Sunset the St. Pete. downtown CRA – sounds good

St. Petersburg Intown CRA: Time for a New Chapter?

At the March 27, 2025, City Council meeting, Council Member Richie Floyd is raising a pivotal question: Is it time to sunset the Intown (downtown) Community Redevelopment Area (CRA)? With millions of dollars flowing into the CRA annually, it’s worth considering whether this funding has met its intended purpose and now should be redirected to other areas in need.

What is a CRA and why was it created?

A CRA is a district enclosed by specified streets (such as the downtown “Intown” district) established when specific conditions exist, as defined by the Community Redevelopment Act of 1969.  These conditions include:

• Blight and Deterioration: Presence of vacant or dilapidated buildings.
• Economic Challenges: High unemployment rates or low property values.
• Inadequate Infrastructure: Lack of roads, water, or sewage systems hindering growth.
• Safety Concerns: Elevated crime or insufficient public safety measures.

The Intown CRA met these criteria when it was created. However, downtown St. Petersburg has since transformed into a vibrant, booming district. It no longer suffers from the blight, economic struggles, or infrastructure deficiencies that originally justified its designation. This calls into question whether the CRA is still necessary.

How the Intown CRA is Funded

The CRA operates through Tax Increment Financing (TIF). When the CRA was established, property tax revenue in the area was frozen at a baseline. As property values rose due to redevelopment, generally 50-100% percent of the additional tax revenue (the “increment”) was captured and reinvested solely within the CRA’s boundaries rather than city-wide. 

This funding model has undeniably fueled downtown growth, but it has also created an imbalance: The increased tax revenue benefits only the CRA, rather than being distributed to support essential services citywide.

Downtown St. Pete’s Boom—and Its Consequences

The area in yellow is the Intown CRA.  It covers virtually all of downtown, and the major development areas around downtown – not exactly blighted.   

This raises concerns about equity. While the CRA continues to funnel money into an area that no longer needs assistance, the rest of the city bears the financial burden of funding vital public services.

What’s at Stake?

Property tax revenue typically supports essential services such as:

• Public Safety: Police, fire, and emergency medical services.
• Infrastructure Maintenance: Roads, bridges, and public utilities.
• Education: Public schools and educational programs.
• Parks and Recreation: Public park maintenance and development.
• Social Services: Housing assistance, healthcare, and other community programs.

When a CRA continues to capture tax revenue beyond its useful lifespan, it limit the city’s ability to provide these services to all residents equitably.

The downtown boom—and who’s left behind

Downtown has transformed into a high-end hub, but because the CRA captures its tax revenue, other neighborhoods miss out – other neighborhoods that are struggling. If the CRA were phased out, these areas could finally see the investment they desperately need. 

Districts that would  benefit if the Downtown CRA sunsets:

Childs Park (South St. Pete)

• What’s Needed: Road repairs, flood prevention, crime reduction, youth programs.
• How Ending the CRA Helps: Redirected tax funds could help fix long-neglected infrastructure, expand community policing efforts, and invest in programs for at-risk youth.

Tyrone Area (West St. Pete)

• What’s Needed: Aging infrastructure improvements, better public transit, business development.
• How Ending the CRA Helps: More citywide funds would allow for better road maintenance, enhanced bus routes, and grants to attract new businesses.

Midtown (Central St. Pete)

• What’s Needed: Affordable housing, small business support, public safety investment.
• How Ending the CRA Helps: Money once locked in downtown redevelopment could go toward incentives for local businesses, more police presence in high-crime areas, and affordable housing initiatives.

Coquina Key (Southeast St. Pete)

• What’s Needed: Stormwater management, neighborhood beautification, improved emergency services.
• How Ending the CRA Helps: Additional tax revenue could fund drainage projects to prevent flooding, upgrade public spaces, and strengthen emergency response times.

Lealman (Unincorporated but Closely Tied to St. Pete)

• What’s Needed: Economic development, workforce training, crime prevention.
• How Ending the CRA Helps: With more funds in the city’s general budget, resources could be allocated for job training programs, business incentives, and increased community policing efforts.

The Stadium That Won’t Be

The CRA’s most significant planned expenditure was $421 million ($287.5 million plus interest) for a new stadium for the Tampa Bay Rays. However, with plans for the stadium now gone and the area no longer meeting the conditions requiring special funding, it sure looks like it’s time to say good bye to the CRA. 

Why Sunsetting the CRA Makes Sense

CRAs are powerful tools for targeted urban renewal. They help cities address blight, attract investment, and foster revitalization. But when the conditions that justified their creation no longer exist, their continued operation can become a financial drain rather than a benefit.

With downtown St. Pete thriving, the challenges that once warranted the Intown CRA have faded. Additionally, with the stadium project off the table, a substantial amount of CRA funds could be repurposed for more pressing citywide needs.