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Overview of
Redevelopment Areas
Melbourne's City Council has created three redevelopment districts.
The Historic Downtown
Redevelopment district has been in place for more
than two decades and led to the highly successful revitalization of the
historic downtown area centered on New Haven Avenue. The Babcock
Street redevelopment district was created in 1997 to encourage the rebirth
of a traditional commercial corridor. The City's
third redevelopment district was established as the Olde Eau Gallie
Riverfront in 2000.
Florida law provides cities with
the ability to designate areas that are in decline as "redevelopment
areas" under the Community Redevelopment Act. The State recognizes
that areas in decline become a burden to local governments and that the
decline affects multiple aspects of the community. Areas in decline
generate less in taxes because of the declining property values, yet often
require more services from the municipality.
In addition to the city's
redevelopment efforts, the City has begun to focus on economic
development. Melbourne is a member of the Economic
Development Commission of Florida's Space Coast, a private,
not-for-profit organization that assists with relocations and expansions
of commercial endeavors. The City and EDC work together to
assist projects planned within the redevelopment areas of Melbourne.
Funding:
The major funding source comes from Tax Increment
Financing. Each redevelopment area is established with a base year
for taxing purposes. As the value of property increases beyond the value
recorded in the base year, revenues from property taxes increase.
The tax revenue that is added after the base year is captured by the local
government into a special redevelopment fund.
Each redevelopment fund is used to
complete public improvement projects throughout the redevelopment area
where the revenue is generated. Projects can range from streetscape
improvement to creation of parks and replacement of public infrastructure.
Melbourne seeks other federal and state funding sources that can be used
in the redevelopment areas.
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