Senate Bill sb1578
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    Florida Senate - 2002                                  SB 1578
    By Senator Campbell
    33-553-02
  1                      A bill to be entitled
  2         An act relating to community redevelopment;
  3         amending s. 163.340, F.S.; redefining the terms
  4         "governing body," "slum area," and "blighted
  5         area"; amending s. 163.355, F.S.; providing
  6         requirements for counties and municipalities
  7         with respect to adopting a resolution that
  8         makes a finding of a slum or blighted area;
  9         amending s. 163.356, F.S.; requiring a
10         redevelopment agency to report to the county on
11         the progress of redevelopment activities;
12         amending s. 163.358, F.S.; providing additional
13         powers of a community redevelopment agency if
14         delegated by the governing body of the county
15         or municipality; amending s. 163.361, F.S.;
16         providing for amending the boundaries of a
17         development area; amending s. 163.362, F.S.;
18         revising requirements for completing
19         redevelopment financed by increment revenues;
20         amending s. 163.385, F.S.; requiring notice of
21         intent to issue revenue bonds; amending s.
22         163.387, F.S.; requiring that a county or
23         municipality fund the redevelopment trust fund
24         for the duration of the redevelopment plan;
25         amending s. 163.410, F.S.; providing for the
26         exercise of powers by the governing body of the
27         county in which a community redevelopment area
28         is located; eliminating certain provisions
29         applicable to counties with home rule charters;
30         requiring that certain amendments be made by
31         resolution; authorizing a municipality to
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  1         create a community redevelopment agency;
  2         authorizing a county to reserve certain rights
  3         to itself with respect to the issuance of
  4         revenue bonds and other requirements; repealing
  5         s. 163.415, F.S., relating to the exercise of
  6         powers by noncharter counties; providing an
  7         effective date.
  8
  9  Be It Enacted by the Legislature of the State of Florida:
10
11         Section 1.  Subsections (3), (7), and (8) of section
12  163.340, Florida Statutes, are amended to read:
13         163.340  Definitions.--The following terms, wherever
14  used or referred to in this part, have the following meanings:
15         (3)  "Governing body" means the council, commission, or
16  other legislative body charged with governing the county or
17  municipality.
18         (7)  "Slum area" means an area in which a minimum of
19  one-quarter there is a predominance of all buildings or
20  improvements, whether residential or nonresidential, endanger
21  life or property by fire or other causes because of one or
22  more of the following factors: which by reason of
23  dilapidation, deterioration, age, or obsolescence; inadequate
24  provision for ventilation, light, air, sanitation, or open
25  spaces; or high density of population, as evidenced by
26  comparison to the population density of adjacent areas within
27  the county or municipality, and overcrowding, as evidenced by
28  government-maintained statistics and information in the South
29  Florida Building Code; the existence of conditions which
30  endanger life or property by fire or other causes; or any
31  combination of such factors is conducive to ill health,
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  1  transmission of disease, infant mortality, juvenile
  2  delinquency, or crime and is detrimental to the public health,
  3  safety, morals, or welfare.
  4         (8)  "Blighted area" means either:
  5         (a)  an area in which there are a substantial number of
  6  slum, deteriorated, or deteriorating structures in which and
  7  conditions, as evidenced by government-maintained statistics,
  8  are leading that lead to economic distress or endangering
  9  endanger life or property. Structures are substantially
10  deteriorated if a minimum of one quarter of all buildings in
11  the area are in a deteriorated state. The following factors
12  may be considered as contributing to a slum area or blighted
13  area, but do not, by themselves, qualify for a finding of a
14  slum area or blighted area: by fire or other causes or one or
15  more of the following factors that substantially impairs or
16  arrests the sound growth of a county or municipality and is a
17  menace to the public health, safety, morals, or welfare in its
18  present condition and use:
19         (a)1.  Predominance of defective or inadequate street
20  layout.;
21         (b)  An unemployment rate for the previous 5 years
22  which is higher and rising faster than that of the county in
23  which the proposed redevelopment area is situated.
24         (c)  A tax base that has been flat or falling for the
25  previous 5 years.
26         (d)2.  Faulty lot layout in relation to size, adequacy,
27  accessibility, or usefulness.;
28         (e)  An increase in the number of tax-exempt
29  properties.
