Spurring redevelopment in areas hit by slum and blight will take a new vision

What’s the true value in property? It depends, according to city officials who are looking at land within the city’s three Community Redevelopment Agency boundaries in a different light.

By law, city property has to be sold at market value, but there is leeway with CRA properties because the primary mission is the elimination of slum and blight through development and redevelopment. Laws affecting the CRA allow for its mission to be taken into consideration when negotiating sale prices.

City officials appear to be willing to look at the longer term investment of a project that meets the CRA objective rather than the immediate payday of a sale.

“We’ve had some difficulty with our lands we purchased for specific purposes in the CRAs,” said Economic Development Director Carl Callahan.

An example of the city’s frustration, among others, is the old Manatee Inns site in the 1400 block of 14th Street West, which has seen some exciting redevelopment projects offered, but relied solely on the slight chance of successfully getting tax credits through the Florida Housing Finance Corp. The property was tied up for the past two years in one attempt after another.

The city purchased the property for $2 million at the height of the housing boom to tear down the troubled Manatee Inns. The Great Recession cut the value of the 3 acres to about $600,000. The Bradenton CRA still owes $400,000 on the loan after all this time.

The city has long tried to get as much back from its investment, but the question they want to answer is: Is the value in the sale or is the value in the project?

“Like on any real estate deal, look at the whole picture and assess the whole value,” said Ward 4 Councilman Bemis Smith. “Would you rather have property that is bringing in $1,000 in tax revenue over five years or a piece of property sitting empty for five years bringing in nothing? We can start to sell these properties at a certain price and look at how they can jump-start a neighborhood or we can hold onto them forever.”

Callahan said there has been some interest in the specific CRA properties the city has struggled to get redeveloped, “but the sticking point has always been the value of the land, which can prevent making a project financially difficult to do. For example, if we sold the Manatee Inns site to someone who wants to build 10 houses, he can’t do that and buy the property for $600,000.”

The city is starting to independently market the properties and signs will be going up soon letting developers know they are available for development.

“If we just sit here and do nothing, then shame on us,” said Ward 2 Councilman Gene Brown. “I think this is a good idea to start opening up those properties for opportunities that are going to benefit those neighborhoods.”

Vice Mayor Patrick Roff said when it comes to selling CRA properties, “It’s not about market value, it’s about fair value. And fair value is for the good of the community. All factors can be considered in fair value.”

The city also has had tendencies to dictate what type of project a community needs, such as the failed grocery store site on the corner of First Street and 13th Avenue West. The city council has the ultimate approval authority, so officials want to stand back and let developers come to them with ideas.

“At some point we’ll make it obvious that these properties are available with requests for proposals,” Callahan said. “But in the meantime, bring us your best project and let’s see what you can do.”

This story was originally published November 1, 2017 at 2:37 PM with the headline "Spurring redevelopment in areas hit by slum and blight will take a new vision."