Senate Bill sb2496
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Florida Senate - 2005 SB 2496
By Senator Constantine
22-1488-05
1 A bill to be entitled
2 An act relating to community redevelopment
3 agencies; amending s. 163.340, F.S.; conforming
4 a cross-reference; amending s. 163.356, F.S.;
5 requiring a community redevelopment agency to
6 include additional information in a report to
7 the governing body of a county or municipality;
8 amending s. 163.387, F.S.; authorizing
9 implementation of a funding alternative by a
10 local government that is subject to tax
11 increment financing obligations relating to a
12 community redevelopment agency; requiring
13 specification of a funding alternative in an
14 interlocal agreement; authorizing a credit
15 toward the tax increment obligation of a local
16 government for the cost of the funding
17 alternative; requiring each funding alternative
18 to ensure sufficient payment to the community
19 redevelopment agency; requiring a community
20 redevelopment agency to include additional
21 information in an audit report to each taxing
22 authority; amending s. 163.410, F.S.; requiring
23 development of an interlocal agreement
24 regarding community redevelopment areas in a
25 home rule county; requiring the governing board
26 of the county or a municipality in the county
27 to commence negotiation of the agreement;
28 providing for dispute resolution if agreement
29 cannot be reached; amending s. 163.415, F.S.;
30 requiring development of an interlocal
31 agreement regarding community redevelopment
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1 areas in a county without a home rule charter;
2 requiring the governing board of the county or
3 a municipality in the county to commence
4 negotiation of the agreement; providing for
5 dispute resolution if agreement cannot be
6 reached; providing an effective date.
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8 Be It Enacted by the Legislature of the State of Florida:
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10 Section 1. Subsection (8) of section 163.340, Florida
11 Statutes, is amended to read:
12 163.340 Definitions.--The following terms, wherever
13 used or referred to in this part, have the following meanings:
14 (8) "Blighted area" means an area in which there are a
15 substantial number of deteriorated, or deteriorating
16 structures, in which conditions, as indicated by
17 government-maintained statistics or other studies, are leading
18 to economic distress or endanger life or property, and in
19 which two or more of the following factors are present:
20 (a) Predominance of defective or inadequate street
21 layout, parking facilities, roadways, bridges, or public
22 transportation facilities;
23 (b) Aggregate assessed values of real property in the
24 area for ad valorem tax purposes have failed to show any
25 appreciable increase over the 5 years prior to the finding of
26 such conditions;
27 (c) Faulty lot layout in relation to size, adequacy,
28 accessibility, or usefulness;
29 (d) Unsanitary or unsafe conditions;
30 (e) Deterioration of site or other improvements;
31 (f) Inadequate and outdated building density patterns;
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1 (g) Falling lease rates per square foot of office,
2 commercial, or industrial space compared to the remainder of
3 the county or municipality;
4 (h) Tax or special assessment delinquency exceeding
5 the fair value of the land;
6 (i) Residential and commercial vacancy rates higher in
7 the area than in the remainder of the county or municipality;
8 (j) Incidence of crime in the area higher than in the
9 remainder of the county or municipality;
10 (k) Fire and emergency medical service calls to the
11 area proportionately higher than in the remainder of the
12 county or municipality;
13 (l) A greater number of violations of the Florida
14 Building Code in the area than the number of violations
15 recorded in the remainder of the county or municipality;
16 (m) Diversity of ownership or defective or unusual
17 conditions of title which prevent the free alienability of
18 land within the deteriorated or hazardous area; or
19 (n) Governmentally owned property with adverse
20 environmental conditions caused by a public or private entity.
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22 However, the term "blighted area" also means any area in which
23 at least one of the factors identified in paragraphs (a)
24 through (n) are present and all taxing authorities subject to
25 s. 163.387(3)(a) s. 163.387(2)(a) agree, either by interlocal
26 agreement or agreements with the agency or by resolution, that
27 the area is blighted. Such agreement or resolution shall only
28 determine that the area is blighted. For purposes of
29 qualifying for the tax credits authorized in chapter 220,
30 "blighted area" means an area as defined in this subsection.
