While Port Richey’s CRA isn’t set to dissolve until 2032, city leaders are looking for ways to spur major investment before the district’s remaining years run out.
At a Community Redevelopment Agency meeting in June, board members approved a revision to the redevelopment incentive policy to include catalytic projects, which are real estate or infrastructure investments that can have a high impact on revitalizing areas.
“The catalytic project provision was developed during the final review of the CRA Redevelopment Incentive Program as we evaluated how the program would function within the remaining lifespan of the CRA,” said John Eric Hoover, who serves as the board’s chairman and the city’s mayor. “The current CRA is scheduled to sunset on Jan. 1, 2032, which effectively leaves only a few years for new projects to be planned, financed, constructed and begin generating tax increment revenue.”
In local governments, CRAs are special districts established to eliminate blight in targeted geographic areas. A CRA uses local tax increment revenue by capturing the natural growth in property values to fund public improvements, economic development projects and neighborhood revitalization without raising property tax rates.
According to Port Richey’s CRA, the agency focuses on enhancing waterfront access along the Pithlachascotee River, revitalizing the Waterfront District and U.S. 19 corridor, creating safe and walkable neighborhoods, preserving historic character, implementing green infrastructure and climate resilience, providing workforce housing, reducing crime through design principles, and supporting diverse economic development.
The goal of the catalytic project provision is to encourage redevelopment while the CRA still exists and to recognize projects that have the potential to create substantial long-term economic benefits for the city, he said.
“The concern was not necessarily whether projects would be completed before the CRA expires,” Hoover said. “The concern was that larger transformational projects often require several years of planning and development, which can significantly reduce the practical value of a traditional CRA incentive when only a limited number of reimbursement years remain.”
By approving this provision, the city can now accelerate investment during the remaining life of the CRA rather than preserve funds that may never be utilized before the CRA ends.
“The changes approved last night do not alter the standard incentive program for most projects,” Hoover said after the meeting. “Instead, they create a new ‘Catalytic Project’ designation that can be applied to qualifying transformational projects.”
For approved catalytic projects, the maximum incentive cap increases from 5% to 10% of the increased property value, and enhanced reimbursement percentages may apply during the remaining term of the current CRA.
“The policy also allows reimbursement to continue beyond CRA expiration under limited circumstances until the approved incentive cap is reached, subject to annual city appropriation and other safeguards,” Hoover said.
Examples of projects that could potentially qualify include major mixed-use redevelopment, a destination waterfront project, hotel development, a significant housing project or another investment that creates substantial new taxable value and advances the goals of the CRA Plan, he said.
“For catalytic projects specifically, the expectation is that these projects will generate substantially more long-term taxable value than would otherwise occur, which is why enhanced incentives are available for projects that provide extraordinary community and economic benefits,” Hoover said.