Fort Walton Beach Council agenda — 01-08-13--regular — reading text

authority to grant this type of tax exemption expires 10 years after the date of the approval. 2. 3. 4. Developments under this type of program must satisfy criteria related to total number of net new jobs created, average wage of the new jobs, capital investment of the developer, type of business and whether it qualifies as a targeted industry, environmental impact of the development, and extent to which the business intends to source its materials within the City. 2. 3. 5. A majority of these type of programs do not include retail as a targeted industry. The targeted industries are normally manufacturing, technological, etc. Packet Pg. 144  14.4 City Council of Fort Walton Beach CITY COUNCIL MEMORANDUM To: Michael D. Beedie, City Manager From: Michael Beedie, City Manager Date: January 8, 2013 Subject: Discussion of CRA Tax Abatement Programs 2. 4. The City of Fort Myers CRA developed a TIF rebate program in 2001 through inclusion in its CRA Plan. Since 2001, Fort Myers has completed five ( 5) TIF rebate agreements, mostly for housing developments in the Downtown area. 2. 4. 1. In 2001, Fort Myers offered a 95% TIF rebate for 12 years or until the rebate totaled $ 3, 000, 000 for a 124 -unit high -rise condominium. The next TIF rebate agreement was approved for a 50% rebate. 2. 4. 2. Fort Myers uses the TIF rebate program on a project -by- project basis and requires the project to develop a pro forma analysis to demonstrate the need for the incentive in order to achieve an acceptable return on investment. 2. 4. 3. The Fort Myers CRA uses a third party real estate analyst to review the pro forma and offer advice on acceptable rates of return for the type of project proposed. 2. 4. 4. Staff has requested additional information on the Fort Myers TIF rebate program but has not yet received the information. 25. The City of Maitland also drafted a Development Agreement to grant a developer 100% of the TIF Flowing from certain portions of a development as an incentive, but the development was never completed. 2. 5. 1. According to the FRA General Counsel, a CRA can agree to provide up to 100% of whatever percentage of TIF is Flowing from a given property to a developer as an incentive. 2. 6. The above examples of tax abatement or rebate programs are the result of Staffs limited research on the topic. Staff continues to discuss these types of programs with the FRA and various CRA districts throughout the State. 3. FINANCIAL INFORMATION: 3. 1. This is a discussion item and has no immediate financial impact. 4. RECOMMENDATION: 4. 1. Staff respectfully recommends City Council approval to draft an amendment to the CRA Plan and to develop the guidelines and evaluation criteria for implementing a tax abatement / rebate program for the CRA. The CRA Plan amendment and the program guidelines will be brought to City Council at a future meeting for consideration. Packet Pg:I45  14. 4 City Council of Fort Walton Beach CITY COUNCIL MEMORANDUM To: Michael D. Beedie, City Manager From: Michael Beedie, City Manager Date: January 8, 2013 Subject: Discussion of CRA Tax Abatement Programs ATTACHMENTS: Florida Statutes Chapter 196. 1995 ( PDT) SIGNATURE BLOCK: Stella Jones Completed 01/ 03/ 2013 7: 08 AM Tim Bolduc Completed 01/ 03/ 2013 2: 18 PM City Attorney Completed 01/ 03/ 2013 2: 25 PM Carole Jones Completed 01/ 03/ 2013 2: 27 PM City Manager Completed 01/ 03/ 2013 2: 34 PM City Council Pending Packet Pg. 146 Statutes & Constitution: View Statutes : Online Sunshine Page 1 of 4 14.4.. Select Year: 2012 E-1 Go I The 2012 Florida Statutes Title XIV Chapter 196 View Entire Chapter TAXATION AND FINANCE EXEMPTION 196. 1995 Economic development ad valorem tax exemption. — 1) The board of county commissioners of any county or the governing authority of any municipality shall call a referendum within its total jurisdiction to determine whether its respective jurisdiction may grant economic development ad valorem tax exemptions under s. 3, Art. VII of the State Constitution if: a) The board of county commissioners of the county or the governing authority of the municipality votes to hold such referendum; b) The board of county commissioners of the county or the governing authority of the municipality receives a petition signed by 10 percent of the registered electors of its respective jurisdiction, which petition calls for the holding of such referendum; or c) The board of county commissioners of a charter county receives a petition or initiative signed by the required percentage of registered electors in accordance with the procedures established in the county' s charter for the enactment of ordinances or for approval of amendments of the charter, if less than 10 percent, which petition or initiative calls for the holding of such referendum. 