Communication Builds Our Community
Communication Builds Our Community
Bills Would Effectively Cripple Community Redevelopment Agencies
The future redevelopment of the Walesbilt Hotel and the ongoing Lake Wales Connected effort would be placed at serious risk if the Florida Legislature adopts a pair of bills currently being considered.
The potential for redevelopment of the Historic Walesbilt Hotel has been greatly enhanced by the efforts of the Lake Wales Community Redevelopment Agency, which funded major improvements to adjacent streets, sidewalks, landscaping, and other amenities. The CRA would likely be involved in future reconstruction both as a seller and potential partner in construction of a parking facility.
Florida House Bill 991 and Senate Bill 1242 would put severe restrictions on Community Redevelopment Agencies (CRAs) in Florida, effectively stopping their efforts to address declining neighborhoods.
“This is serious,” said Lake Wales CRA chairman Robin Gibson. “It is inconceivable to me that anyone in public office would be opposed to the redevelopment of communities, particularly those which are in decline. There is no logic to it.”
The Lake Wales CRA has been instrumental in the rebirth of the city's historic commercial district, having issued the bonds that funded the first phases of the huge project. The public investment has already attracted millions in private investment to the area, raising property values and generating new streams of public revenue.
Senator Stan McClain introduced the senate version of the bill that would effectively kill CRA efforts across Florida.
The CRA may also become a key partner in the future redevelopment of the historic hotel. That property is poised to fall back into city hands, as a lawsuit over ownership is nearing conclusion. Turning it back into use as a hotel by a private investor will likely require the cooperative construction of a parking garage which would also serve the downtown area demand.
The similar bills being considered would forbid CRAs in Florida from issuing new public debt. The construction of the garage would likely require tax-free municipal bonds, which would be repaid through garage user fees.
CRAs operate by capturing some of the increase in property taxes over time, known as the tax increment, and investing it within the defined boundaries of that CRA. It's a "bootstrap" method of improving areas that meet definitions of blight.
Hinting that some counties seem opposed to the CRA capture of a portion of county taxes along with city taxes, Gibson said the problem may be a failure to communicate.
“We should do a better job” teaching the public about the value and give the county equal credit for every project, Gibson said, pointing out that city and CRA taxpayers also pay county taxes, and that CRA projects raise the property tax bases long term for both cities and counties.
Senate Bill 1242, sponsored by newly-elected Senator Stan McClain is accompanied by a House Bill 991 introduced by Mike Giallobardo. Together the two would essentially stop those efforts.
Florida House Bill 991 is currently assigned to the Commerce committee. Mike Giallombardo is a member of that committee.
Representative Mike Giallombardo is the sponsor of a House bill that would slash the authority of CRAs across Florida.
The senate bill in currently before the Rules committee. Polk Senator Colleen Burton is a member of that committee. Lake Wales News has reached out to Senator Burton for comment on the proposed statute and its likely impact upon local economic redevelopment efforts. This story will be updated as a response is received.
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