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    Florida House of Representatives - 2002             CS/HB 1341

        By the Council for Smarter Government and Representatives
    Dockery, Clarke and Ross





  1                      A bill to be entitled

  2         An act relating to community redevelopment;

  3         amending s. 163.340, F.S.; revising

  4         definitions; amending s. 163.355, F.S.;

  5         providing additional criteria for a finding of

  6         necessity for community redevelopment; amending

  7         s. 163.361, F.S.; revising language relating to

  8         proposed modification of community

  9         redevelopment plans; requiring community

10         redevelopment agencies to submit certain

11         reports relating to modification of plans to

12         taxing authorities; requiring modifications of

13         community redevelopment plans that include

14         boundary changes to be supported by a

15         resolution under s. 163.355, F.S.; amending s.

16         163.362, F.S.; revising provisions relating to

17         modifications of contents of community

18         redevelopment plans and specifying a time

19         certain for completion of redevelopment

20         financed by increment revenues for community

21         redevelopment agencies created after July 1,

22         2002; amending s. 163.385, F.S.; revising

23         provisions relating to issuance and maturation

24         of refunding bonds; amending s. 163.387, F.S.;

25         specifying the time period for appropriations

26         to the redevelopment trust fund; specifying

27         certain entities that are exempt from paying

28         tax increments to a redevelopment trust fund;

29         providing for applicability; providing intent

30         with regard to delegation of community

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  1         redevelopment powers; providing an effective

  2         date.

  3

  4  Be It Enacted by the Legislature of the State of Florida:

  5

  6         Section 1.  Subsections (3), (7), and (8) of section

  7  163.340, Florida Statutes, are amended to read:

  8         163.340  Definitions.--The following terms, wherever

  9  used or referred to in this part, have the following meanings:

10         (3)  "Governing body" means the council, commission, or

11  other legislative body charged with governing the county or

12  municipality.

13         (7)  "Slum area" means an area with physical or

14  economic conditions conducive to disease, infant mortality,

15  juvenile delinquency, poverty, or crime because in which there

16  is a predominance of buildings or improvements, whether

17  residential or nonresidential, that are impaired which by

18  reason of dilapidation, deterioration, age, or obsolescence,

19  and which area exhibits one or more of the following factors:;

20         (a)  Inadequate provision for ventilation, light, air,

21  sanitation, or open spaces;

22         (b)  High density of population, compared to the

23  population density of adjacent areas within the county or

24  municipality, and overcrowding, as indicated by

25  government-maintained statistics or other studies and the

26  requirements of the Florida Building Code; or

27         (c)  The existence of conditions which endanger life or

28  property by fire or other causes; or any combination of such

29  factors is conducive to ill health, transmission of disease,

30  infant mortality, juvenile delinquency, or crime and is

31  detrimental to the public health, safety, morals, or welfare.

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  1         (8)  "Blighted area" means either:

  2         (a)  an area in which there are a substantial number of

  3  slum, deteriorated, or deteriorating structures in which and

  4  conditions as indicated by government-maintained statistics or

  5  other studies are leading that lead to economic distress or

  6  endanger life or property and in which two or more of the

  7  following factors are present by fire or other causes or one

  8  or more of the following factors that substantially impairs or

  9  arrests the sound growth of a county or municipality and is a

10  menace to the public health, safety, morals, or welfare in its

11  present condition and use:

12         (a)1.  Predominance of defective or inadequate street

13  layout, parking facilities, roadways, bridges, or public

14  transportation facilities;

15         (b)  Aggregate assessed values of real property in the

16  area for ad valorem tax purposes have failed to show any

17  appreciable increase over the 5 years prior to the finding of

18  such condition;

19         (c)2.  Faulty lot layout in relation to size, adequacy,

20  accessibility, or usefulness;

21         (d)3.  Unsanitary or unsafe conditions;

22         (e)4.  Deterioration of site or other improvements;

23         (f)5.  Inadequate and outdated building density

24  patterns;

25         (g)  Falling lease rates per square foot of office,

26  commercial, or industrial space compared to the remainder of

27  the county or municipality;

28         (h)6.  Tax or special assessment delinquency exceeding

29  the fair value of the land;

30         (i)7.  Residential and commercial vacancy rates in the

31  area higher than in the remainder of the county or

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  1  municipality Inadequate transportation and parking facilities;

  2  and

  3         (j)  Incidence of crime in the area higher than in the

  4  remainder of the county or municipality;

  5         (k)  Fire and emergency medical service calls to the

  6  area higher on a proportional basis than in the remainder of

  7  the county or municipality;

  8         (l)  Violations of the Florida Building Code in the

  9  area higher on a proportional basis than the number of

10  violations recorded in the remainder of the county or

11  municipality; or

12         (m)8.  Diversity of ownership or defective or unusual

13  conditions of title which prevent the free alienability of

14  land within the deteriorated or hazardous area.; or

15         (b)  An area in which there exists faulty or inadequate

16  street layout; inadequate parking facilities; or roadways,

17  bridges, or public transportation facilities incapable of

18  handling the volume of traffic flow into or through the area,

19  either at present or following proposed construction.

