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2008-26933 ResoRESOLUTION NO. 2008-26933 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, RECOMMENDING APPROVAL OF A PRECONSTRUCTION APPLICATION FOR HISTORIC AD VALOREM TAX EXEMPTION FOR ASINGLE-FAMILY PROPERTY AT 2312 BAY AVENUE, AND AUTHORIZING THE MIAMI-DADE COUNTY PROPERTY APPRAISER'S OFFICE TO GRANT SAID TAX EXEMPTION FOR THE CITY'S PORTION OF AD VALOREM PROPERTY TAXES FOR QUALIFYING IMPROVEMENTS TO THE SUBJECT PROPERTY FOLLOWING SUBSTANTIAL COMPLETION OF THE PROJECT AND COMPLIANCE WITH CERTAIN CONDITIONS. WHEREAS, the Mayor and City Commission have deemed it in the best interest and welfare of the City of Miami Beach ("City") to provide financial incentives for the retention and rehabilitation of architecturally and historically significant single-family homes in Miami Beach; and WHEREAS, on October 14, 2008 the Miami Beach Historic Preservation Board approved the historic designation report for the single family residence at 2312 Bay Avenue (referred to as HSFRS-9) [Exhibit "A"]; and WHEREAS, on December 8, 2004, the Miami Beach City Commission adopted Ordinance No. 2004-3469 that authorizes an exemption for the City's portion of ad valorem taxes if qualifying improvements are made to historically designated single-family homes; and WHEREAS, Terry S. Bienstock and Carol Lang, the owners of real property located at 2312 Bay Avenue (or, more specifically, on a portion of Lots 12, 13 and 14 of Block 3-H, of Sunset Island No 3, 2"d Revised Plat, according to the Plat thereof, as recorded in Plat Book 34, Page 73, of the Public Records of Miami-Dade County, Florida.), submitted requests to the City's Planning Department for an Historic Ad Valorem Tax Exemption for the subject property; and WHEREAS, on October 14, 2008, the Historic Preservation Board voted in favor of recommending that the Mayor and City Commission approve a Preconstruction Application for Historic Ad Valorem Tax Exemption for qualifying improvements to the historically designated single-family property at 2312 Bay Avenue [Exhibit "B"]; and WHEREAS, the Historic Preservation Board has certified that the subject single-family property for which an exemption is requested is eligible and satisfies Section 118-602(a) of the Miami Beach City Code; and WHEREAS, the Historic Preservation Board has determined that the improvements to the subject single-family property are consistent with the Secretary of the Interior's Standards for Rehabilitation and the Certificate of Appropriateness criteria in Section 118-564 of the Miami Beach City Code, in accordance with Section 118-602(b); and WHEREAS, the City's Planning Department has recommended that this request for a tax exemption for the subject single-family property be granted, subject to all of the conditions set forth herein. NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that a Preconstruction Application for Historic Ad Valorem Tax Exemption for the subject single-family property at 3190 Royal Palm Avenue be approved, subject to the following conditions: Scope of Tax Exemption. The exemption shall apply to one hundred (100) percent of the assessed value of all qualifying improvements to the single-family property that result from restoration, renovation, rehabilitation, and/or compatible additions. The exemption applies only to taxes levied by the City of Miami Beach. The exemption does not apply to taxes levied for the payment of bonds or to taxes authorized by a vote of the electors pursuant to the Miami Beach City Code or the Florida Constitution. The exemption does not apply to personal property or to properties located within a community redevelopment area. The Miami-Dade County Property Appraiser's Office will make the final determination of whether an improvement qualifies for an exemption. 2. Approved Qualifying Improvements. The qualifying improvements to the subject single- family property delineated below may be considered to be eligible for the tax exemption, as submitted to and approved by the City's Historic Preservation Board. A. Exterior Architectural Features The garage cupola and shutters originally located on the east elevation will be replicated and reintroduced according to available historical documentation and original building records. 2. Recreation of the original rear balcony along the west elevation. The original balcony was altered when a new large balcony was built in its place. The original configuration will be reconstructed in accordance with available historical documentation. An impact resistant glazing system will be installed within the enclosed area. 3. The covered entrance along the east elevation will be restored to original condition. 4. Construction of a new entry foyer and attached addition to replace the existing garage with a new second story and roof top patio at the east portion of the site of approximately 1,238 square feet. Impact resistant windows will be installed throughout. 