Florida Senate - 2009 CS for SB 1468
By the Committee on Community Affairs; and Senators Dean,
Bennett, and Storms
578-02903-09 20091468c1
1 A bill to be entitled
2 An act relating to working waterfront property;
3 creating s. 193.704, F.S.; providing definitions;
4 creating s. 193.7041, F.S.; identifying property that
5 is eligible for classification as working waterfront
6 property; requiring the assessment of working
7 waterfront property based on current use; requiring an
8 application for classification of property as working
9 waterfront property; authorizing a property appraiser
10 to approve an application that is not filed by a
11 certain deadline due to extenuating circumstances;
12 providing for the waiver of annual application
13 requirements; providing for the loss of classification
14 upon a change of ownership or use; requiring that
15 property owners notify the property appraiser of
16 changes in use or ownership of property; imposing a
17 penalty on a property owner who fails to notify the
18 property appraiser of an event resulting in the
19 unlawful or improper classification of property as
20 working waterfront property; requiring the imposition
21 of tax liens to recover penalties and interest;
22 providing for the assessment of a portion of property
23 within a working waterfront property which is not used
24 as working waterfront property; requiring that a
25 property appraiser make a list relating to
26 applications to certify property as working waterfront
27 property; creating s. 193.7042, F.S.; requiring that
28 property appraisers notify property owners of the
29 denial of an application to classify property as
30 working waterfront property; providing for the appeal
31 of such denial to the value adjustment board;
32 requiring a filing fee of a certain amount; providing
33 for the appeal of a denial of a petition to the value
34 adjustment board to the circuit court; requiring that
35 property appraisers notify property owners whose
36 property was classified as working waterfront property
37 by a value adjustment board or court to recertify that
38 the use and ownership of the property have not
39 changed; authorizing the waiver of certain notice and
40 certification requirements; amending s. 259.105, F.S.;
41 renaming the “Stan Mayfield Working Waterfronts
42 Program” within the Florida Communities Trust as the
43 “Stan Mayfield Commercial Waterfronts Restoration and
44 Preservation Program”; amending s. 380.502, F.S.;
45 conforming provisions to changes made by the act;
46 amending s. 380.503, F.S.; deleting a definition for
47 the term “working waterfronts” for purposes of the
48 Florida Communities Trust Act; amending s. 380.507,
49 F.S.; providing a cross-reference; clarifying
50 provisions relating to the authority of the Florida
51 Communities Trust to provide grants or loans for
52 certain projects; clarifying the trust’s rulemaking
53 authority; deleting obsolete provisions; amending s.
54 380.508, F.S.; deleting provisions relating to the
55 purpose of working waterfront projects; amending s.
56 380.5105, F.S.; conforming provisions to changes made
57 by the act; providing a definition for the term
58 “commercial waterfront”; providing that certain
59 property does not qualify as commercial waterfront
60 property; providing for water-dependent commercial
61 activities; limiting participation in the program to
62 counties and municipalities effective on a specified
63 date; limiting the uses of acquired property in
64 perpetuity; requiring that the Florida Communities
65 Trust adopt rules establishing procedures and an
66 application process; providing an effective date.
67
68 Be It Enacted by the Legislature of the State of Florida:
69
70 Section 1. Section 193.704, Florida Statutes, is created to
71 read:
72 193.704 Working waterfront property; definitions.—As used
73 in ss. 193.704-193.7042, the term:
74 (1) “Accessible to the public” means routinely available to
75 the public, with or without charge, from sunrise to sunset and
76 having appropriate public accommodations, such as public parking
77 or public boat ramps.
78 (2) “Commercial fishing operation” has the same meaning as
79 in s. 379.2351.
80 (3) “Drystack” means a vessel-storage facility or building
81 in which the storage spaces for vessels are available for use by
82 the public on a first-come, first-served lease basis without
83 automatic renewal rights or conditions. The term does not
84 include drystacks in which boat storage is limited to persons
85 who purchase, receive, or rent a storage space as a condition of
86 homeownership or tenancy.
