HomeMy WebLinkAbout1999 05 10 Regular Item A
COMMISSION AGENDA
ITEM A
Consent
Informational
Public Hearing
Regular X
May 10. 1999
Meeting
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Authorization
REQUEST: The Community Development Department - Planning Division requests the
Commission adopt Resolution 879 finding that the area on the map attached to
Resolution 879 is a "blighted area",(ImTsuant to Section 163.340(8) F.S. and
declaring its intention to create a Community Redevelopment Agency.
PURPOSE: The purpose of this agenda item is to request the Commission adopt Resolution
879 finding that the area on the map attached to Resolution 879 is a "blighted
area" and declaring its intention to create a Community Redevelopment Agency.
Passage of the resolution is required as a first step in the process toward
establishing a Community Redevelopment Agency, preparing a Community
Redevelopment Plan and establishing a Tax Increment Financing Program to fund
improvements in the expanded Town Center of approximately 900 acres.
APPLICABLE LAW AND PUBLIC POLICY:
The provisions of 163.356 F.S. which state (1) Upon a finding of necessity as set forth in
163.355 F.S., and upon a further finding that there is a need for a community redevelopment
agency to function in the county or municipality to carry out the community redevelopment
purposes of this part, any county or municipality m~y create a public body corporate and politic
to be known as a "community redevelopment agency". Each such agency shall be constituted as
a public instrumentality, and the exercise by a community redevelopment agency of the powers
conferred by this part shall be deemed and held to be the performance of an essential public
function. . . .(2) When the governing body adopts a resolution declaring the need for a
community redevelopment agency, that body shall, by ordinance, appoint a board of
commissioners of the community redevelopment agency. The City Commission may appoint
itself the Community Redevelopment Agency governing body,
MAY 10, 1999
REGULAR AGENDA ITEM A
Page 2
CONSIDERATIONS:
· In order for the City to take advantage of the financing tool of Tax Increment
Financing (TIF), a declaration that "blight" or "slum" conditions exist must be
made by the City Commission by resolution.
· For the purposes of the proposed Community Redevelopment Area, the definition
of "blighted area" (per 163.340(8) should be used. The definition is as follows:
(8) Blighted area means either:
(a) An area in which there are a substantial number of slum, deteriorated, or
deteriorating structures and conditions or one or more of the following factors
which substantially impairs or arrests the sound growth of a county or
municipality and is a menace to the public health, safety, morals, or welfare
in its present condition and use:
1. Predominance of defective or inadequate street layout;
2. Faulty lot layout in relation to size, adequacy, accessibility or
usefulness;
3. Unsanitary or unsafe conditions;
4. Deterioration of site or other improvements;
5. Tax or special assessment delinquency exceeding the fair value of
the land; and
6. Diversity of ownership or defective or unusual conditions of title
which prevent the free alienability of land within the deteriorated
or hazardous area; or
(b) An area in which there exists faulty or inadequate street layout; inadequate
parking facilities; or roadways,. Bridges, or public transportation facilities
incapable of handling the volume of traffic flow into or through the area,
either at present or following proposed construction.
· Upon finding and declaring a condition of "blight", the City Commission may
adopt an ordinance appointing a board of commissioners for a Community
Redevelopment Agency (CRA).
· The board for the CRA shall consist of not fewer than 5 or more than 7
commissioners, and may be the City Commission.
. The City Commission may elect to designate itself upon adoption of a resolution
declaring and documenting that "blight" or "slum" conditions exist as well as
designate up to 2 other board members to serve on the board of Commissioners
for the CRA.
MAY 10, 1999
REGULAR AGENDA ITEM A
Page 3
· The City Commission designates a chairman and Vice-chairman from among the
board of Commissioners for the CRA.
FUNDING:
Tax Increment Financing would be used upon establishment of a Redevelopment Trust Fund by
the City Commission.
STAFF RECOMMENDATION:
Staff recommends that the Commission adopt Resolution 879 finding that the area on the
attached map to Resolution 879 is a "blighted area" and declaring its intention to create a
Community Redevelopment Agency that would develop a "Community Redevelopment Plan"
for the approximately 900 acres of the expanded "Town Center", and to declare the City
Commission as the governing branch of the CRA.
ATTACHMENTS:
. Resolution 879
· Memo to Charles Carrington from Ron McLemore
· Memo to Ron McLemore from Robert Guthrie
· Memo to John Govoruhk from Thomas Grimms
. Report on Establishing for the City a Community Redevelopment District,
Community Redevelopment Agency, Tax Increment Financing
COMMISSION ACTION:
RESOLUTION 879
AN RESOLU ION OF THE CITY COMMISSION OF THE
CITY OF WI TER SPRINGS, FLORIDA: FINDING THAT
THE AREA ON THE ATTACHED MAP WITHIN THE
CITY OF WINTER SPRINGS, FLORIDA, IS A
"BLIGHTED AREA" AS DEFINED IN 163.340(8)
FLORIDA I STATUTES, AND THAT THE
REHABILIT~TION, CONSERVATION OR
REDEVELOPMENT, OR A COMBINATION THEREOF
OF SAID Ary!EA IS NECESSARY IN THE INTEREST OF
THE PUBL C HEALTH, SAFETY, MORALS AND
WELFARE OF THE RESIDENTS OF THE CITY;
,DESIGNATIlNG SAID AREA AS THE WINTER SPRINGS
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,TOWN CENTER COMMUNITY REDEVELOPIVIENT
AREA; FINI!>ING THAT THERE IS A NEED FOR A
COMMUNI*, REDEVELOPMENT A~ENCY TO CARRY
OUT COMMUNITY REDEVELOPMENT 'VITI-UN SAID
WINTER SPRINGS TOWN CENTER COMMUNITY
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REDEVELOPMENT AREA.
