CITY OF HALLANDALE BEACH

MEMORANDUM

DATE:            June 24, 2008                                  

TO:                 D. Mike Good, City Manager

FROM:           Richard D. Cannone, Development Services Director

SUBJECT:   Consideration of a Request from The Village at Gulfstream Park, LLC (Forest City) Pertaining to the Use of Hallandale Beach Community Redevelopment Agency (CRA) Tax Increment Financing (TIF) Funding for the Village at Gulfstream Park Community Development District (CDD) - CAD# 019/02

PURPOSE:

The Village at Gulfstream Park, LLC (Forest City) is seeking Tax Increment Financing (TIF) funding from the CRA to assist in paying back the bonds issued by the Village at Gulfstream Park Community Development District (CDD).  A policy direction from the City Commission related to the utilization of TIF funds is required in order to respond to such requests.

BACKGROUND:

Community Redevelopment Agency (CRA) & Tax Increment Financing (TIF)

The City of Hallandale Beach in 1996 designated the area generally bound by I-95, Pembroke Road, NE 14^th Avenue/Canal and Broward/Dade border as the CRA area.  As part of this designation a CRA Plan was established.  In order to carry out the goals of the CRA Plan a funding mechanism was established in accordance with Florida Statutes Chapter 163.  The mechanism set in place for this funding was TIF.  

The practice of TIF is conceptually simple: an area that has been blighted or is otherwise in need of an economic boost is designated as a CRA area. The taxable value of the CRA is then frozen to the value it was on the day of the declaration. The frozen value is usually called the base. All jurisdictions that had taxing authority over the TIF district still have taxing authority over the base. As the district develops, the incremental value of taxes that would have been collected by all of the taxing authorities is retained by the city to carry out the goals of the CRA Plan. This new value is generally called the increment.

Village at Gulfstream Park

The Village of Gulfstream Park is a multiphase development that qualifies as a Development of Regional Impact.  DRI’s in general are classified as “any development which, because of its character, magnitude, or location would have a substantial effect upon the health, safety, or welfare of citizens of more than one county.”  

The Florida Legislature created Chapter 190, Florida Statutes, establishing Community Development District (CDD) to provide an alternative method to finance and manage basic services for community development.  Accordingly, a CDD was established by Forest City at Gulfstream Park as a means to pay for a number of required public improvements mandated by the Development Order agreed to by Forest City and the South Florida Regional Planning Council and by the Development Agreement entered into by Forest City and the City of Hallandale Beach for all Phases of the DRI.

RECOMMENDATION

The City Commission/CRA Board of Directors establish policies for utilization of TIF funds.

Reviewed:

_______________________________                                                  __________

D. Mike Good, City Manager                                                                                     Date

_____Approved                _____Disapproved                _____Hold for Discussion