HB 1427

1
A bill to be entitled
2An act relating to the City of Orlando, Orange County;
3establishing the Orlando Downtown Development Board as a
4body corporate; providing the boundaries of the Orlando
5Downtown Development Area; providing number,
6qualifications, term, and methods of appointment and
7removal of board members; providing for filling vacancies
8in office, service without compensation, reimbursement of
9expenses, bonding, and personal liability in certain
10instances; providing for bylaws, internal governance, and
11functions and powers of the board; providing for the city
12to levy in each fiscal year an ad valorem property tax of
13not more than 1 mill to finance board operations;
14providing for assessment and collection of taxes by the
15city subject to compensation to it for services rendered
16to the board; requiring maintenance of records and budget
17and fiscal control; forbidding participation on behalf of
18the board by personnel financially interested in the
19matter involved; providing for succession by the city to
20the property and certain functions of the board if the
21board ceases to exist or operate; regulating issuance of
22board revenue certificates; prescribing scope of the act;
23providing for freeholders' elections; providing
24construction and severability; providing an effective
25date.
26
27Be It Enacted by the Legislature of the State of Florida:
28
29     Section 1.  Popular name.--This act may be cited as the
30"Downtown Development Board Act."
31     Section 2.  Definitions; rules of construction.--Unless
32qualified in the text, the following definitions and rules of
33construction shall apply to this act:
34     (1)  "Board" means the Downtown Development Board created
35by this act and any successor to its functions, authority,
36rights, and obligations.
37     (2)  "City" and "Orlando" mean the City of Orlando.
38     (3)  "City council" means the Orlando City Council and any
39succeeding governing body of the city.
40     (4)  "Freeholder" means any owner of real property in the
41development area not wholly exempt from ad valorem taxation,
42whether individual, corporation, trust, estate, or partnership,
43residing or with its principal place of business located in the
44United States.
45     (5)  "Including" shall be construed as merely introducing
46illustrative examples and not as limiting in any way the
47generality of the inclusive term.
48     (6)  "Majority" without qualification means a majority of
49the board.
50     (7)  "Mayor" means the mayor of the City of Orlando.
51     (8)  "Orlando Downtown Development Area" or "development
52area" means the area established by the city council as set
53forth in this act and to which this act primarily relates,
54including the central business district and its environs.
55     (9)  "State" means the State of Florida.
56     Section 3.  Statement of policy; legislative findings.--
57     (1)  It is the policy of the state to make it possible for
58the city to revitalize and preserve property values and prevent
59future and reduce present deterioration in the Orlando Downtown
60Development Area. The board created by this act is intended to
61provide a vehicle whereby property owners of commercial and
62income-producing properties who will benefit directly from the
63results of such a program will bear the substantial cost thereof
64and thereby local problems may be solved on the local level
65through the use of machinery provided by local government.
66     (2)  The Legislature further finds and declares that the
67provisions of this act and the power afforded to the board are
68desirable.
69     Section 4.  Orlando Downtown Development Area.--
70     (1)  The Orlando Downtown Development Area includes the
71central business district and its environs, being all lands
72described in accordance with the following: the initial
73development area for the purposes of this act shall be the area
74set forth by the city council in its ordinance of December 15,
751969, being Documentary 8978-A. From and after approval of this
76act by the referendum required in section 13, the development
77area shall have existence as provided in this act.
78     (2)  The city council may from time to time, after a period
79of 1 year after the approval of this act, by the procedure
80provided in this act, alter or amend the boundaries of the
81development area by the inclusion of additional territory or the
82exclusion of lands from the limits of the development area;
83however, no real property included within the boundaries of the
84development area as established in this act shall be removed
85from said area without the consent of the freeholders as
86provided in section 13. No tax shall be levied upon property
87later added to the development area by expansion of the
88boundaries except as provided for by a vote of the freeholders
89within the added territory as provided for in subsection (10) of
90section 13 and compliance otherwise with this act. The city
91council shall set a date for a public hearing prior to the
92adoption of an ordinance describing area to be added to or
93deleted from the development area. Upon the adoption of a
94resolution, the city council shall cause a notice of the public
95hearing to be published in a newspaper of general circulation
96published in the city, which notice shall be published one time
97not less than 30 nor more than 60 days after the date of the
98hearing. The notice shall set forth the date, time, and place of
99the hearing and shall describe the boundaries of the proposed
100development area. Any citizen, taxpayer, or property owner shall
101have the right to be heard in favor or opposition. After the
102public hearing, the city council shall, in the manner authorized
103by its charter, adopt a new ordinance establishing and defining
104the development area.
