2019-30798 Resolution Single Family Ad Valorem Tax Exemption —3771 Royal Palm Avenue
RESOLUTION NO.' 2019-30798
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING A
PRECONSTRUCTION APPLICATION FOR HISTORIC AD VALOREM
TAX EXEMPTION FOR A SINGLE-FAMILY PROPERTY AT 3771
ROYAL PALM AVENUE, AND AUTHORIZING THE MIAMI-DADE
COUNTY PROPERTY APPRAISER'S OFFICE TO GRANT THIS 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 incentives for the retention and
rehabilitation of architecturally and historically significant single-family homes in Miami
Beach; and
WHEREAS, on December 8, 2004, the Mayor and City Commission adopted
Ordinance No. 2004-3469, authorizing an exemption from the City's portion of ad
valorem taxes if qualifying improvements are made to historically designated single-
family homes; and
WHEREAS, Carmen Cantero and Beatrice N. Avgherino (a/k/a Beatrice
Avgherino Butchko), who are owners of real property located at 3771 Royal Palm
Avenue (Lot 17 in Block 51 of Orchard Subdivision 2 & 3, according to the Plat thereof,
as recorded in Plat Book 8 at Page 116 of the Public Records of Miami-Dade County,
Florida), submitted requests to the City's Planning Department for the following: a)
designation of the property as an historic structure, b) a Certificate of Appropriateness,
and c) an Historic Ad Valorem Tax Exemption for the subject property; and
WHEREAS, on March 13, 2017, based upon the evidence presented and the
historical and architectural significance of the subject property, and in accordance with
Chapter 118, Article X, Division 4, of the Land Development Regulations of the City
Code, the Historic Preservation Board unanimously approved a motion (7 to 0) to
designate the single-family residence at 3771 Royal Palm Avenue as an historic single-
family residential structure (referred to as HSFRS-32); and
- WHEREAS, on March 11, 2019, the Historic Preservation Board voted to
recommend 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 3771 Royal Palm Avenue; and
WHEREAS, the Historic Preservation Board has certified that the subject single-
family property for which an exemption is requested is eligible and satisfies the
requirements of City Code Section 118-602(a); and
WHEREAS, the Historic Preservation Board has determined that, pursuant to
City Code Section 118-602(b), the proposed 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 City Code Section 118-564.
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 3771 Royal Palm Avenue is 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. 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.
Approved Qualifying Improvements. The qualifying improvements to the subject single-
family property delineated below are considered to be eligible for the tax exemption, as
submitted to and approved by the City's Historic Preservation Board.
1. Construction of a 1-story, ground level addition at the rear of the historic home.
The proposed addition contains 469 square feet of enclosed area and a 427
square foot covered terrace. The enclosed area will contain a master bedroom,
closet and bathroom. The design of the new addition is compatible with the
architectural vocabulary of the historic home and will not be visible from the
public right-of-way.
2. Replacement of non-original awning windows with impact resistant casement and
horizontal sliding windows. The windows proposed along the primary (front)
façade include applied muntins in a pattern consistent with the original window
design.
3. The restoration and reintroduction of all significant architectural features located
on the primary fagade including the entry terrace, built-in planter feature, original
garage door and decorative scored stucco pattern painted in a contrasting color.
4. All mechanical, electrical and plumbing systems will be installed to meet current
code and energy efficiency guidelines.
5. Restoration of original fireplace feature and ceiling molding.
6. Renovation of kitchens and bathrooms.
Duration of Tax Exemption. The exemption shall take effect on the January 1st 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 to grant such exemptions or any changes in ownership of the
property.
Required Covenant. The property owner shall enter into a covenant with the City 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, and assigns. Violation of the covenant shall result in the property owner
being required to pay 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).
Building Permit Plans and Construction. Building permit plans must 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.
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 must be reviewed
and approved by the Historic Preservation Board.
Completion of Work. An application must complete all work within 30 months following
the date of approval by the city commission. An 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 30 months following the date of approval by the city commission.
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 years from the
completion date in the original approval by the city commission, or such lesser time as
may be prescribed by the board.
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 30 days of such decision. The appeal shall be in writing and shall be
to the Board of Adjustment and shall set forth the factual and legal bases for the appeal.
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 /0 day of a/6'r�/ , 2019.
4414111(-11114
ATTEST:
Dan Gelber, Mayor
c—/-1
`� '
Rafael E. Granadd,I Clt Clerk APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
............B °°4�� — — 3 _ 2,1, lel
•• C City Attorney Date
:N"CORP ORATED:
26
F:\T Drive\AGENDA\2019\04 April\Planning\3771 Royal Palm Av.SF Ad Valorem Tax-RESO.docx
Resolutions - R7 J
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: April 10, 2019
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING A PRECONSTRUCTION
APPLICATION FOR HISTORIC AD VALOREM TAX EXEMPTION FOR A
SINGLE-FAMILY PROPERTY AT 3771 ROYAL PALM AVENUE, AND
AUTHORIZING THE MIAMI-DADE COUNTY PROPERTY APPRAISER'S
OFFICE TO GRANT THIS 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.