5. New roof tiles will replace damaged tiles throughout the roof. The tiles will be consistent with the original tiles. B. Interior Architectural Features 1. The original breeze block room divider separating the living and dining rooms will be restored to the original configuration. 2. The decorative plaster finish within living room will be restored to original condition. 2 3. The original Cuban floor tiles will be restored and/or replaced to match the original condition. 4. All of the existing air conditioning, plumbing and electrical systems will be upgraded to current code. 3. Duration of Tax Exemption. The exemption shall take effect on the January 1S' following substantial completion of the improvements. The exemption shall remain in effect for ten (10) years. The duration of ten (10) years shall continue regardless of any change in the authority of the City of Miami Beach to grant such exemptions or any changes in ownership of the property. 4. Required Covenant. The property owner shall enter into a covenant with the City of Miami Beach for the term for which the exemption is granted. The covenant shall be form approved by the City Attorney and shall require that the character of the property, and the qualifying improvements to the property, be maintained during the period that the exemption is granted. Before the effective date of the exemption, the owner of the property shall have the covenant recorded in the official records of Miami-Dade County, Florida. The covenant shall be binding on the current property owner, transferees, and their heirs, successors, or assigns. Violation of the covenant shall result in the property owner being subject to the payment of the differences between the total amount of taxes which would have been due in March in each of the previous years in which the covenant was in effect had the property not received the exemption and the total amount of taxes actually paid in those years, plus interest on the difference calculated as provided in F.S. § 212.12(3). 5. Building Permit Plans and Construction. Building permit plans shall be consistent with the Certificate of Appropriateness approved administratively by the Planning Department. Such plans must also accurately reflect all improvements approved by the Historic Preservation Board and City Commission in the Preconstruction Application and architectural drawings for the single-family property. All work on site must be in accordance with the building permit plans. 6. Amendments. All proposed amendments to the approved application and permit plans must be reviewed and approved prior to the completion of the improvements. Minor amendments to permit plans may be approved by the Planning Department provided such amendments are consistent with the Secretary of the Interior's Standards for Rehabilitation and the Certificate of Appropriateness criteria in Section 118-564 of the Miami Beach City Code. Major amendments to the approved plans, as determined by the Planning Department, must be reviewed and approved by the Historic Preservation Board. 7. Completion of Work. The applicant must complete all work shown in the building permit plans within two (2) years following the date of approval by the City Commission. An approval for tax exemption shall expire if the property owner has not submitted a final request for Review of Completed Work within two (2) years following the date of approval by the City Commission. The Historic Preservation Board may extend the time for substantial completion of an improvement for a period not to exceed two (2) years, or such lesser time as may be prescribed by the Board. 3 8. Review of Completed Work. The applicant shall submit a request for Review of Completed Work to the Planning Department no less than 30 calendar days prior to the effective date of expiration of approval by the City Commission, as may be extended by the Historic Preservation Board. The Planning Department shall conduct a review to determine whether or not the completed improvements are in compliance with the work approved by the City Commission, including any approved amendments. If the Planning Department determines that the work is in compliance, the final request for Review of Completed Work shall be approved and issued in writing to the applicant. If the Planning Department determines that the work as completed is not in compliance, the applicant will be advised in writing that the final request for Review of Completed Work has been denied. A written summary of the reasons for the determination will be provided, including recommendations concerning the changes to the proposed work necessary to bring it into compliance. The applicant may file an appeal of the decision of the Planning Department 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. 