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1 Section 2. Paragraph (c) of subsection (3) of section
2 163.356, Florida Statutes, is amended to read:
3 163.356 Creation of community redevelopment agency.--
4 (c) The governing body of the county or municipality
5 shall designate a chair and vice chair from among the
6 commissioners. An agency may employ an executive director,
7 technical experts, and such other agents and employees,
8 permanent and temporary, as it requires, and determine their
9 qualifications, duties, and compensation. For such legal
10 service as it requires, an agency may employ or retain its own
11 counsel and legal staff. An agency authorized to transact
12 business and exercise powers under this part shall file with
13 the governing body, on or before March 31 of each year, a
14 report of its activities for the preceding fiscal year, which
15 report must shall include a complete financial statement
16 setting forth its assets, liabilities, income, and operating
17 expenses as of the end of such fiscal year. The report must
18 also include information on the status of redevelopment
19 projects and related activities contained in redevelopment
20 plans, redevelopment activities proposed for the upcoming
21 year, and other information as specified in interlocal
22 agreements. At the time of filing the report, the agency shall
23 publish in a newspaper of general circulation in the community
24 a notice to the effect that such report has been filed with
25 the county or municipality and that the report is available
26 for inspection during business hours in the office of the
27 clerk of the city or county commission and in the office of
28 the agency.
29 Section 3. Section 163.387, Florida Statutes, is
30 amended to read:
31 163.387 Redevelopment trust fund.--
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1 (1) After approval of a community redevelopment plan,
2 there shall be established for each community redevelopment
3 agency created under s. 163.356 a redevelopment trust fund.
4 Funds allocated to and deposited into this fund shall be used
5 by the agency to finance or refinance any community
6 redevelopment it undertakes pursuant to the approved community
7 redevelopment plan. No community redevelopment agency may
8 receive or spend any increment revenues pursuant to this
9 section unless and until the governing body has, by ordinance,
10 provided for the funding of the redevelopment trust fund for
11 the duration of a community redevelopment plan. Such ordinance
12 may be adopted only after the governing body has approved a
13 community redevelopment plan. The annual funding of the
14 redevelopment trust fund shall be in an amount not less than
15 that increment in the income, proceeds, revenues, and funds of
16 each taxing authority derived from or held in connection with
17 the undertaking and carrying out of community redevelopment
18 under this part. Such increment shall be determined annually
19 and shall be that amount equal to 95 percent of the difference
20 between:
21 (a) The amount of ad valorem taxes levied each year by
22 each taxing authority, exclusive of any amount from any debt
23 service millage, on taxable real property contained within the
24 geographic boundaries of a community redevelopment area; and
25 (b) The amount of ad valorem taxes which would have
26 been produced by the rate upon which the tax is levied each
27 year by or for each taxing authority, exclusive of any debt
28 service millage, upon the total of the assessed value of the
29 taxable real property in the community redevelopment area as
30 shown upon the most recent assessment roll used in connection
31 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.
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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), but in no event shall such amount be
11 less than 50 percent of such difference.
12 (2) A local government that is subject to obligations
13 that are funded by tax increment revenues may implement
14 funding alternatives to meet those obligations which include,
15 but need not be limited to, in-kind contributions or providing
16 public infrastructure, business incentives, and waivers of
17 impact fees and other costs related to redevelopment. The
18 alternatives must be specified in interlocal agreements
19 between the county, municipality, and other affected local
20 governments. The cost of a funding alternative is a direct
21 credit toward the tax increment financing obligation of the
22 local government. Each funding alternative must ensure
23 adequate and timely distribution of payments necessary for the
24 community redevelopment agency to function efficiently and
25 effectively and meet any bond obligation of the agency.
26 (3)(2)(a) Except for the purpose of funding the trust
27 fund pursuant to subsection (4) (3), upon the adoption of an
28 ordinance providing for funding of the redevelopment trust
29 fund as provided in this section, each taxing authority shall,
30 by January 1 of each year, appropriate to the trust fund for
31 so long as any indebtedness pledging increment revenues to the
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1 payment thereof is outstanding, (but not to exceed 30 years,)
2 a sum that is no less than the increment as defined and
3 determined in subsection (1) accruing to such taxing
4 authority. If the community redevelopment plan is amended or
5 modified pursuant to s. 163.361(1), each such taxing authority
6 shall make the annual appropriation for a period not to exceed
7 30 years after the date the governing body amends the plan.
