla!ev.:ti Tu Pet, Inc, MPitiir)n (n 1,24P-un!t, th,or3-bun1 aoartrnr‘nt !3,.; 500 tiroadway tuJirj Cstrrent po a! lens` ano•her $10.1 r n‘...7,,••rc--11 over thr! StICC:k•S', 0! !`',• led the city 0! S to d c,:l•-r4 the entire; f:)r benefits thr' t-1 nld rc (ql n cr-ituty. ailt! yvh;c;•1 • :•••• : 04:nr! r.tt)i‘_,*• ".! it')" Arr Ci',. letivr. *J'• t t xtittitr It Ste; 1. UJSuuU'RI 3 3 ?, Zt-vCLO M (Chapter , i:. ouri Antuter 1959% Urban Rode o t (,rmont Corpor a t i cn3 i.nw. ) AY .�} (rloverrtir.; 7 ,.it') dvc air':: ,: •, „bighted" anti to „c-ataflc , rr,Y, it i 1 i_' , r inn or ter.tanstru•.'. ion". ,err. $n c3• ;rl :+ r'ri w•ci _ „ qt t a5 One parc; of land as 1 rt tO( AS i t ' rJ rr'•t; St. t.Oui.:, ctt _, : ;r t• r'c3 t ►,�� c rat ,� of Downtown I ouin (,l iclible for tri, ,t - nt undrrr r!,; , -r . ) Ster Plan, Cc1:. 1. nt. with tr`rs f: i ;.' '.:aster Plan, u i' r: thi i`3 pit; l:: y a .)-trC1 (Cort;riGsiun, • tT.c i,c,veloper (a :z`:i.2. :' prent Corpor-it.iun organised under Ch. 353 of l issouri laws) ;or considPratiori and approval. (:..or ,r than one developer ra submit plans for the sate area.) Sten 3, :: approved by the !Tanning board (Commission), the plain is subT itt ed to the City hover ningg :3ody) for consideration and approval. Step 4. If approved by t?:e City (C,overr; ;; uody), the :ity adopts an Ordinance which althorizes and encompasses a Contract between the developer (i.ecevoloprrent Corporation) and the City (Gov, rr. ins tic)dy), setting forth all torts and conditions. Step 5. The developer (ledev 1oprent Corporation) begins his project. uncle. the tert:.s, conditions and time schedules set forth in t he Or d i aa ace . D . tinquishin foatu os oak'n d proces and thr,auch the autt: ,rized Redeve).OA' e1'tt Cc rpo;atton. I. :tedevelon-'ant. Corporations organized under Nissouri Lams, Chapter 353, are authorized the power of "Eminent Domain", to accomplish the objective of the Development Plan (assembly of land), (In 15 years of activ ► use of this Law in St. Louis, Eminent Domain hers never been used, though authorized. The threat of Eminent I.or i in has been sufficient there.) 2. Redevelopat ti»: ins bodies, at in the year i'-r d Agc•nc}•, for u per Rc:: ,_velopment Cot r,it}• of at. Louis t•:xea on t: rr "pri 3. For the r.•_xt r=tY gcner,t t ? v.i 4'E (. Ci 50A of t r.- AftPr tt:i:, porlod Corporations pay general ad valorem taxes, to all r t hf- sa"e rate which was assessed on the sal onl_,Y_ irately prior to acquisition by the Redevelopment iod of 10 years from the Date of Acquisition by the porat ion. (4 ar•.endMent to the general law, in the • all taxing bodies ':lso receive generhl ad valorem or i-provt'rrents" for the 10 year period, JJ ligst gt period of 15 years, the Redevel opl t:nt Corporations lore^: tax••s, to 11 taxing bodier, at a rate not to total a:- :r-'ssed valuation for land and itn=;ovements. , gr-'r:frral ad vnlarem taxes are assessed at 1OD; Waw.la esqpimrloses Is good h� (,eratd M. Trimble. Introutit 0iteetne. Pasadena Itedesetnpment .Antoc, Pasadena. t•atifnrnia The htit.Mint' pre vertt.lrion '• art p►r"ar,.9 r, and .IC!:. , � .• r'. \ 4 POP/ Ro o mm ate, e!(. ,,, errs' ,. uri tic ,r, ..I'i„hi(, teieraer .:rtd 1':. rrni vat for /'rehire I( - rinrt l'►O merit- rrt 9lent e l Irrh 17� !w"4 "•.t !�( '.:a;!rl,,.. 4(.(uvr !t iy'` ketle%ek'rrtent m the sr Ale of ( ali- t nrnta is ca*-r!ed ..�11 pt'r,il,,nt n' the / C alltotnta (,`tilir!lnitt ketih.eb•rment 1.144, Seet..r^ t 1n, Nt 01 th., dearth and Safety ( ode Proxisions !n the, I..a en able puhiri agencies to empto: .i finant ing scheme kno.an as ••tlls inerernent financing " This apptaach pros ides a means of fin,In.irt4i redevelopment .4.31t1- ties other than h% lederal fin.in.tal assls- tance Redevelopment I,ta in the state of Oregon is sees ♦untlar and pros ides tor the tattle means of fin.ineing Other st.itc% are expiating •tatiitots dniendntents la provide for the financing toot The tat allocation tin..n.ing i•'ri c't was first estahhshed in f atifotIna to 19c s hs constitutional aniendntcnt and .