2009-3639 OrdinanceRevisions to Single Family Ad Valorem Tax Exemption
ORDINANCE NO. 2009-3639
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA AMENDING THE
LAND DEVELOPMENT REGULATIONS OF THE CODE OF
THE CITY OF MIAMI BEACH, BY AMENDING CHAPTER
118, "ADMINISTRATION AND REVIEW PROCEDURES,"
ARTICLE X, "HISTORIC PRESERVATION," DIVISION 5,
"SINGLE FAMILY AD VALOREM TAX EXEMPTION",
MODIFYING THE REQUIREMENTS AND PROCEDURES
FOR CITY AD VALOREM TAX EXEMPTIONS FOR SINGLE
FAMILY HOMES; PROVIDING FOR REPEALER,
CODIFICATION, SEVERABILITY AND AN EFFECTIVE
DATE.
WHEREAS, the citizens of Florida have amended the Florida Constitution, Article
VII, Section 3(e), to authorize counties and municipalities to allow certain tax exemptions
for historic properties;
WHEREAS, the Florida legislature has enacted Sections 196.1997 and 196.1998,
Florida Statutes, to govern the allowance of such exemptions;
WHEREAS, the City Commission has deemed it in the best interest and welfare of
the City to have incentives for the retention and preservation of architecturally and
historically significant single family homes in Miami Beach; and
WHERAS, the City Commission and the Historic Preservation Board have deemed it
necessary to have a City Ad Valorem Tax Exemption process for architecturally and
historically significant single family homes in Miami Beach in order to promote their
preservation and protection; and
WHEREAS, the City of Miami Beach Historic Preservation and Planning Boards
strongly endorse the proposed amendments to the Historic Preservation Section of the
Code; and
WHEREAS, the amendments set forth below are necessary to accomplish all of the
above objectives.
NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA.
SECTION 1.
That Chapter 118, "Administration And Review Procedures," Article X, "Historic
Preservation," of the Land Development Regulations of the Code of the City of Miami
Beach, Florida is hereby amended as follows:
DIVISION 5. SINGLE FAMILY AD VALOREM TAX EXEMPTION
Sec. 118-609. Completion of work.
(a) An applicant must complete all work within t~we~ea~e thirty months following the date
of approval by the city commission. An ap~l+sat+er~ approval for ad valorem tax exemption
shall expire if the building permit for the approved work is not
issued within the timeframes specified under the corresponding certificate of
appropriateness, or if a full building permit issued for the approved work should expire or
become null and void, for any reason. The approval for ad valorem tax exemption shall be
suspended if such permit is issued but +# the property owner has not submitted a final
request for review of completed work within twre-mss thirty months following the date of
approval by the city commission.
(b) The historic preservation board, for good cause shown, may extend the time for
completion of a substantial improvement for a period not to exceed two (2) years from the
completion date in the original approval by the city commission, or such lesser time as may
be prescribed by the board. Such extension shall only be considered by the board if the
corresponding certificate of appropriateness for the improvements approved by the city
commission is active and the applicant submits a request in writing to the planning
department no later than 90 calendar days after the expiration of the completion deadline.
If the board grants the extension of time request, anv suspension of the approval for ad
valorem tax exemption shall be lifted and all work shall be completed by the date mandated
in the board order. A second extension, not to exceed two (2) additional years, may be
considered by the board if a valid full building permit for the improvements approved by the
city commission is active and the applicant submits a request in writing to the planning
department no later than 90 calendar days after the expiration of the completion deadline
specified in the first extension. The failure to complete all required work within the
timeframes mandated under an approved extension of time shall result in a permanent
revocation of the approval for the ad valorem tax exemption. If the board denies a request
for an extension of time, any suspension shall become a permanent revocation of the
approval for ad valorem tax exemption. As a condition of anv extension of time. the historic
preservation board may reauire that the building site be properly maintained. screened and
secured.
(c) A request for review of completed work shall be submitted to the planning
department. The planning director, or designee, shall conduct a review to determine
whether or not the completed improvements are in compliance with the work approved by
the city commission, including approved amendments, if any.
(d) If the planning director, or designee, determines that the work is in compliance with
the plans approved pursuant to city commission approval of the tax exemption, the final
request for review of completed work shall be approved and issued in writing to the
applicant. The city reserves the right to inspect the completed work to verify such
2
compliance.
