Submitted By: Roberto Ellis
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Presentation By: Roberto Ellis
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
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Approve revisions to the Community Redevelopment Agency West Ocala subarea commercial property improvement grant program
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND: One of the statutory functions of a Community Redevelopment Agency (CRA) is to undertake activities that facilitate the redevelopment and improvement of properties. CRA commercial grant programs intend to encourage business owners to make improvements that add value to the CRA, increase business activity, and reverse deteriorating trends along key corridors and target areas.
Staff proposes the following changes to the West Ocala Commercial Property Improvement Grant Program (Program):
1. Increasing the maximum grant from $15,000 to $50,000.
2. Adding new construction on vacant property as an eligible work element.
The revised framework reflects the increased scope of work and maximum grant that will be available, pending approval. These changes will enable the CRA to utilize its funding to attract additional investment from property owners or applicants for individual projects.
FINDINGS AND CONCLUSIONS:
• This commercial grant was created in February 2018 to encourage business owners to improve building facades and sites. The proposed amendment to the program is a necessary component of the comprehensive revitalization strategy for the subarea. Increasing the maximum grant is expected to positively impact program demand, allowing for more comprehensive improvements to blighted West Ocala properties.
• Property owners interested in undertaking projects that may not qualify as catalytic would be encouraged to develop vacant properties within the subarea. Currently, the framework only considers improvements to existing buildings. Per Goal 1 of the West Ocala Community Redevelopment Plan, the CRA will coordinate public and private resources to increase private capital investment on commercial corridors. This is further reiterated in Goal 3, which calls for improving vacant, dilapidated, and nuisance properties that are barriers to corridor redevelopment and negatively impact the value of corridors and neighborhoods.
• The proposed increase in the maximum grant is comparable to the maximum grant offered in the Downtown CRA for commercial property improvements.
• Since the creation of the CRA subarea in 2015, tax increment revenues have steadily increased year over year. In Fiscal Year 2024-25, tax increment revenues for the West Ocala CRA subarea increased by an estimated 17 percent, compared to the previous fiscal year. The fund reserves currently stand at $2,151,416. Today, the CRA is better positioned to offer more incentives than previous years.
• Since the program’s inception in 2018, the CRA has awarded approximately $83,476 in commercial property improvement grants, attracting approximately $153,327 in private capital investment. A total of 10 projects have been completed. There has been a noticeable decrease in program demand in recent years.
• After reviewing program demand and the available financial resources, staff, with the support of the West Ocala CRA Advisory Committee, determined that it would be prudent to increase funding for the grant programs to encourage more investment in property improvements further and increase the positive impact of the programs.
• The West Ocala CRA Advisory Committee met on January 23, 2025, and recommended approval of the revised framework.
• If approved, staff will make the revised grant application available to the community via the City’s website and online application platform CivicServe.
FISCAL IMPACT: There is sufficient funding in the West Ocala CRA grant account 623-016-560-559-55-82010. Grants are paid as a reimbursement when projects are completed, and the applicant’s investment is verified.
PROCUREMENT REVIEW: N/A
LEGAL REVIEW: N/A
ALTERNATIVE:
• Approve with changes.
• Table
• Deny