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WHEREAS, the Legislature of the State of FIOlida enacted the Community
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Redevelopment Act of 19691 as amended; and
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WHEREAS, the City) Commission of the City of Winter Springs finds the area
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indicated on the attached map to this Resolution (879) meets the definitions and
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requirements of the tenn "bl~ght" as defined in 163.340(8) Florida Statutes, specifically
that there is a (1) Predomin1nce of defective or inadequate street layout~ (2) Faulty lot
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layout in relation to size, i adequacy, accessibility or usefulness; (3) Diversity of
ownership and "all of (b)", '
WHEREAS, the City Commission finds that this "blighted area", indicated on
the attached map to tins Resolution, constitutes an economic liability imposing onerous
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burdens wInch decrease tile ~ax base and reduce tax revenues, and substantially impairs
or arrests sound growth; and!
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WHEREAS, The CitY Commission declares that the preservation or
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enhancement of the tax basel from which the City realizes tax revenues is essential to its
existence and financial health and that the preservation and enhancement of such tax
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base is implicit in the purppses for which a taxing authority is established; that tax
increment financing is an I effective method of aclneving such preservation and
enhancement in such areas; ~d that community redevelopment in such "blighted areas"
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when complete, will enhance such tax base and provide increased tax revenues; and
WHEREAS, tile City, Commission of the City of Winter Springs, Florida has
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detennined it to be in the be~t interests of the health, safety and welfare of the citizens of
Winter Springs, Florida to cause the creation of a CommlU1ity Redevelopment Agency
to prepare a Community Re~evelopment Plan to address the "blighted area" within the
City.
NOW, THEREFORE;, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF WINTER SI?RlNGS, FLORIDA THAT:
1, The area in the attached map to this Resolution is hereby found and declared to
be a "blighted area" as defined in 163.340(8) Florida Statutes.
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2. The area depicted in ~he attached map to this Resolution shall be known as the
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Winter Springs TownlCenter Commmuty Redevelopment Area.
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3. The rehabilitation , c9nservation or redevelopment, or a combination thereof, of
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such area is ,necessafY in the interest of the public health, safety, morals and
welfare of the residents of the City of Winter Spl1ngS,
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4. There is a need for a I ommunity Redevelopment Agency to nmction in the City
to carry out the cm unity redevelopment purposes of Chapter 163 Part ill
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Florida Statutes, in the area depicted in the map attached to tins Resolution.
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The ~City COmmiSSi~n declares itself to be the board of cOlmnissioners of the
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COlmnunity Redeveldpment Agency in accordance with 163.357(1)(a), (b), (c)
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FIOlida Stahltes. !
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The City staff or other designee shall prepare a COlmmmity Redevelopment Plan
in accordance with 143360 Florida Statutes.
All prior resolutions ~ direct conflict with tIns resolution are superseded by tins
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6.
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resolution.
If any word, phrase, sentence, paragraph or section of tins resolution is struck by
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a court, the remainde1 of said resolution shall remain effective.
This Resolution for 111e City [hall become effective immediately upon its adoption..
PASSED AND ADOPTED ithis 10u1 day of May, 1999
8.
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PAut>P. P~illYKA, MAYOR
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"\ U~CES, INTERIM CITY CLERK
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CITY OF WINTER SPRINGS, FLORIDA
Ronald W. Mclemore
City Manager
1126 EAST STATE ROAO 434
WINTER SPRINGS, FLORIOA 32708-2799
Telephone (407) 327-1800
MEMORANDUM
From:
Ronald W. McLemore, City Manager
To:
Charles Carringotn, Community Development Director
Date:
April 26, 1999
Subj:
Redevelopment District
Please review these documents and prepare a draft ordinance on agenda item
creating the district around the entire 900 acres.
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attachment
WordlMe mol Apr99/CC arringlon
LAW OFFICES
FRANK KRUPPENBACHER, P.A.
A Professional Association
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Frank. Kruppenbachero
Robert D. Guthrie
P,Q, Box 3411
Otlando, Florida 32802-3471
105 E. Robinson Street, Suire 201
Orlando, Florida 32801-1622
Telephone (4<l7) 246-<)200
Facshnile(407)426-7767
· AlSD AdmiUe-d ill Colo~do
MEMORANDUM
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SUBJECT:Creatlng a Redevelopment Agency (fj? 0>
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DATE: April 7, 1999//Draft for Discussion
TO:
Ronald W. McLemore
FROM:
Robert D. Guthrie
Part m of Chapter 163, Florida Statu1es, authorizes the creation of a Community redevelopment
agency (eRA) by a city. I enclose a copy ofllie law for yom information.
Critical to our circumstance are the definitions of "Blighted area" and "community
redevelopment area" set forth in Section 163.340. Substantial portions of the definitions relate to
standards of "blight" and "slum, deteriorated, or deteriorating structures and conditions.....
However, the law bas been liberally construed and contains standards in the definitions of blight that
read as follows:
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Section 163.340: .(
"(8) ''Blighted area" means either: / (J
(a) An area in which there are ...... ..,,-or one or more of the following
factors that impairs or arrests the sound growth of a county or
municipality .....:
1.
2.
7. Inadequate transportation or parking facilities; and
8. .......-..
