Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 25-CRA-03, a Resolution of the City of Port St. Lucie Community Redevelopment Agency (the "Agency") Relating to the Annual Budget, Approving the Annual Budget of the Agency for the Fiscal Year Beginning October 1, 2025 and Ending September 30, 2026; Authorizing the Expenditure of Funds Established by the Budget; Providing for Conflicts; Providing for Severability; and Providing for an Effective Date.
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Submitted By: Jennifer Davis, Director, Community Redevelopment Agency
Executive Summary (General Business): Chapter 189, Florida Statutes, requires that a governing body of each special district adopt a budget by resolution each fiscal year.
Presentation Information: Staff will provide a short presentation outlining the proposed budget and expenditures for the CRA, as well as identify taxable valuations for the four Community Redevelopment Areas.
Staff Recommendation: Move that the Board approve Resolution 25-CRA-03
Alternate Recommendations:
1. Move that the Board amend the recommendation and approve.
2. Move that the Board provide additional direction to staff.
Background:
A Community Redevelopment Agency (Agency) is a dependent special district and must comply with Chapter 189, Florida Statutes, which requires the governing body of each special district to adopt a budget by resolution each fiscal year. The proposed budget of a dependent special district must be contained within the general budget of the local governing authority to which it is dependent and be clearly stated as the budget of the dependent district. In addition, the total amount available from taxation and other sources, including balances brought forward from prior fiscal years, must equal the total of appropriations for expenditures and reserves.
In accordance with these requirements, CRA staff has worked with the Office of Management and Budget to prepare the Agency’s annual budget for Fiscal Year 2025-26. The proposed budget is being presented to the Community Redevelopment Agency Board for review and approval and is contained in the City of Port St. Lucie’s Annual Budget as Community Redevelopment Agency Fund #175 and Southern Grove CRA Fund #178, attached hereto as Exhibits A and B, respectively.
Issues/Analysis:
The CRA earns revenues based on the increase in taxable values within the established district. There are four (4) separate districts that make up this financial data. The Eastern CRA (Fund #175) is comprised of three (3) districts: Original US One, East Lake Village and Port St. Lucie Blvd/Port District (formerly Riverwalk). Southern Grove CRA (Fund #178) is in the southwest portion of the City comprises the fourth district. In August 2025, the Agency recommended and the City Council approved the extension of the Agency as a governing body and the Revised Original CRA Plan (comprised of the Original US One area and East Lake Village), both until 2055. These extensions and modifications will allow for incentivized development to occur in the area now known as Walton & One.
The Eastern CRA’s debt was previously issued to fund half the cost of the City’s Civic Center and Tax Increment Financing (TIF) revenue generated from the increase in property tax values in the CRAs was the intended funding source. Beginning in FY 2007-08, there was a significant drop in property tax value and associated revenue and, as a result, the CRA faced a shortfall. In FY 2012-13, the City’s Parks Municipal Services Taxing Unit (MSTU) fund began using its reserves to complete the debt service funding shortfall and the CRA recognized the final Parks MSTU payment of $381,726 for FY 2022-23. Historically, to make the full debt payment the City’s Parks MSTU fund and General Fund were combined to help cover the cost; the remaining was covered by TIF revenue generated from the increase in property values within the respective CRA.
The long-term solution for the CRA’s financial condition is for each district to gain taxable property value so that TIF will grow and allow the CRA to fund a greater portion of its obligations. One strategy to achieve this goal is through the development of the area now known as Walton & One (fka City Center). A majority of the site sat vacant since the original development plan failed with a private developer, ultimately falling into Receivership. However, since acquiring the Receiver-held Walton & One parcels in March 2022, the CRA worked with Treasure Coast Regional Planning Council (TCRPC) on a master plan for the property as a whole. The master planning activity included securing a financial consultant to review the financial obligations on the site, for TCRPC to review and make recommendations of the feasibility of certain uses and the development / disposition structure on the parcels, and also included a strong public engagement process. Additional analysis was conducted through consultants on the viability of the expansion of the event center, as well as a feasibility study on hotel uses on the site. The recommendation from TCRPC for the master plan was for the City to retain certain / strategic parcels for cultural / civic use(s), while marketing the remainder to the development community for the recommended uses, whether in whole or in part. The recommended uses include residential, retail, commercial and hotel(s). At the tail end of the master planning process, an economic development project was brought forward that would combine some of the aforementioned uses with a specific use on a portion of the overall Walton & One site. Staff has been working diligently with the St. Lucie County Economic Development Council and independent consultants on the feasibility of this project since late 2023 and anticipates presenting a recommendation and a public announcement in October 2025.
