Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 23-R54, Amending and Restating an Interlocal Agreement among the Port St. Lucie Community Redevelopment Agency, the City of Port St. Lucie, and the Southern Grove Community Development District No. 1
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Submitted By: Jennifer Davis, Director, Community Redevelopment Agency
Summary Brief (Agreements/Contracts only)
1. Prepared by: City of Port St. Lucie/City of Port St. Lucie Community Redevelopment Agency and Southern Grove Community Development District No. 1
2. Parties: City of Port St. Lucie Community Redevelopment Agency (“Agency”), City of Port St. Lucie (“City”), Southern Grove Community Development District No. 1 (“District”)
3. Purpose: The purpose of this amended agreement is for the termination date to align with the sunset of the Southern Grove CRA, unless otherwise earlier extended or terminated. In addition, modifications were made related to how rebate funds are processed. Additional minor changes were also made to the agreement.
4. New/Renewal/Modified: Modified
5. Duration: September 30, 2042, unless otherwise extended or terminated
6. Benefits to Port St. Lucie: The City will retain (tax) increment revenue and distribute rebate payments to qualified parcels in lieu of transmitting funds to the District to distribute.
7. Cost to Port St. Lucie (Annual and Potential): No additional costs are associated with amended agreement.
Presentation Information: Staff will provide a brief presentation, if requested
Staff Recommendation: Move that the Council approve Resolution 23-R54.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve Resolution 23-R54.
2. Move that the Council provide staff with additional direction.
Background: In January 2001, the City Council of the City of Port St. Lucie (“City Council'') determined that one or more blighted areas existed within the City and that the rehabilitation, conservation, or redevelopment, or a combination thereof, of such area was necessary in the interest of the public health, safety, morals, or welfare of the residents of the City (Resolution No. 01-R2). In June 2001, the City Council adopted a community redevelopment plan ("Plan") for the community redevelopment area as described in that Resolution ("Original Redevelopment Area'') (Resolution No. 01-R27). Ordinance No. 01-23 was enacted at the same time, whereby the City Council established a redevelopment trust fund ("Trust Fund") for the Original Redevelopment Area, as provided in Section 163.387, Florida Statutes.
In April 2003, the City Council determined that an additional blighted area commonly known as "Lentz Grove," existed within the City, and that the rehabilitation, conservation, or redevelopment, or a combination thereof, of such area is necessary in the interest of the public health, safety, morals, or welfare of the residents of the City (Resolution No. 03-R30) and the City Council adopted an amendment to the Plan for the Lentz Grove Area. The City Council also amended the Trust Fund to provide for the additional funding of the CRA Trust Fund for community redevelopment within the Lentz Grove Area.
In March 2006, the City Council determined that an additional blighted area commonly known as the "CRA Expansion Area" existed within the City, and that the rehabilitation, conservation, or redevelopment, or a combination thereof, of such area is necessary in the interest of the public health, safety, morals, or welfare of the residents of the City (Resolution No. 06-R18). In November 2006, the City Council adopted an amendment to the Plan for the CRA Expansion Area (Resolution No. 06-R102). In August 2007, the City Council amended the Trust Fund to provide for the additional funding of the Trust Fund for community redevelopment within the CRA Expansion Area (Ordinance No. 07-114).
In August 2011, the City Council determined that an additional blighted area commonly known as "Southern Grove" existed within the City, and that the rehabilitation, conservation, or redevelopment or a combination thereof, of such area is necessary in the interest of the public health, safety, morals, or welfare of the residents of the City (Resolution No. 11-R50). In June 2012, the City Council adopted an amendment to the Plan to provide a guide for redevelopment within Southern Grove, including provision for development incentive payments (Resolution No. 12-R65). In June 2012, the City Council enacted an Ordinance, amending the CRA Trust Fund to provide for the additional funding of the Trust Fund for community redevelopment within Southern Grove (Ordinance No. 12-30). In February 2014, the City Council adopted a further amendment to the Plan and guide for redevelopment within Southern Grove (Resolution No. 13-R153). The City Council and the Agency approved the Redevelopment Interlocal Agreement among the Agency, the City, and District No. 1 to assist in executing the Plan for Southern Grove.
Issues/Analysis: Prior to the amendment, the City would receive (tax) increment revenue and transmit the revenue to the District. The District would then perform necessary calculations, pursuant to the agreement, and disburse rebates to qualified parcels. The amendment provides for the City to receive and retain (tax) increment revenue, and subsequently disburse rebates to qualified parcels after receiving calculations from the District. Additionally, the amendment makes the following changes to the Interlocal Agreement:
1. Extends the termination date from September 30, 2025 to September 30, 2042.
2. Reduces the Transferred Revenue from 95% to 90%. Meaning the amount of TIF monies put into the Trust Account pursuant to this Agreement is being reduced. The primary purpose for doing this is to account for the City taking on the responsibility to issue rebate checks. This means that the City’s Retained Revenue increases from 5% to 10%. The amendment also provides that if the expenses incurred by any party increase the City and Agency may reduce the Transferred Revenue to cover the increase in expenses with appropriate notice.
3. A provision was included that provides that the District will be reimbursed for its actual costs of performing its plan responsibilities under the Interlocal Agreement from Retained Revenue.
4. Certain definitions were modified and/or removed to provide further clarity to the Interlocal Agreement, including the definition of a “Qualified Property”.
5. Modified the Secondary Program schedule to provide more flexibility to the Agency.
6. The Termination provision was modified to reduce pre-termination notice period.
7. The payment of increment revenue following termination was modified to be consistent with other amendments.
Financial Information: The Transferred and Retained Revenue have changed pursuant to this Agreement as explained above.
Special Consideration: This item is a companion item to Resolution CRA R23-01 (2023-273) being presented to the Community Redevelopment Agency on May 22, 2023.
Location of Project: The agreement pertains to qualifying parcels located within the Southern Grove Community Redevelopment Area
Attachments:
1. Resolution 23-R54
2. Partially Executed Amended and Restated TIF Interlocal Agreement
3. Existing Interlocal Agreement
4. Staff Presentation
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: 9852
Legal Sufficiency Review:
Reviewed by Elizabeth L. Hertz, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.