(b) An area in which there exists faulty or inadequate street layout;
inadequate parking facilities; or roadways, bridges, or public
transportation facilities incapable of handling the volume of traffic flows
into or through the area, either at present, or following proposed
construction. "
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My initial conclusion is that we can make the Town Center qualify for CRA designation under
the criteria in the law. Since ours would be a "non-traditional" blighted area we might see resistance
from certain quarters. For instance, the County might be pmticularly concerned ifwe intend to use tax
increment financing to fund district activities. The trust fund would capture the "tax increment" spun
off from new development in the Town Center. The result of this would be that if we created the
"Redevelopment trust fund" pursuant to Section 163.387, all tax revenues resulting from improvements
to the real property in the CRA area greater than the base year when the trust fund was created, would
be paid by the County Tax Collector to the Town Center eRA trust fund. Since school districts are
exempt by law from trust fund contributions, the biggest revenue impact would be on the County and
certain of its special districts. While this may be a political consideration, the city does not need the
county's "permission" or approval to create a eRA or accompanyinfredevelopment trust fund,
The general steps in creating a CRA are:
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= A Resolution finding and declaring blighting conditions as specified in the law, and
described above, per Section 163.335; and,
= Creation of a redevelopment agency, which can either be a separate agency of citizen
members; or, the City Commission; or, the City Commission with two additional citizen
members; and,
= A resolution declares the "need" for the agency and creates it; and,
= The powers to be conferred on the agency can be articulated here (note this is more
critical if a citizen redevelopment agency is created than when the City Commission
serves in this cap!!City;tl1~2e specifically withholds certain powers from lay CRAs);
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= A redeVelOP~ prepared under the auspices of the redevelopment agency and
adopted by the City Commission for an area identified by the City Commission as the
redevelopment area; and,
= Once the plan is adopted by the agency and the City Commission, the redevelopment
trost fund can be created, if desired.
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Only the City Commission can amend the plan or modify the redevelopment area; approve the
acquisition, disposition or sale of real property; authorize the issuance of bonds or other indebtedness;
Of, the exercise of eminent domain. Because these powers are reserved to the City Commission many
cities or counties designate the Commission as the redevelopment agency,
The redevelopment plan must be consistent with the City's comprehensive plan (so the City
Planing and Zoning Board should review it and determine consistency as part of the adoption process).
Once the plan is adopted is adopted by Ordinance, it may be amended by ordinance. No automatic
review Or approval at the state level is required by law, absent a challenge based on consistency only.
This is a quick run-down of the steps in creating the CRA agency.
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JUL 1 3 1995;
CITY OF WINTER SPRINGS, FLORIDA
1126 EAST STATE ROAO 434
WINTER SPRINGS, FLORIOA 32708-2799
Telephone (407) 327-1800
CITY OF WINTER SPRINGS
City Manager
MEMORANDUM
TO:
John Govoruhk, City Manager
John Ketteringham, General Services Director
Don LeBlanc, Land Management Specialist
FROM:
Thomas Grimms, AICP Community Development Coordinator ~
July 7, 1995
DATE:
RE:
Report on Establishing a Community Development District,
Agency, and Tax Increment Financing.
Please find attached a draft Report on Establishing for the City a
Community Development District, Agency, and Tax Increment
Financing.
This report closely follows the requirements of community
redevelopment found in Chapter 163, Part III Florida Statutes,
discusses financing and ends with a recommendation that
establishment of a Community Redevelopment Agency should be pursued
by the city if a finding of "transportation blight" is confirmed
for a portion of S.R. 434.
While this is not intended to be an exhaustive report, it does
provide "a road map" for approaching redevelopment in the city.
}<E:CEIVED
JU L 071995
(:'::'i'-' ;;.1 VVinl6r" Spdn9"'l
r,,-:ro,jti::I~AL SERVICES
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CITY OF WINTER SPRINGS, FLORIDA
1126 EAST STATE ROAO 434
WINTER SPRINGS. FLORIOA 32708-2799
Telephone (407) 327-1800
REPORT
ON ESTABLISHING FOR THE CITY A
COMMUNITY REDEVELOPMENT DISTRICT
COMMUNITY REDEVELOPMENT AGENCY
TAX INCREMENT FINANCING
July, 1995
TABLE OF CONTENTS
PURPOS E. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
COMMUNITY REDEVELOPMENT AGENCY (CRA)............................1
ESTABLISHMENT OF A COMMUNITY REDEVELOPMENT AGENCY...............1
SUBMISSION OF COMMUNITY REDEVELOPMENT PLAN......................2
ESTABLISHMENT OF REDEVELOPMENT TRUST FUND.......................3
POWERS/DUTIES OF THE COMMUNITY REDEVELOPMENT AGENCY.............3
COMMUNITY REDEVELOPMENT PLANS................................... 4
Content. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Submittal Procedure........................................ 6
TAX INCREMENT FINANCING (TIF)................................... 7
How It Works.............................................;,. 7
Projects/Activities Eligible for TIF Funding...............8
CREDIT ENHANCEMENT CONSIDERATIONS...............................9
OTHER FUNDING SOURCES........................................... 9
LEGAL STATUS................................................... 10
CRAs and Their Use of Tax Increment Financing.............10
PUblic/Private Partnership................................10
CRA Use of TIF at Expense of Other Taxing Districts.~.....10
CITY'S ELIGIBILITy............................................. 11
Definition of Blighted Area and Slum Area.................11
ci ty Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
City Objective/Policy on Blight and Slum Areas............13
Current and Future Level of Service (LOS) on S.R. 434.....13
CONCLUSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
RECOMMENDATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
COMMUNITY REDEVELOPMENT
PURPOSE:
The Florida Legislature concerned that "slum and blighted areas"
exist in cities and counties, passed the Community Redevelopment
Act of 1969 with specific regulations found in 163.330 to 163.450
Florida statutes.
COMMUNITY REDEVELOPMENT AGENCY
A Community Redevelopment Agency is a public agency appointed by
the governing body of the city or county in the respective
jurisdiction (or the county may appoint in the city if the city
concurs) to carry out the purposes of a Community Redevelopment
Plan.
ESTABLISHMENT OF A COMMUNITY REDEVELOPMENT AGENCY:
In order to establish a community Redevelopment Agency (CRA) and a
Tax Increment Financing District in accordance with Chapter 163
Part III F.S., the following steps must be taken:
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1.