9. Notice of Approval to the Property Appraiser. Upon the receipt of a certified copy of the recorded restrictive covenant, the Planning Department shall transmit a copy of the approved request for Review of Completed Work, the exemption covenant, and the resolution of the City Commission approving the final application and authorizing the tax exemption to the Miami-Dade County Property Appraiser's Office. Final verification of substantial completion of the improvements shall be determined by the Miami-Dade County Property Appraiser's Office. If final verification of substantial completion and approval are given by the Miami-Dade County Property Appraiser's Office, the exemption shall take effect on the January 1St following substantial completion of the improvements. PASSED and ADOPTED this 5th day of November , 2008. A TEST: (fit, G . CITY CLERK Robert Parcher APPROVED AS TO FORM & LANGUAGE M YOR Matti Herrera Bower XECUTI 1V: :-- ` I 0 ~Z~r o ~` NEY DA E T:WGENDA\2008\November 5\Consent12312 Bay Ave.TaxEx.CCreso.doc 4 E.~ct~~si-r A SINGLE-FAMILY RESIDENCE AT 2312 BAY AVENUE HISTORIC STRUCTURE DESIGNATION REPORT - .~-.~- ;. - -- _.. _.. -. "i" PREPARED BY CITY OF MIAMI BEACH PLANNING DEPARTMENT DESIGN, PRESERVATION & NEIGHBORHOOD PLANNING DIVISION Jorge G. Gomez, AICP, Director, Planning Department William H. Cary, Director, Design, Preservation & Neighborhood Planning Division Thomas R. Mooney, AICP, Design and Preservation Manager Debbie Tackett, Senior Planner CITY OF MIAMI BEACH HISTORIC PRESERVATION BOARD Allan Hall, Chair Erika Brigham Jeff Donnelly Diane Downs Henry Lares Simon Nemni Norberto Rosenstein October 14, 2008 Adopted on October 14, 2008 (HPB File No. 6014) I. REQUEST The applicant, Terry S. Bienstock, is requesting that the Historic Preservation Board approve a request for the designation of an existing single-family home as an historic structure. This application was to be presented before the Board on September 9, 2008, however due to the forecasted track of hurricane Ike, the September meeting was canceled and all items on the agenda were deferred to the October 14, 2008 meeting. DESIGNATION PROCESS The process of designation for historic structures is delineated in Section 118-591(f) in the Land Development Regulations of the City Code. An outline of this process is provided below: Step One: An application for the individual designation of asingle-family home as an historic structure is submitted by the property owner to the Planning Department for recommendation to the Historic Preservation Board. The Board will make a determination as to whether the single-family home may be designated as an historic structure based upon the requirements and criteria of Section 118-592 in the Land Development Regulations of the City Code. Step Two: Upon receipt of a completed application package, the Planning Department prepares a Designation Report that will be presented to the Historic Preservation Board at a regularly scheduled meeting. The Designation Report is an historical and architectural analysis of the proposed historic structure. Step Three: The Designation Report is presented to the Historic Preservation Board at a public hearing. If the Board finds that the proposed single-family designation application meets the criteria set forth in Section 118-592 of the Land Development Regulations in the City Code, it may formally adopt the single-family home as a local historic structure. No public hearing is required before the Planning Board or City Commission. Upon the designation of asingle-family home as an historic structure, the structure is subject to the Certificate of Appropriateness requirements of Article X of the Land Development Regulations in the City Code, with the exception of the interior areas of the structure (which are not be subject to such regulations). III. RELATION TO ORDINANCE CRITERIA In accordance with Section 118-592 in the Land Development Regulations of the City Code, eligibility for designation is determined on the basis of compliance with the listed criteria set forth below. (a) The Historic Preservation Board shall have the authority to recommend that properties be designated as historic buildings, historic structures, historic improvements, historic landscape features, historic interiors (architecturally significant public portions only), historic sites or historic districts if they are significant in the historical, architectural, cultural, aesthetic or archeological heritage of the city, the county, state or nation. Such properties shall possess an integrity of location, design, setting, materials, workmanship, feeling or association and meet at least one (1) of the following criteria: 2 (1) Association with events that have made a significant contribution to the history of the city, the county, state or nation; (2) Association with the lives of persons significant in the city's past history; (3) Embody the distinctive characteristics of an historical period, architectural or design style or method of construction; (4) Possesses high artistic values; (5) Represent the work of a master, serve as an outstanding or representative work of a master designer, architect or builder who contributed to our historical, aesthetic or architectural heritage; (6) Have yielded, or are likely to yield information important in pre-history or history; (7) Be listed in the National Register of Historic Places; (8) Consist of a geographically definable area that possesses a significant concentration of sites, buildings or structures united by historically significant past events or aesthetically by plan or physical development, whose components may lack individual distinction. (b) A building, structure (including the public portions of the interior), improvement or landscape feature may be designated historic even if it has been altered if the alteration is reversible and the most significant architectural elements are intact and repairable. 