+scam panning statutory law this method of raising funds for tinan. ing redesclopmcnt activities has been used primarih in the pact in o:ttnnectlou with 1etleralis assisted protects It was Ii.(,1 of .aniunctiati aith public improvement.. r.I1d to, hs the ,its 4noncash gratli in -.oat cted,t.+ in suplsl%. JON 10 74 mg the ne essat} L•caI sll.ut• .tt the t(d- eral finan.in► totmttla Ctn.x tedetal hinds for tedevehir111ent ,t:tiv!ttrs hate been to various stag:...'? tlr v ulc tip tot the last three setts ntnni.ittallttes have endeavored to irnd .'thrt meal', of titian. me tes,t,+li:at on t ,tl,t.+tn.•1 ,4.lt,• tea 1`r, •',d. th.tt .ill♦ I.'cel Iet h .It!, t`, .1. ' .• . tl .1r .•'tltltt. .' t rl , t,• ..r,t.r! ./..:..trvcloptttcnt..an al rise. ..'.'t'ntrrtl .*t .'n.f• .t(`1`roi••i.It. .40l.`I1 1,, he •.ti,*•tl lit the :it, .au ;, I the adoption of .m `r,1^lain.( 4.1t'.it111l; the ,i*(ncs Ili( 4,01 ,,.Irn.rl t.in serve es egen.s rtiettlt►t•ts or .t sep.ttatc (nttty t.tn hr .teat(d aith member% appointed bs the motor and confirmed hs the stet .0011.11 In most larger .Ines of in .lt let a here t1t(ti Is a great deal of rede.clopmcnt .Iilt,lfs, the latter ..pptoaih is taI.en to the past. the use of reuklel:'ptstent pm.% within crttes a,is primatth it% clln`:nat( phsa*al tic 10101..I1t0n 1.rd.rs . more thought 1, h(Itlg elven to other fca.ons ails ietlett•1op• men1 at*enra(s shollki he a(tisdt(d ke- .teselopmcnt apencoes *:an design and +.on,tru.t a able rangy. of ptrblii tni• pro►ements .end to:hilt,. stirngthen the vas base, build patting structures. provide loci and modetate nt.onie hous,tti After .r pr.rteit dt*'a ht'und.rrt via, horn de sigtl,It(d and a rctl(1eittrntcnt elan for the area adopted xis orditsanee Is the oils iautt.il, the tools of retiescl.rpnt. it can he (ntptosed These t ,'I, inrlesle the agen.s's oldies to bus :cod sell land. twin: the vitae, .'t eminent domain if neressat}: leasing propel -is, accepting grants or loans; selling prontls.rt% notes or bonds and etpending their prorecds. l he (alitornia state Iaw provides that + redrselopmcnt agen.s mas ohtatn fl• naming tram an) legal source The va- riolls soilri(s would he as follows. aC- :cr'r•rrr adsances from the muni(Ipalitr. a..(pting grants trout the ether •i ltoscrn- mt:nt or the state or another public agents: the sale of short-term prtttnis• s.'rs notes or long-term tat allocation hands or other types of bonds, such as lease re*Coat In the p•• I, agencies have operated primarily tw utili►ing advances from the muntripalits and grants froth the lederaI government. Tat allocation financing has hcannc ten t+t.puiat lot recent nears in California Tt.das. there Irk• 174 red(r.•elip'nent agencee% in Cali- fornia and many of thc.e apencics have used this method of financing or are slanntnc to use this approach in flit 1 mute. Pmpett♦ tares in California ate levied pennants by counties. cities. school dis• trtrtis. and stole .rev special districts having limited tarn. rimer. The stale has the Rosser to lest pr.+perts tarts but 4 re4cntls• doses not dot sets Adntinttitrat.oes of the property tat i• coordinated by Mee coitus The counts. tat a•.c..or dew. mines the value of pro ports for tat put - roses and the counts. tax collector COattdi• n..te. hllimes. collection. and distribution. lb, t e •(nixes .. dkcted are distrihule4 to toting turtsdictu.ns apptotimatcty as (a- lms. (.a$nftl '4 perm*: city-22 pit'• cent, schr+nl Jistt►Ct--41t percent. special district~ - h percent. The mechanisms that allow this ester- s,ve use .of nonfederal funding in t'ati- fornia art the tax allocation pros isi,•ns of the state constitution and state law The law provides that a redevelopment a$ncv may he allocated a t.eftain portion of taxes kvted within a specific ptoiect area. provided that appropriate language is included in the redevelopment plan This approach works as follows i---The adoption of the redevelopment plan establishes the "frozen base roll." which ire the assessment rail last equalified MO to the effective date of the or- dinance approving the redevelopment plan. The assessed value is arils. frozen from the standpoint that the redevelop- ment agency receives any increase in tan revenues generated after the effective date of the rcdevet..pment plan 2---That portion /'t each sear's Gin col leavens produu'd hs the ,tpplic.iti,,n .