105     Section 5.  Creation of the board; composition; provisions
106relating to members.--There is created a board composed of five
107members to be known officially as the "Downtown Development
108Board." It is constituted a body corporate and an agency of the
109city, and performance by the board of its duties and exercise of
110its powers are designated municipal functions and shall be so
111construed.
112     (1)  The mayor shall appoint the members of the board, with
113the concurrence of the city council, and by majority vote of its
114entire membership, the city council may remove a member of the
115board for cause.
116     (2)  Of the initial members, one member shall be appointed
117for a term expiring July 1, 1973, two members shall be appointed
118for terms expiring July 1, 1974, and two members shall be
119appointed for terms expiring July 1, 1975. Thereafter, each
120succeeding member shall be appointed by the mayor, with the
121concurrence of the city council, for a term of 3 years.
122     (3)  To qualify for appointment to the board and to remain
123qualified for service on it, a prospective member or a member
124already appointed shall have his or her principal residence,
125employment, or place of business in the development area or be
126an owner of realty therein and shall not be serving as a city
127officer or employee. A majority of members shall be owners of
128realty within the development area, or lessees thereof, or
129directors, officers, or managing agents of an owner or of a
130lessee thereof so required to pay taxes thereon, but no two
131shall be affiliates of the same corporation, partnership, or
132other business entity.
133     (4)  Vacancy in office, which shall be filled in the manner
134provided in subsections (1) and (2) within 30 days after its
135occurrence for the remainder of the unexpired term, shall occur
136whenever a member is removed from office, becomes disqualified,
137or is otherwise unable to serve or resigns.
138     (5)  Each member of the board shall serve without
139compensation for services rendered as a member but may be
140reimbursed by the board for necessary and reasonable expenses
141actually incurred in the performance of duty. The board may
142require that all its members or any or all of its officers or
143employees be required to post bond for faithful performance of
144duty. The board shall require such bond of all persons
145authorized to sign on accounts of the board, and the board shall
146pay bonding costs. No member of the board shall be personally
147liable for any action taken in attempting in good faith to
148perform his or her duty, or for a decision not to act, except in
149instances of fraud or willful neglect of duty.
150     Section 6.  Board bylaws; internal governance.--
151     (1)  The board shall formulate and may amend its own rules
152of procedure and written bylaws not inconsistent with this act,
153and such rules of procedure and written bylaws, and amendments
154thereto, shall not become effective until approved by the city
155council. A majority of the board's entire membership shall
156constitute a quorum for the transaction of business, but fewer
157than a quorum may adjourn from time to time and may compel the
158attendance of absent members.
159     (2)  All action shall be taken by vote of at least a
160majority of the board. The board shall select one of its members
161as chair and another as vice-chair and shall prescribe their
162duties, powers, and terms of service. The board shall hold
163regular meetings at least once a month and shall provide in its
164bylaws for holding special meetings. All meetings shall be given
165public notice and shall be open to the public. In time for
166submission to the governing body as required of all departments
167of the city, the board shall prepare and submit for the approval
168of the city council a budget for the operation of the board for
169the ensuing fiscal year, the same to conform to the fiscal year
170of the city. The budget shall be prepared in the manner and
171contain the information required of all departments. However,
172when and if approved by the city council, the budget shall not
173require approval of any officer or body of the city other than
174the governing body. No funds of the city may be included in the
175budget of the board except those funds authorized in this act
176and such other funds as may be authorized by the city council.
177The board shall not expend any funds other than those authorized
178by the approved budget, provided that the board shall have the
179power, subject to the approval of the city council, to amend its
180budget as may from time to time be necessary.
181     Section 7.  Functions of the board.--The board shall
182perform the following functions:
183     (1)  Prepare and maintain on a current basis an analysis of
184the economic conditions and changes occurring in the development
185area, including the effect on the development area of such
186factors as metropolitan growth, traffic congestion, lack of
187adequate parking and other access facilities, and structural
188obsolescence and deterioration.
