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Things are changing in DTSP, and we know you have questions. We’re here to answer them as honestly and accurately as possible, so we can all work together to keep improving our downtown for business owners, residents and visitors alike.
What is an Improvement District?
An Improvement District is a specified geographic area where property owners pay additional money for the district to provide additional services that the local government can’t or won’t provide. Improvement districts have been around for many years and exist in hundreds of cities across the world. Click here to learn more about other improvement districts around the country.
How does an Improvement District work?
Typically, the local government will determine the boundaries and additional assessment amount for property owners to pay. The local government collects the funds and then hires a nonprofit management company to provide the services desired by the property owners. Districts are usually created at the request of the local property owners who choose to pay an additional assessment to provide enhanced services and create greater property values for their neighborhood.
What services do Improvement Districts provide?
Priorities are determined by a board made up of property owners who decide what the district will focus on. Some improvement districts produce events, have marketing campaigns, manage signage and wayfinding, recruit retailers, offer parking management services, provide additional security, enhance trash collection and cleaning efforts, and aid people who are unhoused. The property owners determine how the money they are paying is spent.
How is the Improvement District governed?
A new 501(c)6 organization will be formed to manage the needs of the district and sign a contract with City leaders to provide services to the downtown geography defined by the district. The board of the new nonprofit management company will be made up of residential and commercial property owners who are the ones paying into the district. Nonprofit bylaws and a multi-year contract with the city will provide governing documents for the management entity, with oversight from the board and elected leaders.
What is the timeline for establishing an Improvement District?
Once the City Council creates the special assessment area and boundaries for the district, notices are sent out to affected property owners who have an opportunity to protest the creation of the district and the new assessment. If more than 50 percent of the property owners object to the creation of the district it cannot be created.
What are the proposed boundaries of the Improvement District?
The proposed boundaries for the Downtown Improvement District are Fifth Ave. N. to Fifth Ave S. and Fifth St. N. to Waterfront.
What kinds of properties are assessed in an Improvement District?
Residential and commercial properties will contribute to the district. Properties owned by religious organizations, public colleges and universities, government buildings and properties owned by 501(c)3 nonprofits who are exempt from property taxes will not pay into the special assessment area. In some circumstances, some of these entities may voluntarily choose to pay into the special assessment area in lieu of the assessment so that they can participate in the governance and priority setting of the district.
What services will be provided by the new Downtown Improvement District in St. Petersburg?
Property owners who will sit on the board of the nonprofit management entity will determine the priorities and allocate the budget for the district. At this time, a priority will be placed on clean and safe programs with enhanced security, cleaning services, graffiti removal, additional park maintenance and support for people experiencing homelessness. These priorities can evolve as the needs of downtown change over time.
What state statute governs the creation of Improvement Districts?
Florida law allows a variety different ways to create special assessment areas or development districts.
What is the difference between an “assesment” and a “tax”?
A tax is levied by a governmental entity and can be applied to anything the governmental entity is responsible for providing. Taxes paid by one neighborhood do not stay in that neighborhood and can be spent throughout the community wherever there is need. An assessment is levied for a specific purpose. Funds from an assessment can only be spent in the area where they are collected and can only be used to pay for the purposes that property owners agree to at the time of the district creation.
What is the proposed rate downtown property owners could pay in an Improvement District and how much will this generate?
The proposed assessment is one dollar for every thousand dollars of the property’s taxable value. For instance, a property with a taxable value of $300,000 would pay $300 per year and a property valued at $1 million would pay $1000 per year into the special assessment. This will generate approximately $2 million per year of new resources that will be specifically dedicated to addressing urban management issues in downtown parks, sidewalks, and other public spaces.
What is the difference between a Development Authority and a Special Service Area?
In some Florida cities like Miami, Fort Lauderdale, West Palm, Clearwater and Lakeland, the District is created at a state level by the legislature and acts as a governmental agency. This is called a Downtown Development Authority and it has many of the same governmental and bureaucratic obligations as a city or county. Most development districts around the country operate like Downtown Tampa where the boundaries are drawn by the City Council and a Special Service Area is create by the City Council. A nonprofit is hired to manage the district. This approach keeps control closer to home and provides less bureaucracy freeing up resources to be spent directly on services.
What other Florida cities have Special Service Areas or Development Authorities?
St. Petersburg is one of the few Florida urban centers that does not already have this kind of management service in our downtown. Clearwater, Delray Beach, Fort Lauderdale, Jacksonville, Lakeland, Miami, Orlando, Pensacola, Tampa, and West Palm Beach all have improvement districts of some kind. Click here to learn more about other improvement districts in Florida and around the country.