+t the current scar'. ;.as rat: ..non the frozen base continues to he distributed to all taxing itiriscftctio 3- -T a remaining taw re►citiir - re,.eniic produced from higher assessed salitata.on due primarily to new developnicnl within the psrolect area--i' withheld tram other lasing icirisdintions and allocated t0 a spleciai fund of the redevelopment agen- cy This increased tat( revenue is referred to as "tat ins rement " This process mats he ciintntuci! Ut any redeset.,rm4nt protect until .ill costs .,t tedesel.•rment in .osnnc.tion with the project ate nand off 1 hese .. 0sts etas he land assemhls costs, public inipnosernents or public fa. Ames .onst►ucted by the .,r the ,,re^;s or rer'.isment bond cd indebtedness A redevelopment agency mars use tali increment received on an annual harts to undertake activities over a 20-sear period It is grille obvious. however. that this approach would he verse slow Another approach that can he used by the att. ncv is that the increment that will he received can he pledged to the repayment of bonds 8v selling "tat allocation bonds" the agency can obtain the money that it would he receiving through tat incre- ment for 20 vean almost immediately. These funds are then used to undertake redevelopment activities and the bonds are paid off with tax increment over the long tietm. The most significant feature c4 tart allocation bonds is that they can he iantall and refunded i,.rliouf the rri{uireirtimr oil sorer .rppr.)a.al In contrast. the more "uitti nap method of financing the con- struction i f public tacdutics is be the issuance 01 general e+hligati.ul bonds. In t'aliloKnia, general Kinds re. quire appno%.il fs a two•1hirJs m:ttortls, of voters .knilthet imp+oortant ?!attire of las alitscatton h..nJs is th.11 thin, err nisi obligations of the say or any other public entity', other than the re development agency R.'ttdholders cannot require a les% i'f additional properly tan to assure payment of principal or Interest when due Pubs must rch. instead. ,on the ri dcselropmcnt agen: s and that parlts.•r Ilatlraded above is a model of fat diettiA pr.puisai teal cinder a d Ake Itlw. The Ilaaseiirpl apptuae% preened ter Iris itsm .w►a devekpfaeI fll • flame GROSS EXPENDt1t U1S land acquisition Relocation Demolition Planning and engineering t•M•site public improvement! Parking structures Contingencies Administration RtVttUv Land Sale to Developer lease Revenue Bond $ t 2.Son.0(IO Tan Allocation lord. Series 0 Lease Rcsentee Bond Total $ 9.100,000 1,100,000 •00,000 300.00© 1.000.000 19400.000 Lwow Looms ! a S 4.000.000 10.600.000 7.000.000 5.900.000 20.00,000 17 000.000 • tie, equal. attZ .4 p..., .ate AT 11111 .4 Mow*. due C. the fan Mat it n ee.,. n for doe won to quail dams, final pnn..pai pa.naMia for a lwuoa a4 taw Nuts 1044 10 14 41.11 %.'. t 1$ H �r ,..., ^••I. , •ort't ! rt.'il itrrdttnll3 w t 't,l •t('►7f tt'(,I('Plat 'trete/gnaattrPt ,of ,J a ; �r..hl.ititl•tet< ,,f thr RR1ph ,,,.i;n,.' + + Rh,* PI and h„,* 4 tt... 'I, t 't1 i •,p Itl'ilt t)n M�f ,., r, !ht i'd.tofeiNt t eA?ff 1 I I.emitirt M Mom Seidl libepping rash 1 as Inlet tRrrrntet!A Insrrntrin r%eatla t Prr'4'ie tienetJIeA Icot!111rptvni 1m„unt ♦suitors ItI Irish F tttttnt 94 st a ♦r* t1 liars $t:tlant t• \t xtlthlt t1It 1 r.N, ilrsenne $' a► myrrh $ntr,ttt$1 `yiesstatt tr, tat $1314. 911 t I a $t M Imtetnrttl 1.