189     (2)  Formulate and maintain on a current basis both short-
190range and long-range plans for improving the attractiveness and
191accessibility to the public of development area facilities,
192promoting efficient use thereof, remedying the deterioration of
193development area property values, and developing the development
194area.
195     (3)  Recommend to the city council for its consideration
196and approval the actions deemed most suitable for implementing
197the development area plans as provided in subsection (2).
198     (4)  Participate actively in the implementation and
199execution of approved development area plans, including
200establishment, acquisition, construction, ownership, financing,
201leasing, licensing, operation, and management of publicly owned
202or leased facilities deemed feasible and beneficial in effecting
203implementation for public purposes. However, this subsection
204shall not give the board any power or control over any city
205property unless and until assigned to it by the city council
206under the provisions of subsection (5).
207     (5)  Carry on all other projects and undertakings
208authorized by law and within the limits of the powers granted to
209it by law and such additional lawful projects and undertakings
210related to the development area as the city council may assign
211to the board with its consent.
212     Section 8.  Powers of the board.--In the performance of the
213functions vested in or assigned to the board, it is granted the
214following powers:
215     (1)  To enter into contracts and agreements, and to sue and
216be sued as a body corporate.
217     (2)  To have and use a corporate seal.
218     (3)  To acquire, own, convey, or otherwise dispose of;
219lease as lessor or lessee; and construct, maintain, improve,
220enlarge, raze, relocate, operate, and manage property and
221facilities of whatever type to which it holds title; and to
222grant or acquire licenses, easements, and options with respect
223thereto, provided, however, that any property owned by the board
224will be subject to the applicable state and local taxes imposed
225thereon.
226     (4)  To accept grants and donations of money, property of
227any type, labor, or other thing of value from any public or
228private source.
229     (5)  To receive the proceeds of the tax provided by this
230act.
231     (6)  To receive the revenues from any property or facility
232owned, leased, licensed, or operated by it or under its control,
233subject to the limitations imposed upon it by trusts or other
234agreements validly entered into by it.
235     (7)  To have exclusive control of funds legally available
236to it, subject to limitations imposed upon it by law or by any
237agreement validly entered into by it.
238     (8)  To cooperate and enter into agreements with other
239governmental agencies or other public bodies, except that
240nothing in this act shall be construed as authorization to
241initiate a federally subsidized urban renewal program and any
242such urban renewal program is specifically prohibited.
243     (9)  To make to or receive from the city or Orange County
244conveyances, leasehold interests, grants, contributions, loans,
245and other rights and privileges.
246     (10)  To request by resolution that the city exercise its
247powers of eminent domain to acquire any real property for public
248purposes. If the property involved is acquired, the board shall
249take over and assume control of such property on terms mutually
250agreed upon between the city and the board, but the board shall
251not thereafter be authorized to sell, lease, or otherwise
252dispose of such property so acquired without the formal consent
253of the city council.
254     (11)  To issue and sell revenue certificates as hereinafter
255provided, or in another manner permitted by law and not
256inconsistent with the provisions of this act, and to take all
257steps necessary for efficient preparation and marketing of the
258certificates at public or private sale at the best price
259obtainable, including the entry into agreements with corporate
260trustees, underwriters, and the holders of the certificates, and
261the employment and payment as a necessary expense of issuance,
262for the service of consultants on valuations, costs, and
263feasibility of undertaking revenues to be anticipated and other
264financial matters, architecture, engineering, legal matters,
265accounting matters, and any other fields in which expert advice
266may be needed to effectuate advantageous issuance and marketing.
267     (12)  To fix, regulate, and collect rents, fees, rates, and
268charges for facilities or projects or any parts thereof or
269services furnished by it or under its control and to pledge the
270revenue to the payment of revenue certificates issued by it.
271     (13)  To borrow money after approval of the city council on
272its unsecured notes for a period not exceeding 9 months in an
273aggregate amount for all outstanding unsecured notes not
274exceeding 50 percent of the unpledged proceeds received during
275the immediately prior fiscal year from the tax imposed by this
276act and at an annual rate of interest not exceeding the rate
277being charged at the time of the loan by banks in the city on
278unsecured short-term loans to local businesses.
