Palm Beach PostApril 18, 2014
By: Laurence McNamara
City's Consultant was Misdirected
The Mayor and Commissioners of Lake Worth seem to have neglected to inform the consultant group hired to solve the financial troubles of our City that five of the six proposed projects are in CRA districts.
All of the increased tax revenue from new construction in these districts goes to the CRA, not to the beleaguered general fund which gets only the same paltry revenue from CRA district lots as it did when the CRA was authorized many years ago
This means that we taxpayers would bear the financial burden of infrastructure and concurrency, and the inconvenience of construction for the five proposals, without any increase in revenue from the properties: in short a drain on our general fund rather than an addition to it.
In order to make economic sense it would be wise for our Commission to request the CRA’s creditors to allow removal of these targeted properties from the CRA district, or focus developers on lots out of the CRA district so that we taxpayers and our City’s general fund will actually benefit from proposed projects..
Laurence McNamara
California did a study about Private vs. Government redevelopment called "The Unknown Government". The local CRA Programs submitted the information but dis-credited the final report because it clearly showed not only a waste of Money but abuse of unchecked unbalanced POWER by unelected, unaccountable gov workers!
ReplyDeleteIgnorance or Arrogance is NO EXCUSE!
I actually believe our elected don't quite understand how the TIF works.
CRA should have a place on EVERY CITY AGENDA so they are accountable and we the people can comment!
Luckily for us, the CRA is on most all agendas where there is anything to report. Most all is very positive for the district and the City.
ReplyDeleteWhy don't you explain Tax Incremental Funding works for all us dolts out here and up on the dias.
At least Lawrence got it right by stating that the city still gets taxes from the developed property and the CRA only receives funds IF the property value increases. The taxes generated by only the increase in value is what funds the CRA. It is also noteworthy that any county taxes for the increased value of a property stays right here in Lake Worth and is spent on worthwhile projects. So that counts as a win/win.
Where he is dead wrong is the comment about the concurrency and infrastructure not being covered by the development. Concurrency fees are paid before permits (also paid to the city)and utility hook up and infrastructure fees are paid to the city by the development.
Good thing we are not California which is in very dire financial shape, unlike Florida. CRA's in Florida contribute to necessary redevelopment in a very orderly fashion making sure development fits the area and incentavize development that will help achieve their stated goal.
Some cities have more than one district like West Palm Beach. City Place is one and Northwood is another.
How about Delray Beach? Their CRA built their parking garage, fund trolleys and Art in Public Places which adorn the main entrance as you come into the city.
Lake Worth's CRA has done everything right and is one of the best things about Lake Worth. Just try to imagine where we'd be without the initiatives brought about by our CRA. Publix, 6th and 10th Avenues, The Palm Beach Cultural Council, downtown parking lots, bicycle lanes, Urban Arts Lofts on just a very short list.
It really amazes me how short sighted some people are about the CRA.
Yes developers pay fees for concurrency and infrastructure but these are minimal and are far exceeded by the actual costs.
ReplyDeleteThe TIF, tax increment financing gives all the increments in revenue for properties in CRA districts(based on increases in taxable valuation) to the CRA. The County tax also goes back to the CRA, not to the City's general fund.
The expenditure of CRA funds on the various projects is a different and highly debatable issue.
My view of CRAs is that they are a mechanism by which taxpayers lose control of their tax dollars to un-elected officials who make questionable deals with developers over which citizens have little to no control; basically a politician-developer scheme to encourage in many cases unwanted and overpriced projects.
Regarding the concurrency statement above, they way I always have understood it is that concurrency regulations by Florida legislation, require that we have the capacity in stormwater, parks, solid waste, water, sewer, electric, etc. to serve each proposed development and that they are PAID BY THE DEVELOPER.
ReplyDeleteWhy then is the city asking taxpayers to pay for infrastructure at the Park of Commerce before we even have someone wanting to build? Just a question that came to mind.
I don't think "some people are short-sighted" about the CRA.
"Why then is the city asking taxpayers to pay for infrastructure at the Park of Commerce before we even have someone wanting to build? "
ReplyDeleteBecause in this case, the infrastructure is not there and without it, no one can build anything. Once the sewers and water and electric and roads are there, any industrial development will pay their fair share of the costs to construct that infrastructure.
As it stands now, if we had one such development, you can't have them pay to bring ALL the power, water, storm and sanitary sewer and improve the roads and intersections. That has to be in place before the first shovelful of dirt gets turned.