8 However, for any agency created on or after July 1, 2002, each
9 taxing authority shall make the annual appropriation for a
10 period not to exceed 40 years after the fiscal year in which
11 the initial community redevelopment plan is approved or
12 adopted.
13 (b) Any taxing authority that does not pay the
14 increment to the trust fund by January 1 shall pay to the
15 trust fund an amount equal to 5 percent of the amount of the
16 increment and shall pay interest on the amount of the
17 increment equal to 1 percent for each month the increment is
18 outstanding.
19 (c) The following public bodies or taxing authorities
20 are exempt from paragraph (a):
21 1. A special district that levies ad valorem taxes on
22 taxable real property in more than one county.
23 2. A special district for which the sole available
24 source of revenue the district has the authority to levy is ad
25 valorem taxes at the time an ordinance is adopted under this
26 section. However, revenues or aid that may be dispensed or
27 appropriated to a district as defined in s. 388.011 at the
28 discretion of an entity other than such district shall not be
29 deemed available.
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1 3. A library district, except a library district in a
2 jurisdiction where the community redevelopment agency had
3 validated bonds as of April 30, 1984.
4 4. A neighborhood improvement district created under
5 the Safe Neighborhoods Act.
6 5. A metropolitan transportation authority.
7 6. A water management district created under s.
8 373.069.
9 (d)1. A local governing body that creates a community
10 redevelopment agency under s. 163.356 may exempt from
11 paragraph (a) a special district that levies ad valorem taxes
12 within that community redevelopment area. The local governing
13 body may grant the exemption either in its sole discretion or
14 in response to the request of the special district. The local
15 governing body must establish procedures by which a special
16 district may submit a written request to be exempted from
17 paragraph (a).
18 2. In deciding whether to deny or grant a special
19 district's request for exemption from paragraph (a), the local
20 governing body must consider:
21 a. Any additional revenue sources of the community
22 redevelopment agency which could be used in lieu of the
23 special district's tax increment.
24 b. The fiscal and operational impact on the community
25 redevelopment agency.
26 c. The fiscal and operational impact on the special
27 district.
28 d. The benefit to the specific purpose for which the
29 special district was created. The benefit to the special
30 district must be based on specific projects contained in the
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1 approved community redevelopment plan for the designated
2 community redevelopment area.
3 e. The impact of the exemption on incurred debt and
4 whether such exemption will impair any outstanding bonds that
5 have pledged tax increment revenues to the repayment of the
6 bonds.
7 f. The benefit of the activities of the special
8 district to the approved community redevelopment plan.
9 g. The benefit of the activities of the special
10 district to the area of operation of the local governing body
11 that created the community redevelopment agency.
12 3. The local governing body must hold a public hearing
13 on a special district's request for exemption after public
14 notice of the hearing is published in a newspaper having a
15 general circulation in the county or municipality that created
16 the community redevelopment area. The notice must describe
17 the time, date, place, and purpose of the hearing and must
18 identify generally the community redevelopment area covered by
19 the plan and the impact of the plan on the special district
20 that requested the exemption.
21 4. If a local governing body grants an exemption to a
22 special district under this paragraph, the local governing
23 body and the special district must enter into an interlocal
24 agreement that establishes the conditions of the exemption,
25 including, but not limited to, the period of time for which
26 the exemption is granted.
27 5. If a local governing body denies a request for
28 exemption by a special district, the local governing body
29 shall provide the special district with a written analysis
30 specifying the rationale for such denial. This written
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1 analysis must include, but is not limited to, the following
2 information:
3 a. A separate, detailed examination of each
4 consideration listed in subparagraph 2.
5 b. Specific examples of how the approved community
6 redevelopment plan will benefit, and has already benefited,
7 the purpose for which the special district was created.
8 6. The decision to either deny or grant an exemption
9 must be made by the local governing body within 120 days after
10 the date the written request was submitted to the local
11 governing body pursuant to the procedures established by such
12 local governing body.
13 (4)(3) Notwithstanding the provisions of subsection
14 (3) (2), the obligation of the governing body which
15 established the community redevelopment agency to fund the
16 redevelopment trust fund annually shall continue until all
17 loans, advances, and indebtedness, if any, and interest
18 thereon, of a community redevelopment agency incurred as a
19 result of redevelopment in a community redevelopment area have
20 been paid.
