Redevelopment Districts key to Kissimmee economic growth

The results of the City of Kissimmee’s past economic development and planning efforts can be seen throughout town. The city’s Medical Arts District fosters numerous medical suites and smaller facilities that have sprung up adjacent to the city’s two large hospitals and along Oak Street.

The downtown has greatly benefitted from the Community Redevelopment Area (CRA) created in the 1990s to revitalize the city’s downtown area. CRAs are sections of a city or county that can be designated under state law to generate internal funds for improvements in the designated area.

“Once approved, the taxable value of properties in the CRA are ‘frozen,’ as to what the city can continue to collect in taxes, and as the properties increase in value, the additional property tax revenue funds improvements to infrastructure, street-scaping and grants to business property owners to help improve their property,” said the City’s Economic Development Director, Tom Tomerlin.

Benjamin Burnett, Redevelopment Planner for the city, pointed to the recent conversion of the iconic former Makinson hardware store, which had been one of the oldest businesses in Central Florida until 2021, into the 1881 Restaurant and mixed-use site, as an example of how a CRA can foster redevelopment. In addition to redevelopment of existing structures, currently there are two vacant parcels, owned by the city, adjacent to the Toho Square parking garage and ripe for development.

While Kissimmee’s downtown continues to see new development and redevelopment of existing sites, propelled by influences such as the SunRail station, the city staff is also focusing on development along the U.S. 192 corridor, in the city’s other CRA.

The U.S. 192 CRA covers the entire length of the corridor within the city limits, running from Valencia College in the east to Medieval Times to the west. This CRA contains several large properties vacated as concurrent development happened in the downtown and the Loop retail complexes on Osceola Parkway. An update study to the Vine Street CRA plan will start in early 2024.

“The larger parcels in the 192 CRA, such as the former Kmart site near Thacker Avenue, represent the greatest opportunities and challenges. I think a big part of generating interest in these properties is simply to get the message out on the opportunities and incentives available,” said Samia Singleton, the city’s CRA Manager.

Both CRAs are governed by the City of Kissimmee Commission, which also acts as the CRA Board. Programs available for properties within the CRAs include environmental site assessments and grants for demolition of existing structures.

“Just these two programs alone cover some of the early development costs of any project, which can be the most capital intense portion of any development,” said Tomerlin.

Other CRA programs include a Commercial Property Improvement Program to reimburse exterior improvements such as façade, windows, and lighting. The Pioneer Project incentives are based on a percentage of the completed cost of a development.

For more information on Kissimmee’s CRAs and programs available, see https://bit.ly/3v1MofR