More Free Money for Developers of Brownfield Mixed Use Projects in New Pilot Program

By Mark Baratelli
Economic Development Staff is requesting approval from City Council for the new "Targeted Revitalization Site Redevelopment Pilot Program" March 19th. Staff will also request authorization to work with the Office of Legal Affairs to draft a Program Grant Application and Agreement. Read the program description below.

This new program would give developers of new mixed use projects on brownfield sites of 9 acres or larger a 10-year, 50% real property tax refund on the city portion of the new tax increment generated by the project.

Developers of such projects already receive $2,500 job creation bonuses, 35% tax credit on voluntary cleanup costs, low interest loans, sales tax credit on building materials and access to more grants and loans and more as part of the Orlando Economic Enhancement District Program (OEED).

They also receive up to $50,000 thanks to the new 4th amendment to the Small Business Facade and Site Improvement Program

Below is the program description going before City Council March 19th.

The Targeted Revitalization Site Redevelopment Program (Program) is designed to foster the redevelopment of catalytic sites throughout the City that have experienced abandonment, blight and/or disinvestment. A primary objective of this Program is to encourage private sector investments focused on abandoned, blighted and/or underutilized properties within the City of Orlando. A secondary objective of this Program is the spin-off effects the redevelopment of key properties located throughout the City will have on the surrounding areas.

In order to be qualified as an eligible “targeted revitalization site”, the property must meet the following criteria:

Minimum of 9 acres in size,
Experienced disinvestment over a multi-year period,
Meet Brownfield Site qualifications,
Approved redevelopment plan that incorporates the following principles: mixed use, sustainability features, affordable/workforce housing units (minimum of 10% if part of the project), high quality urban design, and public spaces, and
The proposed redevelopment project must be 400% of the existing taxable value of the property.

Incentive Program:

This is a performance based incentive.
For qualifying projects, the City will provide a 10-year, 50% real property tax refund on the city portion of the new tax increment generated by the project.
At no time shall the tax refund exceed a 10-year period even with a phased development.
The Agreement is transferable.
Performance benchmarks based on the approved redevelopment plan will be included as part of the Agreement.
All qualifying projects are required to go through a Master Plan or Planned Development process. As part of this process additional Land Development Code regulations may be required to assist the City in meeting our sustainability, affordable housing and urban design goals.
A one year “Push Option” shall be allowed due to project delays.

Program Term:

The Program will be in effect for a 5-year period with a 5-year renewal option that requires City Council authorization.

Application Process:

Once a potential qualifying project is identified, the Business Development Division will work with the client on the negotiation of an Economic Development Grant Agreement.
All Grant Agreements will be brought back to City Council for final approval.

Ineligible Projects:

Properties within a CRA are INELIGIBLE,
Sites that have been acquired and/or redevelopment plans announced prior to receiving program approval and/or letter preserving inducement from the City are INELIGIBLE,
Projects that Locally Undesirable Land Uses as listed in the Land Development Code, Chapter 58, Part 4 as well as any specific uses listed within approved Special Plans are INELIGIBLE, and
Greenfield sites are INELIGIBLE.