(e) If the planning director, or designee determines that the work as completed is not in
compliance with the plans approved pursuant to city commission approval of the tax
exemption, the applicant shall be advised that the final request for review of completed
work has been denied. Such denial shall be in writing and provide a written summary of the
reasons for the determination, including recommendations to the applicant concerning the
changes to the proposed work necessary to bring it into compliance with the approved
plans. The applicant may file an appeal of the decision of the planning director, or
designee, within 15 days of such decision. The appeal shall be in writing and shall be to
the historic preservation board and shall set forth the factual and legal bases for the
appeal.
SECTION 2. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach, and
it is hereby ordained that the provisions of this ordinance shall become and be made part
of the Code of the City of Miami Beach, Florida. The sections of this ordinance may be
renumbered or relettered to accomplish such intention, and the word "ordinance" may be
changed to "section", "article", or other appropriate word.
SECTION 3. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are
hereby repealed.
SECTION 4. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect ten days following adoption.
PASSED AND ADOPTED this 13th day of MaY , 2009.
M OR
Matti Herrera Bower
ATTEST:
~' a~~~
CITY CLERK
Robert Parcher
Ordinance 2009-3639
APPROVED AS TO
ARM & LANGUAGE
FOR EXECUTION
~lz,< I~,
1
g~~ Date
First Reading: April 22, 2009
Second Reading: May 13, 2009
Verified by:
~rge(~. Gomez, AICP
tanning Director
Underscore denotes new language
Double Underscore denotes language added at First Reading
05/04/2009
T:WGENDA\2009\May 13\Regular\SF Ad Valorem Revisions 2009 - ORD.doc
4
COMMISSION ITEM SUMMARY
I~
Condensed Title:
An Ordinance amendment to the Land Development Regulations of the City Code modifying the
procedures for single family ad valorem tax exemptions.
Key Intended Outcome Supported:
Satisfaction with neighborhood character
Supporting Data (Surveys, Environmental Scan, etc
Satisfaction with compatibility of new construction
Issue•
Should the City Commission amend the requirements and procedures for the completion of work approved
to a single family ad valorem tax exemption.
item summary-rcecommenaaLion:
SECOND READING PUBLIC HEARING
The subject Ordinance is sponsored by the Historic Preservation Board and would clarify and tighten the
procedures and requirements for completing all required work, approved pursuant to a request for a single
family ad valorem tax exemption.
The subject Ordinance was approved at First Reading on April 22, 2009.
The Administration recommends that the City Commission approve the Ordinance on Second Reading.
Aavisory ~oara rtecommenaation:
On October 14, 2008, the Historic Preservation Board recommended approval of the proposed
Ordinance Amendment.
On March 2, 2009, the Land Use and Development Committee transmitted the proposed Ordinance to the
Planning Board with a favorable recommendation.
On March 24, 2009, the Planning Board transmitted the subject Ordinance to the City Commission with a
favorable recommendation
Financial Information:
Source of Amount Account
Funds: ~
2
3
OBPI Total
Financial Impact Summary:
The proposed Ordinance is not expected to have any fiscal impact upon the resources of the City.
Ci Clerk's Office Le islative Trackin
Jorge Gomez or Thomas Mooney
I M t~~~ ~~~ H AGENDA ITEM R S A
DATE S'~3""V ~
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti H. Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: May 13, 2009
SECOND READING
PUBLIC HEARING
SUBJECT: PROPOSED ORDINANCE DEALT
TAX EXEMPTIONS
NS TO SINGLE FAMILY AD VALOREM
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA AMENDING THE LAND DEVELOPMENT REGULATIONS OF THE CODE OF THE
CITY OF MIAMI BEACH, BY AMENDING CHAPTER 118, "ADMINISTRATION AND REVIEW
PROCEDURES," ARTICLE X, "HISTORIC PRESERVATION," DIVISION 5, "SINGLE FAMILY
AD VALOREM TAX EXEMPTION", MODIFYING THE REQUIREMENTS AND PROCEDURES
FOR CITY AD VALOREM TAX EXEMPTIONS FOR SINGLE FAMILY HOMES; PROVIDING
FOR REPEALER, CODIFICATION, SEVERABILITY AND AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
Adopt the Ordinance.
BACKGROUND
In 2004 the City Commission created a City Ad Valorem Tax Exemption program for historic single family
residences, as part of an overall strategy to provide tangible alternatives to the demolition of
architecturally significant single family homes. The Tax Exemption program has established a framework
for single family home owners to be able to abate any increase in property taxes that result from the
restoration and renovation of an eligible single family home, for a fixed period of ten (10) years. To date,
seven (7) single family homes have received Commission approval for an Ad Valorem Tax Exemption.
