March 26, 2017
A morning spent shopping for fresh produce at the Frenchtown Farmers Market. Taking a stroll with friends along a vibrant Gaines Street. Appreciating the new look of a business near downtown. These experiences, which are enjoyed by thousands of Tallahassee residents, are just a few examples of what City Commissioners envisioned when they established the Community Redevelopment Agency (CRA).
CRAs were created by the State of Florida to encourage development in blighted, undervalued urban areas. While our local CRA's work takes place in the Downtown and Frenchtown/Southside districts, the entire community benefits when transformations occur in these areas.
Annual assessment of property values pre and post development indicates that the increase in property value generated by CRA supported projects is responsible for approximately 55.9 percent of the total increase in property values within the Downtown Redevelopment Area between 2004 and 2016. The Frenchtown/Southside Redevelopment Area has a similar track record.
CRA incentives are based on the funding gap of the project and the projected return on investment and potential community benefits. CRA projects have also generated more than $300 million in private investment from development which helps to stimulate our local economy.
By providing financial support for commercial and mixed-use development, neighborhood enhancement, infrastructure and special events, the CRA helps to breathe life into projects designed to build areas up economically. The majority of CRA projects support a variety of local businesses, both large and small. For instance, the agency has funded portions of large, mixed-use developments while also helping to fund numerous façade improvements for small local businesses.
The funds used by the CRA are generated within each district via a tool called Tax Increment Financing or TIF. When an undervalued property within the CRA is developed, the property value goes up. The resulting increase in property value, called the "tax increment," is then used by the CRA to incentivize that project and other projects in the area. This reinvestment model allows each district to grow its available dollars, without relying on funds from the City's or County's general funds. Essentially, large projects pay their own way, with funds they have generated with new development. A financial audit is conducted each year and included in the CRA's annual report, which is available online at Talgov.com/CRA.
A citizen's advisory committee reviews proposed projects to ensure they are consistent with the agency's mission and the community's needs and priorities. Final decisions on how CRA funds are spent are the responsibility of the CRA Board, which is comprised of the Tallahassee City Commission and four Leon County Commissioners. Decisions are made based on how projects meet the goals of the CRA Plan and consideration on how they will enhance the quality of life enjoyed by Tallahassee residents.
The CRA model is an especially successful redevelopment tool because it uses a combination of public and private resources to enhance the quality of life enjoyed by our entire community. From small business façade enhancements to the world-class Cascades Park, the CRA has without a doubt played a key role in generating economic vitality in the wonderful place that we choose to call home.
Below is information that demonstrates the amount of private investment supported by CRA projects and the impact of CRA projects on property values within the redevelopment districts.
Downtown District CRA - Large Project Results (as of January 2017) |
Project Name |
CRA Investment |
Est. Private Investment |
Pre-Development Taxable Value |
Post-Development Taxable Value1 |
Increase in Taxable Value |
Marriott Residence Inn on Gaines St. |
$500,000 |
$11,505,000 |
$588,166 |
$7,897,614 |
$7,309,448 |
Alliance Center on Monroe St. |
$495,000 |
$16,953,000 |
$1,282,584 |
$8,763,858 |
$7,481,274 |
College Town, Phase 1 |
$2,532,000 |
$17,018,000 |
$1,207,059 |
$15,848,239 |
$14,641,180 |
The Catalyst on Madison St. |
$912,000 |
$25,488,000 |
$925,562 |
$27,241,605 |
$26,316,043 |
601 Copeland St. |
$395,000 |
$21,105,000 |
$0 |
$18,546,966 |
$18,546,966 |
Gateway Tallahassee at Monroe and Tennessee St. |
$1,414,766 |
$12,992,000 |
$2,120,484 |
$7,125,962 |
$5,005,478 |
The Onyx on Macomb St. |
$1,368,892 |
$41,000,000 |
$999,376 |
$48,154,359 |
$47,156,983 |
Total |
$7,617,658 |
$146,061,000 |
$7,123,231 |
$133,578,603 |
$126,457,372 |
1. Based on 2016 certified values
The projects listed above resulted in an increase in taxable property value which, in turn, provides additional tax increment (TIF) for CRA reinvestment in the Downtown District. A good way to ascertain the larger impact of CRA redevelopment projects on a district is to compare the property value increase for large scale CRA projects against the overall change in property value for the CRA District, as follows:
Total pre-development property value for major DT CRA redevelopment projects: $7,617,658
Total post-development property value for major DT CRA redevelopment projects: $133,578,603 as of 2016
This yields an increase of $126,457,372 or 1,600% in pre to post property values for CRA projects.
Total DT District property value in 2004: $238,244,226
Total DT District property value in 2015: $464,394,490,
This yields a $226,150,264 or 95% total property value increase since 2004.
These figures show that the property value increase generated by CRA supported projects ($126,457,372) is responsible for approximately 55.9% of the total increase in Downtown district property values between 2004 and 2016.
Additionally, the Tax Increment (TIF) generated each year has increased from $122,101 in FY 2005 to $1,846,472 for FY 2017. The TIF is invested back into the DT CRA district to continue the agency's program of investment and improvement.
Greater Frenchtown/Southside CRA District Impacts
Total Frenchtown Southside property value in 2000: $167,640,940
Total Frenchtown Southside District total property value in 2016: $349,531,411
This yields a $181,890,471 or 108% overall property value increase since 2000.
The Tax Increment (TIF) generated each year has increased from $240,552 in FY 2002 to $2,231,566 for FY 2017. The TIF is invested back into the Greater Frenchtown/Southside CRA District to continue the agency's program of investment and improvement.
Greater Frenchtown/Southside CRA - Large Project Results (as of January 2017) |
Project Name |
CRA Investment |
Est. Private Investment |
Pre-Development Taxable Value |
Post-Development Taxable Value1 |
Increase in Taxable Value |
Four Points Hotel |
$359,000 |
$13,600,000 |
$2,240,368 |
$8,020,034 |
$5,779,666 |
Lofts on Gaines |
$705,806 |
$5,294,220 |
$124,985 |
$3,036,272 |
$2,911,287 |
The Block Mixed Use Housing3 |
$1,342,703 |
$18,087,547 |
$586,827 |
$18,586,517 |
$17,996,690 |
The Deck Mixed Use Housing3 |
$1,403,463 |
$31,625,787 |
$867,583 |
$30,159,228 |
$29,291,654 |
Total |
$3,810,972 |
$68,607,554 |
$3,819,763 |
$59,802,051 |
$55,979,297 |
1. Based on 2016 certified property values
The above table includes CRA funding for retail and public space improvements and stormwater capacity. It does not include $2,686,029 in CRA funds used to purchase 174 CRA-owned public parking spaces in the Block and Deck. Goodbread Hills Apartments is also not included, which is a $925,000 CRA investment matched with $10,900,000 in private funds. Goodbread replaced Ebony Gardens, a Tallahassee Housing Agency development, so the property has no taxable value.