279     (14)  To acquire by rental or otherwise and to equip and
280maintain a principal office for the conduct of its business and
281such branch offices as may be necessary.
282     (15)  To employ and prescribe the duties, authority,
283compensation, not to exceed the highest salary paid to other
284nonelective city employees, and reimbursement of expenses of the
285executive director of the board, who shall act as its chief
286executive officer; a general counsel, who shall be an attorney
287in active practice in the state and so engaged at the time of
288appointment; and such other personnel as may be necessary from
289time to time; provided, however, that its personnel shall not be
290under civil service regulations, shall not while employed by it
291serve as city officers or employees, and, with the exception of
292its secretary, shall not while employed by it serve as a member
293of the board.
294     (16)  To exercise all powers incidental to the effective
295and expedient exercise of the foregoing powers to the extent not
296in conflict or inconsistent with this act.
297     (17)  To establish development and taxing subdistricts
298within the downtown development area for sectional development
299in accordance with the comprehensive plan, taxes acquired from
300said subdistricts to be utilized solely within the subdistrict
301area, said area not to be less than one city block in size;
302provided, however, that no subdistrict shall be established nor
303any tax imposed without an authorizing vote as provided by the
304State Constitution and written approval of all of the
305freeholders located therein and the city council. The 1-mill
306limitation set forth in section 9 shall not apply to any such
307consenting development and taxing subdistrict.
308     Section 9.  Levy of ad valorem tax.--For the fiscal year of
309the board beginning with the calendar year 1972, and for each
310fiscal year thereafter, all ad valorem tax in addition to all
311other ad valorem taxes may be levied or caused to be levied
312annually by the city council, in its discretion, upon request of
313the board for the purposes of financing the operation of the
314board. Said tax may be levied on all property in the development
315area or subdistrict thereof to the extent same is otherwise
316subject to ad valorem taxation for city operating expenses,
317except that property under homestead exemption shall not be
318taxed. The tax base shall be the assessed valuation subject to
319taxation as provided in this section made annually by the
320appropriate tax assessors. The rate shall not exceed 1 mill on
321each dollar of tax base in 1971 and each year thereafter. The
322city tax collector shall collect or receive the tax when and in
323the same manner in which he or she collects or receives the city
324ad valorem taxes and with the same discounts for early payment
325and shall pay the proceeds to the city treasurer for the account
326of the board. Notwithstanding anything in this act that may be
327to the contrary, or the purpose of this legislation, the Orlando
328Downtown Development Area shall constitute a special taxing
329district to be administered as such, and any tax levy imposed
330within said district or subdistrict shall not be construed as
331part of the 10-mill levy authorized the city by the constitution
332and statutes of this state for operating expenses or as part of
333any other millage limitation on the city. Should any court of
334competent jurisdiction construe this act to be within such
335millage limitation, all provisions of this act relating to
336millage levies thereunder shall stand as null and void.
337     Section 10.  Board records; fiscal management.--The fiscal
338year of the board shall coincide with that of the city.
339     (1)  All funds of the board shall be received, held, and
340secured like other public funds by the appropriate fiscal
341officers of the city. The funds of the board shall be maintained
342under a separate account, shall be used only for purposes
343authorized in this act, and shall be disbursed only by direction
344of or with the approval of the board pursuant to requisitions
345signed by the director or other designated chief fiscal officer
346of the board and countersigned by at least one other person who
347shall be a member of the board. The board shall pay the city as
348an operating expense the reasonable value of the services
349rendered by the city to the board, as may be determined by the
350city council.
351     (2)  The board bylaws shall provide for maintenance of
352minutes and other official records of its proceedings and
353actions, for preparation and adoption of an annual budget for
354each ensuing fiscal year, for internal supervision and control
355of its accounts, which function the appropriate city fiscal
356officers may perform at its request, and for an external audit
357at least annually by an independent certified public accountant
358who has no personal interest, direct or indirect, in its fiscal
359affairs. A copy of the external audit shall be filed with the
360city clerk within 90 days after the end of each fiscal year. The
361bylaws shall specify the means by which each of these functions
362is to be performed and, as to those functions assigned to board
363personnel, the manner and schedule of performance.