The existing Ad Valorem Exemption Ordinance specifies that all required work, approved pursuant to a Tax
Exemption application, shall be completed within two years following the date of approval by the City
Commission. The Historic Preservation Board may extend the time for completion of the required work for
a period not to exceed two (2) years. Additionally, the Tax Exemption is automatically revoked if the
property owner does not submit a final request for a review of the completed work within two years
following the date of approval by the City Commission. This requirement was included in the Ordinance in
order to ensure that an approved application would be diligently pursued in terms of obtaining all required
building permits, as well as commencing and completing the work on site.
Commission Memo - Ad Valorem Tax Exemption Revisions
May 13, 2009
Page 2 of 3
ANALYSIS
Recently, two (2) separately approved Ad Valorem Tax Exemption applications ran into problems
completing the required work within the 2 year timeframe mandated by current code. These applicants
purposefully sought historic designation of their respective residences and utilized the Ad Valorem Tax
Exemption process as intended by the Ordinance, as an incentive to preserve the original structures. Due
to the highly detailed restoration and the complexity of the new additions in the applications, the
construction process took longer than the two years required by the Code. Further, due to the unfamiliarity
with the tax exemption process, in each case the deadline for the final inspection was missed
unintentionally by the applicant, thereby causing the automatic revocation of the approval.
In both of these instances, the applicants had been diligently proceeding with construction on site and had
already obtained a number of progress inspections from the Building Department. In light of these
circumstances, the Historic Preservation Board, pursuant to Section 118-564(c) of the City Code, approved
separate requests by the applicants to waive the mandatory 2-year completion date requirements.
In order to address this issue in a more comprehensive manner, an amendment to Section 118-609 of the
City Code, pertaining to the `Completion of Work' portion of the Ad Valorem Tax Exemption process, has
been proposed by the Historic Preservation Board. Specifically, the proposed amendment would require
that all required work be completed within 30 months (instead of 2 years) following the date of approval by
the City Commission, unless extended by the Historic Preservation Board. The reason for the proposed
increase in time from 24 to 30 months is so that the ad valorem work schedule will better coincide with the
building permit timeframes permitted under the Certificate of Appropriateness process. However, instead
of being `automatically revoked' if the work is not completed or a request for review is not submitted, the
following benchmarks are proposed:
The Ad Valorem Tax Exemption approval would `expire' if the building permit issued for the
approved work should expire or become null and void, for any reason, or if a full building permit for
the approved work is not issued within the timeframes specified under the corresponding certificate
of appropriateness.
2. The Ad Valorem Tax Exemption approval would be 'suspended' if the building permit is issued, but
the property owner fails to submit a final request for review of the completed work within thirty (30)
months following the date of approval by the city commission. This `suspension' may be lifted if the
Historic Preservation Board approves a request for an extension of time, in accordance with the
requirements of the Code.
3. A second extension, not to exceed two (2) additional years, may be considered by the Historic
Preservation Board if a valid full building permit for the improvements approved by the City
Commission is active and the applicant submits a request in writing to the planning department prior
to the expiration of the first extension. The Planning Board recommends that the request for this
extension of time mirror the timeframes of the first extension request (90 days).
4. If an extension of time request is denied, the `suspension' would become a permanent revocation of
the approved Ad Valorem Tax Exemption.
5. The failure to complete all required work within the timeframes mandated under an approved
extension of time shall result in a permanent revocation of the approval for the ad valorem tax
exemption.
Commission Memo - Ad Valorem Tax Exemption Revisions
May 13, 2009
Page 3 of 3
BOARD AND COMMITTEE REVIEW
On October 14, 2008, the Historic Preservation Board reviewed the subject Ordinance and recommended
approval.
On December 10, 2008, the City Commission referred the Ordinance to the Land Use and Development
Committee. On March 2, 2009, the Land Use and Development Committee transmitted the proposed
Ordinance to the Planning Board with a favorable recommendation.
On March 24, 2009, the Planning Board transmitted the subject Ordinance to the City Commission with a
favorable recommendation. The Planning Board also recommended that the ordinance be slightly modified,
so that the timeframes for applying for a second extension of time to complete the required work would be
consistent with the timeframes required for the first extension of time request.
The City Commission approved the Ordinance at First Reading on April 22, 2009. The Commission added
language to the Ordinance that gives the historic preservation board the ability to impose conditions to any
extension of time, in order to require that the building site be properly maintained, screened and secured.
