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

16            *****************************************

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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