A relatively strong real estate market continues to translate to numerous development opportunities along the US Highway One corridor, and the CRA staff continues to work with Planning and Zoning to review development applications for consistency with the now Revised Original CRA plan. The Village Green Drive Corridor Master Plan was adopted by City Council in Summer 2021 and CRA staff has been working with the Public Works team on the design of the Hog Pen Slough trailway and, more recently, the City secured a RAISE grant for the design of Village Green Drive. Design of the roadway is expected to be complete in December 2026. At this time, there is no funding for the Village Green Drive Corridor but having projects designed and shovel ready provide for excellent grant opportunities as they become available. The continued redevelopment in the eastern CRAs will ultimately help revitalize all of Port St. Lucie.
In August 2022, the City broke ground on The Port District’s long-awaited Riverfront Park project. The project included extensive infrastructure and parking, a one-of-a-kind playground known as Pioneer Park, a new event lawn area, overwater stage, and a pad-ready site for a riverfront restaurant. The park site opened on June 15, 2024, with the celebration of the inaugural PortFest. Under a separate but adjacent project, extensive restoration work has been completed on the historic 1952 Peacock Lodge, the new home of the Port St. Lucie Historical Society. The work on the Peacock Lodge was complete in Summer 2024 and the Historical Society has scheduled their grand opening event for September 25, 2024. The City Council adopted The Port District Master Plan in Summer 2021, that reflects numerous additional projects and opportunities for (re)development in this district, which long been identified as a recreation-based corridor. The Branding Phase of the Master Plan is currently underway with coordination between the CRA, Parks & Recreation, and Communications. Anchor art pieces are currently in development and should be installed along The Port District in the coming months.
The Southern Grove CRA continues to exceed master plan expectations, with sales of all Governmental Finance Corporation (GFC)-owned land related to the Southern Grove Jobs closed in 2025. Staff has transitioned to marketing and sales of the remaining GFC-owned parcels for retail and residential use. Legacy Park, at the bottom end of the Jobs Corridor is nearing completion of the Costco Wholesale Distribution Center, a 1.8 million +/- warehouse and distribution facility that will serve all Costco stores in Florida. Costco even accelerated the second phase of their project to meet market demand, and transitioned the site to be fully solar, the first of it’s kind in the company’s history. The Becker / Village RFP site at the northeast corner of Becker Rd and SW Village Parkway went through an extensive procurement process, with the award being made to the Sansone Group in Fall 2025. The area will be a vibrant mixed-use district improved with apartments, retail, restaurants and hotel use.
On the northern end of Southern Grove, with Accel construction is complete, Import Mex recently broke ground on a warehouse and distribution facility adjacent to Accel. Additionally, Warehomes Precision (Dragonfly Industrial Park) and Traditions Commerce Park are under construction, Oculus Surgical is complete, and Cleveland Clinic continues to evaluate the development of 44+/- acres off Discovery Way to expand their campus. Infill of lots within Southern Grove continue to present multiple development opportunities, including a landswap agreement with Saint Matilda, an economic development project known as Project Four PSL, and multiple entertainment districts proposed along the SW Village Parkway corridor. The interior spine road to service the new commercial development is also under construction with the extension of Anthony F. Sansone Sr. Blvd. at the southern end nearly complete, the upcoming construction of Destination Way related to Project Four PSL, the extension and connection of Tom Mackie Blvd, and the construction of Marshall Parkway.
Financial Information:
The 2024 taxable valuation for the four Community Redevelopment Areas increased over the 2023 valuation period as follows: PCRA (2001 original) 8.55%; PCR1 (East Lake Village) 47.72%; PCR2 (Port St. Lucie Blvd/Port District) 5.09%; and PCR3 (Southern Grove) 39.59%. The taxable valuation information provided by St. Lucie County for years 2023 and 2024 are shown on Attachments 1 and 2, respectively. Trends in taxable valuation increases since 2018 are reflected in the supporting presentation.
Special Consideration: N/A
Location of Project: N/A
Attachments:
1. Resolution 25-CRA-03
2. Exhibit “A” CRA Fund No. 175
3. Exhibit “B” CRA Fund No. 178
4. Attachment “1” St. Lucie County 2023 taxable valuation letter dated October 17, 2023
5. Attachment “2” St. Lucie County 2024 taxable valuation letter dated October 22, 2024
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 25238-07
Legal Sufficiency Review:
Reviewed by Elizabeth L. Hertz, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.