87 (4) “Land used predominantly for commercial fishing
88 purposes” means land used in good faith in a for-profit
89 commercial fishing operation for the taking or harvesting of
90 freshwater fish or saltwater products, as defined in s. 379.101,
91 for which a commercial license to take, harvest, or sell such
92 freshwater fish or saltwater products as required under chapter
93 379.
94 (5) “Marina” means a commercial facility licensed to do
95 business in Florida which provides secured public moorings or
96 drystacks for boats on a first-come, first-served leased basis
97 and without automatic renewal rights or conditions. The term
98 does not include marinas that limit mooring or storage of
99 vessels to persons who purchase, receive, or rent a mooring slip
100 or storage space as a condition of homeownership or tenancy.
101 (6) “Marine manufacturing facility” means a facility that
102 manufactures vessels for use in waters that are navigable.
103 (7) “Marine vessel construction and repair facilities”
104 means facilities such as shipyards or dockyards that construct
105 and repair vessels that travel over waters that are navigable.
106 As used in this section, the term “repair” includes retrofitting
107 and maintenance.
108 (8) “Open to the public” means for hire to the public and
109 accessible during normal operating hours.
110 (9) “Support activities” means those facilities that are
111 typically colocated with marine vessel construction and repair
112 facilities, such as shop, equipment, or salvage facilities.
113 (10) “Water-dependent” means that the operations of a
114 facility require direct access to the water.
115 (11) “Waterfront” means property that is on, over, or
116 abutting waters that are navigable.
117 (12) “Waters that are navigable” means the waters of the
118 state which are capable of supporting boating and are used or
119 may be used in their ordinary condition as highways for commerce
120 for which trade or travel are or may be conducted in the
121 customary modes of trade or travel on water.
122 Section 2. Section 193.7041, Florida Statutes, is created
123 to read:
124 193.7041 Working waterfront property; classification and
125 assessment; loss of classification; penalty.—
126 (1) Pursuant to s. 4(j), Art. VII of the State
127 Constitution, effective January 1, 2010, the following
128 waterfront property is eligible for classification as working
129 waterfront property:
130 (a) Land used predominantly for commercial fishing
131 purposes.
132 (b) Land that is accessible to the public and used for
133 vessel launches into waters that are navigable.
134 (c) Marinas and drystacks that are open to the public.
135 (d) Water-dependent marine manufacturing facilities.
136 (e) Water-dependent commercial fishing facilities.
137 (f) Water-dependent marine vessel construction and repair
138 facilities and their support activities.
139 (2) Property classified as working waterfront property
140 pursuant to this section must be assessed on the basis of
141 current use. Assessed value must be calculated using the income
142 approach to value as described in The Appraisal of Real Estate,
143 Thirteenth Edition, as subsequently revised and published by the
144 Appraisal Institute, and in effect on January 1 of the
145 assessment year. The capitalization rate used to determine
146 assessed value must be based upon a debt coverage ratio formula
147 in which the overall capitalization rate equals the debt
148 coverage ratio multiplied by the mortgage capitalization rate
149 multiplied by the loan-to-value ratio for comparable properties.
150 The overall capitalization rate must be calculated and updated
151 annually. In assessing working waterfront property, a property
152 appraiser shall use data from lenders for industrywide loan
153 interest rates, loan-to-value ratios, amortization terms,
154 payment periods, debt coverage ratio requirements, market rental
155 rates, market expense rates, and market vacancy rates. The data
156 must be county-specific unless insufficient data is available,
157 in which case the property appraiser shall use data for
158 surrounding counties.
159 (3)(a) Property may not be classified as working waterfront
160 property unless an application for the classification is filed
161 with the property appraiser on or before March 1 of each year in
162 the county in which the property is located. Before classifying
163 the property as working waterfront property, the property
164 appraiser may require the property owner to establish that the
165 property is used as required under this section. The owner of
166 property classified as working waterfront property in the prior
167 year may reapply on a short form adopted by rule by the
168 Department of Revenue.
169 (b) Failure of a property owner to apply for the
170 classification as working waterfront property by March 1
171 constitutes a waiver of the classification for 1 year. However,
172 the property appraiser may approve a late application and grant
173 a working waterfront classification if the property owner
174 establishes that extenuating circumstances prevented the
175 property owner from filing an application by the deadline.
