Agenda Item Name:
Title
Discussion of the Adoption of a Newberry CRA
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Presenter:
Bryan Thomas, Dir of Planning & Economic Development, City of Newberry
Sean McLendon, Strategic Initiatives Manager
Description:
Discussion of a Newberry CRA Redevelopment Plan
Recommended Action:
Recommended Action
Deny the approval of the Newberry CRA Redevelopment because of inconsistencies with Board adopted Interlocal Agreement.
Alternatively, the Board may propose an amendment to the interlocal agreement with a modified initial term of 2021 and a 2019 base year of valuation. And authorize the Chair to sign the amended interlocal agreement. Conditionally approve CRA plan, contingent on approval of interlocal agreement by Newberry.
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Prior Board Motions:
At the June 28, 2021 Joint Meeting of the Board of County Commissioners and Newberry City Commission, by consensus, the Board of County Commissioner stated that goal is to hear the matter in August. Chair Cornell stated that the City of Newberry will have time to address questions or concerns at the Public Hearing.
At the June 25, 2019 Regular Meeting, the Board authorized the Chair to sign an interlocal agreement and resolution authorizing the City of Newberry to begin the process of establishing a Community Redevelopment Agency.
At the May 13, 3019, Joint Meeting of the Board of County Commissioners and Newberry City Commission, Commissioner Cornell moved that the County move forward with the Interlocal Agreement authorizing the City of Newberry to begin the process of establishing the Community Redevelopment Agency.
The Interlocal Agreement should have a starting year and base year of 2020.
At the Board of County Commissioners' April 23, 2019, meeting, the Board directed "that we have all the (CRA) documents updated and ready for approval at the May 13th meeting."
May 14, 2018 motions (2x)
Commissioner Hutchinson moved to direct the County Manager and County Attorney to work with their counterparts in Newberry to draft an agreement for both Commissions that includes the terms of transferring county roads to municipalities in return for specified improvements. Included in the analysis should be who/when to trigger the transfer, the standards which shall be used for the improvements, and the sources of funds.
The motion carried 5-0
Commissioner Cornell moved to move forward with the City of Newberry to Implement the CRA as presented and bring it before the Board by June 30, 2018.
The motion carried 5-0
July 11, 2017 Regular Meeting
Commissioner Pinkoson moved the following:
1. To direct the County Manager and County Attorney to bring back a revised Interlocal Agreement with the City of Newberry revising Item #3 with language that prevents debt beyond the length of the term of the CRA and the interest rate of interagency or intergovernmental loans.
2. That this issue will be brought back with the roads issue with the road issue to precede the discussion on the CRA.
3. Request that the City of Newberry provide two models one with and one without the parcels in question (undeveloped parcels) to see what the economic impact would be.
The motion carried 5-0
Fiscal Consideration:
Fiscal Consideration
The City of Newberry has projected a 2022 equal TIF contribution of $6,456 for the City and the County, totaling $12,912. Their financial projections have this annual total growing by 1.5% per year through 2041.
This CRA is not yet in place in Alachua County, is not in the budget, and as such, this can be discussed during FY22.
If the alternative motion is adopted by the Board to amend the interlocal agreement, the projected TIF contribution will be $7,654 for the City and the County, totaling $15,308.
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Background:
Because the Newberry CRA Redevelopment Plan is inconsistent with the Board’s adopted Interlocal Agreement, staff recommends denial of the plan. The City of Newberry and Alachua County on June 25, 2019 signed interlocal agreement and resolution 2019-68 establishing a CRA. The initial term of the agreement was to begin in January 2020 running for 20 years. The County agreed to use the City’s millage for TIF contribution.
The other substantive terms of the agreement are:
• County signs off on redevelopment plan and amendments;
• plan projects shall not "include projects on or directly serve" certain undeveloped properties;
• 30% cap on administrative costs;
• redevelopment agency may issue bonds;
• City may loan funds to the redevelopment agency but only at a 0% interest;
• and the County's contribution is based on the City's millage rate, not the County's.
For consistency, the City of Newberry should amend their redevelopment plan to fit the adopted interlocal agreement.
An alternative to the City of Newberry amending the Redevelopment Plan would be for the Board to consider the adoption of a modified interlocal agreement with an initial term to 2021 and a valuation base year of 2019. If the Board pursues this alternative, the TIF differential of moving the valuation back to 2019 will be an additional $1,198 to both the City and County at $7,654 for a total estimated first year contribution of $15,308.