21 (5)(4) The revenue bonds and notes of every issue
22 under this part are payable solely out of revenues pledged to
23 and received by a community redevelopment agency and deposited
24 to its redevelopment trust fund. The lien created by such
25 bonds or notes shall not attach until the revenues referred to
26 herein are deposited in the redevelopment trust fund at the
27 times, and to the extent that, such revenues accrue. The
28 holders of such bonds or notes have no right to require the
29 imposition of any tax or the establishment of any rate of
30 taxation in order to obtain the amounts necessary to pay and
31 retire such bonds or notes.
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1 (6)(5) Revenue bonds issued under the provisions of
2 this part do shall not be deemed to constitute a debt,
3 liability, or obligation of the local governing body or the
4 state or any political subdivision thereof, or a pledge of the
5 faith and credit of the local governing body or the state or
6 any political subdivision thereof, but shall be payable solely
7 from the revenues provided therefor. All such revenue bonds
8 shall contain on the face thereof a statement to the effect
9 that the agency shall not be obligated to pay the same or the
10 interest thereon except from the revenues of the community
11 redevelopment agency held for that purpose and that neither
12 the faith and credit nor the taxing power of the local
13 governing body or of the state or of any political subdivision
14 thereof is pledged to the payment of the principal of, or the
15 interest on, such bonds.
16 (7)(6) Moneys in the redevelopment trust fund may be
17 expended from time to time for undertakings of a community
18 redevelopment agency which are directly related to financing
19 or refinancing of redevelopment in a community redevelopment
20 area pursuant to an approved community redevelopment plan for
21 the following purposes, including, but not limited to:
22 (a) Administrative and overhead expenses necessary or
23 incidental to the implementation of a community redevelopment
24 plan adopted by the agency.
25 (b) Expenses of redevelopment planning, surveys, and
26 financial analysis, including the reimbursement of the
27 governing body or the community redevelopment agency for such
28 expenses incurred before the redevelopment plan was approved
29 and adopted.
30 (c) The acquisition of real property in the
31 redevelopment area.
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1 (d) The clearance and preparation of any redevelopment
2 area for redevelopment and relocation of site occupants as
3 provided in s. 163.370.
4 (e) The repayment of principal and interest or any
5 redemption premium for loans, advances, bonds, bond
6 anticipation notes, and any other form of indebtedness.
7 (f) All expenses incidental to or connected with the
8 issuance, sale, redemption, retirement, or purchase of agency
9 bonds, bond anticipation notes, or other form of indebtedness,
10 including funding of any reserve, redemption, or other fund or
11 account provided for in the ordinance or resolution
12 authorizing such bonds, notes, or other form of indebtedness.
13 (g) The development of affordable housing within the
14 area.
15 (h) The development of community policing innovations.
16 (8)(7) On the last day of the fiscal year of the
17 community redevelopment agency, any money which remains in the
18 trust fund after the payment of expenses pursuant to
19 subsection (7) (6) for such year shall be:
20 (a) Returned to each taxing authority which paid the
21 increment in the proportion that the amount of the payment of
22 such taxing authority bears to the total amount paid into the
23 trust fund by all taxing authorities within the redevelopment
24 area for that year;
25 (b) Used to reduce the amount of any indebtedness to
26 which increment revenues are pledged;
27 (c) Deposited into an escrow account for the purpose
28 of later reducing any indebtedness to which increment revenues
29 are pledged; or
30 (d) Appropriated to a specific redevelopment project
31 pursuant to an approved community redevelopment plan which
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1 project will be completed within 3 years from the date of such
2 appropriation.
3 (9)(8) Each community redevelopment agency shall
4 provide for an independent financial audit of the trust fund
5 each fiscal year and a report of such audit. The Such report
6 must shall describe the amount and source of deposits into,
7 and the amount and purpose of withdrawals from, the trust fund
8 during such fiscal year and the amount of principal and
9 interest paid during such year on any indebtedness to which is
10 pledged increment revenues and the remaining amount of such
11 indebtedness. The report must also include information on the
12 status of redevelopment projects and related activities
13 contained in redevelopment plans, redevelopment activities
14 proposed for the upcoming year, and other information as
15 specified in interlocal agreements. The agency shall provide a
16 copy of the report to each taxing authority.
