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Home My WebLink AboutR-93-0285i a--93-329 S/13/93 RESOLUTION NO. 9 3" 285 A RESOLUTION ESTABLISHING A TAX-EXEMPT PROPERTY STIRRING COMMITTEE OF THE CITY OF MIAMI, FLORIDA (THE "COMMITTEE"), THEREBY PROVIDING FOR: (1) PURPOSE AND RESPONSIBILITY, (2) MEMBERSHIP AND TERMS OF OFFICE, (3) IMPLEMENTATION OF A PAYMENT -IN - LIEU OF TAXES ("PILOT") PROGRAM, AND (4) ADMINISTRATIVE SUPPORT; AUTHORIZING THE CITY MANAGER TO EXECUTE PILOT AGREEMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY; DIRECTING THE CITY MANAGER TO PREPARE A RESOLUTION FOR APPOINTMENTS TO SAID COMMITTEE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the tax base is vital to the continuous fiscal strength of the City of Miami; and WHEREAS, the City of Miami relies on the property tau as its primary source of tax revenue but is not allowed, by law, to tax incomes, expenditures, or financial assets and, as a result, oannot capitalize on the contributions tax-exempt institutions make to its economy; and WHEREAS, the Constitution of the State of Florida and General Law prevent the levying of ad valorem property taxes on suoh portions of property as are used predominantly for education, literary, scientific, religious, charitable or governmental purposes; and WHEREAS, the City of Miami, as the "County -seat" of Dade County, is the site of a significant number of governmental and cm comm �— KCEMG GF MAY 13 1993 93- 285 otherwise public purpose oriented facilities which account for nearly 83% of the City's tax-exempt property; and WHEREAS, said public purpose facilities have an adverse impact on the amount of tax revenue that can be raised in the City Of Miami, since the bulk of these facilities are located and continue to be located on extremely valuable real estate in the core of the City; and WHEREAS, the assessed value of real property in the City of Miami which would qualify for a Payment -In -Lieu of Taxes ("PILOT") Program is approaching the $3 billion level; and WHEREAS, although the City Commission recognizes the many economic, oultural, spiritual, medical, educational and public purpose contributions of tax-exempt institutions, these institutions consume a signifioant amount of City of Miami municipal services; and WHEREAS, as major property owners within the City, the County and State governments have a responsibility to compensate Dade County's "County -seat" for the municipal costs associated with their facilities; and WHEREAS, the City Commission, on March 12, 1992, adopted Resolution No. 92-173, initiating the process of establishing a Tax -Exempt Property Steering Committee for the purpose of expanding and upgrading the current Payment -In -Lieu of Taxes Program in the City of Miami; and WHEREAS, although the guidelines for the Taz-Exempt Property Steering Committee, which are set forth herein, focus on the expansion and replacement of tax-exempt property, it is the -2- 93- 285 I 2 intent of the City Commission that existing tax-exempt faoil ties also pay their fair share; and WHIREAS, by providing for tau -exempt organizations to substitute a portion of their PILOT payments with community servioe credits, the PILOT Program ensures that Miami's residents share in the opportunities offered by tax-exempt institutions: and WHZREAS, it is intended and understood by the City Commission that partioipation by any tax-exempt institution in the subject program shall be striotly voluntary; NOW, THEREFORE. BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The reoitals and findings contained in the Preamble to this Resolution are hereby adopted by referenoe thereto and incorporated herein as if fully set forth in this Section. Section 2. A Tax -Exempt Property Steering Committee of the City of Miami, Florida (the "Committee"). is hereby established. Said Committee shall seek to manage ohanges in the City of Miami's tax base by monitoring tax-exempt institutional expansion and seeking voluntary Payment -In -Lieu of Taxes ("PILOT") payments from those tau -exempt institutions in the City of Miami that wish to initiate, expand or signifioantly alter their land holdings in the City of Miami. The Committee shall -3- 93- 285 ON 0 Also sotively oontaot and work with existing tax-exempt institutions to enoourage their partioipation in the MOT progr", Seotion 3. Committee Membership. (A) The Committee shall oonsist of five (5) individuals as oommunity representative members whose residenoe or plaoe of business are in the City of Miami and whioh are appointed by the City Commission. Additionally, said Committee shall oonsist of, in a non -voting advisory and support oapaoity, one representative eaoh from the City Manager's Offioe, the Budget Department, Finanoe Department, Planning, Building and Zoning Department, and the City Attorney's