The East Baton Rouge Redevelopment Authority’s best chance for long-term sustainability requires a dedicated funding stream from the city-parish of between $1.5 million and $4.5 million a year, according to recommendations contained in a long-awaited business plan for the agency released earlier today.
The report, which was funded by the Baton Rouge Area Foundation and prepared by SSA Consultants, lays out a blueprint for the RDA, with specific steps the next mayor and Metro Council should take if they want to keep the blight-elimination agency in operation.
The report notes that the RDA, which has never had a permanent funding source and began running out of money in late 2014, can either remain as an independent entity; partner with two or three existing entities; or be taken over entirely by the city-parish.
The report strongly recommends keeping the agency as an independent entity, and suggests several possible sources of city-parish funds.
They include: tapping the Office of Community Development, which could award grant funding or Community Development Block Grants; increasing permit fees on new construction that could be split between the RDA and the office of permits and inspections; increasing property taxes by one mill for three to five years; and appropriating general fund dollars on an annual basis.
Among the long-term funding options for the agency are tax increment financing and a tax recapture mechanism, whereby a portion of property taxes generated by land banking activities is dedicated to the land bank for a specific period of time.
“I believe SSA offers several smart options for this financing as well as a focus for our work that will benefit targeted areas,” says RDA board Chairman John Noland in a prepared, written statement. “The RDA Board requests the next mayor and Metro Council consider investing in the operations of the RDA in 2017. Public funding for a limited period will enable us to continue the good work we’ve begun.”
The report also recommends making structural changes to the RDA’s organization. It suggests the agency reorganize into two divisions with separate staff—one focused on land banking, the other on redevelopment.
Additionally, the report says the RDA should limit land bank acquisitions to properties located in specific, strategic areas that have been previously identified in community improvement or redevelopment plans.
Changes at the city-parish level could help streamline the blight elimination process and speed up the timeline of putting properties back into commerce, which, in turn, could generate revenue for the RDA, according to the report.
Though it will be up to the next administration to chart the RDA’s path moving forward, the report acknowledges that the current council and administration will have to make some decisions in the short term as well.
“The RDA Board of Commissioners and Mayor Kip Holden are encouraged to collaboratively review the recommendations offered in the business plan and determine which of the proposed programs and elements could be adopted immediately,” the report reads. “A strong, functional RDA can play an invaluable role in the continued growth and success of Baton Rouge.”
—Stephanie Riegel