The City must notify Seminole County (and any other
taxing authority which levies ad valorem taxes on taxable
real property contained wi thin the boundaries of the
proposed redevelopment area) of the intent to declare a
"blight" condition exists, create a CRA, approve, adopt,
or amend a Community Redevelopment Plan. (163.346 F.S.)
a. Notification to taxing authorities must be by
public notice pursuant to 125.66(2) and (4) or
166.041(3); and
b. Mail by register mail at least 15 days before such
proposed action the notification to taxing
authorities.
2. The city must adopt a resolution declaring and
documenting that "blight" or "slum" conditions exist;
specifically: (163.355 F.S.)
a. One or more slum or blighted areas [per
163.340(7) (8) F.S.], or one or more areas in which
there is a shortage of housing affordable to
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residents of low or moderate income, including the
elderly, exists; and
b. The rehabilitation, conservation, or redevelopment
or a combination thereof, of such area or areas is
necessary in the interest of the public health,
safety, morals, or welfare of the residents.
3. The city must adopt a resolution identifying the need for
a "Community Redevelopment Agency" CRA.
4. The City must adopt an ordinance appointing a board of
commissioners for the CRA. (163.356(2) F.S.)
a. The board shall consist of not fewer that 5 or more
than 7 commissioners.
b. The term of office shall be for 4 years; except
that of the members first appointed shall be
designated to serve 1, 2, and 3 years respectively,
from the date of their appointments, and all other
members shall be designated to serve for terms of 4
years from the date of their appointments.
NOTE: city commission may elect to designate itself
upon adoption of a resolution declaring and
documenting that "blight" or "slum" conditions
exist as well as up to 2 other board members
(163.357(a) (b) F.S.)
5. The City Commission designates a chairman and vice-
chairman from among the board of commissioners for the
CRA.
SUBMISSION OF COMMUNITY REDEVELOPMENT PLAN:
6. The CRA submits a "Community Redevelopment Plan" it
recommends for approval to: (163.360 (4) F. S. )
a. The City commission; and
b. To each taxing authority that levies ad valorem
taxes on taxable real property contained within the
boundaries of the redevelopment area.
7.
The City Commission holds a
Community Redevelopment Plan;
approve the plan, if it finds:
public hearing on the
the City commission may
a. A feasible method exists for the location of
families who will be displaced from the community
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redevelopment area in decent, safe, and sanitary
dwelling accommodations within their means and
without undue hardship to such families;
b. The Community Redevelopment Plan conforms to the
City's Comprehensive Plan;
c. The Community Redevelopment Plan gives due
consideration to the provision of adequate park and
recreational areas and facilities that may be
desirable for neighborhood improvement, wi th
special consideration for the health, safety and
welfare of children residing in the general
vicinity of the site covered by the plans; and
d. The Community Redevelopment Plan will afford
maximum opportunity, consistent with the sound
needs of the City as whole, for the rehabilitation
or redevelopment of the community redevelopment
area by private enterprise.
ESTABLISHMENT OF REDEVELOPMENT TRUST FUND:
8. The city commission adopts an ordinance establishing a
Redevelopment Trust Fund.
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Upon completion of the above eight steps, the CRA is then charged
with carrying out the Community Redevelopment Plan. The CRA should
facilitate new private sector investment by taking actions that
will encourage new construction, revitalization, and intensified
use of existing facilities which will broaden the area's tax base
and provide for public improvements through tax increment
financing.
POWERS/DUTIES OF THE COMMUNITY REDEVELOPMENT AGENCY
1. The powers include all the powers necessary or convenient
to carry out and effectuate the purposes and provisions
of Chapter 163 Part III F.S. (163.358 F.S.) including:
a. Employment of an executive director, technical
experts, and such other agents and employees,
permanent and temporary, as it requires.
b. Employment of its own counsel and legal staff.
c. Filing with the City and with the Auditor General,
on or before March 31 of each year, a report of its
activities for the preceding fiscal year, which
report shall include a complete financial statement
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setting forth its assets, liabilities, income, and
operating expenses as of the end of such fiscal
year.
d. Publishing in a newspaper of general circulation in
the community a notice to the effect that such
report has been filed with the City and that such
report is available for inspection during business
hours in the Office of the Clerk of the city and in
the office of the CRA.
2. Except that the City commission continues to have:
a. The power to determine an area to be a slum or
blighted area, or combination thereof; to designate
such area as appropriate for community
redevelopment; and to hold any public hearings
required with respect thereto.
b. The power to grant final approval to community
redevelopment plans and modifications thereto.
c. The power to authorize the issuance of revenue
bonds as per 163.385 F.S.
d. The power to approve the acquisition, demolition,
removal, removal, or disposal of property as per
163.370(3) F.S. and the power to assume the
responsibility to bear loss as per 163.370(3) F.S.
COMMUNITY REDEVELOPMENT PLANS
Content:
The requirements of a Community Redevelopment Plan are at a minimum
per 163.362 F.S.:
1. Contain a legal description of the boundaries _-of the
community redevelopment area and the reasons for
establishing such boundaries shown in the plan.
2. Show by diagram and in general terms:
a. The approximate amount of open space to be provided
and the street layout.
b. Limitations on the type, size, height, number, and
proposed use of buildings.
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c. The approximate number of dwelling units.
d. Such property as is intended for use as public
parks, recreation areas, streets, public utilities,
and public improvements of any nature.
3. If the redevelopment area contains low or moderate income
housing, contain a neighborhood impact element which
describes in detail the impact of the redevelopment upon
the residents of the redevelopment area and the
surrounding areas in terms of relocation, traffic
circulation, environmental quality, availability of
community facilities and services, effect on school
population, and other matters affecting the physical and
social quality of the neighborhood.
4.
Identify specifically any publicly
proj ects to be undertaken wi thin
redevelopment area.
funded capital
the commun i ty
5. contain adequate safeguards that the work of
redevelopment will be carried out pursuant to the plan.