176 (c) A county may, at the request of the property appraiser
177 and by a majority vote of its governing body, waive the
178 requirement that an annual application or short form be filed
179 with the property appraiser for renewal of the classification of
180 property as working waterfront property. The waiver may be
181 revoked by a majority vote of the governing body of the county.
182 (d) Notwithstanding paragraph (c), a new application for
183 classification as working waterfront property must be filed with
184 the property appraiser after the property receiving the
185 classification is sold or otherwise disposed of or the ownership
186 changes in any manner.
187 (e) The property appraiser shall remove from the
188 classification as working waterfront property any property for
189 which the classified use has been abandoned or discontinued. The
190 removed property shall be assessed at just value pursuant to s.
191 193.011.
192 (f)1. The owner of classified working waterfront property,
193 who is not required to file an annual application under this
194 section, must notify the property appraiser promptly if the use
195 of the property or the ownership changes in a manner that
196 changes the classified status of the property. If a property
197 owner fails to notify the property appraiser and the property
198 appraiser determines that, for any year within the prior 10
199 years, the property was not qualified to receive the
200 classification, the owner of the property is subject to taxes
201 otherwise due and owing as a result of the failure plus 15
202 percent interest per annum and a penalty of 50 percent of the
203 additional taxes owed.
204 2. A property appraiser who determines that a property
205 owner failed to provide the required notice of change in use or
206 ownership must record a tax lien against real property owned by
207 the person or entity. The property is subject to the payment of
208 all taxes and penalties. If the person or entity no longer owns
209 property in the county in which the unlawfully or improperly
210 classified working waterfront property is located, the property
211 appraiser shall record a tax lien against other properties owned
212 by the person or entity in other counties of the state. Any tax
213 lien recorded pursuant to this paragraph must identify the
214 property that was unlawfully or improperly classified as working
215 waterfront property and the property to which the lien applies.
216 (g) For property in which a portion receives a working
217 waterfront classification, the portion not eligible for
218 classification as a working waterfront property must be assessed
219 pursuant to s. 193.011.
220 (h) The property appraiser must make a list of all
221 applications for classification as working waterfront property.
222 The list must include the acreage, the just value of the
223 property determined pursuant to s. 193.011, the value of the
224 property if classification as working waterfront property is
225 granted or the reason if classification is denied, the name of
226 the property owner, the name of any business operating on the
227 property, and the address of the property.
228 Section 3. Section 193.7042, Florida Statutes, is created
229 to read:
230 193.7042 Working waterfront property; denial of
231 classification; appeal process.—
232 (1) The property appraiser must provide written notice to a
233 property owner applying for a working waterfront classification
234 of the denial of an application to classify property as working
235 waterfront property on or before July 1 of the year for which
236 the application was filed. The notice must advise the property
237 owner of his or her right to appeal the denial to the value
238 adjustment board and of the deadline for filing an appeal.
239 (2) Any property owner whose application for classification
240 as working waterfront property is denied may appeal the denial
241 to the value adjustment board by filing a petition requesting
242 that the application for classification be approved. The
243 petition may be filed at any time during the taxable year on or
244 before the 25th day after the property appraiser mails the
245 assessment notice pursuant to s. 194.011(1). Notwithstanding s.
246 194.013, the petitioner must pay a nonrefundable fee of $15 upon
247 filing the petition. The value adjustment board shall grant the
248 petition if the petitioner establishes that the property is
249 qualified to be classified as working waterfront property.
250 (3) A denial of a petition for classification by the value
251 adjustment board may be appealed to the circuit court.
252 (4)(a) Property that receives a working waterfront
253 classification from the value adjustment board or the circuit
254 court under this section retains that classification in any
255 subsequent year until the use of the property as working
256 waterfront property is abandoned or discontinued or the
257 ownership changes in any manner. The property appraiser shall,
258 no later than January 31 of each year, notify a property owner
259 receiving a classification under this subsection to certify that
260 the ownership and the use of the property has not changed. The
261 department shall prescribe by rule adopted pursuant to ss.
262 120.536(1) and 120.54 the form of the notice to be used by the
263 property appraiser.
