Agenda Item Name:
Title
Hawthorne Community Redevelopment Agency Renewal
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Presenter:
Wendy Sapp, City Manager Hawthorne
Sean McLendon, Economic Development & Food System Manager
Description:
Renewal agreement with the City of Hawthorne to extend the operation of their Community Redevelopment Agency (CRA).
Recommended Action:
Recommended Action
1. Request that the City of Hawthorne prepare a written update to their 2015 CRA Plan and then return to the Board with a presentation that details how the funds will be spent in the renewed agreement before December 2022.
2. Upon receipt and approval of the updated CRA plan by the Board at a later meeting, the Board may authorize the Chair to execute a renewal agreement that matches the millage contribution of the City of Hawthorne.
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Prior Board Motions:
At the Joint Board meeting on May 18, 2021, the City and County discussed the extension of the CRA.
At the Board’s February 9, 2021 meeting the Hawthorne City Manager presented the CRA’s accomplishments for 2020 and workplan 2021.
Fiscal Consideration:
Fiscal Consideration
In December 2021, Alachua County contributed $46,227 to Hawthorne’s CRA fund based on a millage rate of 7.8662. In the same period, The City of Hawthorne contributed $31,488 to the same fund based on a millage rate of 5.3194.
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Strategic Guide:
Social and Economic Opportunity
Background:
This agenda item brings back a request to renew the Hawthorne Community Redevelopment Agency (CRA). The CRA was created by the City of Hawthorne in 1993. The 30-year term will expire in late 2023. If agreed to by the Board, the new term would run through September 30, 2039.
The CRA plan was adopted by the City in 2009 and last updated in 2015. County staff recommends that City’s plan be updated to 2022 to allow the County Commission to better understand how the funds will be utilized.
To date, the County Commission has only approved CRA renewals and creation where the City and County millage contributions match. Per Section 4 of the County’s obligations in the renewal language, the City is requesting that “(t)he County shall deposit 95% of an amount based on the calculation of increment using the City’s millage in that year into the CRA trust fund…”.
Renewing the agreement would change the millage contribution of the County to be in alignment with the Board’s general policy preference.
The mission of the Community Redevelopment Agency (CRA) is to bring about the economic revitalization of an established target area, to create a re-investment environment that attracts private investors into the area, to promote improvements within the redevelopment area through renovation and restoration of buildings, as well as to encourage new construction. The mission is also to acquire the funding necessary to make the infrastructure improvements necessary to attract investment dollars and improve the assessed taxable value of district properties, and to assist downtown merchants and local businesses in their efforts to attract customers and create jobs.