Tax increase vote carries more weight as project estimates swell
Ken Salgat
Staff Writer

TEMPLE TERRACE -- When the voice of Temple Terrace's citizens is heard Aug. 2 on a property tax increase, the question of whether a downtown redevelopment plan estimated at more than $300 million will become reality might also be answered.

Of that total, developer Unicorp National Development Inc. would pay almost $240 million and the city $60 million.

Of the $60 million, less than $20 million would be raised by the 1 mill tax increase.

The remaining funding would have to come from county, state and federal grants, existing gas and community improvement taxes and other "capital campaign efforts," the city's Web site says.

If that cost were to increase, the city says citizens would need to vote on and pass yet another referendum.

Hired oversight
However, before any vote is taken, Unicorp's plan first needs to get by a national consultant hired by the city to review the redevelopment proposal. John Stainback, managing partner of Houston-based Stainback Public/Private Real Estate, is reviewing the proposal and is preparing the company's recommendation for a July 19 council meeting.

Following the recommendation, the council will decide whether to proceed with Unicorp or shelve the plan and start the process all over.

"I think they have a great master plan, but the private-public plan needs some work," said Stainback. "We need to find out how much Unicorp can afford to pay the city and figure out how we can leverage those payments, and then we'll see what happens."

Stainback said his company has worked with other cities throughout the country that have successfully completed projects ranging into the billions. He said that on the surface the Temple Terrace plan looks promising, yet additional plan review is required.

"I have not done enough financial analysis to determine whether the 1 mill assessment would be sufficient," Stainback said.

Tax boost a project lynchpin
Partners Lee Maher and Chuck Whittall lead Unicorp. Maher said that the issue the community should be concerned with is passing the tax increase, not the fact that there exists only a single developer from which to choose.

"The Aug. 2 vote is what's critical here," Maher said. "We've already invested hundreds of thousands on this project, so we won't go away. However, if the referendum fails, we'll have to go back and scale down our plans and make significant reductions to what's been already presented to the public."

However, some residents and business professionals believe starting over might make the most business sense in the long run.

Owen S. Whitman, president of Tamarind Associates Inc., a commercial intelligence analysis and consulting firm, said the city shouldn't rely on its citizens to pay for redevelopment but should instead find a "steely eyed" developer to invest in redeveloping the area.

"Here in Hillsborough County, there has not been a public-private venture that has been successful," said Whitman. "The amount of money being quoted is probably not what will be spent, simply because government always tends to underbudget."

Whitman cited such government and citizen-subsidized projects that were approved and are now losing money.

"A consultant said the aquarium (Florida Aquarium) would be profitable, that the trolley (TECO Streetcar Line) would work, that the [desalination] plant would work," said Whitman. "All three are losing money or are bankrupt, and all three were government-sponsored. I am convinced government has taken a very dangerous position with its citizens' finances in the regards to redeveloping Temple Terrace."

If passed, the tax increase would become effective in October 2006.

If the referendum does not pass, it is likely that progress on the Downtown Revitalization Project "would slow to a crawl, and the city's new downtown not be realized for many years ... if ever," states the city's Web site.

Up for vote
Citizens will cast their votes on the August referendum aimed at passing a 1-millage tax increase for all homeowners. The referendum would increase residents' taxes by $1 for every $1,000 of assessed home value.

For example, a home valued at $150,000 with homestead exemption (which subtracts $25,000 from the total assessed value), would receive an annual increase of $125. For a $300,000 home with homestead exemption, the annual increase would be $275. Residents who do not own their home will not be assessed the additional tax.