CRA Annual Report FY 2018-2019

Below is an online version of the Annual Report.  To download a pdf of the actual report, click the link at the bottom of the page.

LAKE CLARKE SHORES

COMMUNITY REDEVELOPMENT AGENCY

ANNUAL REPORT

2018/2019

For the fiscal year ending September 30, 2019

MESSAGE FROM VALENTIN RODRIGUEZ, JR., CHAIR OF BOARD OF COMMISSIONERS

The Lake Clarke Shores Community Redevelopment Agency (CRA) continues to be one of the most powerful tools we have to improve the area surrounding Forest Hill Boulevard. The activities and programs within the CRA are guided by efforts of your Town Council (serving as the CRA Board of Commissioners) to revitalize our commercial corridor. The CRA receives no state money and no town general fund dollars. Instead, the CRA is funded entirely by the property values of the properties within its borders.

When we created the CRA, we froze the amount of property taxes paid on those properties. As the CRA improves the area, and property values increase, any additional property taxes over the frozen amount are used to fund the CRA. Our CRA, which is only four years old, is already significantly improving our town. Growth in the CRA is outpacing growth elsewhere, and our incentives and other programs are helping to attract or expand businesses. Lake Clarke Shores is open for business, and open to business.

REQUIREMENT OF THE CRA ANNUAL REPORT

The Lake Clarke Shores Community Redevelopment Agency is required by Florida Statutes 163, part III to report its activities for FY 2018/2019 by March 31, 2020.

This report shall include a complete financial statement setting forth the CRA's assets, liabilities, income, and operating expenditures as of the end of such fiscal year.

At the time of filing the report, the agency shall publish the annual report on the town's website. If the audit report is not available by March 31, the CRA must publish the audit report on its website within 45 days of completion.

BACKGROUND

The Lake Clarke Shores Community Redevelopment Agency (CRA) was created on July 12, 2016 by the Lake Clarke Shores Town Council under Section 163, Part III, Florida Statutes.

The boundaries of the CRA District are included on the map herein. The general boundaries of the CRA are comprised of approximately 53.4 acres or 8% of the total area of the Town. It is the intent that all exterior borders of the map are to include all public rights of way that are tangent to the external envelope of the CRA boundaries.

Under the State Statutes and the Town ordinances, the Lake Clarke Shores CRA has substantial powers and authority within the Lake Clarke Shores CRA area. These include the power to make and execute contracts, to acquire and dispose property, to approve development plans, to implement a program of voluntary or compulsory rehabilitation of buildings, to mortgage its property, to borrow and invest money, and to apply for and accept grants and contributions.

BOARD MEMBERS

The Town Council sits as the Board of Commissioners of the LCS CRA established by Resolution.  The Mayor is the Chairman of the Board and the Vice-Mayor is the Vice-Chair.  The Board positions are:

Valentin Rodriguez, Jr., Chair

Paul Shalhoub, Vice Chair

Robert M. W. Shalhoub, Commissioner

Gregory Freebold, Commissioner

Albert Pavon, Commissioner

The Lake Clarke Shores Community Redevelopment Agency(CRA) is considered a blended component unit of the Town and therefore it is included in the Town’s annual financial audit.

In order to meet the requirement of Section 163.387(8), Florida Statutes, which requires the CRA to provide for annual audit of the redevelopment fund, the Lake Clarke Shores CRA has been treated as a major fund of the Town. The financial statements included herein are unaudited statements of the Lake Clarke Shores CRA.

Audited statements will be included in the Town’s Annual Financial Report for the fiscal year ending September 30, 2019 and once completed will be placed on the town's website at www.townoflcs.com.

TAX INCREMENT FINANCING (TIF)

The primary revenue earned by the CRA is Ad Valorem Taxes from Tax Increment Financing.

Tax Increment Financing, or TIF, is the amount of tax specifically due to increased property values within the CRA District.

The Town established the Community Redevelopment Agency Fund using 2016 as the base year for tax increment revenues.

The assessed property values within the CRA in 2016 totaled $24,686,639.

The 2019 assessed property value within the CRA was $28,401,789 (prior to VAB)

The Community Redevelopment Agency collects TIF funds only from Palm Beach County and the Town of Lake Clarke Shores.