6. Provide for the retention of controls and the
establishment of any restrictions or covenants running
with land sold or leased for private use for such periods
of time and under such conditions as the City deems
necessary to effectuate the purposes of Chapter 163 Part
III F.S.
7. Provide assurances that there will be replacement housing
for the relocation of persons temporarily or permanently
displaced from housing facilities within the community
redevelopment area.
8. Provide an element of residential use in the
redevelopment area if such use exists in the area prior
to the adoption of the plan or if the plan is intended to
remedy a shortage of housing affordable to residents of
low or moderate income, including the elderly.
9. Contain a detailed statement of the projected costs of
the redevelopment, including the amount to be expended on
publicly funded capital projects in the community
redevelopment area and any indebtedness of the community
redevelopment agency, the city proposed to be incurred
for such redevelopment if such indebtedness is to be
repaid with increment revenues.
10. Provide a time certain for completing all redevelopment
financed by increment revenues. Such time certain shall
occur no later than 30 years after the fiscal year in
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which the plan is approved, adopted, or amended pursuant
to 163.361(1) F.S.
Submittal Procedure:
The City or the Community Redevelopment Agency may itself prepare
or cause to be prepared a Community Redevelopment Plan, or any
person or agency, public or private, may submit such a plan to the
CRA.
1. The community Redevelopment Plan shall:
a. Conform to the comprehensive plan of the city.
b. Indicate such land acquisition, demolition and
removal of structure, redevelopment, improvements
and rehabilitation as may be proposed to be carried
out in the community redevelopment area, zoning and
planning changes, if any, land uses, maximum
densities and building requirements.
2. Prior to its consideration of a Community Redevelopment
Plan, the CRA must submit the plan to the Local Planning
Agency (LPA) for review and recommendations as to its
conformity with the comprehensive plan for the
development of the city as a whole.
3.
The LPA must submit its written recommendations with
respect to the conformity of the proposed Community
Redevelopment Plan to the CRA within 60 days after
receipt of the plan for review.
4. Upon receipt of the recommendations of the LPA, or, if no
recommendations are received in such 60 days, then
without such recommendations, the CRAW may proceed with
its consideration of the proposed Community Redevelopment
Plan.
5. The City Commission holds a public hearing on the
Community Redevelopment Plan; the city Commission may
approve the plan.
6. Upon approval the approval by the City Commission of a
Community Redevelopment Plan or of any modification
thereof, such plan or modification shall be deemed to be
in full force and effect for the respective community
redevelopment area, and the city may then cause the CRA
to carry out such plan or modification in accordance with
its terms.
6
TAX INCREMENT FINANCING
Tax Increment Financing is a popular method for cities throughout
the country to redevelop urban areas through public improvements
which promote private sector activity. In the early 1980s, many
Florida cities established eRAs to facilitate their redevelopment.
As the tax increments have increased, many redevelopment areas now
have sufficient revenues to support significant levels of bonds.
HOW IT WORKS:
The TIF process in Florida works as follows:
1. The locality designates an area as slum or blighted.
2. A redevelopment plan is prepared and locally adopted
after public hearing.
3. Assessed values within the redevelopment area are
recorded for the year immediately preceding the ordinance
establishing the TIF trust fund. The aggregate of these
values becomes the "base level" for TIF calculation
purposes.
4. For the duration of the redevelopment project, or for the
period set out in the redevelopment plan, annual
assessments are allocated as follows:
a. All taxes are initially allocated to the respective
taxing authorities.
b. Amounts up to the base level remain within the
taxing authority's jurisdiction.
c. Following notice to the taxing authorities, 95% of
the annual increments (defined as the difference
between the increased assessed value and the "base
level" value) are directed to the redevelopment
trust fund for purposes specified in the plan
(e.g., to pay directly for infrastructure
improvements such as sidewalks or street lighting,
or to be pledged toward retirement of bonds issued
by the redevelopment authority.)
5. Following the TIF period specified in the redevelopment
plan, taxing authorities receive both the base level and
increments. (See Appendix - Exhibits A and B)
The tax collector collects the entire property tax and subtracts
the tax on the base value which is available for general government
7
purposes. Of the remaining tax increment revenues, 95% are
deposited to the Redevelopment Trust Fund. The remaining 5% are
kept by the local government as a collection fee.
The tax increment revenues can be used immediately, saved for
particular projects, or can b~ bonded to maximize the funds
available. Any funds received from a tax increment financing
district, however, must be used for the redevelopment of the area
and not for general government purposes.
PROJECTS/ACTIVITIES ELIGIBLE FOR TIF FUNDING:
As indicated in 163.387(6) F.S., the monies can be used for the
following purposes:
* Establishment and Operations:
Implementation and administrative expenses of the
Community Redevelopment Agency.
* Planning and Analysis:
To develop the necessary engineering, architectural and
financial plans.
* Financing:
The revenues may be used to issue and repay debt.
* Acquisition:
The revenues may be used to acquire real property.
*
Preparation:
The revenues may be used for site preparation, including
the relocation of existing residents.
The monies cannot be used for the following purposes:
*
Construction:
To construct
public bodies
agrees;
or expand administration buildings for
unless each taxing authority involved
* Not part of redevelopment:
An pUblicly-owned capital improvements which are not an
integral part of the redevelopment if the improvements
are normally financed by user fees, and if the
improvements would have otherwise been made without the
CRA within three (3) years; or
* Unrelated Operating Expenses:
General government operating expenses unrelated to the
CRA.
8
CREDIT ENHANCEMENT CONSIDERATIONS
In municipal finance, there three (3) traditional methods of credit
enhancement: bond insurance, a letter of credit, or pledges of
additional revenue sources. cities utilizing tax increment
financing typically rely on bond insurance and additional revenue
sources to strengthen the issue and thus obtain higher bond rating
and lower interest rate.