2. The single-family residence at 2312 Bay Avenue is eligible for designation as an historic structure as it complies with the criteria as specified in Section 118-592 in the Land Development Regulations of the City Code outlined above. (a) Staff finds the proposed historic site to be eligible for historic designation and in conformance with the designation criteria for the following reasons: (3) Embod~he distinctive characteristics of an historical period, architectural or design style or method of construction; The single-family residence at 2312 Bay Avenue is good example Mediterranean Revival-Art Deco Transitional architecture, sometimes called "Med-Deco:" a unique synthesis of Mediterranean Revival and Art Deco decorative detail. The distinctive two story residence is characterized by an asymmetric street facade with multiple barrel the hip roofs, casement windows with horizontal lite configuration and covered walkway. The rear (west facade) is characterized by a symmetrical facade with two original arched window openings on the ground level. (4) Possesses high artistic values; 3 Many well defined original architectural features of the house add artistic value and character to the structure and the neighborhood. These features embody the spirit of Med-Deco architecture and include such elements as the multiple the roofs, decorative ironwork, arched windows, feature chimney, stepped massing, `porthole' window, smooth stucco finish and projecting bay windows. The carefully executed design was clearly done with the highest regard to the character of the house and the neighborhood in which it rests, as evidenced by the careful attention to detail expressed throughout the design, both on the exterior and interior. (5) Represent the work of a master serve as an outstanding or representative work of a master designer architect or builder who contributed to our historical aesthetic or architectural heritage: Architect, T. Hunter Henderson is one of the most celebrated architects in the history of Miami Beach. His works can be seen throughout the city, from the South of Fifth Street area north to North Beach. Henderson designed buildings in several different styles including early Art Deco, Mediterranean- Deco, Mediterranean Revival, Streamline Moderne and Garden Style. Building types range from hotels to apartment buildings to single family home and commercial buildings. Henderson started his career early in Miami Beach with the Lindberg Hotel in 1930. This hotel which is now retail and offices, takes up the entire block on 5th Street between Euclid Avenue and Meridian Avenue and is a good example of early Art-Deco with its Mayan influences and floral detail. 1201 Washington Avenue is another block-long building, entirely clad in keystone, and was originally the S.H. Kress Company. Other buildings dating from 1929 to 1964 include: Moseley's store bldg. Astor Hotel Cromwell Arms Apts. Copley Plaza Hotel York Towers Apts. Monroe Towers Byrola Apartments 738-744 Lincoln Road 953 Washington Avenue 1614 Jefferson Avenue 3900 Collins Ave (w/ Albert Anis) 440 15th Street 3010 Collins Avenue 8024 Harding Avenue (b) A building structure Lcludina the public portions of the interior) improvement or landscape feature may be desianated historic even if it has been altered if the alteration is reversible and the most significant architectural elements are intact and repairable. The single-family residence at 2312 Bay Avenue maintains most of its architectural integrity with limited modifications. Restoration and appropriate renovation can be successfully completed of this fine residence by careful analysis of on-site conditions and available historic documentation. 4 IV. DESCRIPTION OF BOUNDARIES The subject property is located at 2312 Bay Avenue on Lots 12, 13 and 14 of Block 3-H of Island No. 3 of Sunset Island, 2"d Revised Plat, according to the Plat thereof, as recorded in Plat Book 34 at Page 73 of the Public Records of Miami-Dade County, Florida. V. PRESENT OWNER The present owner of the subject property is Mr. Terry S. Bienstock VI. PRESENT USE The original and current use of the subject property is single-family residential. VII. PRESENT ZONING DISTRICT The subject property is located in the RS-3 or Residential Single-Family Zoning District. VIII. ARCHITECTURAL BACKGROUND Mediterranean Revival-Art Deco Transitional (circa late 1920s to mid-1930s) "Med-Deco" in Miami Beach was a synthesis of Mediterranean Revival form and Art Deco decorative detail