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21  However, For purposes of qualifying for the tax credits

22  authorized in chapter 220, "blighted area" means an area as

23  defined in this subsection described in paragraph (a).

24         Section 2.  Section 163.355, Florida Statutes, is

25  amended to read:

26         163.355  Finding of necessity by county or

27  municipality.--No county or municipality shall exercise the

28  community redevelopment authority conferred by this part until

29  after the governing body has adopted a resolution, supported

30  by data and analysis, that makes a legislative finding that

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  1  the conditions in the area meet the criteria described in s.

  2  163.340(7) or (8). The resolution shall state finding that:

  3         (1)  One or more slum or blighted areas, or one or more

  4  areas in which there is a shortage of housing affordable to

  5  residents of low or moderate income, including the elderly,

  6  exist in such county or municipality; and,

  7         (2)  The rehabilitation, conservation, or

  8  redevelopment, or a combination thereof, of such area or

  9  areas, including, if appropriate, the development of housing

10  which residents of low or moderate income, including the

11  elderly, can afford, is necessary in the interest of the

12  public health, safety, morals, or welfare of the residents of

13  such county or municipality.

14         Section 3.  Subsection (2) of section 163.361, Florida

15  Statutes, is amended, and subsections (4) and (5) are added to

16  said section, to read:

17         163.361  Modification of community redevelopment

18  plans.--

19         (2)  The governing body shall hold a public hearing on

20  any a proposed modification of a community redevelopment plan

21  after public notice thereof by publication in a newspaper

22  having a general circulation in the area of operation of the

23  agency.

24         (4)  In addition to the requirements of s. 163.346, and

25  prior to the adoption of any modification to a community

26  redevelopment plan that expands the boundaries of the

27  community redevelopment area or extends the time certain set

28  forth in the redevelopment plan as required by s. 163.362(10),

29  the agency shall report such proposed modification to each

30  taxing authority in writing or by a verbal presentation, or

31  both, regarding such proposed modification.

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  1         (5)  A modification to a community redevelopment plan

  2  that includes a change in the boundaries of the redevelopment

  3  area to add land must be supported by a resolution as provided

  4  in s. 163.355.

  5         Section 4.  Subsection (10) of section 163.362, Florida

  6  Statutes, is amended to read:

  7         163.362  Contents of community redevelopment

  8  plan.--Every community redevelopment plan shall:

  9         (10)  Provide a time certain for completing all

10  redevelopment financed by increment revenues. Such time

11  certain shall occur no later than 30 years after the fiscal

12  year in which the plan is approved, adopted, or amended

13  pursuant to s. 163.361(1). However, for any agency created

14  after July 1, 2002, the time certain for completing all

15  redevelopment financed by increment revenues shall occur no

16  later than 40 years after the fiscal year in which the plan is

17  approved or adopted.

18         Section 5.  Paragraph (a) of subsection (1) of section

19  163.385, Florida Statutes, is amended to read:

20         163.385  Issuance of revenue bonds.--

21         (1)(a)  When authorized or approved by resolution or

22  ordinance of the governing body, a county, municipality, or

23  community redevelopment agency has power in its corporate

24  capacity, in its discretion, to issue redevelopment revenue

25  bonds from time to time to finance the undertaking of any

26  community redevelopment under this part, including, without

27  limiting the generality thereof, the payment of principal and

28  interest upon any advances for surveys and plans or

29  preliminary loans, and has power to issue refunding bonds for

30  the payment or retirement of bonds or other obligations

31  previously issued. For any agency created prior to July 1,

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  1  2002, any redevelopment revenue bonds or other obligations

  2  issued to finance the undertaking of any community

  3  redevelopment under this part shall mature within 60 years

  4  after the end of the fiscal year in which the initial

  5  community redevelopment plan was approved or adopted. For any

  6  agency created after July 1, 2002, any redevelopment revenue

  7  bond or other obligation issued to finance the undertaking of

  8  any community redevelopment under this part shall mature

  9  within 40 years after the end of the fiscal year in which the

10  initial community redevelopment plan was approved or adopted.