30         (f)3.  Unsanitary or unsafe conditions.;
31         (g)4.  Deterioration of site or other improvements.;
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  1         (h)5.  Inadequate and outdated building density
  2  patterns.;
  3         (i)  Falling lease rates per square foot for office,
  4  commercial, and industrial space.
  5         (j)6.  Tax or special assessment delinquency exceeding
  6  the fair value of the land.;
  7         (k)  High and rising residential and commercial vacancy
  8  rates.
  9         (l)7.  Inadequate transportation and parking
10  facilities.; and
11         (m)  A high incidence of crime, as compared to the
12  remainder of the county and municipality.
13         (n)  A large number of fire and emergency medical
14  service calls within the area, as compared to the remainder of
15  the county and municipality.
16         (o)  A large number of violations to the building code
17  within the area, as compared to the remainder of the county
18  and municipality.
19         8.  Diversity of ownership or defective or unusual
20  conditions of title which prevent the free alienability of
21  land within the deteriorated or hazardous area; or
22         (b)  An area in which there exists faulty or inadequate
23  street layout; inadequate parking facilities; or roadways,
24  bridges, or public transportation facilities incapable of
25  handling the volume of traffic flow into or through the area,
26  either at present or following proposed construction.
27
28  However, For purposes of qualifying for the tax credits
29  authorized in chapter 220, "blighted area" means an area
30  described in this subsection paragraph (a).
31
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  1         Section 2.  Section 163.355, Florida Statutes, is
  2  amended to read:
  3         163.355  Finding of necessity by county or
  4  municipality.--
  5         (1)  A No county or municipality may not shall exercise
  6  the authority conferred by this part with respect to community
  7  redevelopment until after the appropriate governing body has
  8  adopted a resolution identifying the slum or blighted area and
  9  providing a detailed statement of how some or all of the
10  factors specified in s. 164.340(8) have contributed to the
11  condition of the slum or blighted area. The resolution must
12  state finding that:
13         (a)(1)  One or more slum or blighted areas, or one or
14  more areas in which there is a shortage of housing affordable
15  to residents of low or moderate income, including the elderly,
16  exist in such county or municipality; and,
17         (b)(2)  The rehabilitation, conservation, or
18  redevelopment, or a combination thereof, of such area or
19  areas, including, if appropriate, the development of
20  affordable housing for which residents of low or moderate
21  income, including the elderly, can afford, is necessary in the
22  interest of the public health, safety, morals, or welfare of
23  the residents of such county or municipality.
24         (2)  If a determination of a slum or blighted area is
25  successfully challenged by an affected party, the community
26  redevelopment plan and any subsequent activity taken with
27  respect to that plan will be null and void ab initio.
28         Section 3.  Subsection (1) and paragraph (c) of
29  subsection (3) of section 163.356, Florida Statutes, are
30  amended to read:
31         163.356  Creation of community redevelopment agency.--
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  1         (1)  After adopting Upon a finding concerning a slum or
  2  blighted area of necessity as set forth in s. 163.355, and
  3  upon a further finding that there is a need for a community
  4  redevelopment agency to function in the county or municipality
  5  to carry out the community redevelopment purposes of this
  6  part, any county or municipality may create a public body
  7  corporate and politic to be known as a "community
  8  redevelopment agency."  Each such agency shall be constituted
  9  as a public instrumentality, and the exercise by a community
10  redevelopment agency of the powers conferred by this part
11  shall be deemed and held to be the performance of an essential
12  public function.  The community redevelopment agency of a
13  county has the power to function within the corporate limits
14  of a municipality only as, if, and when the governing body of
15  the municipality has by resolution concurred in the community
16  redevelopment plan proposed by the governing body of the
17  county.