•1r kttt•mn• fretsmrnts %wrist �t i ni2•titft 444% lnrn ,,1tt.tltNt st 2't 1 111t 1 3 i,.h.t it111 i 1 Ni : r'11• t J4,11 toil patina prt.ate de.e'It+cr, wh,. Knit/ „ t buildings, retail ;enter, h.+tel, mart mcntt. and other ta, hill's than venet,trr tat revenue This I..t.'. e„ .. use, {+'.'Pert. tallies to the ..'n,Idrrahl. .shove the tto?Cf halt` tell t he pros is',ui, of the t' mutt and related legal document, rtlat tuft to issuance rt•'hibit amendment. to the redevelopment pl.in that w.'u!d impair the projects capitols to generate acees- ♦aot' tevenite ter 'tamely after ht•nds have been ,,sued the ,teen. .,Ir1n,'1 take ,note than a eettam rt'r.entact' of land oft the tax tolls t.'r rat$, dc•elopment or other public purposes The statltl.it. li•71i•,th,stt for rtJt're\' on tat alincatton h.'nd, is s fer,ent. h.'w evet, these bonds mat he .old at '1C percent of pat value ir.•.id.ng tor a t: percent dtscrtint interest rand on the hands is etempt ft.,m teder•tl and ,t.tte of California income sites The first tat atl.•c,01,, h,'n.f, were f .1!:f, rnr.. to fits• S,n.e tat a t,', •.t,.'ti In, ,ld hna'., c ! ..+ been ,t..,t 1 able t,' ...me.. in ( .t' 1 , : a •`‘ et `3i, nrilIun d.'ltara t+ h t,i:c h.,t•n • cetsfulls issN:d 1' s •as t" , a•+.'rt fond issues on ra,:e 4.: •.s !'•e sale date. the am,".rr ." •he the net interest . ,'+t i ' ' 1, MOM of the Las all.'.•a to date have been in ..',e. ,t federalls'•assisted prole. t, S,>'• •• •'1 !!•t' largest issues are the 1." iit'cle, t.•.t velepmment agenc%'s Hume; Hill the Golden Gate%as pr.'ieet in San t'r.rn CISCO. and protects in the .itv ..f tan Bernardino Mans regent t.tt al6>4.at,.•n land sales have been un.lerta1,en Ps agencies created fir snt.tlier .,tics these projects are nontederalls a„t,ted a+'d the tat allt;ti:atlon hood fin.rn.ing arpt.t.tch has been used to get a nittliher 4'1 malt'! desehopments under was ,n the d.•w n own cores For esample le ('ul. rr 4 t . Cerritos, Industr . and ( drain Iss•., issued last Alit'. •Choi, f 'n,+. •i ' • . used to .sonny. tt.•n w th •tl.• i tiil JGH f" '1 r'1 tet",'n.I I .1h •i+t '4 ' . e'ut . OW. h pc tit ,100. tt. ...!' he the future Lease tie% tiny II„ ttth: 1 ! rr.td.h to r.il"11.' 1!. "!' r'r.1 r ,141 redeselortiiei•t ,I+h•, firs•.. +, IL,Ist tr••enur bond tiu.lnt:ine 1 he hest I. rr ' ! tntni.l (+..' !'.seta ,, the ,ene',,! .,ht,e.ft1,'r1 h.'rt.t its ,trcnFth i es n tt,: t.t.t 'h,' ,t ba, het'n dirt... t',i I'\ tit' y.'k'•,� 1+Ilhll; ( .'tit, 1'1 r.,,,.t1 •'1.1„.,t-, I'.,u.is w;th Wits !a+ a11.'s.1I, •,1 bond. .1st' Issued h. the ie,l.'• I.'••t'ttle,tt .teen... not the Lits and rel. .'n ,n.rca'etl tat re.enue pr."t .e,i 1'. the ne.. .fc.rlor n'ent In this 1 .t' ! t, tt e• • ,...r 111 tit• A $tie •'t Inun,.. '..i hon.! that I, he - 'steer/ gene, t .,hl,rat,, .1 l .'ads ,I'ld t.t, h• ,,,ts th, re.t'rtile l'rn,t 1 his .s 1'.'n,1 ts•. i..! h. , n.ie.el ,•potent a1•en,. tor .t rather .Pe, ti, tier r,''e I his arl'r,'a, h ,an he I ls.,t tot es,t't','le tot .,'nsirtl.ti.'rf .•t j+.tl.1T1 '.t Y' 1r1 •1 , COI .l''•. I'''. .,r 1+. ,fti l I lie aeen,'. de+iLn• th.• .it 't e , ►t'e, it t.' h;.1 t t'i.1 Ii a..,,t.,te .hell;. an,! sits '! e' . nt;• .r' .rc .: meat th ,r Is', ..'.,'• 'h.,t when the t•I; 1.1. i, ►•'r"ltuar.! t w 11 h•• leased to the ..Its for a 1.'^. •e•n, for he .Iren,', t,. el', .. . t. • . , , ,ne. 1•'t ' ,.t,• .. . (t • ..tr.tit'ttl .., th,- 1• •, ,, het.. th,' .Iyen.:.rr'.1 •t , t ,. he') lb.' I.'. 1: „ 1.s t1 Stews 1 he am,'n1, rh.• .► amount 'L, to hrn.ft t', u,t:.l ,r, 'o I ht. t,'t •►:tt rr ,•"'r•;, ;. ' tt If1' tat ,,ll ':.It:t,•, h,'aQ+ !ease rt•.enue t' ,n."• : rn he 1i,01 tot '•' .'t r trl..irt.l.'',t,e, i, ; re- t,t.l .'ll,, e of h,'te! .1... t ^t 1 hese h,'nd'. are rated mote ta..'r.th,. h. the rating 'et.t.e'. beaus' t't the strength •'t the lease with the Litt ite,ael,c ,+f the rn•'r.• '•$.,'table r,tt,ne the .:yen.. *ill te.r,.e a 1,'wer intete,t tate \1+"t .'t the pioneering .isre;ts anti allo.,th.'