2) The ballot question in such referendum shalt be in substantially the following form: Shall the board of county commissioners of this county ( or the governing authority of this municipality, or both) be authorized to grant, pursuant to s. 3, Art. VII of the State Constitution, property tax exemptions to new businesses and expansions of existing businesses that are expected to create new, full -time jobs in the county ( or municipality, or both)? Yes —For authority to grant exemptions. No—Against authority to grant exemptions. 3) The board of county commissioners or the governing authority of the municipality that calls a referendum within its total jurisdiction to determine whether its respective jurisdiction may grant economic development ad valorem tax exemptions may vote to limit the effect of the referendum to authority to grant economic development tax exemptions for new businesses and expansions of existing businesses located in an enterprise zone or a brownfield area, as defined in s. 376. 79( 4). If an area nominated to be an enterprise zone pursuant to s. 290. 0055 has not yet been designated pursuant to s. 290. 0065, the board of county commissioners or the governing authority of the municipality may cat( such referendum prior to such designation; however, the authority to grant economic development ad valorem tax exemptions does not apply until such area is designated pursuant to s. 290. 0065. The ballot question in such referendum shall be in substantially the following form and shall be used in lieu of the ballot question prescribed in subsection ( 2): Packet Pg. 147 1/ 2/ 2013 http: / w / ww.leg. state .fl.us /Statutes /index.cfm ?App mode—Display _Statute& Search —String =...  Page 2 of 4 Statutes & Constitution :View Statutes : Online Sunshine 144.a Shall the board of county commissioners of this county (or the governing authority of this municipality, or both) be authorized to grant, pursuant to s. 3, Art. VII of the State Constitution, property tax exemptions for new businesses and expansions of existing businesses that are located in an enterprise zone or a brownfield area and that are expected to create new, full -time jobs in the county ( or municipality, or both)? Yes —For authority to grant exemptions. No—Against authority to grant exemptions. 4) A referendum pursuant to this section may be called only once in any 12 -month period. 5) Upon a majority vote in favor of such authority, the board of county commissioners or the governing authority of the municipality, at its discretion, by ordinance may exempt from ad valorem taxation up to 100 percent of the assessed value of all improvements to real property made by or for the use of a new business and of all tangible personal property of such new business, or up to 100 percent of the assessed value of all added improvements to rest property made to facilitate the expansion of an existing business and of the net increase in all tangible personal property acquired to facilitate such expansion of an existing business, provided that the improvements to real property are made or the tangible personal property is added or increased on or after the day the ordinance is adopted. However, if the authority to grant exemptions is approved in a referendum in which the ballot question contained in subsection ( 3) appears on the ballot, the authority of the board of county commissioners or the governing authority of the municipality to grant exemptions is limited solely to new businesses and expansions of existing businesses that are Located in an enterprise zone or brownfield area. Property acquired to replace existing property shall not be considered to facilitate a business expansion. The exemption applies only to taxes levied by the respective unit of government granting the exemption. The exemption does not apply, however, to taxes levied for the payment of bonds or to taxes authorized by a vote of the electors pursuant to s. 9( b) or S. 12, Art. VII of the State Constitution. Any such exemption shall remain in effect for up to 10 years with respect to any particular facility, regardless of any change in the authority of the county or municipality to grant such exemptions. The exemption shalt not be prolonged or extended by granting exemptions from additional taxes or by virtue of any reorganization or sale of the business receiving the exemption. 6) With respect to a new business as defined by s. 196_01205)( c), the municipality annexing the property on which the business is situated may grant an economic development