or vice versa. This unique hybrid style became a fascinating bridge between the "familiar" and the "new" as the allure of Art Deco found its way into the City's architectural vocabulary. Clean stepped roof lines and crisp geometric detailing replaced scrolled parapets, bracketed cornices, and Classical features on structures of clear Mediterranean Revival form. Likewise, sloped barrel the roofs rested gracefully on edifices with spectacular Art Deco entrances and facade treatments. Some of the most celebrated architects in Miami Beach designed structures in this unique and significant Miami Beach style, including V.H. Nellenbogen, Henry Hohauser, Russell Pancoast, T. Hunter Henderson and others. The predominant exterior material of Med-Deco Transitional was smooth stucco with raised or incised details. Featured stucco areas were often patterned or scored. Keystone, either natural or filled and colored, was frequently used to define special elements. Windows ranged from wooden and steel casement to wooden double-hung, and even large single windows in gracefully curved masonry openings. Decorative ironwork was also employed in this style. 2312 Bay Avenue The two-story residence was designed by architect T. Hunter Henderson for Dr. and Mrs. M.A. Sturm in 1937. In addition to satisfying the criteria for evaluation as noted above, the building has retained its strong integrity over the years despite some modest exterior alterations, primarily on the rear facade. The property, located in a prominent residential single family area of the city, is complemented by its setting and relationship with numerous other single family homes of similar scale in various design styles. Its distinctive character contributes greatly to the character of its residential neighborhood. The Med-Deco design is carefully executed, adapted to the south Florida climate, in harmony with the surrounding landscape. The buildings proportion, scale, massing and use of materials is reflective of Med-Deco architecture. 5 X. PLANNING DEPARTMENT RECOMMENDATIONS Criteria for Designation: Based upon the evidence presented and the historical and architectural significance of the single-family residence located at 2312 Bay Avenue, and in accordance with Chapter 118, Article X, Division 4, of the Land Development Regulations of the City Code, the staff of the City of Miami Beach Planning Department recommends that the Historic Preservation Board adopt the subject property as a local historic structure. 2. Site Boundaries: The Planning Department recommends that the boundaries of the historic site consist of the existing structure only, on Lots 12, 13 and 14 of Block 3-H of Island #3 of Sunset Island, 2"d Revised Plat, according to the Plat thereof, as recorded in Plat Book 34 at Page 73 of the Public Records of Miami-Dade County, Florida. 3. Areas Subject to Review: The Planning Department recommends that the proposed historic site shall be subject to Section 118-591 (f) of the Land Development Regulations of the City Code. 4. Review Guidelines: The Planning Department recommends that a decision on an application for a Certificate of Appropriateness shall be based upon Section 118-591 (f) of the Land Development Regulations of the City Code. JGG:WHC:TRM:MAB F:\PLAN\$ H P B\08 H PB\OctH PB08\6014-desig.oct08.doc 6 HISTORIC PRESERVATION BOARD City of Miami Beach, Florida MEETING DATE: October 14, 2008 FILE NO: 6014 PROPERTY: 2312 Bay Avenue -Single Family Home LEGAL: Part of Lots 12, 13 and 14 of Block 3-H of Island #3 of Sunset Island, 2nd Revised Plat, according to the Plat thereof, as recorded in Plat Book 34 at Page 73 of the Public Records of Miami-Dade County, Florida. IN RE: The application requesting that the Historic Preservation Board recommend approval for an Historic Ad Valorem Tax Exemption for the restoration, renovation, and rehabilitation of the existing historic home, as well as for the new construction proposed for the site. ORDER The applicant, Terry S. Bienstock, filed a request for the Historic Preservation Board to recommend approval for an ad valorem tax exemption. The City of Miami Beach Historic Preservation Board makes the following FINDING OF FACT, based upon the evidence, information, testimony and materials presented at the public hearing and which are part of the record for this matter: Based on the plans and documents submitted with the application, testimony and information provided by the applicant, the analysis and reasons set forth in the Staff Report, and consistency with the Secretary of the Interior's Standards for Rehabilitation and the Certificate of Appropriateness Criteria in Section 118-564 of the Miami Beach City Code, the Historic Preservation Board recommends in favor of the application for Miami Beach Historic Ad Valorem Tax Exemption for the subject single-family residence. IT IS HEREBY ORDERED, based upon the foregoing finding of fact, the evidence, information, testimony and materials presented at the public hearing, which are part of the record for this matter, including the staff