18         (3)
19         (c)  The governing body of the county or municipality
20  shall designate a chair and vice chair from among the
21  commissioners.  An agency may employ an executive director,
22  technical experts, and such other agents and employees,
23  permanent and temporary, as it requires, and determine their
24  qualifications, duties, and compensation.  For such legal
25  service as it requires, an agency may employ or retain its own
26  counsel and legal staff.  An agency authorized to transact
27  business and exercise powers under this part shall file with
28  the governing body, on or before March 31 of each year, a
29  report of its activities for the preceding fiscal year, which
30  report shall include a complete financial statement setting
31  forth its assets, liabilities, income, and operating expenses
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  1  as of the end of such fiscal year. At the time of filing the
  2  report, the agency shall publish in a newspaper of general
  3  circulation in the community a notice to the effect that such
  4  report has been filed with the county or municipality and that
  5  the report is available for inspection during business hours
  6  in the office of the clerk of the city or county commission
  7  and in the office of the agency. At the time of filing the
  8  report with the Auditor General, the agency shall submit a
  9  report to the governing body of the county which provides
10  detailed information on progress in redevelopment activities,
11  including a report on meeting timeframes and benchmarks, and
12  which includes, but is not limited to, changes in
13  tax-increment payments, enhancements to the tax base, leverage
14  of private or non-ad valorem funds, costs and revenues, growth
15  in new business, reduction of incompatible land uses or code
16  violations, improvements to infrastructure, and benefits to
17  the larger community.
18         Section 4.  Section 163.358, Florida Statutes, is
19  amended to read:
20         163.358  Exercise of powers in carrying out community
21  redevelopment and related activities.--The community
22  redevelopment powers assigned to a community redevelopment
23  agency created under s. 163.356 include all the powers
24  necessary or convenient to carry out and effectuate the
25  purposes and provisions of this part, except the following,
26  which continue to vest in the governing body of the county or
27  in the governing body of the municipality, if so delegated:
28         (1)  The power to determine an area to be a slum or
29  blighted area, or combination thereof; to designate such area
30  as appropriate for community redevelopment; and to hold any
31  public hearings required with respect thereto.
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  1         (2)  The power to grant final approval to community
  2  redevelopment plans and modifications thereof, including a
  3  modification to the boundaries of a community redevelopment
  4  area served by the plan, as set forth in s. 163.361.
  5         (3)  The power to extend the term of the plan involving
  6  the continuing contribution by the taxing authority beyond the
  7  term of the original plan approved or adopted.
  8         (4)  The power to change the plan to the extent that
  9  the change requires an amendment to the county or municipal
10  land use plan.
11         (5)(3)  The power to authorize the issuance of revenue
12  bonds as set forth in s. 163.385.
13         (6)(4)  The power to approve the acquisition,
14  demolition, removal, or disposal of property as provided in s.
15  163.370(3) and the power to assume the responsibility to bear
16  loss as provided in s. 163.370(3).
17         (7)(5)  The power to approve the development of
18  community policing innovations.
19         Section 5.  Section 163.361, Florida Statutes, is
20  amended to read:
21         163.361  Modification of community redevelopment
22  plans.--
23         (1)  If at any time after the approval of a community
24  redevelopment plan by the appropriate governing body it
25  becomes necessary or desirable to amend or modify such plan,
26  the governing body may amend such plan upon the recommendation
27  of the agency. The agency recommendation to amend or modify a
28  redevelopment plan may include a change in the boundaries of
29  the redevelopment area to add land to or exclude land from the
30  redevelopment area, or may include the development and
31  implementation of community policing innovations.
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  1         (2)  If, at any time after approval of a community
  2  redevelopment plan by the appropriate governing body, it is
  3  necessary to amend or modify the boundaries of the plan or
  4  implement an amendment enumerated in s. 163.358, upon the
  5  recommendation of the agency the governing body of the county
  6  in which the community redevelopment area is located shall
  7  consider the impact of the amendment on the county as a whole
  8  and may approve the amendment by resolution. An agency
  9  recommendation to amend or modify the boundaries of a
10  redevelopment plan may add land to or exclude land from the
11  redevelopment area.
12         (3)(2)  The appropriate governing body shall hold a
13  public hearing on a proposed modification of a community
14  redevelopment plan after public notice thereof by publication
15  in a newspaper having a general circulation in the area of
16  operation of the agency.
17         (4)(3)  If a community redevelopment plan is modified
18  by the county or municipality after the lease or sale of real
19  property in the community redevelopment area, such
20  modification may be conditioned upon such approval of the
21  owner, lessee, or successor in interest as the county or
22  municipality may deem advisable and, in any event, shall be
23  subject to such rights at law or in equity as a lessee or
24  purchaser, or his or her successor or successors in interest,
25  may be entitled to assert.