11  However, in no event shall any redevelopment revenue bonds or

12  other obligations issued to finance the undertaking of any

13  community redevelopment under this part mature later than the

14  expiration of the plan in effect at the time such bonds or

15  obligations were issued. The security for such bonds may be

16  based upon the anticipated assessed valuation of the completed

17  community redevelopment and such other revenues as are legally

18  available. Any bond, note, or other form of indebtedness

19  pledging increment revenues to the repayment thereof shall

20  mature no later than the end of the 30th fiscal year after the

21  fiscal year in which increment revenues are first deposited

22  into the redevelopment trust fund or the fiscal year in which

23  the plan is subsequently amended. However, for any agency

24  created after July 1, 2002, any form of indebtedness pledging

25  increment revenues to the repayment thereof shall mature no

26  later than the 40th year after the fiscal year in which the

27  initial community redevelopment plan was approved or adopted.

28  However, any refunding bonds issued pursuant to this paragraph

29  may not mature later than the final maturity date of any bonds

30  or other obligations issued pursuant to this paragraph being

31  paid or retired with the proceeds of such refunding bonds.

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  1         Section 6.  Subsections (1) and (2) of section 163.387,

  2  Florida Statutes, are amended to read:

  3         163.387  Redevelopment trust fund.--

  4         (1)  After approval of a community redevelopment plan,

  5  there shall be established for each community redevelopment

  6  agency created under s. 163.356 a redevelopment trust fund.

  7  Funds allocated to and deposited into this fund shall be used

  8  by the agency to finance or refinance any community

  9  redevelopment it undertakes pursuant to the approved community

10  redevelopment plan. No community redevelopment agency may

11  receive or spend any increment revenues pursuant to this

12  section unless and until the governing body has, by ordinance,

13  provided for the funding of the redevelopment trust fund for

14  the duration of a community redevelopment plan. Such ordinance

15  may be adopted only after the governing body has approved a

16  community redevelopment plan. The annual funding of the

17  redevelopment trust fund shall be in an amount not less than

18  that increment in the income, proceeds, revenues, and funds of

19  each taxing authority derived from or held in connection with

20  the undertaking and carrying out of community redevelopment

21  under this part. Such increment shall be determined annually

22  and shall be that amount equal to 95 percent of the difference

23  between:

24         (a)  The amount of ad valorem taxes levied each year by

25  each taxing authority, exclusive of any amount from any debt

26  service millage, on taxable real property contained within the

27  geographic boundaries of a community redevelopment area; and

28         (b)  The amount of ad valorem taxes which would have

29  been produced by the rate upon which the tax is levied each

30  year by or for each taxing authority, exclusive of any debt

31  service millage, upon the total of the assessed value of the

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  1  taxable real property in the community redevelopment area as

  2  shown upon the most recent assessment roll used in connection

  3  with the taxation of such property by each taxing authority

  4  prior to the effective date of the ordinance providing for the

  5  funding of the trust fund.

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  7  However, the governing body of any county as defined in s.

  8  125.011(1) may, in the ordinance providing for the funding of

  9  a trust fund established with respect to any community

10  redevelopment area created on or after July 1, 1994, determine

11  that the amount to be funded by each taxing authority annually

12  shall be less than 95 percent of the difference between

13  paragraphs (a) and (b), but in no event shall such amount be

14  less than 50 percent of such difference.

15         (2)(a)  Except for the purpose of funding the trust

16  fund pursuant to subsection (3), upon the adoption of an

17  ordinance providing for funding of the redevelopment trust

18  fund as provided in this section, each taxing authority shall,

19  by January 1 of each year, appropriate to the trust fund for

20  so long as any indebtedness pledging increment revenues to the

21  payment thereof is outstanding (but not to exceed 30 years) a

22  sum that is no less than the increment as defined and

23  determined in subsection (1) accruing to such taxing

24  authority. If the community redevelopment plan is amended or

25  modified pursuant to s. 163.361(1), each such taxing authority

26  shall make the annual appropriation for a period not to exceed

27  30 years after the date the governing body amends the plan.

28  However, for any agency created after July 1, 2002, each

29  taxing authority shall make the annual appropriation for a

30  period not to exceed 40 years after the fiscal year in which

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  1  the initial community redevelopment plan was approved or

  2  adopted.

  3         (b)  Any taxing authority that does not pay the

  4  increment to the trust fund by January 1 shall pay to the

  5  trust fund an amount equal to 5 percent of the amount of the

  6  increment and shall pay interest on the amount of the

  7  increment equal to 1 percent for each month the increment is

  8  outstanding.

