MURDOCK — Charlotte County commissioners plan to return ballooning real estate taxes back to the general fund from the Sunseeker resort, but not from the new Westport subdivisions.
County planning staff mentioned a November referendum to eliminate large portions of the state’s property taxes may have a major impact on tax increment financing projects.
TIF’s as they are called, are set up so new real estate taxes must be spent to improve a blighted neighborhood until the community decides to end the special designation.
The referendum, if passed by Florida’s voters, would eliminate large amounts of property tax income from cities and counties.
Charlotte County’s oldest Community Redevelopment Authority was established in 1992 — the historic waterfront community of Charlotte Harbor where Sunseeker opened in 2023.
The majority of commissioners Tuesday asked county staff to prepare to quickly “sunset” two of the county’s three long standing Community Redevelopment Authorities – the second to be closed out being the Parkside CRA, which is the old General Development neighborhood in the middle of Port Charlotte.
CHARLOTTE HARBOR CHANGES
Money could start piling up in the Charlotte Harbor CRA reserve account following the opening of the 785-room resort.
Specifically, new property tax money in the reserve account is projected to grow from zero today to $40 million in 10 years, assuming no changes in property tax laws.
That money could only be spent in Charlotte Harbor if the CRA is not sunset. Property assessed values have increased 334% since the CRA started, due mostly to the construction of Sunseeker. The 22-acre waterfront site previously was minimally developed with a mini-golf course and a restaurant.
Projects completed in Charlotte Harbor under the CRA include the riverwalk and improvements to the waterfront parks. Projects in progress or on hold include repairs to the riverwalk where many parts were destroyed by hurricanes. Other work in the region, such as plans to rebuild Harborview Road come from sales tax funds.
Charlotte Harbor will host the state’s Redevelopment Association annual conference at the new Sunseeker Resortfrom Oct. 20-23, according to county government fellow Whit Buchanan.
MURDOCK DEVELOPMENT
In the Murdock CRA, property values have soared more than 2,000% since the CRA started in 2003, because the area was mostly jungle at the start, Buchanan said.
This region is named after an early 20th century land speculator who failed in his attempts to develop the area.
The new Westport neighborhoods are shaping up to be higher income and lower age than the rest of the county. Most of the development has been residential, with a third section promising to have more commercial properties.
Old roads in the northwest Port Charlotte area were often clogged with weeds when Charlotte County initiated the Murdock Village plan in the early 2000s.
SUN PHOTO BY BETSY CALVERT
Yet commissioners all agreed to keep the Murdock CRA alive due to the loan legalities.
The reason they can’t sunset Murdock is because the county still owes $68 million from what an earlier commission borrowed to buy land. The reserve fund only has about $19 million. The county expects to start paying off the loan with a special per property sales tax from each sale in the new Westport neighborhoods. The payments must go to a CRA fund.
Despite $259 million in county investments, the Murdock CRA did not have any improvement projects planned. The plan was for private developers to make the improvements.
Due to the great recession, that took almost two decades. The ability of municipal government to buy real estate for private development is now illegal in Florida.
Commissioners lamented how the earlier commission’s decisions to invest and collect payments resulted in the huge loan.
“It’s just a nightmare, (but) it’s behind us,” Commissioner Ken Doherty said.
One commissioner questioned closing the Charlotte Harbor CRA. Commissioner Stephen R. Deutsch said he recently walked through the streets there north of Sunseeker and was dismayed to see how run down it looked.
“I was really surprised,” he said. “It could really use some sprucing up.”
Outside of the towering new waterfront resort, the homes in Charlotte Harbor are among the oldest in the county. Incomes are low and demand for services is high. The neighborhood could benefit from giving homeowners money to repaint their homes with marine resistant paint, at the very least, Deutsch said.
Other commissioners countered saying the county can find money for improving the facades of homes in Charlotte Harbor without a CRA.
Economic Development Director Kay Tracey reminded commissioners that the other side of Charlotte Harbor, east of Sunseeker, still needs help.
PARKSIDE NEIGHBORHOOD
Unlike the Charlotte Harbor or Murdock CRAs, the Parkside neighborhood has lost value since it was formed in 2010, despite extensive investment by county government and renovations by two medical centers.
Built in the 1960s and 1970s by General Development, it is the densest part of the county, has lower income, higher age and higher crime. It also has major employment and commercial centers in a central location.
Starting in 2023, however, Parkside property values have started to increase, Buchanan said, after many post-hurricane renovations.
Also, high crime has started to abate, he said, adding that it may be an inflection point for the county’s central neighborhood.
Despite the struggling property values, commissioners all agreed to sunset the Parkside CRA, where it is difficult to acquire land for large redevelopment.
“I think we’ve substantially completed the vision of the Parkside Citizen’s Master Plan,” Commissioner Joe Tiseo said.
Projects completed there include Maguire Park, Lake Betty Park, tree canopy on public right of way, improvements to Harbor and Olean boulevards, and multi-use pathways. Some large road projects have been completed with sales tax revenue, Buchanan said.