Okaloosa County BOCC — February 4, 2014 — Draft ORDINANCE (City Council of the City of Crestview)

ORDINANCE NO. __________ AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF CRESTVIEW, FLORIDA, ESTABLISHING A NORTH OKALOOSA TRANSPORTATION IMPROVEMENT DISTRICT, ESTABLISHING THE GEOGRAPHIC BOUNDARIES FOR THAT DISTRICT, EXEMPTING THE CIYY OF CRESTVIEW REDEVELOPMENT AGENCY TERRITORY, AS DEFINED BY THE CITY OF CRESTVIEW IN ORDINACE NO. IN 1995, AUTHORIZING TAX INCREMENT FINANCING TO FUND THE DISTRICT; PROVIDING FOR REPEALER; PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE; PROVIDING AN EFFECTIVE DATE. _____________________________________________________________________________________ WHEREAS, pursuant to Article VIII, Section 2(b) of the Florida Constitution and Section 166.021, Florida Statutes, the City of Crestview has broad home rule powers to adopt ordinances to provide for and operate transportation systems, including roadways, transit systems, and bicycle/pedestrian facilities; and WHEREAS, the Florida Supreme Court in City of Miami beach v. Forte Towers, Inc., 305 So.2d 764 (Fla. 1974), confirmed that the broad home rule powers of government have been extended to Cities by both the Constitution and Statutes of Florida; and WHEREAS, the City of Crestview has a demonstrated need to provide improved transportation corridors throughout the City; and WHEREAS, additions to the City of Crestview tax rolls by new construction each year have historically provided annual increases to the tax rolls of the City; and WHEREAS, throughout its history, this City has applied its then-current millage rate to the certified value of all taxable real property in the City without regard for whether the current, certified value resulted from previously existing real property, construction of newly certified buildings, or from appreciation in value of real property over the prior year; and WHEREAS, the value of all real property in the City is recertified each year pursuant to law, and that annual recertification clearly identifies annual appreciation in value of real property within any identified part of the County; and WHEREAS, both Okaloosa County and the City of Crestview have identified the area shown on the attached map as a District to receive most direct benefit from the transportation improvements described herein; and WHEREAS, both Okaloosa County and the City of Crestview have identified the area shown on the attached map as the “North Okaloosa Transportation Improvement District (called herein the “District”); and WHEREAS, the District can be funded from various sources available to Cities and Counties, including tax increment financing, pursuant to the Home Rule Powers applicable to Cities in Florida; and WHERAS, the City Council of the City of Crestview finds the “Project” as defined herein to be a valid municipal purpose; and Page 1 of 4  WHEREAS, the improved transportation within the District will provide better employment opportunities for the District, allow future business, commercial, and residential construction throughout the District, and serve as a necessary conduit for the many visitors seeking to access areas to the south within the County; and WHEREAS, we believe that Okaloosa County, operating in cooperation with the City of Crestview, can apply the same tax rate applicable to all property to the future appreciation in value of real property and thereby create a substantial, separate fund of tax revenue for a specific purpose, without jeopardizing the future budgets of Okaloosa County; and WHEREAS, the existing Community Redevelopment Area (CRA) adopted in 1995 already obtains tax increment financing that should be excepted from the North Okaloosa Transportation Improvement District; and WHEREAS, Okaloosa County and the City of Crestview have negotiated an inter-local agreement that is acceptable to the County, and that adequately protects both the County and the City in its relationship to the other pursuant to this Ordinance. NOW THEREFORE BE IT ORDAINED by the City Council of the City of Crestview hereby ordains as follows: 1. That the area shown on the attached map is to be called the “North Okaloosa Transportation Improvement District,” and referred to hereinafter as the “District”. Said District will not include the existing CRA District within the City of Crestview. 2. That for tax year 2014, and for the 20 years thereafter, the tax revenue collected based upon the appreciation in value of real property in the District shall be deemed Tax Increment Financing (TIF) revenue, and such TIF revenue shall be set aside solely for construction of the project described herein. TIF revenue shall not include tax revenue based on the value of real property within the District existing on the date of this Ordinance, or on the initial value of future construction within the District. 