report and analysis, which are adopted herein, including the staff recommendations, that the Historic Preservation Board recommends in favor of the application for Miami Beach Historic Ad Valorem Tax Exemption for the above-referenced property. Page 2 of 2 HPB File No. 6014 - Ad Valorem Tax Exemption Meeting Date: October 14, 2008 Dated this ~ ~ day of ~~~~~ , 20~~ HISTORIC PRESERVATI N BOA THE C Y OF MI H, F RIDA BY: THOMA R. M ONEY, AIC DESIGN AND PRESERVATION MANAGER FOR THE CHAIR STATE OF FLORIDA ) )SS COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this ~3n~ day of ©CD~o bP/L 20~by Thomas R. Mooney, Design and Preservation Manager, Planning Department, City of Miami Beach, Florida, a Florida Municipal Corporation, on beh of the Corporation. He is personally known to me. NOTA Y PUBLIC F FLORIDA Miami-Dade County, Florida Teresa Maria M commission ex fires: Commission # DD483859 Y P ~ DEC. 02, 2009 Bonded Thru A~lanac Bending Co., Inc. Approved As To Form: Legal Department: (<a~yL"'O 8' ) Filed with the Clerk of the Historic Preservation Board on F:\PLAN\$HPB\08H PB\OctHPB08\6014-AdVal. FO.doc COMMISSION ITEM SUMMARY Resolution: Approval of a Preconstruction Application for Historic Ad Valorem Tax Exemption for the Single-Family Property at 2312 Bay Avenue. Condensed Title: Ke Intended Outcome Su orted: Retention and rehabilitation of a locally designated historic single-family property. Supporting Data (Surveys, Environmental Scan, etc.): In the 2007 Survey, 66% of residents rated the amount done for historic preservation as the right amount; 45% of residents felt that maintaining neighborhoods is most important to address with regards to historic preservation; 40% of residents felt that historic structures well-maintained is most important to address with regards to historic preservation; and, 14% of residents felt that expansion of the historic district is most important to address with regards to historic reservation. The Administration is requesting that the Mayor and City Commission consider the proposed resolution, which would approve a Preconstruction Application for Historic Ad Valorem Tax Exemption for asingle- family property located at 2312 Bay Avenue. Issue: item summaryircecommenaaLion: On October 14, 2008 the Historic Preservation Board approved the designation of the single-family residence at 2312 Bay Avenue and approved a Certificate of Appropriateness for the minor demolition, renovation and restoration of the existing home and the construction of an new entry foyer and attached addition with a new second story and roof top patio at the east portion of the site of approximately 1,238 square fee. Additionally, the Historic Preservation Board recommended the City Commission approve a resolution for ad valorem tax exemption for the restoration, renovation and 'i rehabilitation of the existing home as well as for the proposed new construction. The Administration recommends approval of the resolution. Advisory Board Recommendation: On October 14, 2008, the Historic Preservation Board voted in favor of recommending that the Mayor and City Commission approve a Preconstruction Application for Historic Ad Valorem Tax Exemption for the single-family property at 2312 Bay Avenue. Financial Information: Source of Amount Account Funds: ~ 2 3 OBPI Total Financial Impact Summary: Ci Clerk's Office Le islative Trackin William Cary, Assistant Director, Planning Department; Debbie Tackett, Senior Planner. Sidn-Offs: T:WGEN A 8Wo ber 5\Cons nt 312 Ba ve.TaxExsum.doc D partment Dir for s stant City Manager City Manager AGENDA ITEM C ~ G ,~, M I AM I B EAC H DATE ,,_ s-U~ m MIAMIBEACH City of Miami Bea<h, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM To: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager , SATE: November 5, 2008 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, RECOMMENDING APPROVAL OF A PRECONSTRUCTION APPLICATION FOR HISTORIC AD VALOREM TAX EXEMPTION FOR ASINGLE-FAMILY PROPERTY AT 2312 BAY AVENUE, AND AUTHORIZING THE MIAMI-DADE COUNTY PROPERTY APPRAISER'S OFFICE TO GRANT SAID TAX EXEMPTION FOR THE CITY'S PORTION OF AD VALOREM PROPERTY TAXES FOR QUALIFYING IMPROVEMENTS TO THE SUBJECT PROPERTY FOLLOWING SUBSTANTIAL COMPLETION OF THE PROJECT AND COMPLIANCE WITH CERTAIN CONDITIONS. ADMINISTRATION RECOMMENDATION The Administration is requesting that the Mayor and City Commission adopt the proposed resolution, thereby approving a Preconstruction Application for Historic Ad Valorem Tax Exemption for asingle-family property located at 2312 Bay Avenue. HISTORIC SINGLE-FAMILY AD VALOREM TAX EXEMPTION On December 8, 2004, the City of Miami Beach enacted legislation that authorizes an exemption for its portion of ad valorem taxes for improvements to historically designated single-family homes (Sections 118-600 to 118-612 of the Miami Beach City Code). This legislation allows for the City's portion of property taxes to be "frozen" at the rate they were assessed before qualifying improvements are made to an historic single-family home for a period often (10) years. The "freezing" is accomplished by removing from the assessment the incremental value added by the qualifying improvements. Only the incremental value of the qualifying improvements shall be "frozen" for the ten year period. Qualifying improvements are the result of restoration, renovation, rehabilitation and/or compatible additions to an historic single-family property. In order for an improvement to qualify for an exemption, the improvement must be determined by the Historic Preservation Board and City Commission to be consistent with the Secretary of the Interior's Standards for Rehabilitation and the Certificate of Appropriateness Criteria in Section 118-564 of the Miami Beach City Code. However, the Miami-Dade County Property Appraiser's Office will make the final determination of whether an improvement qualifies for an exemption. The application for Historic Ad Valorem Tax Exemption is a two step process. The "Part 1 - Preconstruction Application" is normally submitted to the Planning Department prior to any construction or demolition for an eligible single-family property. The "Part 2 -Review of Completed Work" is submitted to the Planning Department upon substantial completion of the project. Commission Memorandum of November 5, 2008 Historic Single-Family Ad Valorem Tax Exemption 2312 Bay Avenue Page 2 of 4 Upon submittal of a completed Part 1 -Preconstruction Application, the Planning Department will schedule the request for approval of Historic Ad Valorem Tax Exemption from the Historic Preservation Board at their next regularly scheduled meeting. The Board will review and make a recommendation to the City Commission to grant or deny an application for tax exemption. The Planning Department will transmit the request for approval of Historic Ad Valorem Tax Exemption, together with the Part 1 -Preconstruction Application and the recommendations of the Historic Preservation Board and staff, forfinal consideration by the City Commission at a regularly scheduled meeting. A majority vote of the City Commission is required to approve an application for tax exemption. For final approval of an Historic Ad Valorem Tax Exemption, the applicant must submit to the Planning Department the Part 2 -Review of Completed Work upon substantial completion of the project. A review will be conducted by Planning Department staff to determine whether or not the completed improvements are in compliance with the work approved by the City Commission in the Part 1 -Preconstruction Application. To qualify for a tax exemption, the property owner is required to enter into a covenant or agreement with the City guaranteeing that the character of the property and its qualifying improvements will be maintained during the period that the exemption is granted. LEGAL DESCRIPTION The subject property is located at 2312 Bay Avenue or, more specifically, on a portion of Lots 12, 13 and 14 of Block 3-H, of Sunset Island No 3, 2"d Revised Plat, according to the Plat thereof, as recorded in Plat Book 34, Page 73, of the Public Records of Miami-Dade County, Florida. EXISTING STRUCTURE Built in 1937 and designed by T. Hunter Henderson, the subject residence is a good example of the Mediterranean Revival-Art Deco Transitional (Med-Deco) style of architecture. The distinctive two story residence is characterized by an asymmetric street facade with multiple barrel the hip roofs, casement windows with horizontal lite configuration and covered walkway. The rear (west facade) is characterized by a symmetrical facade with two original arched window openings on the ground level. Many well defined original architectural features of the house add artistic value and character to the structure and the neighborhood. These features embody the spirit of Med- Decoarchitecture and include such elements as the multiple the roofs, decorative ironwork, arched windows, feature chimney, stepped massing, 'porthole' window, smooth stucco finish and projecting bay windows. The carefully executed design was clearly done with the highest regard to the character of the house and the neighborhood in which it rests, as evidenced by the careful attention to detail expressed throughout the design, both on the exterior and interior. BACKGROUND On October 14, 2008, the Historic Preservation Board approved a request by the property owner for the individual designation of the single-family property at 2312 Bay Avenue as an historic structure. At the same meeting the Board is also approved a request for a Certificate of Appropriateness for the partial demolition, renovation and restoration of the existing home and the construction of a new 2-story addition. Additionally, the Historic Preservation Board recommended the City Commission approve a resolution for ad valorem Commission Memorandum of November 5, 2008 Historic Single-Family Ad Valorem Tax Exemption 2312 Bay Avenue Page 3 of 4 tax exemption for the restoration, renovation and rehabilitation of the existing home as well as for the proposed new construction. SCOPE OF PROJECT In brief, the project includes improvements to the historic residence and site. All qualifying improvements for both the historic home and proposed additions shall be consistent with the Final Order of the Historic Preservation Board. Below is a summary of the improvements proposed by the applicant: A. Exterior Architectural Features 1. The garage cupola and shutters originally located on the east elevation will be replicated and reintroduced according to available historical documentation and original building records. 