Bond insurance
requirements:
companies
generally
share
these
typical
1. 1.25 Debt Service Coverage for the most recent Fiscal
Year.
2.- An adequate debt service reserve.
3. Development potential in the project area, including
recent private investment and a diversified tax base.
4. An appropriate additional bonds test.
Required documents include a feasibility study, three (3) years
worth of audited financial statements on the issuer and sponsoring
agency, base year valuations, tax rates and incremental revenues,
and a list of the major taxpayers with a description of their
principal business.
I
j,
i
OTHER FUNDING SOURCES
Some cities have elected to use funding arrangements other than TIF
for their CRAs. Plantec Corp., in their study, Altamonte Sprinqs
Central Development Plan, notes that "although a number of options
such as Community Development Corporation Support and Assistance
grants and loans, the SBA "503 and 504 Program", the Florida Small
cities Community Development Block Grant Program, Special
Assessment Districts, General Obligation Bonds, and Revenue Bonds
backed by parking fees or lease arrangements are avairable as
alternative financing sources, none of these offer the inherent
advantages found in TIF. . For instance, there are no special
restrictions or requirements from other governmental entities that
otherwise might accompany the granting of funds. This independence
permits local autonomy in setting priorities and spending the
funds. Another advantage if TIF is that it generally does not
require the local government to make any out-of-pocket
expenditures. Instead, bonds can be issued for capital
improvements or other project costs in the redevelopment area, with
repayment pledged by the increase in ad valorem taxes. Moreover,
five-year bond anticipation notes can be utilized to provide "up
9
front" financing, which can later be refinanced by a longer term
amortize~ bond issue, following the accumulation of earlier tax
increments. . .Although TIF is considered as the principal source
of revenue in [most CRA plans], it is important to point out that
impact fees - especially transportation-related exactions - will
also contribute to the revenue stream. . ."
LEGAL STATUS
CRAs AND THEIR USE OF TAX INCREMENT FINANCING
The validity of the CRAs and their ability to utilize Tax Increment
Financing was upheld in 1980 when the Florida Supreme Court
affirmed a circuit court validation of bonds proposed to be issued
by the Miami Beach Redevelopment Agency under the Act. The court
upheld the constitutionality of the Act and use of tax increment
financing. Challenges had been based on Miami Beach Redevelopment
Agency's authorization to commence bond issues, the use of eminent
domain for community redevelopment, and a challenge that the bonds
would actually be paid from ad valorem tax revenues which had not
been approved under referendum.
PUBLIC/PRIVATE PARTNERSHIP
I..
i
The legality of the public and private partnership utilized for
redevelopment of a Community Redevelopment Area was upheld in 1982
when the Florida Supreme Court affirmed validation of bonds
proposed to be issued by Lakeland Downtown Development Authority.
This project would include resale to a private developer. The
court held that the prospect of partial private ownership did not
defeat the public purpose in eliminating slum or blighted areas and
thus allowed the issue.
CRA USE OF TIF AT EXPENSE OF OTHER TAXING DISTRICTS
The ability of CRAs to utilize Tax Increment financing even at the
expense of other taxing districts was upheld in 1986 when the
Florida Supreme Court affirmed a validation of bonds proposed by
the City of Daytona Beach to finance the acquisition of
construction of marina, streets, sidewalks, lighting and other
improvements. The State Attorney had challenged that requiring the
contribution tax increment revenue funds from other taxing
authorities including the Ponce De Leon Port authority, the East
Volusia Mosquito Control District, the East Volusia Transportation
Authority and the Halifax Hospital Medical Center is
unconstitutional and that the project had no relationship to the
purposes for which such entities are authorized to raise ad valorem
tax revenues. The court held that it was within the legislative
power to make community redevelopment one of the purposes of the
special tax district.
10
CITY'S ELIGIBILITY
The city of Altamonte Springs, while not having "blight" or "slum"
conditions such as dilapidated, run-down structures, nevertheless
established a CRA and was able to use tax-increment financing
because the state had designated the area as "blighted by traffic"
thus conforming to 163.355 F.S.
DEFINITION OF BLIGHTED AREA AND SLUM AREA:
The definition of IIBlighted area" as found in 163.340(8) F.S.
IImeans either:
(a) an area in which ,there are a substantial number of slum,
deteriorated, or deteriorating structures and conditions which
endanger life or property by fire or other causes or one or
more of" the following factors which substantially impairs or
arrests the sound growth of a county or municipality and is a
menace to the public health, safety, morals, or welfare in its
present condition and use:
1. Predominance of defective or inadequate street layout;
2. Faulty lot layout in relation to size, adequacy,
accessibility, or usefulness;
3. Unsanitary or unsafe conditions;
4. Deterioration of site or other improvements;
5. Tax or special assessment delinquency exceeding the fair
value of the land; and
6. Di versi ty of ownership or defective or unusual conditions
of title which prevent the free alienability of land
within the deteriorated or hazardous area; or
(b) An area in which there exists faulty or inadequate street
layout; inadequate parking facilities; or roadways, bridges,
or public transportation facilities incapable of handling the
volume of traffic flow into or through the area, either at
present or following proposed construction."
The definition of "slum area" as found in 163.340(7) F.S.~lImeans:
IIAn area in which there is a predominance of buildings or
improvements, whether residential or nonresidential, which by
reason of dilapidation, deterioration, age, or obsolescence;
inadequate provision for ventilation, light, air, sanitation,
or open spaces; high density of population and overcrowding;
the existence of conditions which endanger life or property by
fire or other causes; or any combination of such factors is
conducive to ill health, transmission of disease, infant
mortality, juvenile delinquency, or crime and is detrimental
to the public health, safety, morals, or welfare.1I
11
CITY ASSESSMENT:
Reviewing the definitions of "blighted area", the City of Winter
Springs has:
* No "substantial number of slum, deteriorated, or
deteriorating structures and conditions which endanger
life or property by fire or other causes", according to
the City's Comprehensive Plan Housing Element in Vol. 1
of 2, page HO 5 and 6; and Goal 1, Objective C of the
Land Use Element in Vol. 2 of 2 [as of April 27, 1992J
* No predominance of defective or inadequate street layout.
