Staurt’s CRA Has A Problem

The area encompassing Stuart’s CRA (Community Redevelopment Area) is large for a city its size.

Not only is it large, it encompasses different neighborhoods with different economic and physical needs.  The CRA was meant to arrest blight and to bring economic development by investing tax funds collected within those areas in improvements such as infrastructure to enhance revitalization. Those are worthy goals and should be supported.

I believe Stuart has become complacent in how those funds are being used. Two agenda items from the last Community Redevelopment Board Meeting (CRB) are illustrative. In both instances, it seemed that staff could not wait to give away tax money for rather superfluous projects. The projects had the added benefit of being easy to administer for staff and requiring no imagination to put into effect.

The first was spending $277,000 to put a median on 3000 feet of Federal Highway from the Roosevelt Bridge to Northwest Baker Road in the northern part of the City. When I read the agenda item, the first thing I noticed was the following:

“The Community Redevelopment Agency allocated funding in the amount of $100,000 for the Federal Highway Gateway Beautification Project in the CRA Budget for FY 2019. The CRA contracted with engineering consultant Kimley-Horn to prepare landscape design for the Federal Highway Gateway Beautification Project.”

This project already exceeds what is in the budget by a substantial amount. It then goes on to state how the expenditure is broken down:

“Funding Source:
Total Project Cost – $277,179

  • Design Cost – $33,440 (under contract)
  • Estimated Construction Cost – $243,739”

Stuart has already spent a third of the budgeted amount of $100,000 on design. Then it will need another $244,000 to complete the medians and landscaping. However, not all funds are coming from the CRA:

“Funds to come from the following funding sources:

  • CRA – $143,739
  • City’s Tree Funds – $100,000”

In the spirit of finding the funds somehow, staff is tapping the Tree Fund which is what developers pay into when mitigation is needed for removing trees and not replacing them on site. If you notice the cost is still at $177,000 more than what was in the budget.

The rationale to do the project is to cut down on supposed accidents and foster a sense of neighborhood. This is a commercial corridor.

I am not saying it isn’t something that should be done. Many things should be done. It is a matter of spending limited tax resources to achieve the best outcomes. But if this is a City priority, then something is wrong. And I mean very wrong.

The second item was allocating funds to businesses within the CRA using the Business Improvement Reimbursement Program. This is where businesses within the CRA can apply for up to $10,000 of matching funds to pay for the costs of exterior improvements. The purpose is to allow business owners in “blighted” areas the funds necessary to improve their facades.

According to the agenda item, the last project was:

“On January 28, 2019, the CRB/CRA approved an application for the replacement of obsolete and deteriorated windows at the Geary Professional Building in the amount of $10,000.  This project was completed.”

This building is on East Ocean across from the Court House.

The grant requests this time included Luna’s for a new awning and Colorado Inn for new windows. The Inn did not receive the grant because no one was present. This is not a criticism of any business owner that takes advantage of a lawful program. I would do the same thing.

But is that the purpose for the use of tax dollars. You are taking money from neighboring commercial owners and residents to give to other owners and residents? One of the recipients said that he was so glad he had met the CRA administrator on the street so he could be told of the program.

Both these examples show the un-seriousness of how the CRA program is administered. There doesn’t seem to be an objective; but, rather, just people checking boxes. The tram no longer has a funding source. It will be $90,000 short. I would argue that a better way of spending Tax Increment Financing (TIF)dollars is the continuation of the tram using those dollars while a permanent solution to the shortfall is found.

I would argue that TIF should be used to make sure that sewer to septic is advanced within the CRA. Athletic and other projects are advanced at Stuart’s Community Center. That actual infrastructure is built above and below ground. Blighted properties purchased, rehabbed and then sold back to the private sector. I can think of a multitude of uses that would be more important and more within CRA guidelines than giving businesses funds and putting in landscaped medians on state roads.

Implementing these things would require a real plan…not something that is drawn up to check a box. This would take a vision not just lackadaisically going from project to project. Where are the Commission and City Manager in this? Government too often does the easy thing. I believe it does so because it is not their money. The only skin they have in the game is the next election or to hang on until retirement.

Our City deserves better than that!