26         Section 6.  Subsections (10) and (11) of section
27  163.362, Florida Statutes, are amended to read:
28         163.362  Contents of community redevelopment
29  plan.--Every community redevelopment plan shall:
30         (10)  Provide a time certain for completing all
31  redevelopment financed by increment revenues.
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  1         (a)  Such time certain shall occur no later than 30
  2  years after the end of the fiscal year in which the plan is
  3  initially approved or, adopted, or amended pursuant to s.
  4  163.361(1).
  5         (b)  For a plan amended or modified under s. 163.361
  6  after October 1, 2002, the time certain occurs not later than
  7  30 years after the fiscal year in which the plan was amended
  8  or modified.
  9         (c)  The time certain for completing all redevelopment
10  financed by increment revenues under this subsection applies
11  regardless of whether the plan was adopted before chapter
12  84-356, Laws of Florida, became a law and regardless of
13  whether bonds were issued pledging increment revenues pursuant
14  only to a plan approved before chapter 84-356, Laws of
15  Florida, became a law. The county, upon notification, may
16  impose conditions the county finds are reasonably necessary in
17  securing the financial viability of any community
18  redevelopment undertaking by the entity or agency.
19         (11)  Subsections (1), (3), (4), and (8), as amended by
20  s. 10, chapter 84-356, Laws of Florida, and subsections (9)
21  and (10) do not apply to any governing body of a county or
22  municipality or to a community redevelopment agency if such
23  governing body has approved and adopted a community
24  redevelopment plan pursuant to s. 163.360 before chapter
25  84-356 became a law; nor do they apply to any governing body
26  of a county or municipality or to a community redevelopment
27  agency if such governing body or agency has adopted an
28  ordinance or resolution authorizing the issuance of any bonds,
29  notes, or other forms of indebtedness to which is pledged
30  increment revenues pursuant only to a community redevelopment
31
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  1  plan as approved and adopted before chapter 84-356 became a
  2  law.
  3         Section 7.  Paragraph (a) of subsection (1) and
  4  subsection (6) of section 163.385, Florida Statutes, are
  5  amended to read:
  6         163.385  Issuance of revenue bonds.--
  7         (1)(a)  When authorized or approved by resolution or
  8  ordinance of the governing body, a county, municipality, or
  9  community redevelopment agency has power in its corporate
10  capacity, in its discretion, to issue redevelopment revenue
11  bonds from time to time to finance the undertaking of any
12  community redevelopment under this part, including, without
13  limiting the generality thereof, the payment of principal and
14  interest upon any advances for surveys and plans or
15  preliminary loans, and has power to issue refunding bonds for
16  the payment or retirement of bonds or other obligations
17  previously issued. If redevelopment bonds are not issued by
18  the county, the issuing entity or agency must notify the
19  county, in writing, of its intent to issue or, if applicable,
20  refinance the redevelopment bonds. The county, upon
21  notification, may impose conditions it finds are reasonably
22  necessary to secure the financial viability of any community
23  redevelopment undertaking by the entity or agency. Any
24  redevelopment revenue bonds or other obligations issued to
25  finance the undertaking of any community redevelopment under
26  this part shall mature within 30 60 years after the end of the
27  fiscal year in which the initial community redevelopment plan
28  was approved or adopted. However, in no event shall any
29  redevelopment revenue bonds or other obligations issued to
30  finance the undertaking of any community redevelopment under
31  this part mature later than the expiration of the plan in
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  1  effect at the time such bonds or obligations were issued. The
  2  security for such bonds may be based upon the anticipated
  3  assessed valuation of the completed community redevelopment
  4  and such other revenues as are legally available. Any bond,
  5  note, or other form of indebtedness pledging increment
  6  revenues to the repayment thereof shall mature no later than
  7  the end of the 30th fiscal year after the end of the fiscal
  8  year in which the initial community redevelopment plan was
  9  approved or adopted increment revenues are first deposited
10  into the redevelopment trust fund or the fiscal year in which
11  the plan is subsequently amended. However, any refunding bonds
12  issued pursuant to this paragraph may not mature later than
13  the final maturity date of any bonds or other obligations
14  issued pursuant to this paragraph being paid or retired with
15  the proceeds of such refunding bonds.
