Why Are There CRAs? Part II

Last week, I began explaining the history of CRAs and our CRA. The CRA was established 28 years ago, and we had to decide what to do with it in two years.

When I first was elected, I began to understand CRAs and believed in their mission. I explained by saying. “You can have a car but will not be able to go anywhere with a flat tire.”  For years, the western part of our city was neglected and that was the target area of improvement. The combined revenues from the city, county, children services council and hospital district have been allocated to address the many needs.

The questions became: What if the State passes the bill to end CRAs by October?   Is our work done? Should we continue with the CRA if the state keeps the law?  Should we reduce the size? Should we totally sunset it? Should the city continue the programs? What would that look like? What programs would continue?  To start, we need to look back on what we have done.

 Our city was developed parcel by parcel unlike communities today that are preplanned and built with all new infrastructure. In addition, the area of the northwest that was segregated needed major investment. The parks were crumbling. The pool was closed and filled in. We had plenty of work to do.  We had a long list, and these types of projects cost millions of dollars.

When the CRA was first established the base revenues were a little over one million dollars.   We began with a vision of improvements and add to housing. We began to land bank and set aside parcels for affordable housing. We continued to work while the TIF increased bit by bit.

 By 2016, we had a robust plan to rebuild the three parks in the Northwest, OB Johnson, BF James and Foster. OB Johnson alone cost 14 million. We borrow money based on a revenue bond. This is typically done with CRA’s. Rebuilding on time and on budget laid the groundwork for our citywide Parks Master Plan.

This year the base has grown to over 24 million annually. The city contribution is 14.3 million dollars. This may sound like a tremendous amount, but projects cost millions of dollars. We paid back the CRA portion of the revenue Bond and began to look to leverage future TIF.

Over the years, we continued to plan many programs. We made an additional revenue bond of 20 million dollars five years ago. This has been utilized to build out all sidewalks and implement lighting throughout the CRA.

We have built affordable housing units over the years. Partnered with developers to build market rate housing. I for one pushed for inclusionary zoning which would require a percentage of affordable units for years. This policy is now the norm not simply in Hallandale but is being implemented throughout the state.

Five years ago, we set out to build 50 CRA owned affordable housing units. This was to address gentrification and persevere affordable units for the future.  We have all watched Investors’ flipping homes and selling them for twice market rate. This is not bad from a tax revenue standpoint but it has priced many of our residents out of the  market. To date we are up to 35. 

Other signature projects include a partnership with Gulfstream and Forest City to build the Village at Gulfstream. We also are building out District8, formerly Schemata Row and The Fashion Art and Design District

We also continue to provide home improvement programs called Neighborhood Improvement Program, NIP. These include a shutter, window, roof and other improvements to update blighted housing.

As mentioned, the life of the CRA as we know it will end in two years.  The state every year for years have presented bills to kill CRA’s.  This year has been no different with a bill to require every CRA to end and have all money earmarked for projects or return to the other contributing tax agencies.  So, we as a community have been faced with what to do with our CRA.  In the short term and possible long-term depending on what happens in the state.

So, what is the true benefit of the CRA if the city keeps it? In short, if it is kept we can enter into an agreement with the city to fund the trust and continue the CRA. The revenue would be set in place and would have to be spent in the CRA for 10 years. If we do away with the CRA there is truly no guarantee money will be put aside for the programs many of our residents have utilized.

The city held a two-hour meeting to debate the pros and cons of the CRA. Next week, I will share that outcome.  

As always, I am available anytime for your questions, concerns, and ideas to make our city a better place at phone/text 954-632-5700 or you can email me at jcooper@cohb.org. Please visit me on my Facebook page at Mayor Joy Cooper. Like, follow, and share.