Issue link: https://newsleader.uberflip.com/i/227385
Sarasota News Leader December 13, 2013 The committee was unanimous, too, in recommending an extension of the life of the CRA by another 30 years. It also recommended the 1986 tax year remain the "benchmark" for TIF calculation. Page 75 Huey's calculations then looked at TIF income if part of the money were skimmed off by the county instead of going to the CRA. In other words, if the city could take TIF proceeds and plow them back into its general fund, why could not the county do the same? His prelimLINING UP OUTSIDE inary figures indicate if the county retained 25 THE 'GOLD MINE' percent of its contribution, using the 3 perThe decision to let 1986 remain the base year cent compound growth figure, the CRA would for the TIF plan leads to huge consequences. get $315 million (instead of $360 million) over Huey's analysis not only looked back to find the next 30 years. nearly $100 million was raised between 1986 If the county "skim" were staggered at 10 perand 2013, it looked ahead, too. cent for the first decade, 25 percent for the Huey determined the historical growth rate second and 35 for the third decade, the CRA (of the property values from 1986 to 2013) would still get $313 million overall from the in the downtown CRA was 5.4 percent com- county. pounded annually. The CRA tax base went from $412 million to $1.7 billion. By compar- Committee member Chris Gallagher made a ison, the city's overall tax base growth was motion to "split the increment, but not give 4.85 percent; the county's was 4.9 percent, a specific number." He said, "It makes sense there be a percentage formula established. In with both compounded annually. the real world, this is a conversation worth Taking that same rate of growth, Huey cal- having, and it makes sense to have a percentculated the CRA revenue over the next 30 age." The motion passed 7-1 with Bill Russell years would be $528 million, more than half a in the minority. billion dollars. If the rate of growth were compounded at "only" 3 percent, the total revenue SECOND CAN KICKED over the next 30 years would be "only" $360 After an hour of debate over the recommenmillion, one-third of a billion dollars. dation to let the county "skim" TIF money, This year, the CRA is raising $7.1 million in attention turned to the "allowable uses" for city and county property tax revenue. Under the CRA. Could the city continue to "skim" Huey's best-case calculations, by 2046, the money into its general fund? CRA would be raising $34 million annually, Gallagher moved "to keep [the process] almost a fivefold increase. essentially the same. It provides the greatest Committee member Bill Russell pointed flexibility with regards to uses." Huey secout Huey's figures were very conservative onded the motion. because property values today are off by as much as 40 percent from their peak during The motion drew fire from member Casey Coburn. "We need to give as much direction the property/housing bubble in 2008.