SUBJECT:
Title
Request Approval of Silver Springs Community Redevelopment Area (CRA) Tax Increment Funding (TIF) Rebate Grant Agreement for the Headsprings, LLC., Home2Suites Hotel, Parcel 24141-000-00, 5495 NE 25th Street - [Budget Impact - Annually, Not to Exceed the Calculated Site-Based CRA TIF Contribution and Cumulative Not to Exceed $960,000 Less Any Other Awarded Grant(s)]
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INITIATOR: |
DEPARTMENT: |
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Christopher Rison, Senior Planner |
Growth Services |
DESCRIPTION/BACKGROUND:
James W. Gooding, III, Esquire, representing Headsprings, LLC. (Parcel 24141-000-00), requested consideration of a Tax Increment Funding (TIF) Rebate Grant Agreement (Agreement) related to the anticipated Headsprings Home2Suites hotel. Following discussions with the Silver Springs Community Redevelopment Area (CRA) Board September 3rd and October 27th, 2025, Attorney Gooding provided a further revised Agreement and accompany information regarding calculations methods and timing.
A TIF rebate is one of the tools available to a CRA to encourage and support redevelopment and development activity within a CRA, as a method to alleviate part of a development’s financial risk to achieve a feasible development project. The Agreement proposes a phased TIF rebate wherein an amount equal to all ordinary post-development taxes paid by the development property owner serve as the basis for calculating the TIF grant amount award. Payments shall be provided annually and shall not exceed the corresponding annual increased tax collections provided by the development property in any year and shall not exceed a total cumulative amount of $960,000 less other monies awarded for the project via other CRA grants (e.g., Building Façade & Improvement, Impact Fee, Utility Connection, etc.). The current possible CRA grant amounts total approximately $200,000 to $230,000, resulting in a possible cumulative TIF rebate amount of $730,000 to $760,000.
The Silver Springs CRA’s Community Redevelopment Plan (CRP) and Master Plan Update (MPU) establish that activities relating to and supporting tourism and contributing to the Silver Springs community’s character as an ecotourism hub are desirable. Further, a hotel facility supports drawing in populations that may then utilize and support the community and Marion County’s general offerings, such as broad tourism activities, restaurants, and retail activities. The Headsprings Home2Suites development project represents the first significant new investment in the CRA that supports the area’s ecotourism potential in nearly 20 years. As such, staff proposes that the TIF Rebate Agreement serves a public purpose to provide for a new “linchpin” use to function as a landmark and catalyst for the area serving a desirable targeted population. This is reflected in the CRP Goal 3.1.1.2 calling for quality development that would support making Silver Springs Park a sought-after destination, Goal 3.1.1.3 to provide new jobs and enhance the tax base, and Goal 3.1.1.4 to create opportunities to engage commercial and tourism partners. These goals are further noted in the MPU as Goal 1 to encourage development of commercial uses more conducive to tourism and Goal 6 by contributing to the creation of a vibrant commercial core that supports activity in the CRA. Given these noted goals, staff recommends that the proposed TIF Rebate Agreement is a suitable method of supporting development and redevelopment within the CRA and achieves the intended public purposes of the CRA.
The proposed Agreement focuses on four key components for the Board’s consideration:
1. Maximum Annual TIF Rebate Amount: The Agreement proposes rebating 100% of the increased collected taxes, above the original base, derived from the development site. An alternative maximum may be determined, although staff notes a 100% rate provides for an expedited payment that enables later CRA TIF Revenues are available for other CRA activities as efforts within the CRA would be anticipated to increase over time.
2. Cumulative Maximum TIF Rebate Amount: The Agreement proposes a maximum rebate amount of $960,000; however, that amount would be reduced by any other CRA grants ultimately awarded for the development site, so the gross amount of grants and rebates will not exceed $960,000.
3. Duration of TIF rebate:
a. The Agreement proposes providing for the annual payments, combined with any other awarded CRA grants, to terminate once the cumulative $960,000 amount is achieved - with the final annual rebate award being reduced to a lesser amount from the standard calculation to ensure the cumulative $960,000 is not exceeded.
b. Further, should a lower annual rebate rate be set, resulting in an extended time to accrue the $960,000, the Agreement will functionally end with the CRA’s statutory lifetime with any future funds no longer rebated; however, in the event the CRA lifetime is extended, the Agreement will remain in effect until either the cumulative amount of $960,000 is achieved as noted above, or the CRA ends as previously noted herein.
4. Further, the expectation with the Agreement is the hotel will remain in an “upper tier” of hotel types (classes A-D), as currently categorized by the Convention and Visitors Bureau (CVB), and not be able to “drop down” to become class E-F.
Staff request direction regarding the key issues above, and upon resolution by the Board, recommends approval of the Agreement subject to the Board’s determinations.
BUDGET/IMPACT:
Neutral, as annually budgeted as approved.
RECOMMENDED ACTION:
Recommended action
Provide direction regarding the TIF rebate and the maximum annual amount, the cumulative amount, and the duration of the rebate allowance; motion to approve the Agreement, subject to any identified revisions; and authorize the Chairman to execute the Agreement.
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