This is a re-post (and the one below) from about the middle of last year, soon after I was appointed to the CRA Board. Given the discussion we had last night in our joint City Commission/CRA meeting, I thought that it merited another look. The concept here is that while - currently - residential properties produce the bulk of the CRA revenue, it is more a reflection of the sorry state of commercial properties within the CRA district. Once redeveloped, they have the potential to produce more property tax revenue on a per square foot basis than residential properties. Blighted residential areas within the CRA will then benefit from additional resources created by the reinvestment and redevelopment activity.I thought it would be helpful to prepare a little show-and-tell about the status of properties along N. Dixie Hwy. In many ways, this area represents a large potential for economic growth for Lake Worth. As shown through the slideshow above, there are a significant number of under-utilized properties that are not producing the tax dollars which could be channeled into neighborhood improvements. Furthermore, as explained during the recent Treasure Coast Regional Planning Council charrette, there is an imbalance in the amount of retail and office opportunities available within the city's boundaries. This means that residents endure a heavy reliance on various forms of transportation to get basic retail goods, along with the need to commute for employment opportunities. When gasoline is over $4 per gallon, that becomes a very important aspect of living in Lake Worth.
It's important to remember that when Lake Worth was originally laid out as a city in the 1920s, Dixie Hwy. - and the FEC Railroad - were the main means of coming and going. There was a great reliance, one that we shared with other coastal communities, on tourism. Looking back into historical material from the 1950s, the political power base in this community was the mom-and-pop ownership of motels along US Highway 1. It was the commercial strip - where you could find all sorts of goods and services directed at those traveling on US 1. And by being what it was, it contributed greatly to the tax base of the community.
When I-95 was built in the 1970s, all the "interstate" traffic that shuffled through the city was diverted to the new highway. Dixie Hwy became a local arterial and the City still hasn't recovered from that shift. During my interview with the City Commission for a position on the CRA, the Commissioners from Districts #2 and #3 looked at me like I had three heads when I talked about the need for investment in this part of the city and the blighting influence it causes. This "no growth" philosophy, while placating those that find it difficult to accept change, falls apart in application due to the unsustainable nature of having employment and shopping areas distant from the city's residential areas. It also chokes off captured tax revenue, made possible by the establishment of the CRA, that could be targeted to blighted residential neighborhoods within the CRA district boundaries.
The map above represents the boundaries of the CRA. It encompasses all the major commercial corridors within the city east of I-95, with the exception of Federal Hwy - which is of a different character and really a hybrid area between residential and commercial. Note that any development that happens along Federal Hwy. creates tax revenue which goes directly to the city's general fund and is not captured by the CRA. You may want to recall that the next time you look at the townhouses that were built over the past 5 years along that street.
The CRA boundaries are unique in Lake Worth in that they take in a lot of area. In the N. Dixie Hwy. extent of the district, the eastern side is made up entirely of the shallow commercial properties that we are all familiar with. On the western side, the district goes all the way to the FEC RR tracks, which includes multi-family zoned areas as well as commerically zoned areas. Additionally, the area depicted in yellow on the above map is residentially zoned and consists of mostly single family and smaller multi-family structures. In summary, there is a lot of land area within the CRA district that is predominantly residential. This is both good and bad. It is good in that as the commercial area redevelops and better reaches its tax revenue producing potential, more funds can be directed to this area to address the slums and blight in some of our most challenged neighborhoods. The bad is that it's potential to contribute additional tax revenue is not as great as commercial properties within the district.
One of the revelations discussed at last week's meeting with the City Commission concerned the information contained on the above spreadsheet. It shows that 54% of the total taxroll of properties within the CRA district come from all categories of residential properties. This should not lead you to the conclusion that residential properties produce more tax revenue than commercial or industrial properties. It just happens to be that a large part of the CRA district is made up of residential properties and that they are in essentially a "built out" state. What increase comes from them will come primarily through market flucuations (increases) in non-homesteaded properties. By the way, 29% of the CRA district taxroll comes from homesteaded properties (a total of 797). Commercial property within the district only produces 37% of the total taxroll within the CRA district. This can be explained by the condition of many of the larger properties within the boundaries (see above slideshow). It can also be explained by the long-term under-valuation of commercial properties in Lake Worth that still has to catch up to current market conditions.
I thought it would be helpful to break down the value on a per acre and per squar foot of land basis to show the potential of commercial and industrial property redevelopment. Check out the table above. Even with the amount of nearly fallow commercial property along N. Dixie Hwy., commercial property generates more per square foot of land area than residential or industrial uses. However, industrial properties are a close second to commercial properties on a per square foot basis. When you consider this, and the potential quality of life and environmental benefits from developing these urban "grayfields", it underlines the importance of these properties in the overall strategic positioning and long term future of the city of Lake Worth.
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