3. All appreciation in value of all taxable real property in the District after the Property Appraiser’s certified value for 2013, shall be taxed separately and shall fund the District, subject to the conditions set forth below. 4. That Tax Increment Financing as described herein shall be subject to the following conditions: A. If after 7 years of existence of the TIF fund, other funds have not been identified and committed to finish the Project, and if a majority of the County Commissioners and a majority of City Council members from Crestview, sitting in joint session, vote to abandon the District, then the fund may be discontinued, in which case the money shall be returned to the general fund of each body; and B. If at any time sufficient funds have been identified and secured from other sources such that in the opinion of the Board of Trustees of the District the Project will be built without further TIF contributions, then the District and the TIF fund may, by majority Page 2 of 4  vote of the Commission, be discontinued, in which case any remaining TIF revenue attributable to County properties shall be returned to the Okaloosa County general fund. 5. That the TIF fund shall be administered by a Board of five trustees, whose membership shall be as follows: A. County Commission members shall be selected by the County Commissioners. City Council members shall be selected by the City Council. B. In the first year, beginning June 1, 2014, three members of the Board shall be County Commissioners whose terms do not expire during the subsequent 12 months, and two members shall be City Council members of the City of Crestview whose terms do not expire during the subsequent 12 months. C. During the second year of its existence, three members of the Board shall be City Council members of the City of Crestview whose terms do not expire during the subsequent 12 months, and 2 members shall be County Commissioners whose terms do not expire during the subsequent 12 months. D. The composition of the Board of Trustees of the District shall thereafter continue to alternate each year as described above. 6. That the “Project” which is the purpose for the District shall be the construction of a transportation corridor from approximately the intersection of highway 85 south of Crestview and the P.J. Adams Road, to approximately the present intersection of the P.J. Adams Road and Highway 90 west of Crestview. The Project shall include one or more connections to Interstate 10, and such connection roads as may be necessary and supportive of the Project. 7. That the District shall be authorized to hire such professionals as in its business discretion are necessary, who shall be charged with oversight of District funds and management of the goals and objectives of the District. Those professionals shall be bonded for the faithful performance of their duties, shall be public officers subject to the control and supervision of the Board, and shall serve only at the pleasure of the Board. The Board and any professionals it hires or employees shall make a report at least annually to both the County and the City, sitting in joint session, of the progress of the TIF District. 8. The contributions of the County and of the City shall be combined for purposes of the District such that financial and contractual commitments can be made by and in the name of the District. The District shall elect a chairman each year who shall have the authority to act, upon approval of the Board, to commit the funds of the District. 9. In the event that the District is dissolved at any time and for any reason, the funds shall be accounted for such that they shall be distributed to the County and the City in proportion to the contributions of each to the District. Page 3 of 4 10. REPEALER: All ordinances and resolutions or parts thereof of the City in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. 11. SEVERABILITY: If any section, sentence, clause, or phrase of this Ordinance is held to be invalid or unconstitutional by any Court or competent jurisdiction, then said holding shall in no way affect the validity of the remaining portions of this Ordinance. 12. INCLUSION IN THE CODE: It is the intention of the City that the provisions of this Ordinance shall become and be made a part of the Crestview City Code of Ordinances; and that the sections of this Ordinance may be renumbered or re-lettered and the word “ordinance” may be changed to “divisions”, “section”, “article”, or such other appropriate word or phrase in order to accomplish such intentions. 13. EFFECTIVE DATE: This Ordinance shall take effect on October 1, 2013, after approval by Okaloosa County, and upon approval of a like ordinance by the City of Crestview. ADOPTED with a quorum present and voting this _____ day of __________, 2013. (S E A L) ATTEST: CITY COUNCIL, CITY OF CRESTVIEW By:______________________________ By:______________________________ CLERK DAVID CADLE, MAYOR Page 4 of 4