Funding and Programming Sources by isp11018


									                                                                                      use for CDBG
   Funding and                                                                        funds, the
                                                                                      program is

   Programming                                                                        also an
                                                                                      catalyst for

   Sources                                                                            economic
                                                                                      This program
   Organization is the key to a successful                                            is targeted
                         downtown revitalization      primarily for low and moderate income
                         program. A strong, viable    persons.
The Downtown             organization provides the
Redevelopment            stability to build and       Through this federal program, the government
                         maintain a long-term         has established the State Administered CDBG,
Plan should be           effort. Developing a         which allows each state to administer CDBG
implemented              management program           funds to rural cities and towns of less than
through the              that is well-structured,     50,000 people and rural counties of less than
establishment            well-funded and              200,000 people. The Florida legislature
of downtown              committed to the future is   decides how these funds will be allocated, and
                         the only way to make         the Department of Community Affairs (DCA)
goals,                   revitalization last. There   makes all of the grant decisions. Currently, the
objectives,              are several possible         legislature has allocated funding as follows:
policies and             funding mechanisms that
design                   can assist in supporting     •   20% Housing
                         the redevelopment effort.    •
guidelines,              This section outlines
                                                          40% Neighborhood Revitalization
public                                                •   10% Commercial Revitalization
                         some of the more
strategies,                                           •   30% Economic Development
                         prominent programs.
private                  Funding for public
                                                      Local governments have the responsibility to
incentives and           projects is a dynamic
                                                      consider local needs, prepare grant
                         process that needs a
capital                  systematic approach to
                                                      applications and carry out the funded
improvements.                                         community activities. These funds can be used
                         ensure every opportunity
                                                      for projects such as acquisition of property for
                         is evaluated. LaBelle has
                                                      public purpose, construction or reconstruction
                         done a good job seeking
                                                      of infrastructure, planning activities, and
                         funding of important
                                                      assistance to nonprofit or for profit entities
   projects and this effort should continue.
                                                      that are carrying out redevelopment activities.
                                                      The primary criteria for projects under this
   Community Development                              funding mechanism is that they must benefit
   Block Grant (CDBG)                                 low to moderate income individuals, prevent
   The Community Development Block Grant              or eliminate slums, blight or deteriorating
   program is a federally funded grant program        conditions, or meet other urgent community
   designed to help communities provide decent        development needs. LaBelle has taken
   housing and suitable living environments by        advantage of this program and should
   expanding economic opportunities. While            continue to do so in the future.
   rehabilitation of housing has been the largest

FUNDING & PROGRAMMING                                                                           PAGE 77
  Front Porch Florida                                    responsibility to provide for public outdoor
                                                         recreational sites and facilities are eligible for
  Initiative                                             this grant program.
  The Front Porch Florida Initiative was created
  to assist in the revitalization of underserved
  communities, where residents are dedicated to
                                                         Florida Fish and Wildlife
  making their community a better place to live.         Conservation Commission
  This program is managed through the Office of         The City of LaBelle has been awarded a grant
  Urban Opportunity within the Florida                  from the FWC for a Florida Boating
  Department of Community Affairs and                   Improvement Program (FBIP) for the Barron
  provides education and technical assistance                              Park Warf Project. Grant
  to implement projects that will make long-                               opportunities related to the
  term changes to a community. This program          The City of           waterfront should continue
  provides grant opportunities through the           LaBelle would         to be pursued.
  “Small Matching” Historic Preservation             be considered
  Grant. This grant program assists in the                                    Florida
  identification, excavation, protection and         a Rural
  rehabilitation of historic and archaeological      Enterprise               Enterprise Zone
  sites with an emphasis on encouraging              Zone.                    An Enterprise Zone is a
  historic preservation in smaller cities. These                              specific geographic area
  grants are issued through the Florida Main                                  that is targeted for
  Street Program.                                                             economic revitalization.
                                                         These zones encourage investment by offering
  The maximum grant amount is $50,000,                   tax advantages and incentives to businesses
  however most grant awards range from                   that are located, or are considering locating,
  $5,000 to $25,000. As an Area of Rural                 within the boundaries of an Enterprise Zone.
  Economic Concern, the City of LaBelle is               The Florida Governor’s Office of Tourism,
  eligible to receive a complete waiver of the           Trade and Economic Development is the
  match requirements.                                    administrator of this program. The Enterprise
                                                         Zone Agency will assign a local coordinator
  It is our understanding that at this time, there       that maintains the daily operation of the zone.
  is no funding available through this program.
  However, it is important to be aware of the            Enterprise Zones are designed to
  program as funding may become available                accommodate both rural and urban areas.
  again in the future.                                   Because the types of businesses that might be
                                                         attracted and retained in rural areas are
                                                         different than in urban areas, Rural Enterprise
  Florida Department of                                  Zones are given different tax credits through
  Environmental Protection                               various incentives.
  The Florida Department of Environmental
  Protection administers grants to local                 As a municipality located in a county with a
  governments through the Florida Recreation             population less than 75,000 and a designation
  Development Assistance Program (FRDAP)                 as a Rural Area of Economic Concern, the City
  and the Land and Water Conservation Fund               of LaBelle would be considered a Rural
  (LWCF). These are competitive programs                 Enterprise Zone.
  which provide grants for acquisition or
  development of land for public outdoor                 Enterprise Zone programs operate at both the
  recreation. All county governments and                 state and federal levels, with each state and the
  municipalities in Florida with the legal               federal government having its own set of