!t h,'nd+ and lees.. re.entte h.'n,Is h.,.,' hero under the ..trrtuI rind .tn.L ,'1 tti!unicipai tin•Itt.lal ,.,+nsultant%, as well as the ..rutin% of a numher nt 111.1'.'r legal firm, It. and large. redevel- opment .Heavies ha.e nttl,ied this un14UC tinanc!ne me.•hant,m canti.•ttsts there are .t few etceptn'n, that five all of us some ., n;ern In .'rdcr f.'r the rede.eiop- me•tt deem:\ to t'ht.un sound .idwec re• I;at.ling a fin,mcint; program. ,t rs advis- at,le tout/hit: the see. ice, •'t , municipal tinan.lal consultant Munktr,d financing .•'ns,tlrar.t, as„st the .teencs in the foi• !•+.,:uy manner ,,e the agency in the prep- atatt,•rt ,•t ., tin.m.lnal plan and gash flow ,tit,,•.'.' t,•r the protect and various de- .ei.'rnien!+ atthin MC/ assist the agency to dtscuttielt ,'!.'tees .Id. Ise the .tgenct regarding the ;'r •rr' tl•t,in.it, approach to be taken. .. rh , ties111 advice gisen regarding the Ponds riefigive to •1 'visa+ .'t the market 1 he'. prepare an •"ofiice41 statement' . d.talted 411a11.%t, itt the 'Lonna$ a hale .,t tote ..'mmnntts'. analysis of the protect. t! : protectt.c provisions of the bond ",•i.,n;e and I+roCCcttem of tat Mere - if , .. rewtttt', put lie cant- ,iu ng on t•is t ','.attain beMds. •.•+ .t•t.t :caw resetnue ' _ , a '.t St, the r., • � %. tr.•s +>/ i+' . s . legal •',i tr •,._ . .,,,g1Iih:d t' ht•t,.te the h,•n.ts ..r' h Jell%Cred Al t tote tends i ,lSteRt'n '' t,tamCnt.•t � 1 .e %no 1ter:ed t to(nit s '('.1 K,`•a •i me I4,'.t.h •'s„r,a n• ,....t •'s,' I!h I'asa•temt• 11.00, �, t•.,1• l►,,.,1.Ir i t)tep,'nt td' tt.'t' •tiara S.,r * San lost' A.1'•.krs, tlrec,'t)` •i 1ti�l'a`•`. Pomona t:1re Itern.rr.t,no • dih •Cetrtto%- itl:hm,•n,t' 61 os rt.. )e. •Pa.atlen.t ` in,t1S11 ' 1'ailcl,t• +11t•at„ t )•, .eon ( 41" .,1 t .t•..tn °1'as,t.(en.... il•tt+-at:l. I n,1 .'.t • t 1•, 1'.",• pnn.,,n.t Ina In.tustr% i in 140, n.t.c•nhlr t Salem' 4lre.'oh *Coker (as• S.1'1 tit n .:entllr.t Walnut t Net scan R..'.,t•) R•••eme.1,1' San H, „at,t n,• San It, tt...t.rm,t 1• •cis. 1) • rs I f' . aortal 411 11 . F.•stntan 1) ,t 11.4 ♦ (ow, per a .11 amormir 1rAe IMeti'i 1)$flet- IDNe Mar Silver tint Indrl pn$s$ tls 1 01 1' 101 I): ) ' f,) 1 t (I'-ht t' u%u'W 41% `., ,. 11' (l1 1't ,tt 21 e,e 111 :'1)1,c 1 , 114 , i f,. . I,t. ;11 Itf,.ht, 1! I`r.. 1: I " f,t 'c.t.(4 IX.1i•In 11) IT" "11 to (I^ y(r 1 "'t n`(I`"1 1'I `1 ra'II" "i I I 1 "r 1' !t'1 1"11"t 1)1 11 tit 111 .,Li '" t t.i 'r, • rat, `r. nr• 1, ., 11 t1' .`^ 11 errs ', 11 ''I "" 0" 21 415 13. "1 nc `1 41 tie, w' '1 1)4'4'1 tot 1(► '1 1 1 :(( "1 iI ''1 I1-•411 ';(4 ,1 114 1' '4 '; r tr, 1 .'.' j { ` 110111).10 t t teat f l()r l 1"S O.In het) flit.' :t+c.1,lu+ 1 ,16,1,1►i ►11 44%kt un(► l 41 c ())r 1 1t1" ('u, 000 t, "rail i10 11 ,)( (t l 1 I(1t 1 `,Iittht 1 r cat 11()11 I �, t, Ilntl 4•,s (h,n :h1n 1M10 1 f,h11-rant► (ow ,1U,' t7c.(It►(t 1 i ton (►nr, ' t(N1,II 1I1 1 t►(1(I (inn l 1'c rant, (II ti(,1r11r11I 1 a n;it. 1(11tt1(,1►(,+, ��� rant► 1,°n III 1 h CI I,I INIII +In,111,t,1t ' (inn (urn '10110i11, 2 r,tilt 000 0 1 t10(1(1f in t1 c) ;) 0(1/1 1,11111(l (11p1 1 141) 1)4)11 6110 tllltl lr, t.00(100 401 Ur 11 111,10 in uun 1 (NNI (,(I!► 1 4:11 not► 14 1t11t1 t 1 i( ► t111,(q)() 1 .6111) (111(1 44 (111111N111 7.110IN11, $242. )Jtl.wtll 4to 1r. I , .3 _lc 4 " 1 17, ,t 1. 1 ii i ,t' c 1111 1 11 ; `', • • 4 t 'r. 111, 4 .1,. 1 1 (1` 2 .01 2 1; "•l 1 ill 2 11 4" 14,) 1 14 11 1 '"(t ' i r, t3 , -c i 1\ 1" . 3" t, 1', I i 4 S ,4 l c 2 I '; c t4 :v. i 'i t i' .Silt 1 1 3 e, 10 .i .' l 1ti t- ran 4ti^ 1 1% L 1u1 a '', I t,l ' nra t, n' It i h',i r, i'r S• t, 1>�, t, 24 c4 e ,,1, r i s 1 41, t iran t1` t t1 i `11 c 1 h , 4,4 c 1 1 c 1►•. ( tit I •3 .. r. 1'1 11 11 ) 4 4t, 4 4' 1 rat 1 c, l i a I t 1 ( 1 2, 1 'el c • t `1 e, 11, t2I 1 2' r. III t NI 1 (1 ` •, 01 S i' 14e, r. (14 c 1-I "n e titi c cf, its c.r. c.11 41 e c1 a14 44 ccc c i'l ;, c ..) c 4(4 E.5 c ,,u a 'tr, i rat c lc 14 a 1^ 'l 01 tz((1 1" c(LI S 14 'C t 11 crag ',, c31 '1ral c c l s 24 the► 5 11 4- t, 43 e.1C t 'III t,41 C.ic t'!t 44); t'c ,1 •. 