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Renewal will fill city coffers, a report says

Frantic growth could generate $6-million a year for improvements to the city's urban center, a consultant says.

By AARON SHAROCKMAN
Published April 6, 2006

CLEARWATER - Tax revenue coming from downtown could triple in 10 years if the condominiums now planned there actually are built, says a city consultant studying the area's proposed residential developments.

The frantic growth could in turn generate $6-million a year for improvements to the city's urban center, money that could help build a parking garage or fund improvements to Coachman Park or on the site of the Harborview Center.

The impact is part speculative, based on how many projects are finished and what other development takes place, but the study presented this week by Swan Development Advisors of Lakeland includes some of the first projections of the fiscal benefits to Clearwater's urban renewal.

The report, which links downtown to rocketing tax growth, projects a 350 percent increase in the downtown's tax increment revenue by 2015. Tax increment is tied to the city's downtown and the boundaries of the city's Community Redevelopment Agency. The money is then reinvested in the downtown.

"It confirms what we've been saying," said Assistant City Manager Rod Irwin, who oversees the city's economic development efforts. "There are direct benefits to redevelopment."

This year, the city is expected to see about $1.52-million in tax increment revenue from downtown and the area immediately east. By 2010, as new condominium projects are built, tax increment revenue could climb to $5.4-million, the study says.

By 2015, tax revenue could top $6-million and by 2019, the last year in the study, revenue could exceed $6.6-million.

City officials were buoyed by the numbers but urged caution. The projections are based on construction estimates and good-faith guarantees that residential developments talked about today will be built down the road.

"This is more art than science, with all due respect," said Mayor Frank Hibbard.

Bruce Lyon of Swan Development Advisors said the numbers are a guide for planning and not guaranteed. To that end, he equipped the city with a database to track the changes as projects come on line or are delayed.

"I would liken this to, rather than give you a fish, we're teaching you to fish," Lyon said.

Counted in the study are development projects in the planning stages as well as those that have received city approval.

In total, they would add about 1,000 residential units to the downtown core, as well as thousands of square feet of office and retail space, a small art museum and a 10-screen movie theater.

Irwin said developers remain committed to the projects, though as of now only one, the 18-unit Laura Street Townhomes, is under construction. The study anticipates most projects completed before 2010. That could change, Irwin admitted.

Ground already is cleared for the 126-unit Station Square condominiums and is being cleared for a 157-condominium complex called Water's Edge.

The townhome project Mediterranean Village, near the corner of Myrtle Avenue and Cleveland Street, is still awaiting environmental approvals. Other projects in the downtown core are in various phases of planning.

All of it makes predicting the future of downtown no easy task.

"We're in a very dynamic situation," Hibbard said.

The Community Redevelopment Agency covers 450 acres in downtown Clearwater straddling Cleveland Street from Clearwater Harbor to Highland Avenue. As of now, 11 major projects are planned for the area. A city study suggests the developments could provide a tax windfall for future city projects.

Tax increment revenue projections

[Last modified April 6, 2006, 01:59:19]