CRA BUSINESSES ADDED OR EXPANDED IN 2018/2019

• Viva Health Centers of LCS
• Elite Primary Care LLC
• Medwork Forces LLC
• Promedbillers LLC
• Lux Credit Solutions LLC
• Advance Tax Management Inc
• Autism & Behavioral Cunsulting LLC
• Lush Beauty Studio Skin & Body Spa
• Adult Counseling Center of the Palm Bchs
• Arrango Yezid
• Jo Bistro
• Rosa M Cuello MDPA
• Dr. Finlay Medical Center
• Mega Senior Services Inc
• TJ Health Services Inc
• John B Clarke
• Lake Worth Scottish Rite Foundation, Inc

MEETINGS HELD AND ACTIONS TAKEN 2018/2019

November 13, 2018

• Approved Resolution #2018-02 creating the New Business Incentives Program which will be used to pay incentives to new businesses that relocate in the CRA.
• Approved Resolution #2018-03 adopting the 2019 CRA meeting schedule.
• Approved Resolution #2018-04 appropriating the remaining 2017/18 CRA Trust Fund balance to the new Business Incentives Project. Remaining funds will provide financial incentives to Sushi Jo and Jo Bistro (reimburse up to 50% of the cost to install a grease trap for the restaurants and make payments to offset the first 12 months of water and sewer expenses) and to other businesses which locate within the CRA during 2017/2018.

January 8, 2019

• Approved an increase in the Forest Hill Boulevard Median Maintenance budget from $10,000 to $20,000.

February 12, 2019

• Town Council approved the first reading of Ordinance #2019-01 - Amending Chapter 2, Article VII Section 2-315 to allow designees for the Town Manager, Town Clerk and Town Attorney to assist the CRA.

March 12, 2019

• Town Council approved second reading of Ordinance #2019-01.
• Mr. Clark presented the 2017/2018 CRA Annual Report which was approved by the CRA Board of Commissioners.

September 10, 2019

• Approved Resolution #2019-01 submitting the 2019/2020 Fiscal Year budget to the Town of Lake Clarkle Shores Town Council for adoption on September 24, 2019.
• Approved Resolution #2019-02 that changed the registered agent for the CRA from Charles Schoech to Emilie Pearson.

Number of building permits issued within the CRA in 2018/2019 FY: 17

STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCE

For the Fiscal Year Ending September 30, 2020 (Unaudited)

REVENUE

Taxes - PBC TIF - $16,865

Taxes - Town TIF - $22,164

Interest income - $753

TOTAL - $39,793

EXPENDITURES

General government - $1,294

Physical and economic environment - $1,747

Utility special projects fund, Forest Hill median upgrades - $20,000

New business incentive project - $11,638

Excess (deficiency) of revenues over (under) expenditures - $5,114

FUND BALANCE, beginning of year - $10,736

FUND BALANCE, end of year - $15,858

BALANCE SHEET

ASSETS

Cash - $51,165

Total assets - $51,165

LIABILITIES

Due to general fund - $3,677

Total liabilities - $3,677

FUND BALANCE

Unassigned - $47,488

TOTAL FUND BALANCE - $47,488

Total liabilities and fund balance - $51,165

SUMMARY

During the reporting year, a number of activities occurred consistent with the budget and goals of the CRA. Initiatives for FY 2018/2019 included:

Goal: Continue to improve transportation, parking, and infrastructure needs to support future development.

• Improvements to the medians on Forest Hill Boulevard not only enhance the physical appearance of the CRA, but also improve public perception of the CRA. Improved public perception encourages business relocation as well as encourages existing businesses to improve their own business facades.

Goal: Continue to offer redevelopment assistance.

• CRA offered grants to businesses in the CRA throughout the year for assistance with water bills and grease traps.

Goal: Contribute to the Town's green initiative.

• LED overhead cobra street lighting was installed along Forest Hill Boulevard. The new fixtures not only increase safety by providing improved lighting, but also improved the appearance of Forest Hill Boulevard.

Lake Clarke Shores

Community Redevelopment Agency

Prospective Projects Summary

For the Year Ended September 30, 2019

Projects:

Sanitary Sewer Service Expansion - $1,800,000

Roadway Gris Improvements - 1,000,000

Mobility Improvements - 500,000

Canal Bank Multi-Use Path - 250,000

Recreational Enhancements - 1,000,000

Parking Improvements - 4,375,000

Stormwater Improvements - 200,000

Beautification, Lighting & Wayfinding - 350,000

Electric Car Recharging Network - 75,000

Total Project Cost Estimate - $9,550,000

Funding Sources for Prospective Projects:

• CRA Revenue
• Florida Boating and Improvement Program
• Florida Department of Environmental Protection
• Florida Department of Transportation
• Lake Worth Drainage District
• Palm Beach County
• Palm Beach Metropolitan Planning Organization Private Sources
• South Florida Water Management District
• State Revolving Loan Fund

Grant Sources:

• Community Development Block Grant Economic Development
• Administration Environmental Protection Agency
• Other Grant Funds TBD

Actual funding allocations for projects will be determined annually through the budget process.