Agenda Item Name:
Title
Chair Letter Supporting the City of Hawthorne Rural Economic Development Initiative (REDI) Application to the Department of Economic Opportunity
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Presenter:
Sean McLendon, Economic Development & Food Systems Manager
Description:
Request the Board to approve a Chair Letter in support of the City of Hawthorne’s REDI designation to the Florida Department of Economic Opportunity.
Recommended Action:
Recommended Action
Authorize the Chair to sign and forward the letter to the City of Hawthorne.
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Prior Board Motions:
At the October 25, 2022, regular meeting, the County authorized the Chair to sign the amended interlocal agreement.
On May 17, 2022, Alachua County agreed to contribute a minimum of $50,000 to the City of Hawthorne CRA with performance conditions. The amended interlocal agreement also requires the County to match the City of Hawthorne’s millage contribution. Based on a millage of 5.8594 the City and County will each contribute $39,616 to the CRA. In addition, the County will contribute a supplement amount of $10,384 to the CRA. The total contribution by all parties to the CRA if the Board approves the Agreement for FY23 will be $89,616.
Fiscal Consideration:
Fiscal Consideration
Per the Hawthorne Community Redevelopment Agency (CRA) interlocal agreement, the City must maintain its REDI designation with the State of Florida to receive the County’s supplemental funding. The 2023 conceptual estimated value of the County’s TIF contribution is $33,405, and the supplementary funding from the County to the CRA is $16,595 to create a minimum contribution of $50,000.
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Strategic Guide:
Strategic Guide
Social and Economic Opportunity
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Background:
In 2022, the City of Hawthorne and Alachua County renewed the CRA interlocal agreement. To align with other recent CRA agreements, the interlocal requires that the County and City TIF contributions match. However, in recognition of the unique economic circumstances of Hawthorne, the County committed to providing no less than $50,000 per year to the CRA on the condition that the City maintain its Rural Economic Development Initiative (REDI) designation with the State. Before the County makes the annual CRA payment, the City must attest that they maintain its REDI status with the State of Florida.
REDI designations help economically distressed communities by allowing State agencies to reduce or waive matching fund requirements for grants.
The mission of the Hawthorne 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 assist downtown merchants and local businesses in their efforts to attract customers and create jobs.