14 roe,ha•ta at put•,'. .. m,pq►nlst salt 1.,or, trhtatfed by the agent t 'the rttunI ir.$) financing consultant •1a',•t% the agents ►n Notktntt Nlth h,,ntt i,mn,el r't„r hs 1.4t1• alike so that the m.ltt,'• .:r, h. hattdlej .tilorthlh :11tit .:,it• of the h„rtt. Pose iflt'n* I'rptlfrret'e: In the tltn of P.+sa,trn., .1 ,.'tttm ln't. , + ► 11 V(11) reo- r1e Icde,c!"('ri'e ;' ,.'r.,( r, 1•.11;e ta•1'11 un,t,'r N.IL sirs.' 14;01 101. t m.n''t tnot- r,.,r1 ,'1 th.tt rintr hose .,.hs,r,t', h.►•t' h,•r,r , ,ttt,l.11 ,,,It .t,eh I''r ' ,'t ledrf,l) flu r'*.;a! ,t•.••'.tn.c It the last three scat, hnMt',er th • •r',. 1;.., Mode W tttc• !„ 1st t t, .►;;,,..i'' • h•:.'1. ,n{! .t,1tt le.,•c (e'.,'nul' '.'''.1 tt' ., 'ie t ,'r 1'1r .+tt , tiro t,•,1,•' ,Itn 1... ,,. , tedeneior nlent emit.11,tr (1."1.ct, tr•.• Perrot tede•elontnenl (,r."?;(1 , ,"` mtthon &afar. ,n he'd, 1'1"1 tr rt,'s Ide ,t root„',, ,•1 1!'.. , !,,.it t1n.In. Idl %hat.. the t•t.,,•,+ i,,,t • !h, :tin has .It tedcselormcn• rr+kc•t, three 01 the'nt :,t. fedit,llt .•:.r.d •tn,1 three ate n',ntit1C! 111% ,1,.",e.1 110.t tit the ac t,n,ln to the ,,h t. to th, Ih,Nnl,''n area. where .t 11,t.t.re re4c.t•I.'rntent protect ha% hero, under rasa'. .In.r fe,emhet 14"(1 1" .t.ttc•, the aern.t has used a t.I, .IIh', an,tn financtn,l 1rrrat.h en this rrl'ieit to sCIi .port tarn, rtomts.ors note. and Ione tetra) tan att,,..It,on bonds V.',th+n the nett three near.. the afieno intend. to sell ah d.td,t„ttt.11 16 t'n11HH'rn dollar. In hoods In thls pr,,,e,t and ar- rttslntate'• 1 m,ill,tn dollars In hands In other rr.''e.t. tl .)Ili 1040N: 1 he use of t,ts ItICtemetlt t„r tmrlen1enttn comm,rnrtt develop- ment a: t,t IIIC. 1, .In t:s.►lnrir of ereati ' ruhit. hn,lnirne tal inurement can be u.rd to sell t.es .tilo.atton bonds t't town— r.sor' note% It t:.ln al.o he used on a %e.It h' .ear basis snithout t.elntt pledged t., the rera'ment t't bonds (sees tat m.temt•nt. o•et and shone the amount tk'.t•.•.rr'. ht .Im,trttrr e‘1.4111g tndthtcd• tli•• c:111 he tr{ea.e.t to the CA' to assist to mak►np annual pa'ment% to the acenc% in connection urth lease revenue bonds 'During the fast tins setts a number t+t rroHCms have arisen concerning ih)s method of financing A number of gm- nllrtatrC in the state are .ttsustng the use of ors increment financing h' adopting redevelopment mlent plans for very urge proj- ects Its capture increment and not ors the histtr of .t legal determination that hb ht Ctistl In other In.tdnct,•.. "onimtrnittes are 1►stng tan II1Ct4inent funds few pur- poses that cannot t►t .on,rdered a tstt$per use t.t such tonal. , a• n 't t,•• r 7deseion. '.lent asses arcs R• 1tt'.e1.•t r+ et1.le% In California *at have 1 op t+t!- ptorl;hes tot c•'ntrot),no t.te ,thine% Int flit► Creative appro,i:h tot ttnant:lnc re- dcw•ett'pment al the toyaI fence J044 10.71 Itq Mr- ft Ok .!ar'r ATF. PEtVrr.ME. PftotiretT f" TetE t A coMML ,; :.tirt,OPMEter PPnvin-. ; roP TAX IN -'7""•:' (ALLOCAIION) C:!, (7, .1tinq an ,Atry O. under . • tf-:' Pea, -„eent an I • ! . : • . after 7.he Ctty , -tnir.t F-t !,. "•1,..':•,-,` • , •_ Plan" 1:,. i,r,.it,i,:“ Jri...! 1.,,, . ' . 1-rA,rt A '. 1 .'!. -----_ . under the :::,'.'Ision of t,,, ....*., ,orrta CoMnuni!, Pedevel Law. The signiti • ••• • Is1nths .r:L r; ' - "Vt.; •; t`‹ II": tlintrr,.La 1 .t t't3t : . A -r :!‘' • !'‘. . r.a3or „tr. 11 1. Upon adcption of the "Pedevel,irent PLe." 1 City (Governing Body), all prop2rty area are est.ablishel and raintaineil it assessment for calculating purpo-es. Al! ex..t.r,! agencies then continue to collect taxes histd e- ; existing (bae sroll) ansessrent only. (Ecweey '.-r, al! continue to it taxes an total aS!te;:tsrlf,r.t., by all taxing agencies against any increase ovc: t!,:o " L se roll" Are renitted to the Redevelor-ent Agen. 2. Bonding: If the Redevelopment Agency can establish with some certainty that added taxes will be forthcoming, it may then sell "tax -allocation" bonds, based on projected income, to fund the agen:-y's costs. 