364     (3)  No member or employee of the board shall participate
365by vote or otherwise on behalf of the board in any matter in
366which he or she has a direct financial interest or an indirect
367financial interest other than of the benefits to be derived
368generally from the development of the development area.
369Participation with knowledge of such interest shall constitute
370malfeasance and shall result, as regards a member, in automatic
371forfeiture of office, or as regards an employee, in prompt
372dismissal.
373     Section 11.  Provisions governing issuance of
374certificates.--Issuance of revenue certificates by the board
375shall be governed by the following general provisions:
376     (1)  Revenue certificates for purposes of this act are
377limited to obligations that are secured solely by pledge of
378revenues produced by the facility or facilities for the benefit
379of which the certificates are issued and the sale proceeds used
380and that do not constitute a lien or encumbrance, legal or
381equitable, on any real property of the board or on any of its
382personal property other than the revenues pledged to secure
383payment of the certificates.
384     (2)  The faith and credit of the city shall not be pledged
385and the city shall not be obligated directly or indirectly to
386make any payments on or appropriate any funds for certificates
387issued by the board.
388     (3)  The rate or rates of interest and the sale price of
389the certificates by the board shall be such that the true
390interest cost to the board on the proceeds received from the
391sale shall not exceed the rate authorized by law for the city.
392     (4)  Before issuing any revenue certificates, the board
393shall as to each issue:
394     (a)  Prepare or procure from a reputable source detailed
395estimates of the total cost of the undertaking for which the
396certificates are contemplated and of the annual revenues to be
397obtained therefrom and pledged as security for payment of the
398certificates.
399     (b)  Determine that the anticipated net proceeds from the
400sale, together with any other funds available and intended for
401the purposes of the issue, will be sufficient to cover all costs
402of the undertaking and of preparing and marketing the issues
403connected therewith.
404     (c)  Determine that the annual revenues anticipated from
405the undertaking will be sufficient to pay the estimated annual
406cost of maintaining, repairing, operating, and replacing, to any
407necessary extent, not only the undertaking but also the punctual
408payment of the principal of, and interest on, the contemplated
409certificates.
410     (d)  Specify these determinations in and include the
411supporting estimates as part of the resolution providing for the
412issue.
413     (5)  The board may, as to any issue of revenue
414certificates, engage the services of a corporate trustee for the
415issue and may treat any or all of the costs of carrying out the
416trust agreement as part of the operating costs of the
417undertaking for which the certificates are issued.
418     (6)  The board shall from time to time establish such
419rentals, rates, and charges, or shall by agreement maintain such
420control thereof, as to meet punctually all payments on the
421undertaking and its maintenance and repair, including reserves
422therefor, and for depreciation and replacement.
423     (7)  Revenue certificates may be issued for the purposes of
424funding, refunding, or both.
425     (8)  All revenue certificates issued pursuant to this act
426shall be negotiable instruments for all purposes.
427     Section 12.  Transfer upon cessation of the board.--Should
428the board cease to exist or to operate for whatever reason, all
429of its property of whatever kind shall forthwith, upon consent
430of the city, become the property of the city. If said property
431becomes property of the city, it shall be taken subject to the
432outstanding obligations of the board incurred in conformity with
433all of the foregoing provisions, and the city shall use this
434property to the maximum extent then practicable for effectuating
435the purposes of this act and shall succeed to and exercise such
436powers of the board as shall be necessary to meet outstanding
437obligations of the board and effect an orderly cessation of its
438powers and functions, provided, however, that in no event shall
439the city become responsible for any debts, obligations, or
440contracts of the board beyond the income of the property
441produced by the sale, lease, operation, or disposition
442otherwise, as decided by the city in its discretion.
443     Section 13.  Freeholders' referendum.--No powers shall be
444exercised by the board, nor shall any special taxing district be
445established, until such time as the freeholders within the
446development area approve of this act in accordance with the
447following referendum provisions:
448     (1)  ELECTION SUPERVISOR.--For the purposes of this
449referendum, the city clerk shall act as election supervisor and
450do all things necessary to carry out the provisions of this
451section.
