Subject:
Title
Resolution approving through Interlocal Agreement indebtedness and expenditure of Pinellas 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 Redevelopment District pursuant to the Community Redevelopment Act of 1969, Chapter 163, Part III, Florida Statutes; and providing for an effective date.
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Recommended Action:
Recommended Action
Conduct a public hearing and approve an Interlocal Agreement between the City of Dunedin, Florida and Pinellas County Florida for the commitment of Tax Increment Financing (TIF) revenues in the City of Dunedin Community Redevelopment District.
• In 1988, the Board 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 extension, extending the CRA term from 30 years to 45 years. The CRA is set to expire in 2033.
• The City of Dunedin plans to complete two major capital projects identified in their CRA Plan.
• To pay for these projects, Dunedin is assuming long-term debt and the City will use City and County TIF contributions and general funds for debt service.
• The resolution approves the planned borrowing.
• If approved, the County’s estimated TIF contributions for debt service payments for the identified projects through 2033 would be $4,596,995 at the 95.0% level.
Body
Strategic Plan:
Foster Continual Economic Growth and Vitality
4.3 Catalyze redevelopment through planning and regulatory programs
4.4 Invest in infrastructure to meet current and future needs
4.5 Provide safe and effective transportation systems to support the efficient flow of motorists, commerce, and regional connectivity
Summary:
Summary
The City of Dunedin plans to complete improvements which were included in the Dunedin Redevelopment Plan, including the Skinner Boulevard improvements, the Downtown Parking Lot, and Midtown Parking Garage. In 2022, the Dunedin CRA pledged TIF Revenues to repay indebtedness for the Downtown Parking Lot. The subject Interlocal Agreement and associated indebtedness will help finance the Skinner Boulevard and parking garage projects.
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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 CRA is set to expire in 2033 and requires a Mid-Term Review to be completed by the Board by April 5, 2026.
With approximately 10 years remaining until the Dunedin CRA sunsets, the City will be taking on major capital projects, including a complete streets project along Skinner Boulevard and the construction of a parking garage.
To pay for these initiatives, Dunedin is assuming long-term debt. The City plans to borrow $6.594M to complete these projects. The Skinner Boulevard improvements include Florida Department of Transpiration funding and requires City and County TIF contribution to close the funding gap. These funds need to be in place by early 2024. These projects in addition to assuming CRA debt have been programmed with other funds such as Penny for Pinellas, Grants and ARPA Funds.
The financing of these capital initiatives would be completed with an Interfund process. The loan would consist of a 20-year amortization featuring 10 years of CRA assuming debt and payment, and 10 years of the Dunedin General Fund assuming payments. To accomplish this, the Dunedin General Fund would take out the loan and be backed by the CRA.
On October 31, 2023, Dunedin’s City Commission took action approving the Interlocal Agreement.
Fiscal Impact:
If approved, the County’s estimated TIF contributions for debt service payments for the identified projects through 2033 would be $4,596,995.
Staff Member Responsible:
Rebecca Stonefield, Strategic Initiatives Manager, Housing and Community Development
Partners:
City of Dunedin, Florida
Attachments:
Resolution
Interlocal Agreement Executed by City of Dunedin, October 31, 2023
City Staff Memo on Interlocal Agreement
Exhibit A - CRA Master Plan Update
Exhibit B - CRA 10 Year TIF Estimated Contribution
Exhibit C - CRA FY24 LRFP - Tentative Budget
Exhibit D - Estimated Debt Service Payment
Exhibit E - Dunedin Downtown CRA Assessed Value performance from 2016-2022
Presentation