TO: Chair and Members of the Board
FROM: Samuel A. May, Executive Director
DATE: May 9, 2018
Title
PROPOSED BUSINESS INCENTIVE PROGRAM
BACKGROUND: The overall goal of the Margate Community Redevelopment Agency is to reduce and eliminate slum and blighted conditions, stimulate the community, encourage economic revitalization and to increase property values in the MCRA area.
According to F.S. 163.370(c)(5) a community redevelopment agency can undertake and carry out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements in accordance with the community redevelopment plan.
According to the MCRA Implementation Plan from 2017:
Part 2 - Planned Activities - Business Assistance and Economic Development Programs - The CRA will continue to provide grants for landscape and exterior building improvements to private commercial and mixed use properties, as well as initiatives such as the Development Infrastructure Assistance program to attract additional private investment. It will also continue business educational and co-op marketing, and may add other innovative programs to facilitate the creation and operation of new businesses in the district.
Economic Development Incentive Initiatives - The CRA adopted the Development Infrastructure Assistance (DIA) grant program, and will consider other incentive programs to attract new businesses and retain existing businesses, to promote job growth and economic development within the district. These initiatives may include the establishment of a business incubator, farmer’s market, makerspace or similar programs to facilitate the creation and operation of new businesses in the district.
Further, the Plan establishes the following in Part 3 - Plan Goals and Objectives:
C. Economic Development
Goal I - Establish a diverse, identifiable character for the City within the Redevelopment area while promoting economic vitality through private sector investment. Objective 7 - The Agency will work with the City, Chamber of Commerce and other organizations and agencies as appropriate to establish business retention, recruitment and expansion of programs such as creation of a business incubator, small business assistance program, art and culture initiatives, marketing efforts, a public market, and other programs that can help local entrepreneurs to establish and grow businesses in the Redevelopment Area.
Goal II - Invigorate the business community and revitalize existing commercial properties. Objective 4 - The Agency will promote economic development strategies including supporting efforts of the Chamber of Commerce as well as evaluating other tools for revitalization and economic development that encourage patronage of local business, thwarting economic leakage into surrounding areas enabling the retention and expansion of existing businesses.
Currently, the MCRA offers the following programs and incentives:
Commercial Property Façade Improvement Grant Program: The purpose of this program is to improve the appearance of street-facing exteriors of commercial structures with the MCRA. The mission of the program is to enhance curb appeal of commercial properties to retain and attract tenants and shoppers. This is a 50% match program up to $50,000 depending on the square footage of the participating property’s frontage.
Commercial Property Landscape Improvement Grant Program: The purpose of this program is to assist property owners and tenants to enhance the visible appearance of their commercial property by making substantial landscaping improvements. This is a 50% match program up to $10,000 to assist with landscaping improvements.
Development Infrastructure Assistance Program: Projects that cost $1 million or more in the MCRA may be eligible to participate in this program. This incentive is instituted to encourage property owners to make a substantial investment in the redevelopment area. The program allows for a reimbursement of 50% of the costs of eligible site improvements for an eligible commercial project, up to an amount not to exceed 75% of the projected Tax Increment Funds (TIF) generated by the improvements over a three year period following the project completion, up to a maximum reimbursement of $250,000.
The existing programs are very valuable. However, staff is proposing a new program that will allow for the provision of a financial incentive to attract new and expand existing businesses in the Margate Community Redevelopment area.
MCRA Staff is proposing the implementation of the Business Incentive Program, which is designed to help facilitate the establishment of new businesses and aid in the expansion of existing businesses within the Margate Community Redevelopment Agency (MCRA). The program provides financial assistance in form of a forgivable loan to new and existing businesses to reduce the initial cost associated with the interior construction or renovation of the commercial operating space or other improvements in accordance with the Implementation Plan.
RECOMMENDATION: To review and provide comment on the proposed program.
FISCAL IMPACT: To be determined.
CONTACT PERSON: Samuel A. May, Executive Director