CRAs: The difference between "spending" and "investing"

Community Redevelopment Agencies are economic development tools established by state legislatures across the country. When a new CRA is established in a community a base taxable property value is recorded. All increases in taxable value from that point in time on, through the existence of the CRA, create the revenue that funds the CRA. In Lake Worth's case, property taxes on that increased valuation that would otherwise have gone to Palm Beach County and the City of Lake Worth general fund can be used to eliminate and reduce slum and blight conditions within the CRA district. The 2008-2009 annual operating budget for the Lake Worth CRA was around $5 million. (Note: There is now a separate capital budget that reflects payments on bonds, etc.) From this revenue, bonds for redevelopment projects related to public infrastructure can be supported. This is how improvements to 6th Avenue South and 10th Avenue North were, and are being, accomplished.

Click title of post for interactive map showing the CRA district boundaries.

Here is what one current mayoral candidate thinks about the CRA. This is taken from the June 8th City Commission meeting when the status of the CRA became an issue.

This is where it is important to separate money being "spent" and money being "invested." Money spent is generally not expected to have a return - money invested carries an expectation of a return. The expenditure of monies on the Gateway projects was in anticipation of the increased taxable value of those properties through their ultimate redevelopment. It is money that the city will see again, in addition to eliminating the blighting influence caused by the former run down condition of those streets.

Had we waited for the County to come along and upgrade/maintain those streets - we'd still be waiting.