Subject:
Title
Resolution amending the Interlocal Agreement with the City of Dunedin to allow for an increase to indebtedness and expenditure of County Tax Increment Financing funds pursuant to the City of Dunedin Redevelopment Plan, subsequently amended as the City of Dunedin Community Redevelopment Agency Downtown Master Plan 2033, for the Dunedin Community Redevelopment District.
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Recommended Action:
Recommended Action
Conduct a public hearing and approve the First Amendment to the Interlocal Agreement (ILA) between the City of Dunedin and the County for the commitment of Tax Increment Financing (TIF) revenues for project specific indebtedness in the Dunedin Community Redevelopment District.
• In 1988, the Board of County Commissioners approved the establishment of a Redevelopment Trust Fund for the Dunedin Community Redevelopment Agency (CRA), with a 95.0% tax increment County contribution.
• In 2012, the Board approved a CRA term extension from 30 years to 45 years. The CRA is set to expire in 2033.
• In 2023, the Board approved an ILA to allow for indebtedness up to $6.594M for the City of Dunedin to finance two major capital projects (a complete streets improvement project and site acquisition for a parking garage) identified in their CRA Plan. The ILA listed the construction of the parking garage as unfunded.
• The ILA enabled Dunedin to assume long-term debt for the City to use City and County TIF contributions and City general funds for debt service.
• This 2026 ILA amendment will enable an additional $756,000.00 of debt service, increasing the total allowable indebtedness from $6.594M to $7.350M.
• Approval will not increase County TIF contributions. It just enables the City to take on additional debt to specifically fund the construction of the parking garage.
• The County’s TIF contributions from Fiscal Year (FY) 2026 through FY34 are estimated to be $14.3M at the 95.0% level (FY impact is generally one-year after sunset).
• Office of Management and Budget has provided a high-level estimate of the TIF contribution to the redevelopment trust fund based on the remaining 95% County contribution. This assumes an unchanged growth rate of 5% which is based on historical average growth annually, and an unchanged millage rate for the County for the remainder of the TIF. This amendment has no fiscal impact on the current TIF contribution. Funding is included in the FY26 Budget for $1,265,650.73.
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Strategic Plan:
Resilient Infrastructure and Environment
1.2 Maintain and enhance county infrastructure.
Healthy and Safe Communities
2.2 Enhance community safety.
Prosperity and Opportunity
3.1 Increase the availability of attainable housing.
3.3 Increase workforce opportunities.
3.5 Foster business growth.
Summary:
Summary
In 2023, the Board approved an ILA to enable the City to take on debt to finance two (2) major capital projects which were included in the Dunedin Redevelopment Plan, including Skinner Boulevard improvements and the site acquisition and construction of a parking garage. At the time, the construction of the parking garage was identified as ‘unfunded’ within the 2023 ILA. The City is now ready to complete the construction project and is requesting an increase of the allowable indebtedness from $6.594M to $7.350M. This amendment does not increase County TIF contributions but enables the City to take on additional debt to fund the construction of the parking garage.
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Background Information:
In 1988, the Board approved the establishment of a Redevelopment Trust Fund for the Dunedin CRA, with a 95.0% Tax Increment County contribution. In 2012, the Board approved a CRA extension, extending the CRA term from 30 years to 45 years. The Board accepted the Mid-Term Review into the record on January 20, 2026, and the CRA sunsets in 2033.
In 2023, the Board approved an ILA authorizing the use of CRA TIF funding for indebtedness up to $6.594M to finance eligible projects, including Skinner Boulevard improvements ($2.48M), parking lot site acquisition ($4.114M) and parking garage construction, which was identified as unfunded. The City is now requesting an amendment to the ILA to increase the authorized indebtedness to address the cost of constructing the parking garage. It should be noted that American Rescue Plan Act (ARPA) funds were used for the Skinner Boulevard improvements, leaving the $2.48M that was allocated for that project in the original ILA to be redirected for the parking garage construction.
Construction costs for the parking garage are estimated to total $10.3M. The City will contribute $7.064M toward these costs, leaving a $3.236M funding gap, for which the City will utilize TIF revenues against indebtedness. As noted above, $2.48M would come from the amount previously allocated for the Skinner Boulevard project, resulting in a balance of $756,000.00 still needed to fully fund the parking garage construction.
Therefore, the proposed amendment would raise the current ILA funding limit from $6.594M to $7.35M (or $6.594M plus $756,000.00). Again, this is not a request for an increase in County contribution, it is a request that enables additional indebtedness. Any debt service payments that remain after the CRA sunsets will come out of the City’s General Fund.
Fiscal Impact:
As there is no increase in the County TIF contribution requested, there is no fiscal impact.
OMB has provided a high-level estimate of the TIF contribution to the redevelopment trust fund based on the remaining contribution at 95% County contribution. This assumes an unchanged growth rate of 5% which is based on historical average growth annually, and an unchanged millage rate for the County for the remainder of the TIF.
This amendment has no fiscal impact on the current TIF contribution. Funding is included in the FY26 Budget for $1,265,650.73. Appropriations for subsequent years will be contingent on future budgets.
Staff Member Responsible:
Gregg Mims, Director, Housing and Community Development
Luis A. Garcia, Principal Planner, Housing and Community Development, Presenter
Partners:
City of Dunedin, Florida
Attachments:
Resolution
Interlocal Agreement Amendment Executed by City of Dunedin, April 2, 2026
City of Dunedin Letter of Explanation
Existing 2023 Interlocal Agreement Executed December 12, 2023
Presentation
Public Hearing Ad
Pinellas County CRA Status Summary July 2025