452     (2)  REGISTRATION.--Within 30 days after the date this act
453becomes law, the clerk shall compile a list of the names and the
454last known addresses of the freeholders in the development area
455from the tax assessment roll used by the city applicable as of
456the date of certification of the current tax roll, and the same
457shall constitute the registration list for the purposes of the
458freeholders' referendum in this section, except as hereinafter
459provided.
460     (3)  NOTIFICATION.--Within 10 days after the expiration of
461the time period specified in subsection (2), the clerk shall
462notify each freeholder of the general provisions of this act,
463including the taxing authority and powers of eminent domain, the
464dates of the upcoming referendum, and the method provided for
465additional registration should the status of the freeholder have
466changed since the compilation of the tax rolls. Such
467notification shall be by United States mail and, in addition
468thereto, by publication one time in a newspaper of general
469circulation in Orange County, within the time period provided in
470subsection (2).
471     (4)  ADDITIONAL REGISTRATION.--Any freeholder whose name
472does not appear on the tax rolls may register with the city
473clerk at the Orlando City Hall or by mail in accordance with
474regulations adopted by the clerk. The registration lists shall
475remain open until 75 days after the date this act becomes law.
476     (5)  VOTING.--Within 30 days after the closing of the
477registration list, the referendum shall be held at the Orlando
478City Hall under the supervision of the clerk. A secret ballot
479form of voting will be utilized. One vote shall be allowed for
480each freeholder. After the close of the poll, the results of
481said referendum shall be tabulated by the clerk, who shall
482certify the results thereof to the city council no later than 5
483days after said referendum. Any person voting who has knowledge
484that he or she is not a freeholder as defined by this act
485commits perjury and shall be prosecuted and, upon conviction,
486punished in accordance with the provisions of the laws of this
487state.
488     (6)  PASSAGE OF THE ACT.--The freeholders shall be deemed
489to have approved of the provisions of this act at such time as
490the clerk certifies to the city council that approval has been
491given by a majority of the freeholders voting in this
492referendum. Should the freeholders fail to approve of the
493provisions of this act as provided in this subsection, the city
494may call one additional referendum by resolution of the city
495council at any time after 1 year after the certification of the
496results of the previous referendum by the clerk. The additional
497referendum shall be held in accordance with the provisions of
498this section, save and except that all time periods will be
499computed from the date of the resolution calling for the
500referendum. Should the freeholders fail to initially approve
501this act as provided in this subsection after two such
502referenda, all provisions of this act shall be null and void,
503and this act shall be repealed.
504     (7)  OTHER ELECTIONS.--Additional freeholders' elections
505called after increasing or decreasing the boundaries of the
506development area in accordance with section 4 shall be held in
507accordance with the referendum provisions for initial approval
508of this act; however, no provision of this act shall require the
509approval of freeholders in an area that has previously approved
510of the provisions of this act by any referendum held under this
511section.
512     (8)  REPEAL OF THE ACT.--A repeal referendum may be called
513by petition of 20 percent of the freeholders in the development
514area for the purpose of abolishing the board and repealing this
515act. Upon receipt of such a petition for a repeal referendum by
516the city clerk, a freeholders' referendum shall be called by the
517city. The procedure shall be the same as provided for the
518initial approval of this act, except that additional repeal
519referenda may be petitioned at any time after 1 year after the
520certification of the results of a previous repeal referendum by
521the clerk. The proposition shall be put on the ballot permitting
522a vote for or against repeal of the Orlando Downtown Development
523Board. A vote for repeal of the board by more than 50 percent of
524the freeholders voting in the repeal referendum shall cause
525immediate cessation of the Orlando Downtown Development Board
526and shall constitute repeal of this act.
527     Section 14.  Liberal construction; severability.--The
528provisions of this act, being desirable for the welfare of the
529city and its inhabitants, shall be liberally construed to
530effectuate the purposes set forth in this act and are severable.
531Should any portion of this act be held invalid or
532unconstitutional by a court of competent jurisdiction, each
533other portion shall remain effective.
534     Section 15.  Repeal of prior special acts.--Chapters 71-810
535and 78-577, Laws of Florida, are repealed.
536     Section 16.  This act shall take effect July 1, 2005.


CODING: Words stricken are deletions; words underlined are additions.