264 (b) If a county has waived the requirement that an annual
265 application or short form be filed for classification of the
266 property under s. 193.7041, the county may, by majority vote of
267 its governing body, waive the notice and certification
268 requirements of this subsection and shall provide the property
269 owner with the same notification as provided to property owners
270 granted a working waterfront classification by the property
271 appraiser. The waiver may be revoked by a majority vote of the
272 county governing body.
273 Section 4. Paragraph (j) of subsection (3) of section
274 259.105, Florida Statutes, is amended to read:
275 259.105 The Florida Forever Act.—
276 (3) Less the costs of issuing and the costs of funding
277 reserve accounts and other costs associated with bonds, the
278 proceeds of cash payments or bonds issued pursuant to this
279 section shall be deposited into the Florida Forever Trust Fund
280 created by s. 259.1051. The proceeds shall be distributed by the
281 Department of Environmental Protection in the following manner:
282 (j) Two and five-tenths percent to the Department of
283 Community Affairs for the acquisition of land and capital
284 project expenditures necessary to implement the Stan Mayfield
285 Commercial Waterfront Restoration and Preservation Working
286 Waterfronts Program within the Florida Communities Trust
287 pursuant to s. 380.5105.
288 Section 5. Paragraph (a) of subsection (3) of section
289 380.502, Florida Statutes, is amended to read:
290 380.502 Legislative findings and intent.—
291 (3) It is the intent of the Legislature to establish a
292 nonregulatory agency that will assist local governments in
293 bringing local comprehensive plans into compliance and
294 implementing the goals, objectives, and policies of the
295 conservation, recreation and open space, and coastal elements of
296 local comprehensive plans, or in conserving natural resources
297 and resolving land use conflicts by:
298 (a) Responding promptly and creatively to opportunities to
299 correct undesirable development patterns, restore degraded
300 natural areas, enhance resource values, restore deteriorated or
301 deteriorating urban waterfronts, restore and preserve commercial
302 waterfront property working waterfronts, reserve lands for later
303 purchase, participate in and promote the use of innovative land
304 acquisition methods, and provide public access to surface
305 waters.
306 Section 6. Subsection (18) of section 380.503, Florida
307 Statutes, is amended to read:
308 380.503 Definitions.—As used in ss. 380.501-380.515, unless
309 the context indicates a different meaning or intent:
310 (18) “Working waterfront” means:
311 (a) A parcel or parcels of land directly used for the
312 purposes of the commercial harvest of marine organisms or
313 saltwater products by state-licensed commercial fishermen,
314 aquaculturists, or business entities, including piers, wharves,
315 docks, or other facilities operated to provide waterfront access
316 to licensed commercial fishermen, aquaculturists, or business
317 entities; or
318 (b) A parcel or parcels of land used for exhibitions,
319 demonstrations, educational venues, civic events, and other
320 purposes that promote and educate the public about economic,
321 cultural, and historic heritage of Florida’s traditional working
322 waterfronts, including the marketing of the seafood and
323 aquaculture industries.
324 Section 7. Subsections (2), (6), (7), and (11) of section
325 380.507, Florida Statutes, are amended to read:
326 380.507 Powers of the trust.—The trust shall have all the
327 powers necessary or convenient to carry out the purposes and
328 provisions of this part, including:
329 (2) To undertake, coordinate, or fund activities and
330 projects which will help bring local comprehensive plans into
331 compliance and help implement the goals, objectives, and
332 policies of the conservation, recreation and open space, and
333 coastal elements of local comprehensive plans, or which will
334 otherwise serve to conserve natural resources and resolve land
335 use conflicts, including, but not limited to:
336 (a) Redevelopment projects.
337 (b) Resource enhancement projects.
338 (c) Public access projects.
339 (d) Urban waterfront restoration projects.
340 (e) Site reservation.
341 (f) Urban greenways and open space projects.
342 (g) Commercial waterfront restoration and preservation
343 projects under s. 380.5105 Working waterfronts.
344 (6) Except as provided in s. 380.5105, to award grants and
345 make loans to local governments and nonprofit organizations for
346 the purposes listed in subsection (2) and for acquiring fee
347 title and less than fee title, such as conservation easements or
348 other interests in land, for the purposes of this part.