  9         (c)  The following public bodies or taxing authorities

10  created prior to July 1, 1993, are exempt from paragraph (a):

11         1.  A special district that levies ad valorem taxes on

12  taxable real property in more than one county.

13         2.  A special district the sole available source of

14  revenue of which is ad valorem taxes at the time an ordinance

15  is adopted under this section.

16         3.  A library district, except a library district in a

17  jurisdiction where the community redevelopment agency had

18  validated bonds as of April 30, 1984.

19         4.  A neighborhood improvement district created under

20  the Safe Neighborhoods Act.

21         5.  A metropolitan transportation authority.

22         6.  A water management district created under s.

23  373.069.

24         (d)  For community redevelopment agencies created after

25  July 1, 2002, the following public bodies or taxing

26  authorities are exempt from paragraph (a):

27         1.  An independent special fire control district as

28  defined in s. 191.003.

29         2.  A mosquito control district as defined in s.

30  388.011.

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  1         3.  A hospital district created pursuant to general law

  2  or special act.

  3         (e)(d)1.  A local governing body that creates a

  4  community redevelopment agency under s. 163.356 may exempt

  5  from paragraph (a) a special district that levies ad valorem

  6  taxes within that community redevelopment area.  The local

  7  governing body may grant the exemption either in its sole

  8  discretion or in response to the request of the special

  9  district.  The local governing body must establish procedures

10  by which a special district may submit a written request to be

11  exempted from paragraph (a) within 120 days after July 1,

12  1993.

13         2.  In deciding whether to deny or grant a special

14  district's request for exemption from paragraph (a), the local

15  governing body must consider:

16         a.  Any additional revenue sources of the community

17  redevelopment agency which could be used in lieu of the

18  special district's tax increment.

19         b.  The fiscal and operational impact on the community

20  redevelopment agency.

21         c.  The fiscal and operational impact on the special

22  district.

23         d.  The benefit to the specific purpose for which the

24  special district was created.  The benefit to the special

25  district must be based on specific projects contained in the

26  approved community redevelopment plan for the designated

27  community redevelopment area.

28         e.  The impact of the exemption on incurred debt and

29  whether such exemption will impair any outstanding bonds that

30  have pledged tax increment revenues to the repayment of the

31  bonds.

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  1         f.  The benefit of the activities of the special

  2  district to the approved community redevelopment plan.

  3         g.  The benefit of the activities of the special

  4  district to the area of operation of the local governing body

  5  that created the community redevelopment agency.

  6         3.  The local governing body must hold a public hearing

  7  on a special district's request for exemption after public

  8  notice of the hearing is published in a newspaper having a

  9  general circulation in the county or municipality that created

10  the community redevelopment area.  The notice must describe

11  the time, date, place, and purpose of the hearing and must

12  identify generally the community redevelopment area covered by

13  the plan and the impact of the plan on the special district

14  that requested the exemption.

15         4.  If a local governing body grants an exemption to a

16  special district under this paragraph, the local governing

17  body and the special district must enter into an interlocal

18  agreement that establishes the conditions of the exemption,

19  including, but not limited to, the period of time for which

20  the exemption is granted.

21         5.  If a local governing body denies a request for

22  exemption by a special district, the local governing body

23  shall provide the special district with a written analysis

24  specifying the rationale for such denial.  This written

25  analysis must include, but is not limited to, the following

26  information:

27         a.  A separate, detailed examination of each

28  consideration listed in subparagraph 2.

29         b.  Specific examples of how the approved community

30  redevelopment plan will benefit, and has already benefited,

31  the purpose for which the special district was created.

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  1         6.  The decision to either deny or grant an exemption

  2  must be made by the local governing body within 120 days after

  3  the date the written request was submitted to the local

  4  governing body pursuant to the procedures established by such

  5  local governing body.

  6         Section 7.  Amendments to part III of chapter 163,

  7  Florida Statutes, as provided by this act, do not apply to any

  8  ordinance or resolution authorizing the issuance of any bond,

  9  note, or other form of indebtedness to which are pledged

10  increment revenues pursuant to a community redevelopment plan,

11  or amendment or modification thereto, as approved or adopted

12  before January 1, 2003.

13         Section 8.  Amendments to part III of chapter 163,

14  Florida Statutes, as provided by this act, are not intended to

15  impair any ordinance, resolution, or interlocal or written

16  agreement effective prior to July 1, 2002, that provides for

17  the delegation of community redevelopment powers.

18         Section 9.  This act shall take effect July 1, 2002.

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