FUNDING & PROGRAMMING                                                                                 PAGE 78
  incentives to offer. The program provides         •   Property Tax Credit – New or expanded
  funding to the Zone for a period of up to ten         businesses within an Enterprise Zone are
  years.                                                allowed a credit against Florida income tax
                                                        equal to 96% of ad valorem taxes paid on
  Small Business                                        such property.
  Administration/ Florida                           National Trust Main Street
  Heartland Regional                                Program
  Economic Development                              The Main Street
  Initiative (FHREDI)                               Program is based         A four-step
  The Florida Heartland Rural Economic              on a four-step           strategy that is
  Development Initiative functions under the        strategy that is a       a combined
  umbrella of an Enterprise Zone. This program      combined
                                                    approach of              approach of
  offers the following assistance:
                                                    design, economic         design,
  •   Customized work force training                restructuring,           economic
  •   Demographic and market analysis               promotion and            restructuring,
                                                    organization to
  •   Infrastructure funding
                                                    ensure that all of
                                                                             promotion and
  •   Financial and tax abatement programs          the redevelopment        organization…
  •   Regional coordination for relocation          area needs are
                                                    addressed. This
  The Heartland program for Hendry County           approach is incremental – it is not designed to
  and municipalities therein is hosted by the       produce immediate change, but rather
  University of South Florida Small Business        gradual, planned change, that takes into
  Development Center. This agency provides          consideration all aspects of a successful
  free counseling and business training seminars    redevelopment effort. Long-term dedication by
  for current and potential entrepreneurs.          the community is critical to the success of this
                                                    program. In order to be eligible for the Main
  Below are some examples of incentives that        Street Program, a full-time staff person to
  are available for communities in a Rural          oversee the redevelopment efforts is required.
  Enterprise Zone:
                                                    Through the National Trust Preservation
  •   Jobs Tax Credit (Sales Tax) – allow a         Fund, funding is available to assist with the
      business to take a sales and use tax credit   restoration of historic buildings and homes.
      for 30-45 percent of wages paid to new        The preservation funds provide two types of
      employees who live within a rural county.     assistance, matching funds and intervention
                                                    funds. The matching funds are awarded
  •   Jobs Tax Credit (Corporate Income Tax) –      annually in three competitive grant rounds
      allows a business to take a corporate         and may be used to obtain professional
      income tax credit for 15-20 percent of        assistance in disciplines such as architecture,
      wages paid to new employees who reside        engineering, fund raising and organizational
      within an Enterprise Zone.                    development. The intervention funds are
                                                    awarded to non-profit or public agencies in
  •   Building Materials Sales Tax Refund –         emergency situations. Each year, more than
      available for taxes paid on the purchase of   200 grants are issued totaling more than
      building materials used to rehabilitate       $650,000. Grants range from $500 to $5,000.
      property within an Enterprise Zone.

FUNDING & PROGRAMMING                                                                         PAGE 79
  Special Assessment                                 be saved for a particular project, or they can be
                                                     bonded to maximize the funds that are
  Districts (SAD)                                    available.
  A Special Assessment District is a specific
  geographic area that can be designated for         The Florida Redevelopment Act allows
  government to assess a special charge to assist    Community Redevelopment Agencies to use
  with certain public projects. A Special            TIF. In this sense, the property tax revenue
  Assessment can only be levied against parcels      goes to the local government and is then
  of real estate that have been identified as        appropriated to the trust fund of the CRA. This
  having received direct benefit from the public     program does not involve any state
  project. Typical public improvements               participation or oversight.
  associated with Special Assessment Districts
  are street lighting, sidewalk construction, road   A redevelopment area must be identified for
  paving and infrastructure such as sanitary         application of the TIF. A CRA Redevelopment
  sewer, water mains and storm drains. The SAD       Plan is required that demonstrates linkages to
  can be established by resolution passed by the     the local Comprehensive Plan.
  local government or it may be initiated at the
  request of certain property owners that would
  be included in the district.
                                                     Revenue Bonds
                                                     Revenue bonds are a special type of municipal
  The distribution of project costs can be           bond. They are distinguished from a general
  accomplished by two methods; the Unit Cost         obligation bond in that repayment of the bond
  Method and the Front Foot Method.                  can only come from the revenues generated by
                                                     a specific revenue-generated entity that is
  The Unit Cost Method distributes the               associated with the purpose of the bonds. For
  assessment of the project cost equally between     example, construction of a sewer plant could
  each property within the SAD. With the Front       be financed by revenue bonds which would
  Foot Method, the assessment per property is        then be repaid by the revenue the plant
  determined by the amount of road frontage or       generates by its usage. These types of bonds
  side yard exposure that a property has along a     are considered one of the most secure types of
  right-of-way.                                      municipal bonds.