* - No faulty lot layout in relation to size, adequacy,
accessibility, or usefulness.
* No unsanitary or unsafe conditions.
* No tax or special assessment delinquency exceeding the
fair value of the land.
* No deterioration of site or other improvements.
* No diversity of ownership or defective or unusual
conditions of title which prevent the free alienability
of land within the deteriorated or hazardous area.
The City of Winter Springs has:
* An area in which there exists faulty roadways (S.R. 434
between U.S. 17/92 and S.R. 419) incapable of handling
the volume of traffic flow (especially during rush hour
traffic) into or through the area, either at present or
following proposed construction."
Reviewing the definition of "slum area", the City of winter Springs
has:
* No area in which there is a predominance of buildings or
improvements, whether residential or nonresidential,
which by reason of dilapidation, deterioration, age, or
obsolescence; inadequate provision for ventilation,
light, air, sanitation, or open spaces; high density of
population and overcrowding; the existence of conditions
which endanger life or property by fire or other causes;
or any combination of such factors is conducive to ill
health, transmission of disease, infant mortality,
juvenile delinquency, or crime and is detrimental to the
public health, safety, morals, or welfare, according to
the city's Comprehensive Plan Housing Element in Vol. 1
12
of 2, page HO 5 and 6; and Goal 1, Objective C of the
Land Use Element in Vol. 2 of 2 [as of April 27, 1992)
CITY OBJECTIVE/POLICY ON BLIGHT AND SLUM AREAS:
The city does state in its Comprehensive Plan:
"It is the City's objective to prevent any cases of
future blight by implementing policies to ensure
redevelopment and renewal of any areas of the City
before blight occurs." [Vol. 2 of 2 Land Use Element Goal I,
Objective C)
"To preserve and expand the quality of life achieved over the
last twenty year through. .refurbishing the original
townsite. . ." [Vol. 2 of 2 Housing Element Goal]
CURRENT AND FUTURE LEVEL OF SERVICE (LOS) ON S.R. 434 BETWEEN U.S.
17/92 AND S.R. 419:
According to the City's Comprehensive Plan Traffic Circulation
Element in Vol. 1 of 2 Table TC-15 the current Level of Service of
S.R. 434 between U.s. 17/92 to S.R. 419 is "C".
LOS "C" is "characterized by stable flow, but restrictions, in
freedom to select speed, to change lanes, or to pass is
becoming restricted for most drivers."
I
1'"
According to Table TC-17, the Level of Service is projected to
decline to "E" between u.S. 17/92 to Moss Road.
LOS "E" "indicates significant delays and lower operating
speeds. Such operations are caused by some combination of
adverse progression, high signal density, extensive queuing at
critical intersections, and inappropriate signal timing.
Driving comfort is low and accident potential is high.
--
CONCLUSION:
The City will have to base its necessity for creation of a CRA on
"blight" as a result of faulty roadways along the S.R. 434 corridor
incapable of handling the volume of traffic flow (especially during
rush hour traffic) into or through the area, presently and as
expected in the future with a deterioration to Level of Service "E"
on S.R. 434 from u.S. 17/92 to Moss Road.
13
Some of the deficiencies resulting in the faulty roadway of the
S.R. 434 Corridor are:
* Unacceptable travel time delays occur between Moss Road
and U.S. 17/92 where the average directional travel time
is approximately 12 to 15 minutes during rush hour. This
results in a average directional travel speed of 4 miles
per hour.
* The proliferation of local streets (11) intersecting with
a principal arterial (S.R. 434). S.R. 434 averages one
intersection every 330 feet between Sheoah Blvd. and Moss
Road.
* The absence of another east-west arterial. Arterials
should be spaced every mile from each other in an urban
setting.
*
The basis for creation of a CRA as a result of "slum areas" is not
supported by the findings in the City's Comprehensive Plan and
present in-field observati~n.
If actions are not taken to arrest the gradual decline of this
arterial corridor, the "transportation blight" will become
increasingly worse which is detrimental to the sound growth of the
City and which will substantially impair or arrest the growth
within the corridor and adjacent territory. The arterial corridor
is projected to become incapable of handling the volume of traffic
flow into or through the area.
RECOMMENDATION:
The city should commission a study to confirm or not a finding of
"transportation blight" on S.R. 434 between U.S. 17/92 and Moss
Road.
If a finding of transportation blight is confirmed, then the City
should proceed to establish a Community Redevelopment Agency (CRA)
and Redevelopment Trust Fund by following the steps outlined at the
beginning of this report.
-=
The monies from the TIF or other financing arrangement(s) could be
applied toward beautification improvements (streetscape) as
mentioned in the S.R. 434 Vision Project as well as those purposes
mentioned under the heading" PROJECTS/ACTIVITIES MONIES MAY BE USED
FOR:" in this report. (See Appendix - Exhibit C)
14
APPENDIX
...
,
--
I
I
EXHIBIT A
THE FORMULA USED TO DETERMINE THE AMOUNT OF THE TAX INCREMENT:
I fen-i)
WHERE:
I = the tax increment
r = the tax rate
n = the new assessed valuation produced by development
i = the assessed valuation at the time the plan was
adopted.
EXHIBIT B
TAX lNCREMENT FINANCING - A GRAPHIC EXPLANATION
>-
Point of lownr
AJOCU<<! V >oJ uc
'"
B.ne Yur Auc'Uc'd
V.J.lu.uion Flolen
.II Ihe Len.