2. Recreation of the original rear balcony along the west elevation. The original balcony was altered when a new large balcony was built in its place. The original configuration will be reconstructed in accordance with available historical documentation. An impact resistant glazing system will be installed within the enclosed area. 3. The covered entrance along the east elevation will be restored to original condition. 4. Construction of a new entry foyer and attached addition to replace the existing garage with a new second story and roof top patio at the east portion of the site of approximately 1,238 square feet. Impact resistant windows will be installed throughout the building. 5. New roof tiles will replace damaged tiles throughout the roof. The tiles will be consistent with the original tiles. B. Interior Architectural Features (The interior improvements indicated below maybe considered by fhe County Tax Appraiser to be qualifying for the ad valorem tax exemption.) 1. The original breeze block room divider separating the living and dining rooms will be restored to the original configuration. 2. The decorative plaster finish within living room will be restored to original condition. 3. The original Cuban floor tiles will be restored and/or replaced to match the original condition. 4. All of the existing air conditioning, plumbing and electrical systems will be upgraded to current code. C. Landscape Features (The landscape and site improvements indicated below are not recommended to be considered by the County Tax Appraiser to be qualifying for the ad valorem tax Commission Memorandum of November 5, 2008 Historic Single-Family Ad Valorem Tax Exemption 2312 Bay Avenue Page 4 of 4 exemption.) 1. The existing pool deck and concrete coping will be replaced with impermeable level surfaces. The interior of the pool will be sealed and updated. 2. Palms located at the front of the property will be maintained and/or relocated. FISCAL IMPACT According to the applicant, the estimated cost of the entire project and the value of the proposed qualifying improvements for the subject single-family property is $400,000. The project commencement date is scheduled for January of 2009 and the estimated project completion date is August of 2009. Please note that the revenue implication calculation provided below is a rough approximation. It assumes that the Miami-Dade County Property Appraiser's Office will not reduce the actual square footage of the additions to adjusted square footage. It assumes that the City's millage rate, the building market value, as well as the building class and grade value will remain the same. It is also based solely on the estimated value of the new additions and not to any repairs to the historic residence. The Miami-Dade County Property Appraiser's Office determined in 2008 that the subject property has an adjusted square footage of 4,813 and a building value of $606,048. The lot size is approximately 13,771 square feet with a land value of $1,790,230. The Property Appraiser's Office advised that the subject property has an effective building value per adjusted square foot of $126 which is based upon its building class and grade. According to the applicant, the proposed actual square footage of the qualifying building additions for the site is approximately 1,238 square feet. Then the estimated value of the proposed increase in square footage would be $155,988. In FY 2007/08, the adopted millage rate for the City of Miami Beach is 5.90. For the sole purpose of providing an estimated savings to the tax payer, we will assume there will be no change in millage rate over the ten year period in which the exemption is granted. When using the estimated 5.90 millage rate for FY 2007/08, the applicant will save annually approximately $920 from Miami Beach's portion of property taxes. Again, this calculation is a rough estimate of the revenue implication to the City due to many variables. ANALYSIS The applicant is to be greatly commended for the retention and sensitive restoration of the subject home. The proposed addition on the east side of the historic home is in keeping with the architectural period of the original structure. It is very important that the current owner has chosen to preserve and expand this historic home, rather than to demolish and replace it. The historically significant home is an asset to the neighborhood, and as such staff recommends approval of the tax exemption application. JMG:TH:JGG:WHC:TRM:DT T:WGENDA12008\November5\Consent12312 Bay Ave.TaxEx.CCmemo.doc