16         (6)  Subsections (1), (4), and (5), as amended by s.
17  14, chapter 84-356, Laws of Florida, do not apply to any
18  governing body of a county or municipality or to a community
19  redevelopment agency if such governing body or agency has
20  adopted an ordinance or resolution authorizing the issuance of
21  any bonds, notes, or other forms of indebtedness to which is
22  pledged increment revenues pursuant only to a community
23  redevelopment plan as approved and adopted before chapter
24  84-356 became a law.
25         Section 8.  Subsection (1) and paragraph (a) of
26  subsection (2) of section 163.387, Florida Statutes, are
27  amended to read:
28         163.387  Redevelopment trust fund.--
29         (1)  After approval of a community redevelopment plan,
30  there shall be established for each community redevelopment
31  agency created under s. 163.356 a redevelopment trust fund.
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  1  Funds allocated to and deposited into this fund shall be used
  2  by the agency to finance or refinance any community
  3  redevelopment it undertakes pursuant to the approved community
  4  redevelopment plan. A No community redevelopment agency may
  5  not receive or spend any increment revenues pursuant to this
  6  section unless and until the governing body of the county, or
  7  of the municipality if authority is delegated to the
  8  municipality by the county, has, by ordinance, provided for
  9  the funding of the redevelopment trust fund for the duration
10  of a community redevelopment plan. Such ordinance may be
11  adopted only after the appropriate governing body has approved
12  a community redevelopment plan. The annual funding of the
13  redevelopment trust fund shall be in an amount not less than
14  that increment in the income, proceeds, revenues, and funds of
15  each taxing authority derived from or held in connection with
16  the undertaking and carrying out of community redevelopment
17  under this part. Such increment shall be determined annually
18  and shall be that amount equal to 95 percent of the difference
19  between:
20         (a)  The amount of ad valorem taxes levied each year by
21  each taxing authority, exclusive of any amount from any debt
22  service millage, on taxable real property contained within the
23  geographic boundaries of a community redevelopment area; and
24         (b)  The amount of ad valorem taxes which would have
25  been produced by the rate upon which the tax is levied each
26  year by or for each taxing authority, exclusive of any debt
27  service millage, upon the total of the assessed value of the
28  taxable real property in the community redevelopment area as
29  shown upon the most recent assessment roll used in connection
30  with the taxation of such property by each taxing authority
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  1  prior to the effective date of the ordinance providing for the
  2  funding of the trust fund.
  3
  4  However, The governing body of any county as defined in s.
  5  125.011(1) may, in the ordinance providing for the funding of
  6  a trust fund established with respect to any community
  7  redevelopment area created on or after July 1, 1994, determine
  8  that the amount to be funded by each taxing authority annually
  9  shall be less than 95 percent of the difference between
10  paragraphs (a) and (b); however, but in no event shall such
11  amount be less than 50 percent of such difference.
12         (2)(a)  Except for the purpose of funding the trust
13  fund pursuant to subsection (3), upon the adoption of an
14  ordinance providing for funding of the redevelopment trust
15  fund as provided in this section, each taxing authority shall,
16  by January 1 of each year, appropriate to the trust fund for
17  so long as any indebtedness pledging increment revenues to the
18  payment thereof is outstanding (but not to exceed 30 years
19  following approval or adoption of the initial ordinance) a sum
20  that is no less than the increment as defined and determined
21  in subsection (1) accruing to such taxing authority.  If the
22  community redevelopment plan is amended or modified pursuant
23  to s. 163.361(1), each such taxing authority shall make the
24  annual appropriation for a period not to exceed 30 years after
25  the date the governing body amends the plan.