349 (7) Except as provided in s. 380.5105, to provide by grant
350 or loan up to the total cost of any project approved according
351 to this part, including the local share of federally supported
352 projects. The trust may require local funding participation in
353 projects. The trust shall determine the funding it will provide
354 by considering the total amount of funding available for the
355 project, the fiscal resources of other project participants, the
356 urgency of the project relative to other eligible projects, and
357 other factors which the trust shall have prescribed by rule. The
358 trust may fund up to 100 percent of any local government land
359 acquisition costs, if part of an approved project.
360 (11) Except as provided in s. 380.5105, to make rules
361 necessary to carry out the purposes of this part and to exercise
362 any power granted in this part, pursuant to the provisions of
363 chapter 120. The trust shall adopt rules governing the
364 acquisition of lands using proceeds from the Preservation 2000
365 Trust Fund and the Florida Forever Trust Fund, consistent with
366 the intent expressed in the Florida Forever Act. Such rules for
367 land acquisition must include, but are not limited to,
368 procedures for appraisals and confidentiality consistent with
369 ss. 125.355(1)(a) and (b) and 166.045(1)(a) and (b), a method of
370 determining a maximum purchase price, and procedures to assure
371 that the land is acquired in a voluntarily negotiated
372 transaction, surveyed, conveyed with marketable title, and
373 examined for hazardous materials contamination. Land acquisition
374 procedures of a local land authority created pursuant to s.
375 380.0663 or s. 380.0677 may be used for the land acquisition
376 programs described by ss. 259.101(3)(c) and 259.105 if within
377 areas of critical state concern designated pursuant to s.
378 380.05, subject to approval of the trust.
379 Section 8. Paragraphs (e) and (f) of subsection (4) of
380 section 380.508, Florida Statutes, are amended to read:
381 380.508 Projects; development, review, and approval.—
382 (4) Projects or activities which the trust undertakes,
383 coordinates, or funds in any manner shall comply with the
384 following guidelines:
385 (e) The purpose of working waterfront projects shall be to
386 restore and preserve working waterfronts as provided in s.
387 380.5105.
388 (e)(f) The trust shall cooperate with local governments,
389 state agencies, federal agencies, and nonprofit organizations in
390 ensuring the reservation of lands for parks, recreation, fish
391 and wildlife habitat, historical preservation, or scientific
392 study. In the event that any local government, state agency,
393 federal agency, or nonprofit organization is unable, due to
394 limited financial resources or other circumstances of a
395 temporary nature, to acquire a site for the purposes described
396 in this paragraph, the trust may acquire and hold the site for
397 subsequent conveyance to the appropriate governmental agency or
398 nonprofit organization. The trust may provide such technical
399 assistance as is required to aid local governments, state and
400 federal agencies, and nonprofit organizations in completing
401 acquisition and related functions. The trust shall not reserve
402 lands acquired in accordance with this paragraph for more than 5
403 years from the time of acquisition. A local government, federal
404 or state agency, or nonprofit organization may acquire the land
405 at any time during this period for public purposes. The purchase
406 price shall be based upon the trust’s cost of acquisition, plus
407 administrative and management costs in reserving the land. The
408 payment of this purchase price shall be by money, trust-approved
409 property of an equivalent value, or a combination of money and
410 trust-approved property. If, after the 5-year period, the trust
411 has not sold to a governmental agency or nonprofit organization
412 land acquired for site reservation, the trust shall dispose of
413 such land at fair market value or shall trade it for other land
414 of comparable value which will serve to accomplish the purposes
415 of this part. Any proceeds from the sale of such land shall be
416 deposited in the Florida Communities Trust Fund.