3. Other Wzrs of funds: Once the program is operational, and tax allocation funds are coning into the Redevelopment Agency, it may also use those fund:, for other public purposes, including subsidy to commercial or residential renewal developments which are in the public interest though may not he icall feasible, due to inflated prices of land, objective of the plan or other reasons. 4. TynicA cees: a. first city to use total tax increment was r 'way Departrt,nt Stores e. . e ftw. 1 tiepping center developers *; ••.,1 in d partnership redevelo:,eent acv.,,ncy :ye 7 ! $ f t .1 thati tk ef$:$44.'t ly what our us we had to do if the developor had t- haild the parYina originally offered two alternativoi,i. The redevelopra,nt agency would take 5 to rrilliondollars for the land price, and the redevelo1',3ent agency would Vaild the garaq.P, but the city cn;:, wJnt tn r tho garaoe ani preferred that the privto doycqopor LA,ild and own tho oarage and ta;.:, •b, Pulp 2. ft....•t;o have done anotl;t•r 'f:,lcU1 thlt.: 1. •':r Watt'q proj-c. i!E" hal 1?ird we bought throug rf"l +vriopmer.t, o $1100 per unit ro. 235 were to fa— ' .]::;c',:+ for $21,001 and $24,0( .:ropenOirt on tltr ! r r cif offored it to a privaf. .'nt'eloper at 1. ,'t ut':t. Alqlol And struo-,tcJ and cco,1,i not put it t r:•:-(. The fact t nt7 land wasn't. ..ortt, anythin for low girl -olio- ; it actually hlc: ,1 nogat < .. -'aon v11t1o. ,: •It f All Not tako that i .. .•.., even with co!`mitmon ihP City o` i o•\nnu 1 cr: c' rd-'r redovelono 1ofrncy to build housos• t:uild ng •.1 U'.iynaici build a _.� C • 'i , curb an:: guttr:r pac c ag-•. o is hoin built s public optotation with pri ito salesmen .r••i in and re-s—I Li:':'; those houses out to the nriolto "'arkot. '! in•t to ro t us million to do it ($11,25o o.,r unit) and w- only sell it .oc $1.4 million ($.:i,875 per unit)...." • ....T1;e Secret of tax increments is t„• availability of cash flow, trn legal ability to bond it, and '. have so'ett;ing that is saleable t'h thr bonding ^arkot. In California ere hive issued over $200 million worth of tax incr# ent bonds in various cities. We have on the boards right now another $30 to $50 fr i 11 ion and in our judgement, we can rema'4:e, and t:i1.1 have remade in the next 10 years, every downtown in eal ifornia that wants to be revitalized by this system alone. You do not need grants for downtown if you have an economically viable downtown. The reason many of us don't have a viable downtown is that our city councils and oursclvos did not understand what was going on econoically. We dealt with it on purely planning terms. We spent millions of dollar:, as the city of Fresno, California did, to re -do the downtown area, and then in one swoop they rezoned an arca for a retail shopping center two riles away and killed all the millions of dollars spent in downtown. That was repeated in Monterey. in San i,ernac!ino, Rich-ond; in city aft;•r city across the U. S. Cities do not realize that if you're not going to protect your downtowns economically through roninng, you're going to ruin those downtowns. You roust understand that every piece of zoinine you do is an economic ant. The understanding of the intermixture of law, economics, f inanco and politics - I think is coming to the consciousness * Excerpted from remarks mado t:}• %uloro- L. Jacobs, Legal Counsel, Community Pedevelrprent_ Agency, Los Angeles, Calif. at the Re Tonal Conferonce, intr-rnational Downtown Executives Association, held in Nia''i on i arch 6,7,8, 1974. suMIYAR A Conatit.utiona1 Amendment to Author 1 3•r, T ix Ah,,t •'r*r'nt and Tax Inc-re/lent Financing to improve our Cities, Towns .end Ceuhtles. Florida has consistently 1<acic. d ' +r k"t ini "r,st ntt:r•r •'.ites in providing 1er1a1 tools and t l n.inr i tt l resnu rrrs • n r'r `, " :. ' l ' t'" ieL't' l nr', rehabilitate and conserve rut• cities, towns and counties. F' n '' r ' w'•'r,t