Economic Development Incentives

If you are interested in applying for funding assistance for a business or commercial property, please complete our Business Grant Intake Form, and submit it to the CRA office. This will allow our staff to offer you the most useful information for your specific request. The form may be submitted electronically or in person.

 

Slum and blight have a negative impact on the tax base of the city and are self propagating. Although there is often a tendency to focus on individual redevelopment projects at the expense of resolving underlying problems in order to set the stage for redevelopment, the existing and planned CRA projects and programs stress the importance of both. The success of this community redevelopment effort is largely dependent upon the economic vitality of the area. The CRA’s programs aimed at the elimination of slum and blighted conditions and improving the standard of living of its residents are intended to be catalysts for the revitalization of the entire area. Additional projects aimed at increasing job growth and generating pedestrian activity in the downtown complement the process by focusing on some of the underlying problems that originally resulted in slum and blighted conditions.

 

The CRA’s goal is to establish programs that will encourage occupancy in the existing office buildings, and the development of new office buildings within the downtown for a specific time period. Eventually, the creation of business activity on itself will give downtown Delray Beach its own branding as a place to work. Over time it will be unnecessary to offer incentives to encourage downtown investment in office space and to attract workers to the downtown district.

Job Creation Bonus Program

This Job Creation Bonus Program is designed to help attract companies to and grow existing businesses within the CRA District while increasing the number of quality jobs in the community. The applicant, if a new business, must create or relocate a minimum number of 10 new jobs whose average annual wages meet or exceed 115% of the County’s Average Wage. If the applicant is an existing business in the CRA District they must create a minimum number of five (5) New jobs whose average annual wages equal or exceed 115% of the County’s Average Annual Wage.

 

The incentive program is a grant contribution program that is paid out in two equal installments for a relocating company and two payments for an existing business. The amount of the total incentive contributed by the CRA to a project is based upon the number of jobs generated by the project according to the following funding levels:

 

  1. Standard Incentive Level: $1,000/job, not to exceed a total maximum incentive amount of $75,000. To qualify, the total payroll of the relocating and/or new jobs must have an average annual wage equal to at least 115% of the average county wage and be maintained over the term of the grant agreement.
  2. Premium Incentive Level: $2,500/job, not to exceed a total maximum incentive amount of $75,000. To qualify, the total payroll of the relocating and/or new jobs must have an average annual wage equal to at least 125% of the average county wage and be maintained over the term of the grant agreement.
  3. Local Hiring Bonus: An additional $500/job may be awarded to businesses employing up to 50% of their workforce with local hires (employees whose home address is within US Postal Zip Codes 33444, 33445 and 33483 within the incorporated city limits of the City of Delray Beach) or $1,000/job if that business’ workforce is comprised of 50% or more of local hires.

 

The incentive amounts shall be calculated based on the number of jobs at the start of grant agreement. The applicant is required to maintain the new or existing jobs for a period of at least two years from the date that each job was created/relocated.

Click here for full program guidelines.

Land Value Investment Program

 

Public or private entities may lease CRA-owned land for up to 60 years at severely discounted rates during the first fifteen years. In exchange, the developer builds a multi-story building with retail on the ground floor and Class A office space and other uses on additional floors.

 

The CRA may provide a developer with a long-term land lease of unencumbered CRA-owned property for long-term use. A formal Public Private Partnership land lease agreement would be negotiated, subject to final approval by the CRA Board of Commissioners. The length of the initial land lease shall be up to 40 years, but the lease may be extended an additional 20 years at market rate.

 

  • The land lease payments for the first five years would be $1.00/annum, triple net.
  • The annual lease rate for the second five years of the lease would be 4.0% of the appraised value of the property. Lease payments would be made monthly.
  • The annual lease rate for the first year of the third five-year term of the lease would be 6.0% of the appraised value of the property, with lease payments to be made monthly. Land lease payments to the CRA would increase annually by 2.5% during the third five-year term.
  • The land lease rate for the balance of the term of the agreement would be equal to 8.0% of the appraised value of the property. Land lease payments to the CRA would increase annually by 2.5%.
  • The developer would have the option to purchase the land from the CRA at any time during the lease.

 

Other requirements include:

 

  • A minimum of 50% of the project’s net floor area must be dedicated to Class A office space.
  • A minimum of 75% of the project’s net floor area must be dedicated to non-residential space.
  • The Project Owner or Developermust have a minimum of 20% of project costs (equity) in the financing structure of the construction project.

 

Additional incentive available for projects in the West Atlantic Redevelopment Area

 

The project design may require that a portion of the required parking is constructed by the CRA as public parking on CRA owned land within 300 feet of the project. However, parking constructed and owned by the CRA will be available to be shared with future uses within the redevelopment area, and will be available as public parking after 5PM on weekdays and on weekends. The CRA will commit to make the required number of spaces available to the project in perpetuity.

Development Infrastructure Assistance Program

The Development Infrastructure Assistance Program is a CRA incentive program in which the CRA reimburses a private for-profit organization fifty percent (50%) of the costs of eligible site improvements for an eligible commercial project, up to an amount not to exceed 50% of the projected Tax Increment Funds (“TIF”) generated by the improvements over a five (5) year period following project completion, not to exceed $250,000. Proposed projects must be located in CRA Sub-Areas #3, #4, #5, #6, #7 or #8.

 

Applicants must illustrate a “but for” scenario, demonstrating that securing a CRA incentive will be a deciding factor in the decision to develop the project. The final incentive agreement must be approved by the CRA Board and fully executed by the CRA and applicant prior to the issuance of building permits.

 

Improvements eligible for reimbursement may be either on private land or on the public right of way or both, and may include, but are not limited to, the following:

  • Landscaping, irrigation, exterior site lighting, sidewalks, plazas, site walls, permanently affixed site furniture, bicycle racks, etc., located on either public right of way adjacent to the private development, or on a portion of the private property that is accessible to the public.
  • Public right of way improvements along a street or alley and adjacent to the private development, including paving, sidewalks, curb & gutters, storm drainage systems, traffic signals, on-street public parking spaces.
  • Signage, limited to street signage, directional signage, or monument signs, and excluding tenant signage.
  • Underground and above ground public utilities, including, but not limited to, water mains, sewer mains, irrigation lines, natural gas lines, and electric utility lines.
  • The construction of publically dedicated parking lots and parking structures, or portions thereof, are eligible for reimbursement using the value of one in-lieu parking space as the base value of one publicly dedicated parking space.

 

Annual payments will begin after the entire project and payment of ad valorem property taxes has been validated. A formal incentive agreement would be prepared for final approval by the CRA Board. To maintain eligibility, CRA Board approval must be obtained prior to a final investment decision by the developer. Projects implementing a successful local hiring program may receive up to an additional $25,000 of bonus funding. Bonus funding awards are determined by a separate calculation based on qualifying jobs and wages.

Click here for full program guidelines.