Taxes that would have been lost without the program
Taxes lost because of clearance-never reeovered
~ Taxes paid to taxing agencies during renewal period
New tax incremen~ used for debt repayment
... ----..:p--.................~
~- ...>-- ?..__..-..... >-.....U1-"_._
-.-
VISION 434
~T>n'
TYPICAL SECTION. MEDIAN WITH SWALE
~.....4.&..4J..a....... \...
_ .~_v ~:
~_~L.~l_"!I"II<'l':J"
-:
= -
IOUH'OAJI,T: "'-=Iud.d - ... ..n:.... ~ ... '..1\. 'lA. .. 1. . clep1h of 200'. wNct......... It
fU.'......~ \0 ItW ,...-..d.........., ~ Ot.,""'" t.......,Ioo..
--- -
....~
......,~u~..___..._~~
~
'. "tOCVUOI"'lotOn' JJ4L4.:
'tv.. .......&oo-.d .... ... c.....ftCty f:Io,.,l-Cl.rQlolII b, ....~.. vt,.\Iu.... ~ .... .\1_ ..~ tnJ
~,.......c.~~.
Ah., 'ede",~~, .,... ..... -.011<1 .. u....,ICI.l'lllcl ., C..,tloII-..$ 0<1:.1. ~~ _...
............,.. _I'\.w, ~I.:C~ .~: ItI_ ~..., ...-..:l'\..ond.c"""",,, """"", -o-dootr
'" "''''''' ...ftwcl.. toe lW<tv\:l, tl\.e6e, ..... ....., ...-.tf~T: """" .........". ~.tolt>q .. ...... ...,
~..~..f.."r...v,
TN. CoIf'IlI<o '"~"" ~I.hv~ U~"ch 100' '"...~ 1>1 ~.,." .........
"CliPe'Tr:"~~O'v''''''~''''''.~efp.+.oICI~cod.''''_~
'rod~"",""".I""'6e...~.
2. 'O'W1ill COflE" tao...-:J...., '" 4:H. TU'~''''''I I'\oed. K1QI'l 5ct-001. '^" c....o"........... 1'''''1:
C,,'". ..--..~ I1loftd.Hd. tOO'~. ~J~ _.. 10 .^C.....~ urt)_ o.c", ~...~
u---.cColltl... "" .....crC_ ~.~ ............ "~eoc:~. .., "~tt'y .u....u. N.7- ....,--.,
.'4'''~''w~~w''Cf'''''''''~.I,..L-oI....oc;.oo ~.lI;.~..."","...
V\SlQH fOft 1'WE CONaOOA: Ct.,.. ....,............ ~",c..-.........t\Iot ".....~..tono r.. ~
"'-<<II .... .....-,p-.- ..... . .~ ~. ~... ., c~ Itru, ,,.., luktkt __
ptanc...n.,,&.nte.4 -~~~kIf'I~~ ~ ..-..:I.,.,. tCe........w:on...bI.o ~
."..,~M1b<tch....,.U-~.......~~.
'-----"
JESUP
......u.fUt:~..,AC:::ImA'fiIT1:~AU~
CM'I=-"9~'Jo""::I~f{J."::::~':;'(f~
. ""-"""
CAJfOI1T1'1l.U'~lHlUIlIC.UIHUA'~J.U ~
.,.t.OO(AfJ)~~.
~~--------- --.
--cm---:.<,,' 00 ~
l Yl.I.;r.,...--:x:..~'<<-r.I~ ~ &
ALTERNATIVE MEDIAN LANDSCAPE TREATMENTS
~>:.~
',.~-' ~- ~- ~~.~'~
EXISTING CONDITION
). HCW D(VUO,.,..fHTI
Thlt -. CUYIoIVty~.. Nt'" d'wwK'tIit. c"",c. 6e....l.ao-"" It-.d.,6<t CIlec..-l.-lt G"ooo lJ........uo.,
"'- rvnI... '"-t.......,..~ .",. ~ lOt l1'ot IJIl. ..).4 C...-.16oI. AJ'T._ ....~ v-..
- ~ lH dwt-.:h..cu4 by ~ed ac.ctu '"'"'" 'J\. 43-4 ~ ~ .-,'......~..
..-!ilNn~:COtIlrookd~:"'-'l:___ ..-..1~bvl'f_lte~ ~.~....c
W\H'onnIty; ..._~ UUN.ch tor p.rt..... lAd ~.: ..-.4 _Ill '--<~ N .,....\.0
l-v-e .."""".. e4 p.""'-<II .,....
HOff: n.. ....4.."'- hct"'-don olllv...rw14 tL..c1rlc., tral\......I.Uotl. I'~ ...w.~ .........
1It~.... lit .~t9-Cl. The "'I_My., ,.~., IQI'Inno n.tCh ..... ~... ~...
,. .,.... '........., '0 malnt.., "'" .c"_,. ......., V.",. III.ry ~ ItO.Iffy.
Of'oI.OUI' Ma:lOC 'CNI.-..a PAIl.oc:J
LANDSCAPE BUFFER ADJACENT TO
RIGHT -<:IF.WA Y
LAXE JESUP
t~@~~gJ~t~~
"""",..."
EXISTING CONDIT/ON
g ~L
. '
U4'TttlI.tQIu.Qf
~ 6<oU.,. /
, R fr"I\~, ~I ~~
"""''''''''''"''' vn.mu
"","un
I
I
I
I
1Il~~~1lI 'If~ ,.". -~~--
~IWALA _
- -----
~ ,:~. ---_.r...... , "
=~C~
- ...... ,.,
- .....
- ,
= ....,.."""""a.oo-o~
1II1111~',,~_,,_=
I . -.ftIICr~. ~__
I I" _....___'u..,
AFTER REDEVELOPMENT