417
418 Project costs may include costs of providing parks, open space,
419 public access sites, scenic easements, and other areas and
420 facilities serving the public where such features are part of a
421 project plan approved according to this part. In undertaking or
422 coordinating projects or activities authorized by this part, the
423 trust shall, when appropriate, use and promote the use of
424 creative land acquisition methods, including the acquisition of
425 less than fee interest through, among other methods,
426 conservation easements, transfer of development rights, leases,
427 and leaseback arrangements. The trust also shall assist local
428 governments in the use of sound alternative methods of financing
429 for funding projects and activities authorized by this part. Any
430 funds over and above eligible project costs, which remain after
431 completion of a project approved according to this part, shall
432 be transmitted to the state and deposited in the Florida
433 Communities Trust Fund.
434 Section 9. Section 380.5105, Florida Statutes, is amended
435 to read:
436 380.5105 The Stan Mayfield Commercial Waterfront
437 Restoration and Preservation Program Working Waterfronts;
438 Florida Forever program.—
439 (1) As used in this section, the term “commercial
440 waterfront” means real or improved property that provides direct
441 access for water-dependent commercial activities. The term does
442 not include seaports or any property classified as working
443 waterfront property under s. 193.7041. Water-dependent
444 commercial activities include, but are not limited to, public
445 lodging or eating establishments; aquaculturists; and docks,
446 wharves, piers, wet or dry marinas, boat ramps, boat hauling
447 facilities, and boat repair facilities that are not eligible for
448 classification as working waterfront property under s. 193.7041
449 and s. 4(j), Art. VII of the State Constitution.
450 (2)(1) Notwithstanding any other provision of this chapter,
451 it is the intent of the Legislature that the Florida Communities
452 Trust shall administer the commercial waterfront restoration and
453 preservation working waterfronts program as set forth in this
454 section. Effective July 1, 2009, participation in this program
455 is limited to counties and municipalities that acquire, in fee
456 simple or less-than-fee simple, commercial waterfront property
457 for restoration or preservation purposes and limit the use of
458 the property in perpetuity to the water-dependent commercial
459 activities authorized under this section.
460 (3)(2) The Florida Communities Trust and the Department of
461 Agriculture and Consumer Services shall jointly develop and
462 adopt rules specifically establishing the procedures to be
463 followed for acquisitions under this section which use Florida
464 Forever funds provided to the trust under s. 259.105 and rules
465 to develop an application process and a process to evaluate,
466 score, and rank commercial waterfront restoration and
467 preservation for the evaluation, scoring and ranking of working
468 waterfront acquisition projects. The proposed rules jointly
469 developed pursuant to this subsection shall be promulgated by
470 the trust. Such rules shall establish a system of weighted
471 criteria to give increased priority to projects:
472 (a) Within a municipality with a population less than
473 30,000;
474 (b) Within a municipality or area under intense growth and
475 development pressures, as evidenced by a number of factors,
476 including a determination that the municipality’s growth rate
477 exceeds the average growth rate for the state;
478 (c) Within the boundary of a community redevelopment agency
479 established pursuant to s. 163.356;
480 (d) Adjacent to state-owned submerged lands designated as
481 an aquatic preserve identified in s. 258.39; or
482 (e) That provide a demonstrable benefit to the local
483 economy.
484 (4)(3) For projects that will require more than the grant
485 amount awarded for completion, the county or municipality
486 applicant must identify in the their project application funding
487 sources that will provide the difference between the grant award
488 and the estimated project completion cost. Such rules may be
489 incorporated into those developed pursuant to s. 380.507(11).
490 (5)(4) The trust shall develop a ranking list based on
491 criteria identified in subsection (2) for proposed fee simple
492 and less-than-fee simple acquisition projects proposed for
493 acquisition under developed pursuant to this section. The trust
494 shall, by the first meeting of the Board of Trustees of the
495 Internal Improvement Trust Fund meeting in February of each
496 year, present the ranking list pursuant to this section to the
497 board of trustees for final approval of projects for funding.
498 The board of trustees may remove projects from the ranking list
499 but may not add projects.
500 (6)(5) Grant awards, acquisition approvals, and terms of
501 fee simple and less-than-fee acquisitions shall be approved by
502 the trust. Counties and municipalities Waterfront communities
503 that receive grant awards must submit annual progress reports to
504 the trust identifying completed project activities which are
505 complete, and the progress achieved in meeting the goals
506 outlined in the project application. The trust must implement a
507 process to monitor and evaluate the performance of grant
508 recipients in completing projects that are funded through the
509 commercial waterfront restoration and preservation working
510 waterfronts program.
511 Section 10. This act shall take effect July 1, 2009.