And Lawrence, you didn't mention in your op-ed that we retain the county portion of the TIF. Of course it went back to the CRA. The important thing to remember is that money would have gone to the county where we have no control how or where it is spent. ALL that was once county money stays here and is spent improving areas in Lake Worth that really need it.
The concurrency fees are anything BUT minimal. 20 years ago, I added a bedroom to my home. The impact fee was $900.00. Not too minimal considering the total project back then was $16,000.
I three short years, the CRA has watched over the demolition of and redevelopment of over 150 dwelling units. Many are now owner occupied single family homes. Many of the new owners are very involved in our city and members of boards and Neighborhood Associations. These were once crack houses, abandoned and deteriorating properties.
Many more are now housing for families in crisis and our workforce.
You may decry that they are "affordable" as if some investor in his right mind would put high end housing on our alphabet streets. We are an affordable city. Get over it. The Arts Lofts are "affordable". The new apartments on 6th and F will have in-unit washers and dryers, gas tankless water heaters and granite kitchen counter and vanity tops. They are affordable. Murray Hills is considered "affordable".
Demonizing people who are not well off and need "decent" affordable housing in place of all the slum properties we have here won't address the problem. YOUR CRA is addressing the problem and have been for the past decade.
The one thing that has worked as it should and benefited the City of Lake Worth and continues to do so is the CRA.
You should be thankful.
Is this Chip?
ReplyDeleteWhatever you do, do not change the boundaries of the CRA. BECAUSE--it was founded in 1989 to end after 30 years. In 2001 the boundaries were changed and that tacked on another ten years to the termination date. Now we have to wait until 2029. By that date, everything in the city will be government subsidized or grant funded and we will look the same. :) Please give a report on how the NSP2 has changed neighborhoods.
ReplyDelete2:38--I can feel your sincerity in what you say. You must be affiliated with the CRA in some capacity.
The point is that the CRA spends taxpayers' money in ways that would not be approved by the taxpayers were they able to vote on the spending.
ReplyDeleteI am confident that the taxpayers would vote for a lower millage rate if they were given a choice, rather than funding no-bid, grand projects that put those constructing them on easy street and careless giveaways to rich developers with little concern for the peoples' money.
Brought to you by the same people that support Common Core 4 Kids!
ReplyDelete3x4=11 (if you can get CONSENSUS)!
It's not personal or they are not doing a good job - the better question is IS it their Job at all?
Pass thru fee's - how is it Social Justice to pay so few so much when the city citizens make so very little?
Time to look at Strong Mayor we can vote OUT very 2 years! That and make them PASS the Citizenship Test!
"Luckily for us, the CRA is on most all agendas where there is anything to report. Most all is very positive for the district and the City."
ReplyDeleteWhat a load of CRAP ! I have NEVER heard the CRA give a report on ANYTHING at a city commission meeting.
We need to redistrict the CRA out of our downtown. They do NOTHING for the down town merchants. They need to be in our blighted neighborhoods.
Lake Worth COULD have had an intelligent Mayor in Laurence McNamara. Instead we have the *&^%, Pam Triolo, whose claim to fame is the ability to bang a gavel and disrespect the citizens.Unfortunately we now have the government we deserve
**Comment edited
@6:50, disrespectful comments like yours derailed any chance laurence had to hold office. Also, Lynn you posting poison comments about residents authored by Dee Mc. really sealed his fate.
ReplyDeleteOh, it's now my fault Laurence McNamara lost an election. Wonderful. Most, and I would say hundreds, of Mrs. McNamara's comments were deleted from this blog. It was THE OTHER blog that posted them. You are confused. The last time I noticed, we had the freedom of speech in this country. This post was disagreeing with this commission I think...nothing bad about it. You want everyone to agree with you? If you want to read disrespectful comments, go to that OTHER BLOG.
ReplyDeleteElections should be won or lost on the issues, not outrageous personal attacks. Both blogs are guilty of this. No I am not confused. Freedom of speech, yes, but how would you sway someones opinion on the issues when their comments are met with sarcasm. Makes a decent person wonder about motives, but at the very least questions leadership skills.
ReplyDeletePersonal attacks? What do you consider a personal attack? Is it when I disagree with you on an issue? Is that it? Or is when one of you come over here and tell me I live in a bunker, that I am old, an asswipe, stupid? a clown? Which?
ReplyDeleteI am not trying to sway anyone to my point of view. What I am doing is giving it and you just can't handle that at times. Sarcasm given and sarcasm right back at ya. You come over here with your attacks and you will get a reply if not deleted first. There is no hidden agenda in speaking the truth as that is something we all should be doing all of the time. There is no "motive" in the way one looks at life.
Some people need to grow up.