17 Section 4. Section 163.410, Florida Statutes, is
18 amended to read:
19 163.410 Exercise of powers in counties with home rule
20 charters.--
21 (1) In a any county that which has adopted a home rule
22 charter, the powers conferred by this part shall be exercised
23 exclusively by the governing body of such county. However, the
24 governing body of a any such county that which has adopted a
25 home rule charter may, in its discretion, by resolution
26 delegate the exercise of the powers conferred upon the county
27 by this part within the boundaries of a municipality to the
28 governing body of such a municipality. Such a delegation
29 confers to a municipality shall confer only such powers upon
30 the a municipality as are shall be specifically enumerated in
31 the delegating resolution. Any power not specifically
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1 delegated is shall be reserved exclusively to the governing
2 body of the county. This subsection section does not affect
3 any community redevelopment agency created by a municipality
4 prior to the adoption of a county home rule charter. Unless
5 otherwise provided by an existing ordinance, resolution, or
6 interlocal agreement between any such county and a
7 municipality, the governing body of the county that has
8 adopted a home rule charter shall act on any request from a
9 municipality for a delegation of powers or a change in an
10 existing delegation of powers within 120 days after the
11 receipt of all required documentation or such request shall be
12 immediately sent to the governing body for consideration.
13 (2) A county that has adopted a home rule charter and
14 each municipality within that county shall develop an
15 interlocal agreement regarding the formation, expansion,
16 financing, reporting, and duration of the community
17 redevelopment areas within the county. The governing body of
18 such a county shall enter into negotiations for the interlocal
19 agreement within 90 days after it receives a written proposal
20 for an interlocal agreement from a municipality. The
21 governing body of a municipality shall enter into negotiations
22 for the interlocal agreement within 90 days after it receives
23 a written proposal for an interlocal agreement from the county
24 or from another municipality in the county. Failure to reach
25 agreement after entering negotiations must be settled through
26 the dispute-resolution process in chapter 164.
27 Section 5. Section 163.415, Florida Statutes is
28 amended to read:
29 163.415 Exercise of powers in counties without home
30 rule charters.--
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1 (1) The powers conferred by this part upon a county
2 counties not having adopted a home rule charter may shall not
3 be exercised within the boundaries of a municipality within
4 that said county unless the governing body of the municipality
5 expresses its consent by resolution. Such a resolution
6 consenting to the exercise of the powers conferred upon
7 counties by this part must shall specifically enumerate the
8 powers to be exercised by the county within the boundaries of
9 the municipality. Any power not specifically enumerated in
10 such a resolution of consent shall be exercised exclusively by
11 the municipality within its boundaries.
12 (2) A county without home rule charter and each
13 municipality within that county shall develop an interlocal
14 agreement regarding the formation, expansion, financing,
15 reporting, and duration of the community redevelopment areas
16 with the county. The governing body of such a county shall
17 enter into negotiations for the interlocal agreement within 90
18 days after it receives a written proposal for an interlocal
19 agreement from a municipality. The governing body of a
20 municipality shall enter into negotiations for the interlocal
21 agreement within 90 days after it receives a written proposal
22 for an interlocal agreement from the county or from another
23 municipality in the county. Failure to reach agreement after
24 entering negotiations must be settled through the
25 dispute-resolution process in chapter 164.
26 Section 6. This act shall take effect upon becoming a
27 law.
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2 SENATE SUMMARY
3 Requires a community redevelopment agency to include
additional information in a report to the governing body
4 of a county or municipality and in an audit report to
each taxing authority. Authorizes a local government
5 that is subject to tax increment financing obligations
relating to a community redevelopment agency to implement
6 a funding alternative that is specified in an interlocal
agreement. Provides a credit toward the tax increment
7 obligation for the cost of the funding alternative.
Requires each funding alternative to ensure sufficient
8 payment to the community redevelopment agency. Requires
counties and municipalities to develop an interlocal
9 agreement regarding community redevelopment areas.
Requires the governing board of a county or municipality
10 to commence negotiation of the agreement. Provides for
dispute resolution.
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