Panama City commissioners debate CRA lending, TIF use and how to measure returns

At a virtual CRA workshop, Panama City elected officials reopened a policy debate over how to use CRA funds: whether to prioritize buildings that return to the tax roll, to underwrite nonprofit programming, or to develop a lending pool using TIF funds.

The commission discussed exploring a CRA borrowing pool and asked staff for benchmarks on what percentage of TIF to dedicate to lending. One participant noted limited remaining CRA life and the effect that has on loan term choices: with about 10–18 years left, shorter-term or bridge loans may be more feasible than long-term financing.

‘‘Part of the thing is you’re letting people borrow money cheaply and then they’re adding to the tax base as well,’’ the mayor said while describing aggressive CRA strategies that prioritize buildings on the tax rolls. Commissioners debated priorities: one argued for funding projects that produce permanent, taxable buildings; others said nonprofit-run services can deliver programmatic impact that is harder to measure but important for residents.

The board also discussed the demolition-incentive/preparation grant checklist; staff asked commissioners to return their checklist submissions promptly so the grant decision process can proceed.

Commissioner Lucas pressed for measurable outcomes tied to investments, calling for metrics to assess long-term returns. ‘‘When we look at the gains over time, then we’re really looking at people,’’ Lucas said, describing workforce-training results he expects to track. Commissioners and staff discussed examples: a training partnership that led participants to earn CNAs and move into higher-paying health-care roles was cited as a model for the kind of measurable outcome the commission could require.

Janice (city staff) clarified that the CRA does not have to fund only nonprofits: ‘‘I never said only nonprofits. I would much rather it be private organizations putting buildings on the tax roll,’’ she said, adding that priorities should favor building projects that generate tax revenue but that nonprofit projects can be part of a layered strategy.

Commissioners asked staff to collect case studies from other cities (for example, Memphis was cited informally) and to return with data on how other CRAs structure lending programs and measure social returns. No vote or formal policy change occurred at the workshop; commissioners agreed to follow up with additional data and checklist returns.

The discussion underscored a standing tension in local redevelopment: how to balance immediate, measurable fiscal returns with longer-term human-capital investments that are more difficult to quantify but may reduce poverty and improve workforce outcomes over time.