  Tax Increment Financing                            Community Donations
                                                     The City should seek community donations
  (TIF)                                              such as what is being done with the Veterans
  The Tax Increment Financing (TIF) is a             Memorial Park. Establishing a Community
  method to pay for redevelopment of a slum or       Foundation would provide the framework to
  blighted area through increased ad valorum         seek community donations.
  tax revenue resulting from that
  redevelopment. The dollar value of all real
  property within the redevelopment area is
                                                     Public/Private Partnerships
  determined as a fixed rate and is then “frozen”.   (P3’s)
  The taxing authority continues to receive          Public-private partnerships refer to
  property tax based on the frozen value,            contractual agreements formed between a
  however as property value increases, the           public agency and private sector entity that
  additional revenues, above and beyond the          allow for greater private sector participation in
  frozen rate are deposited into a CRA trust fund    the planning and implementation of public
  and are dedicated to the redevelopment area.       projects. Through this agreement, the skills
  These funds can be used immediately or can         and assets of each sector (public and private)

FUNDING & PROGRAMMING                                                                           PAGE 80
  are shared in delivering a service or facility for   incentives might include incentives such as tax
  the use of the general public. In addition to the    abatement programs.
  sharing of resources, each party shares in the
  risks and rewards potential in the delivery of       In summary, there are many opportunities to
  the service and/or facility.                         seek funding and management assistance for
                                                       the downtown redevelopment effort. It is
  Some of the primary reasons that public              recommended that the City of LaBelle consider
  agencies enter into these partnerships are:          assigning a staff person to the task of
                                                       researching and managing the redevelopment
  •   Public/private partnerships enable faster        effort, as organization and commitment are
      implementation of projects by increasing         key to the success of not only acquiring
      the ways of procuring services;                  assistance but implementing these various
  •   The private sector can provide specialized       programs. A central contact that can serve as a
      management that may not be available             liason between the community, agencies and
      within the public sector;                        private developers will show a serious
  •   The private sector offers new technology         commitment by the City in its efforts to
      and expertise in accessing various financial     revitalize downtown.
      resources; and
  •   The partnership encourages positive              My Florida Cultural, Historical & Information Programs
      public/private relationships and can be          website
      used to spearhead a redevelopment effort.        National Council for Public/Private Partnerships
                                                       Federal Highway Administration
                                                       FDEP website
  It must be emphasized that a comprehensive           Small Business Development Center of the University of
  redevelopment program cannot be undertaken           South Florida
  without managerial and administrative                National Trust for Historic Preservation
  assistance. Additional professional assistance       Kadzban v City of Grandville, 502 N.W.2d 299, 501;
                                                       Davies v City of Lawrence, 218 Kan. 551, 545 P 2d 1115,
  may be required from time to time in the areas       1120; State v City of Newark, 27 N.J. Law, 190.
  of promotions, special events, advertising and       Investopedia
  long-range planning. The costs associated with       Britannia Online Encyclopedia
                                                       David E. Cardwell The Cardwell Law Firm
  administrative or support staff can be partially     Florida Redevelopment Association
  subsidized by various State and Federal
  employment and job training grants.

  The Downtown Redevelopment Plan should be
  implemented through a mix of applications
  that include establishment of downtown goals,
  objectives, policies and design guidelines,
  public strategies, private incentives and capital
  improvements. The public strategies are the
  actions that will be taken to implement the
  goals, objectives and policies of the Plan.

  The Capital Improvement Plan (CIP)
  establishes the major improvements that are
  needed in the redevelopment area and
  establishes potential funding sources,
  estimated costs and the fiscal year in which
  construction might commence. The private

FUNDING & PROGRAMMING                                                                                    PAGE 81
The Downtown Plan has been prepared by EnSite.
   This report is also available on our website:

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