26         Section 9.  Section 163.410, Florida Statutes, is
27  amended to read:
28         163.410  Exercise of powers in counties with home rule
29  charters.--
30         (1)  In any county which has adopted a home rule
31  charter, The powers conferred by this part shall be exercised
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  1  exclusively by the governing body of the such county in which
  2  the community redevelopment area is located.  However, the
  3  governing body of any such county which has adopted a home
  4  rule charter may, in its discretion, by resolution delegate
  5  the exercise of the powers conferred upon the county by this
  6  part within the boundaries of a municipality to the governing
  7  body of such a municipality in which a community redevelopment
  8  area is proposed to be located.  Such a delegation to a
  9  municipality confers shall confer only those such powers upon
10  a municipality which are as shall be specifically enumerated
11  in the delegating resolution and includes only those powers
12  that are not specifically reserved to the county under this
13  part.  Any powers power not specifically delegated to the
14  municipality by resolution are shall be reserved exclusively
15  to the governing body of the county.  This section does not
16  affect any ongoing community redevelopment activity in a
17  community redevelopment area agency created by a municipality
18  prior to October 1, 2002 the adoption of a county home rule
19  charter. However, after October 1, 2002, any amendment to the
20  boundaries of a community redevelopment area or plan may be
21  approved by a resolution of the governing body of the county
22  as provided in s. 163.361, and any of the amendments
23  enumerated in s. 163.358 may be approved upon recommendation
24  of the agency.
25         (2)  Notwithstanding subsection (1), a municipality may
26  create a community redevelopment agency to operate within the
27  boundaries of the municipality if the municipality or the
28  community redevelopment agency does not request that the
29  county provide an appropriation of incremental ad valorem tax
30  revenues for the redevelopment activities planned or
31  undertaken within the community redevelopment area and does
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  1  not obtain such an appropriation from the county. A
  2  municipality creating a community redevelopment agency under
  3  this section may exercise all powers conferred by this part.
  4         (3)  If a municipality desires to create a community
  5  redevelopment agency in which the county will participate by
  6  providing an annual appropriation of incremental ad valorem
  7  tax revenues, the municipality shall notify the chief
  8  executive officer of the county of its intent before
  9  conducting the study required under s. 163.355. If the county
10  determines that it will participate in the municipality's
11  proposed community redevelopment, the county shall delegate
12  the exercise of its powers under this part, subject to other
13  requirements adopted by the county under this part. In
14  addition to the county's authority to delegate the exercise of
15  its powers under this section, the county may:
16         (a)  Reserve to itself the right to approve the
17  issuance of revenue bonds under s. 163.385, including the
18  right to impose conditions that the county finds are
19  reasonably necessary to secure the financial viability of a
20  community redevelopment undertaking.
21         (b)  Require, by ordinance or resolution, that the
22  municipality or community redevelopment agency create an
23  advisory committee composed of residents and business owners
24  within the community redevelopment area.
25         (c)  Require, by ordinance or resolution, that the
26  community redevelopment agency engage in joint planning
27  activities if the area under the agency's jurisdiction is
28  adjacent to another community redevelopment area.
29         (d)  Notwithstanding s. 163.387, establish, by
30  ordinance or resolution, conditions under which the county may
31  participate in the undertakings of a community redevelopment
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    Florida Senate - 2002                                  SB 1578
    33-553-02
  1  agency and pay to the agency incremental ad valorem tax
  2  revenues produced in the community redevelopment area. Such
  3  conditions must be in a letter of agreement and may include,
  4  but are not limited to, establishing the percentage of
  5  incremental tax revenues to be paid, establishing the total
  6  number of years such funds are to be paid to the agency,
  7  restricting the use of the incremental tax revenues paid to
  8  the agency, and establishing a mechanism for retaining all or
  9  part of the county's share of tax increments, consistent with
10  the terms of the letter of agreement.
11         Section 10.  Section 163.415, Florida Statutes, is
12  repealed.
13         Section 11.  This act shall take effect October 1,
14  2002.
15
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17                          SENATE SUMMARY
18    Revises various provisions of part III of ch. 163, F.S.,
      governing community redevelopment. Redefines the terms
19    "slum area" and "blighted area." Requires that
      redevelopment agencies report to the county on the
20    progress of redevelopment activities. Provides for
      amending the boundaries of a redevelopment area. Requires
21    that redevelopment financed by increment revenues be
      completed within a time certain or within 30 years.
22    Requires that the redevelopment trust fund be funded for
      the duration of the redevelopment plan. (See bill for
23    details.)
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