FISCAL IMPACT
In accordance with Charter section 5.02, which requires that the "City of Miami Beach shall consider the
long-term economic impact (at least 5 years) of proposed legislative actions," this shall confirm that the City
Administration evaluated the long-term economic impact (at least 5 years) of this proposed legislative
action, and determined that there will be no long term economic consequences as a result of the proposed
Ordinance Amendment. Specifically, the subject Ordinance merely amends limited portions of the
technical procedures already in place for completing approved work.
For informational purposes, please see the attached spread sheet detailing the current status and
economic impact of single family homes approved for City of Miami Beach Ad Valorem Tax Exemption.
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the Ordinance.
JMG\TH\JGG\TRM
Attachments
T:IAGENDA120091May 131RegularlSF Ad Valorem Revisions 2009 - MEM.doc
COMPARISON OF EXISTING PROCESS AND PROPOSED MODIFICATIONS
Current Process for Approved Work: Proposed Process for Approved Work:
• The Ad Valorem Tax Exemption application is
automatically revoked if the property owner
does not submit a final request for review of
the completed work within two years following
the date of approval by the city commission.
The Ad Valorem Tax Exemption approval will
expire if:
i. The Building Permit issued for the
approved work expires or become null
and void, for any reason, or
ii. if a full building permit for the
approved work is not issued within the
timeframes specified under the
corresponding certificate of
appropriateness.
The Ad Valorem Tax Exemption approval will
be suspended if the Building Permit is issued
for the approved work, but the property owner
fails to submit a final request for review of
completed work within 30 months following the
date of approval by the City Commission.
The Historic Preservation Board may extend
the time for completion of the approved work
for a period not to exceed two (2) years, or
such lesser time as may be prescribed by the
Board. However, such request must be filed
within the 2 year approval window, or else the
application would not be eligible for an
extension of time as the Tax Exemption would
be revoked.
The current Code has no provisions for an
expired or inactive Building Permit associated
with the approved work.
The Historic Preservation Board, `for good
cause shown', may extend the time for
completion of the approved work for a period
not to exceed two (2) years from the
completion date in the original approval by the
City Commission, or such lesser time as may
be prescribed by the Board. Such extension
of time is only applicable if:
i. the corresponding Certificate of
Appropriateness for the work approved by
the City Commission is active; and
ii. the applicant submits a request in writing to
the planning department no later than 90
calendar days after the expiration of the
completion deadline.
If the Historic Preservation Board grants the
extension of time, any suspension of the
approval for the subject Ad Valorem Tax
Exemption is lifted and all work is then
required to be completed by the date
mandated in the Historic Preservation Board
Order granting the Extension of Time. A
second extension, not to exceed two (2)
additional years, may be considered by the
Historic Preservation Board if:
i. a valid full building permit for the
improvements approved by the City
Commission is active; and
ii. the applicant submits a request in writing
to the planning department no later than 90
calendar days after the expiration of the first
extension.
The failure to complete all required work within
the timeframes mandated under an approved
extension of time shall result in a permanent
revocation of the Ad Valorem Tax Exemption
approval. If the Historic Preservation Board
denies a request for an extension of time, any
suspension shall become a permanent
revocation of the Ad Valorem Tax Exemption
approval.
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m MIAMIBEACH
CITY OF MIAMI BEACW
NOTICE OF PUBLIC HEARINGS
NOTICE IS HEREBY given that second readingsand public hearings will be held by the MayoY 2nd
CRycCommission of the City of Miami Beach, Florida. in the CommiSSion Chambers, 3rd floor, City Hall,
1700 Convention Center Drive, Miami Beach, Florida, on Wednesday, May 13, 2009, to consider the
following:
10:15 a.m.
An Ordinance Amending Chapter 2. Article III: Of The Miami Beach City Code, Entitled "Agencies.Boards
And Committees." By Creating Division 32, Entitled "Gay, Lesbian, Bisexual And Transgender (GLBT)
$usinees Enhancement Committee." And Sections 2-190.144 Through 2-190.147 Thereto.
Inquiries may be directed to the City Attorney's Office at (305) 673-7470
10:20 a.m.
An Ordinance Amending Chapter 14 Of The City Code. Entitled "Building Regulations." By Amending
Article II, Entitled "Construction Standards," By Amending Division 1, Entitletl "Generaity." By
Amending Section 14-403„Entdletl "Penalty For Violation Of Article," To Provide For The Enforcement
Of Non-Functioning Wheelchair Lifts8y Cdation; And Amending Section 14-444,.~Entitled "Schedule
Of Violation Fines," By Adding A CRation.And Fine Schedule F-oYTfieEnforcement OfNon-Functioning
WheelchairLifts.~