RECOMMENDATION
The administration recommends that the Mayor and City Commission adopt the attached
resolution, approving a preconstruction historic ad-valorem tax exemption application for a
single-family property located at 3771 Royal Palm Avenue.
ANALYSIS
HISTORY
On March 13, 2017, the Historic Preservation Board reviewed the designation report with
recommendations prepared by the staff of the Planning Department, regarding the designation
of the single-family residence at 3771 Royal Palm Avenue as an historic single family residence.
Based upon the evidence presented and the historical and architectural significance of the
subject property, and in accordance with Chapter 118, Article X, Division 4, of the Land
Development Regulations of the City Code, the Board unanimously approved a motion (7 to 0)
to adopt the single-family residence at 3771 Royal Palm Avenue as an historic single-family
residential structure (referred to as HSFRS-32).
PLANNING ANALYSIS
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 of ten
(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
Page 916 of 1091
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 I nterior'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.
Historic Single Family Ad Valorem Tax Exemption Process
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.
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, for final 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.
Scope of Project
A. Exterior Architectural Features
1. Construction of a 1-story, ground level addition at the rear of the historic home. The proposed
addition contains 469 square feet of enclosed area and a 427 square foot covered terrace. The
enclosed area will contain a master bedroom, closet and bathroom.The design of the new
addition is compatible with the architectural vocabulary of the historic home and will not be visible
from the public right-of-way.
Page 917 of 1091
2. Replacement of non-original awning windows with impact resistant casement and horizontal
sliding windows. The windows proposed along the primary (front) façade include applied
muntins in a pattern consistent with the original window design.
3. The restoration and reintroduction of all significant architectural features located on the
primary facade including the entry terrace, built-in planter feature, original garage door and
decorative scored stucco pattern painted in a contrasting color.
B. Interior Architectural Features
(The interior improvements indicated below may not be considered by the County Tax Appraiser
to be qualifying for the ad valorem tax exemption.)
1. All mechanical, electrical and plumbing systems will be installed to meet current code and
energy efficiency guidelines.
2. Restoration of original fireplace feature and ceiling molding.
3. Renovation of kitchens and bathrooms.
FISCAL IMPACT
According to the applicant, the estimated cost of the entire project and the value of the
proposed qualifying improvements is $96,000. The project commencement date was
scheduled for January of 2019 and the estimated project completion date is November of 2019.
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 existing 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 2013 that the subject
property has an adjusted square footage of 2,010 and a building value of$199,113. The lot size
is approximately 7,320 square feet with a land value of$292,600.
The Miami-Dade County Property Appraiser's Office determined in 2018 that the subject
property has an adjusted square footage of 1,622 and a building value of$141,114. The lot size
is approximately 7,500 square feet with a land value of$637,371.
According to this information, the subject property has an effective building value per adjusted
square foot of $87 which is based upon its current building class and grade. According to the
applicant, 896 square feet of qualifying building additions will be added to the site. Therefore,
the estimated value of the proposed increase in qualifying square footage only, would be
$77,952. This figure does not include any other qualifying improvements that the County Tax
Appraiser may determine to add value to the building. The County Tax Appraiser may determine
certain improvements to the existing structure to be maintenance and therefore not adding
building value to the property. In FY 2018/19, the adopted millage rate for the City of Miami
(
Page 918 of 1091
Beach is 5.778.
For the sole purpose of providing an estimated savings to the property owner(based on solely
on the square footage of qualifying additions), 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 5.778 millage
rate for FY 2018/19, the applicant will save annually approximately $450 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.
Since the City enacted the legislation that authorizes an exemption for its portion of ad valorem
taxes for improvements to historically designated single-family homes in 2004, a total of ten(10)
applications for City ad valorem tax exemption have been approved and authorized by the
Miami-Dade County Property Appraiser. Of these ten (10) applications, five (5) are currently
active. Of the active applications, three (3) were determined by the Miami-Dade County
Property Appraiser to have no increase in building value after the assessment of improvements
and currently have no fiscal impact to the City of Miami Beach. The remaining five (5)
applications have exhausted the ten year period and are currently levied property taxes for actual
building value including the value of improvements previously exempted. In 2018, the fiscal
impact for active applications was approximately$7,845.
HISTORIC PRESERVATION BOARD REVIEW
On March 11, 2019, the Historic Preservation Board reviewed the application and transmitted a
favorable recommendation by a vote of seven to zero (7-0) for the granting of the requested
Historic Single Family Home Ad Valorem Tax Exemption for the proposed improvements to the
residence located at 3771 Royal Palm Avenue.
CONCLUSION
The administration recommends that the City Commission approve subject resolution
authorizing a Historic Single Family Ad Valorem Tax Exemption for qualifying improvements to
the individually designated historic single family residence located at 3771 Royal Palm Avenue.
Legislative Trackinci
Planning
Sponsor
Private Application- Homeowner
ATTACHMENTS:
Description
❑ Resolution
Page 919 of 1091