2007-26617 ResoRESOLUTION NO. 2007-26617
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 841 19th STREET, 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 June 9, 1999, the Miami Beach City Commission adopted Ordinance No.
99-3186 which designates Palm View as an historic district. The single family residence located
at 841 19th Street is listed as a contributing (historic) structure within the designation report
[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, Friedrich Koesters and Michael Jarboe, the owners of real property located
at 841 19th Street (The west % of Block 8-A, of "Amended Plat of Golf Course Subdivision",
According to the Plat Thereof, as Recorded in Plat Book 6, Page 26, of the Public Records of
Miami-Dade County, Florida.), submitted requests to the City's Planning Department for the
following: a) a Certificate of Appropriateness, and b) an Historic Ad Valorem Tax Exemption for
the subject property; and
WHEREAS, on November 14, 2006, the City's Historic Preservation Board reviewed and
approved a Certificate of Appropriateness for the proposed improvements to the subject single-
family property [Exhibit "B"]; and
WHEREAS, on August 14, 2007, 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 841 19th Street [Exhibit "C"]; 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 841 19th Street
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
Construction of a new 1,670 square foot addition consisting of a master
bedroom, master bathroom, dining room, garage and terrace.
2. Replace existing casement windows, which are rusted, broken, and generally
in very poor condition with new historically accurate casement windows.
3. Replace existing hipped flat the roof with new, historically accurate roof.
4. Repair of existing concrete eyebrows.
5. Replacement of existing glass block walls.
6. Replacement of original French doors within the living room portion of the
existing structure to match original configuration.
7. Re-Stucco all exterior walls, which are currently cracked and in poor
condition.
8. The existing iron gates, which are rusted and in poor condition will be
replaced with new iron gates.
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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. Said 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
application for tax exemption shall be automatically revoked 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.
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
3
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 September , 2007.
MAY R
ATTEST:
C TY CLERK
Robert Parcher
APPROVED AS TO FORM & LANGUAGE
& FO XECUTIO :~
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C1 TTO E D T
T:WGENDA\2007\sep0507\Consent\841 19th StreeLTaxEx.CCreso.doc
Matti H. Bower
4
COMMISSION ITEM SUMMARY
Resolution: Approval of a Preconstruction Application for Historic Ad Valorem Tax Exemption for the
Single-Family Property at 841 19th Street.
Condensed Title:
Ke Intended outcome 5u 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 historic district is most important to address with regards to
historic preservation.
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 841 19th Street.
Issue:
item summaryircecommenaaiion:
On June 9, 1999 the City Commission adopted the designation of the Palm View Historic District.
The single-family residence at 841 19th Street is listed as a contributing (historic) property within the
designation report.
On November 14, 2006, the Historic Preservation Board approved a Certificate of Appropriateness
for the proposed improvements to the subject single-family property.
The Administration recommends approval of the resolution.
Advisory Board Recommendation:
On August 14, 2007, 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 841 19th Street.
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.
Sign-Offs:
Department Director A ista t ity Manager City Manager
T:WGENDA\2007\sep0507\Consent\841 19th Street(2).Ta~&.revised sum.doc
m MIAMIBEACH
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AGENDA ITEM G /
DATE 9~s'o7
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor David Dermer and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 5, 2007
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 841 19T" STREET, 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 841 19th Street.
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 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 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
Commission Memorandum of September 5, 2007
Historic Single-Family Ad Valorem Tax Exemption
841 19th Sfreet
Page 2 of 5
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, 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 west'/2 of Block 8-A, of "Amended Plat of Golf Course Subdivision", According to the
Plat Thereof, as Recorded in Plat Book 6, Page 26, of the Public Records of Miami-Dade
County, Florida.
EXISTING STRUCTURE
Constructed in 1937 and designed by architect Robert E. Collins, the subject structure is
designated contributing in the Miami Beach Historic Properties Database and is located
within the Palm View Local Historic District.
The Med/Deco Transitional home is characterized by continuous eyebrows, racing strips,
glass block, and a curved single story wing which are typical elements of the Streamline
Modern style of architecture. The casement windows, French doors and hipped roof are
reminiscent of the Mediterranean Revival style.
BACKGROUND
At its November 14, 2006, meeting, the Historic Preservation Board approved a request for
approval of a Certificate of Appropriateness for a new ground level single story addition to
the existing 2-story home, located on the north-east side of the existing home.
At its August 14, 2007, meeting the Historic Preservation Board recommended approval of a
request by the owners for a Single Family Ad Valorem Tax Exemption for the subject
improvements and addition.
