CRA Minutes 08/08/2008 - Laserfiche WebLink

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TO: COPY: FROM: DATE: RE: City of Casselberry Community Development Director 95 Triplet Lake Drive, Casselberry, Florida 32707 · Telephone (407) 262-7700, Exl. 1110 Fax (407) 262-7763 · Email: QParadise@casselberrv.orQ Barbara Lipscomb, City Manager Catherine Reischmann, City Attorney Gerald Paradise, Community Development Director August 7, 2008 Questions Concerning C.R.A. Interest Payments At the joint meeting of the City Commission and the Community Redevelopment Agency Board, held on June 23,2008, a question was raised concerning the payment of "city" loan interest by the C.R.A. or reimbursement of payments to the Community Redevelopment Agency upon the sale of the properties. I have contacted our legal counsel Ms. Reischmann and she in turn has contacted one of the top legal advisors in the State concerning C.R.A. ' s, Mr. David Cardwell with Cardwell and Associates and the FIOlida Redevelopment Association. Based upon the infonnation that I have received from Ms. Reischmann and Mr. Cardwell the payments now being made are consistent with Florida Statute 163, Part 3. Mr. Cardwell indicated that if the CRA board voluntarily undertook to pay the interest on the notes and if such voluntary undertaking could be documented through the minutes of prior meetings, then such an undertaking would be considered a gift from the CRA to the City. He said that it was appropriate, since the gift related to redevelopment within the CRA. The key appears to be that the Community Redevelopment Agency Board must when presented with the funding proposal on an annual basis, have the opportunity and ability to say "no" if they choose to stop the funding. Our Community Redevelopment Agency Board each year in the Budget and Capital Budget approval recommendations to the City Commission has been presented with the "interest" transfer amount and has chosen to fund it as part of their approved budget. There has never been a mandate to the C.R.A. that they "must" fund this amount. The following information addresses your second question, the possible reimbursement of payments back to the C.R.A. After the sale of the Concord site or the 15 acre City Center site, Mr. Cardwell indicated that it would be within the discretion of the City Commission to give a proportional credit back to the CRA to recognize the payment of the interest on the note. He did not believe it would matter one way or the other from a legal standpoint whether the City decided to give such a credit, since the C.R.A.ls payments were a "gift" to the City. The City could decide to or not to "gift" a credit back. Both, Ms. Reischmann and Mr. Cardwell cautioned against adopting a formal agreement for payment or repayment of such funds. David Cardwell indicated that as a "gifting" the