DISCUSSION ITEM
FROM: Teniade Broughton, Chairperson
SUBJECT:
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DISCUSSION CONCERNING A REQUEST FOR PENSACOLA DOWNTOWN IMPROVEMENT TAXING DISTRICT EXEMPTION FROM URBAN CORE TIF
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SUMMARY:
In 1972 a Special Act of the Florida legislature was passed creating the Pensacola Downtown Improvement Taxing District, as was subsequently amended. The Special Acts are codified in the City code. The Pensacola Downtown Improvement Taxing District is a dependent special district, and separate legal entity, created by the City. Taxes imposed within the Pensacola Downtown Improvement Taxing District boundaries are imposed by the City upon request of the Downtown Improvement Board (DIB). Therefore, pursuant to the redevelopment statutes, the DIB is considered a “taxing authority”.
In 1984, City Council adopted Ordinance No. 13-84 creating a Redevelopment Trust Fund or Tax Incremental Financing (TIF) District to fund the Urban Core Community Redevelopment Area. The ordinance established that all taxing authorities, except school districts and water management districts, were required to annually appropriate and pay into the Urban Core Redevelopment Trust Fund in order to fund community redevelopment activities pursuant to Chapter 163, Part III of the Florida Statutes. Since the Pensacola Downtown Improvement Taxing District boundaries lie within the boundaries of the Urban Core Community Redevelopment Area, the taxing authority is required to annually contribute to the TIF unless otherwise exempted by the City. The DIB is requesting exemption from the contribution beginning in Fiscal Year 2024.
Section 163.387, Florida Statutes, provides that certain special districts may be exempted from TIF contribution subject to the following criteria:
1. That the local governing body establishes procedures by which a special district may submit a written request to be exempted.
2. That in deciding whether to deny or grant a special district’s request for exemption that the City Council consider:
a. Any additional revenue sources of the community redevelopment agency which could be used in lieu of the special district’s tax increment.
b. The fiscal and operational impact on the community redevelopment agency.
c. The fiscal and operational impact on the special district.
d. The benefit to the specific purpose for which the special district was created. The benefit to the special district must be based on specific projects contained in the approved community redevelopment plan for the designated community redevelopment area.
e. The impact of the exemption on incurred debt and whether such exemption will impair any outstanding bonds that have pledged tax increment revenues to the repayment of the bonds.
f. The benefit of the activities of the special district to the approved community redevelopment plan.
g. The benefit of the activities of the special district to the area of operation of the local governing body that created the community redevelopment agency.
Since the City has pledged tax increment revenues to the repayment of the redevelopment revenue bonds, an amendment to the bond covenants would be required to remove the Pensacola Downtown Improvement Taxing District contribution. Amendment of the covenants would be subject to Bond Council approval and payment of legal fees.
The CRA is asked to discuss its desire for staff to further pursue exemption of the DIB from the TIF contribution. Should this option be pursued, staff will prepare procedures pursuant to the redevelopment statute, proceed further with requesting amendment of the bond covenants and, if approved, prepare an amendment to Ordinance No. 13-84 to be presented to City Council. If the amendment is passed, the corresponding interlocal agreement between the CRA and the DIB facilitating return of the Pensacola Downtown Improvement Taxing District contributions for performance of certain Urban Core Redevelopment Plan Activities would terminate as of the start of the 2024 fiscal year.
PRIOR ACTION:
None.
STAFF CONTACT:
David Forte, Deputy City Administrator
Sherry Morris, Development Services Director
Victoria D’Angelo, CRA Division Manager
Amy Lovoy, Chief Financial Officer
ATTACHMENTS:
1) Ordinance No. 13-84
2) Interlocal Agreement between CRA/DIB
PRESENTATION: No