v tr' it roily availability of Federal Funds for 1'rban Renew i t ,rr.i 1 l" : r in''r i 1 1 not result in 5 iqn i f iratit p•-ooress in Florida. ciur to in.a'ir'-r r it r' oohs' n!t tl t :thoT i.t t' lon,lnclislatiOn and State court der s tens. ThP recent ab"ol 't inn of Feder 'l , oar't„'S t'er trove t ir)•. of 'i1 U"' and bi htr'd rr''s of otrr ro't"r'Unit jos, points to the Atdent nr'r'i for st)te5, cities and coun- ties to de\'elOr•' new Tot hods to r'nro,lraae t t e rr'r'l a"'at inn Old redevelopment of our communities. Two essential ;ng!ed;ents, fin.trincl t_$ �1n)Q(1es •arid riV'atf?,_i c fl- tIVr'S, t'!.75♦ 1'e ,n('li3ded in any rffr'rt He state oil 1n''11 1.roari' • Other states haV«' developed 1r)ra1 progra!rs wLi 'ti respond to , "r' +' hoods and those t r hni ur's have worked well in California and Missouri over the pest ton years. A NEW EINANCIN i'ECHNIS1l'E 'T',"t,+: Irlvre^f'tttt California has .developed --- and successfully tested in their courts --- ,t `t'r`• !:n't of Tax increment F'i rt:lnri tl?l, with whit!. • l ey f i nanr"`r' t hr' ar1u I S i t .on, T l t•;ri i rt :, "' rrnve,,,e ,t , eel nr- t t i on and, in t ilr? c,,•;P of housing, construction of hew developments. This method use's the sale of Tax tncrrttlent. Notes, which are repaid by t.hr' INCREASE in local taxes caused by the new deVelor:.".'r'nt • All Pxi st i tici taxi rl:) ^:'. r Sdr t't 1 nriS continuo to receive the sa're lot -al taxes levied prior to redevelopment, d'1r:nur the life of the project. This trethod provides the lord clmernnent w:th the r;r't'ess.try funds tot 1.) arrluire and rJ•.Ppare land for resale to interested le%.e l oilers t. i nrl !ld i ng write down when appropt i -ite and necessary); ..'.) prepare 1 ir1i for l.nusir'a, ''onstruct the housing and then sell the housing, based on the .,hil:tt to ray, as identified ty pudic policy .a!ii the redevelon"*ent r1an; 3..t .tssr'.`h1e find thrnyi;l!l e'":nent do^ain powers to .arromrl :sh the curl i!- rl,ir. (rurr'asr' rr jr'r t !•.e• -"der this method, land lrIvoloperc always pay `t31 l 'axes, Ind t t.r' r' 3t.1 . ! i.lr'nry obtains funds for its f i ndn : ,1 1 nhl ia'tt i ons fro.t t ht' INCREASE in l o ',t 1 ' .,>,'' ;, c r',,tt r':d by the' now dr'vel - op'rent . INCENTIVES FOR PRI".'ATE 1' VE: MEN t M. i s`1nu r ! . tt> Li!'“ :'.t ,,t r ' ent Is an inten- t ;ve tool for private investors (owners) to (-Arty ow spr'ri f of public development t t"'pYnvr,„"nt ) r)b ter + it'r'•:, , '..5 ',' • t.' ; \'r' r irl t'":r tn•, „� • rt r xi •t :tie buildin:�s, row ''on,-;. rUrt f •:, i r.,tr♦ 1''!:1 tr ttla' :iro'.ir iovs i +' - r or other criteria established •; n t t i"r"': d+, + r r' yrr , + o the owner or developer. ^\' t t+ ' 1:Z • i r' t . Kr, r'n !IOU. (I!, r ' "r r" ri":,• oti +, r • ;)'_. : dui that the i ^ pro- V"e^et.t '; in a"rr" ri,lt'.rr' w • a t •3t' r i!. arrrr'•'e1 by ♦'e !oc it QO':ernment. Tt':'.s "rir'•t od rTovides for inate^'r't,t of it 1 taxes on t t.P 11%( 12F \SEI) VALUATION (new ron S'. rl3'•• : n` or re! n'..at on` ; •max 1 ri i !1C7 l ' n'i ".i l 3r" er or:a rla l t u : i d nq ) for a period of 1 years; fro".. ye'. 1 i to ye, • "tf' owner : .'tys ' •txr's on •JU% of land and the '... RF:'..:£: '",I'''- lr. IMPPO FME'...:i .!-ter the .!!')•n year. the owner pays full taxes ont he cot -. 1 development. Th. , 5 ^Pt t od can And should arroTtrodate tax abat.e- «tent to encourage major renovations, restorations, preservation of historical sites, the elderly and any other criteria authorized by the constitution and legislation. In each of these cases, all existing taxing jurisdiction continues to r.ceivr t.ixos on i!l land values (and the' oric :nal buildings in the case of renovation) dt3! :n( t t.. h..rin-i of ♦ tx 3hat •'^vent . : •'t+ r r.' • eft ,'r'• Live advised r t. : I:''. IONAI. NIE"NUM ,NT and r+ , •. r+ . ri;;r 'i • h♦' l0a1erst:i r shown i,!:l 1 r.o• .q i'r. LP list to recta in these r ti • our:`; _. ne: i`.t or Louis„