Commercial Development News - Appraisal Development International

Property values rising in Pinellas County
By Christopher O'Donnell
Tampa Tribune
Published: Jun 4, 2013

ST. PETERSBURG - After five years of slumping prices, home values in Pinellas County are officially on the way up.

Property values rose by an average of 3 percent across the county, according to official tax roll estimates sent by the Pinellas County Property Appraiser's Office to cities and fire districts last week.

The biggest gain came in Belleair Shore, where the total value of property rose by an average of 7.4 percent. In St. Petersburg, the increase was 3.7 percent, and it was in 3.2 percent in Clearwater.

"The market does seem to be finally turning around, we're happy to say," said Amanda Coffey, deputy for government affairs and staff counsel at the Property Appraiser's office.

That will be welcome news for beleaguered city and county budget managers who, after several years of cutting and penny-pinching, can expect a boost to their revenues, even if property tax rates remain flat.

Overall, the tax base, or the assessed value of property countywide, increased by roughly $1.5 billion from last year.

Construction of new homes and commercial buildings is picking up in parts of the county, according to the Property Appraiser. More than $41 million worth of new construction has been added in St. Petersburg since last year. Largo added almost $17 million worth of new construction, and Clearwater roughly $31 million.

That included a new building at Bright House Field, Red Robin and BJ's restaurants at the Westfield Countryside Mall and Ron Jon Surf Shop and Hooters at Clearwater Beach. A new Sam's Club on 34th Street North was among the additions in St. Petersburg.

The real estate crash saw the county's tax roll decline from a 2007 high of $80 billion to $54.3 billion last year, forcing cities and Pinellas County government to make drastic cuts. County commissioners cut 1,700 jobs as the general operating fund fell by 30 percent.

The better-than-expected numbers this year were welcome news for officials planning for 2014 budgets.

Pinellas County's preliminary budget was based on a forecast of a 2.5-percent hike in property values, leaving county leaders with a $12.1-million deficit to deal with. The higher property values will offset part of that, although County Administrator Bob LaSala said he did not know yet by how much.

"This will certainly help us; it's not going to close the gap, but every little bit counts," he said.

Officials in St. Petersburg based their preliminary budget on a conservative 0.5 percent rise in property values.

Budget director Tom Greene said the bump in vales would net the city an extra $1.7 million and reduce its anticipated budget shortfall to roughly $2.8 million.

Mayor Bill Foster recently set budget goals of freezing property-tax rates while giving city employees their first pay raises in five years and putting an extra $1 million into the city's reserve fund.

"This is certainly going to help us to accomplish those goals," Greene said. "We still have some way to go though."

codonnell@tampatrib.com
(727) 215-7654
Twitter: @codonnellTBO