Commission Memorandum of September 5, 2007
Historic Single-Family Ad Valorem Tax Exemption
841 19th Street
Page 3 of 5
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. Construction of a new 1,670 square foot addition consisting of a master bedroom,
master bathroom, dining room, garage and terrace.
2. Replace existing casement windows, which are rusted, broken, and generally in very
poor condition with new historically accurate casement windows.
3. Replace existing hipped flat the roof with new, historically accurate roof.
4. Repair of existing concrete eyebrows.
5. Replacement of existing glass block walls.
6. Replacement of original French doors within the living room portion of the existing
structure to match original configuration.
7. Re-Stucco all exterior walls, which are currently cracked and in poor condition.
8. The existing iron gates, which are rusted and in poor condition will be replaced with
new iron gates.
B. Interior Architectural Features
1. The terrazzo floors located within all the rooms on the existing ground floorwill be
restored to their original state.
2. The hardwood staircase and hardwood floors located within all rooms on the
second floor will be restored.
3. All plumbing and electrical systems will be replaced with new.
4. Damage due to water intrusion on walls and ceilings will be repaired.
5. New air conditioning units and duct work will replace existing damaged units and
duct work.
6. All bathrooms and kitchen will be updated and remodeled.
C. Landscape Features
No landscape improvements have been proposed.
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 $220,000. The
Commission Memorandum of September 5, 2007
Historic Single-Family Ad Valorem Tax Exemption
841 19`h Street
Page 4 of 5
project commencement date is proposed for September 1, 2007 and the estimated project
completion date is August 1, 2008.
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 2006 that the subject
property has an adjusted square footage of 1,913 and a building value of $1,000. This low
building value is down from $125,386 in 2005. The building's value was reduced by the
Special Master at the Miami-Dade County Value Adjustment Board hearing as advised by
the Property Appraiser's Office. The Property Appraiser's Office also advised that prior to
the Value Adjustment the subject property had an effective building value per adjusted
square foot of $75, which is based upon its building class and grade. According to the
applicant, the proposed actual square footage of the qualifying building additions forthe site
is 1,670. Then the estimated value of the proposed increase in square footage would be
$125,250. In FY 2006/07, the adopted millage rate for the City of Miami Beach is 7.673.
In June of 2007, the Florida legislature adopted legislation intended to provide tax reform
and tax relief for property owners. The legislation provides for a rollback and a cap of
millage rates for FY 2007/08 and beyond. The rollback legislation requires the City of Miami
Beach to reduce property tax collections in FY 2007/08 to the roll back rate plus an
additional 9% reduction. Based on the millages derived from a June 1 St preliminary estimate,
the City of Miami Beach millage rate for FY 2007/08 would be 6.109, a 20% reduction. 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 6.109 millage rate for FY 2007/08, the applicant will save annually
approximately $765 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 rehabilitation of the subject home. In
accordance with Section 118-604 of the Miami Beach City Code, an eligible single-family
property must file a written application for Historic Ad Valorem Tax Exemption with the
Planning Department prior to any construction or demolition. The tax exemption ordinance
was adopted by the City Commission on December 8, 2004. The subject single-family
property was determined to be a contributing structure within the Palm View Historic District
designated as an historic district in June 1999. A Certificate of Appropriateness for the
project was approved by the Historic Preservation board in November of 2006. The
proposed construction is not scheduled to begin until September 1, 2007. Thereby, the
subject single-family property is eligible to apply for an Historic Ad Valorem Tax Exemption.
The proposed addition to the historic home on the north-east side of the home is an
appropriate location due to the configuration and architecture of the existing home. The
applicant is to be commended for a well conceived project that retains the historic integrity of
the 1937 single-family structure. This historic home maintains a high degree of its
architectural integrity. The building's exterior retains most of its original features, details and
materials. Although, interior improvements may not be eligible for the tax exemption, as
Commission Memorandum of September 5, 2007
Historic Single-Family Ad Valorem Tax Exemption
841 19"' Street
Page 5 of 5
determined by the Miami-Dade county property appraiser, the applicant has proposed to
restore much of the interior including the terrazzo and hardwood floors, arched door frames
and the vitrolite window sills and base boards, to their original state.
It is very important that the current owners have chosen to rehabilitate and appropriately
expand this historic home. The proposed new additions are well within the scale and
massing of the existing home and the surrounding single-family neighborhood. The new
construction is in keeping with the architectural vocabulary of the original structure and does
not overwhelm the site. The historically significant home is an asset to the neighborhood,
and as such staff recommends approval of the tax exemption application.
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