Issue link: https://newsleader.uberflip.com/i/119978
Sarasota News Leader April 5, 2013 Page 35 In 1986, the city and county embarked on an experiment called the Community Redevelopment Agency (CRA). The two governments agreed — for a prescribed area downtown for 30 years — the 1986 tax roll would become a "floor." Any subsequent improvement in city and county property tax collections would accrue to the CRA. In other words, if property values rose, the increased city and county property tax revenue would go to the CRA to help the defined area. Much later a CRA was established for Newtown, but property assessments kept dropping and the agency is effectively "underwater." City commissioners are syphoning off downtown CRA dollars to keep the Newtown CRA alive. Today the difference between the "floor" and current assessments in the downtown CRA is $6.6 million. That is $3.1 million from the city taxes, and $3.5 from county property taxes (because county tax rates are a bit higher than those in the city). Over the years the city — acting as the CRA — spent the money in the defined area to make downtown Sarasota viable. While other Florida downtowns became wastelands, Sarasota's became a destination, thanks to the CRA (to say nothing of volunteers, partnerships, etc.). Bond issues were used to make major improvements, paid for by CRA money. All this increased property values, and a "virtuous spiral" was formed. The CRA will expire in 2016. But when the curtain comes down and the bond issues are paid, where will the city lie? For Newtown, the "syphon" will run dry. County Commissioner Joe Barbetta. Photo by Norman Schimmel The answer to the question about the future of the city and the CRA is the crux of Commissioner Turner's proposal. KILL THE CRA? OR TAME IT? The CRA numbers today are easy to understand, if a bit unsettling. The city gets $3.1 million, and it immediately kicks back $2.6 million into the general fund for necessary services. That includes $539,457 for landscape maintenance in the CRA area, $1 million for police in the area, $263,000 for street and highway maintenance in the area and more than $700,000 to staff redevelopment offices. These are costs the city would normally bear, but they are conveniently covered by the CRA — convenient, but these are the city's tax dollars anyway.