Offioe. Three (3) of the appointed oommunity representatives shall serve an initial term of two (2) years and two (2) of the appointed oommunity representatives shall serve an initial term of three (3) years. The Mayor and eaoh City Commissioner shall eaoh nominate one oommunity representative member for appointment to the Committee. Upon expiration of initial terms, subsequent appointments shall be for two (2) years. A member may be reappointed by the City Commission for not more than three oonseoutive terms. Appointments to fill a vaoanoy shall be for the remainder of the unexpired term. An appointed member's term shall immediately expire pending appointment of a auooessor upon the 000asion of the City Commissioner who appointed said member leaving offioe. (g) The +Committee,a appointed membership ("Membership") shall eleot a Chairperson who shall be a voting member . The presenoe of three members of the Membership shall constitute a quorum. The Committee is authorized to establish its own rules of prooedures. (C) The City Manager is hereby direoted to provide all neoessary olerioal and administrative staff support to the Committee, inoluding spaoe and neoessary expenses whioh may be reasonably required by the Committee for the proper performanoe of its duties. The Committee shall inform the City Manager of the level of olerioal and administrative staff support neoessary on a periodio basis and the City Manager shall provide suoh reasonable support as it is determined is warranted under the prevailing oiroumstanoes. Seotion 4. The Committee shall be responsible for monitoring the level of tax-exempt property within the City of Miami ("City") and the fisoal import of said property on the City's tau base. Further, the Committee shall reoommend procedures to the City Commission for monitoring suoh uses and aotively engage in negotiations leading to reasonable property tax reimbursement for tax revenues lost from existing tax-exempt institutions in the City, as well as aotively pursuing PILOT program participation by tax-exempt institutions seeking to build upon, expand, or signifioantly alter its holdings in the City. i The Committee shall issue general guidelines to be followed in negotiating voluntary agreements for payment -in -lieu of takes, and shall be responsible for making a reoommendationt by a majority vote of the membership, to the City Manager on all suoh agreements. In addition, the Committee shall monitor the progress of all PILOT Agreements and provide the City Commission with an annual report on tax-exempt properties, and shall work with the City Manager, the City's lobbyists, the Dade County Legislative Delegation, and suoh other organizations as may be neoessary to effeotuate legislation neoessary to reduoe the negative effeot on the City's tag base that tau -exempt uses oause. Seotion 8. The City Manager is hereby authorizedl' to exeoute on the City's behalf, all PILOT Agreements, in a form aooeptable to the City Attorney, that are negotiated by the Committee, favorably reoommended by said Committee, and determined by the City Manager to be in the City of Miami's best interest. Seotion 6. The following initial guidelines are proposed: (A) Negotiations. 'a'1 (1) Establish an agreement with the Dade County Tax Colleotor's Offioe whereby the Committee The herein authorization is further subjeot to oomplianoe _ with all requirements that may be imposed by the City Attorney, inoluding but not limited to those presoribed by ` applioable City Charter and Code provisions. 93- 285 shall be notified when an owner of a ourrently taxable property requests tax- exempt status. Said owner shall be oontaoted - by the Committee and be enoouraged to make a voluntary annual payment to the City. (2) Disoussion regarding a voluntary annual payment to the City shall oommenoe at the time a tax-exempt organization institutes prooeedings to either expand or improve its + property._ (3) The Committee shall also analyze the fisoal impaot of existing private seotor, State, County, and other publio faoilities on the City, and initiate negotiations for payment - in -lieu of taxes from said entities in recognition of the eoonomio costs they impose on the City. (H) In determining an equitable Payment -In -Lieu of Taxes the following are to be oonsidered: (1) the oost of providing municipal servioes to the institution; (2) the revenue to the City of the property, if taxable; (3) whether it is to be a building or faoility-. wide Agreement; 93- 285 -7- (4) the nature of the publio benefit provided by the institution; (0) the revenue produoing capabilities of the institution; (8) oredits for servioes to oommunity (soholarships, free use of an institution's faoilities, eta.) provided by tax-exempt institutions, at the discretion of the oommittee, not to exoeed 25% of dollar value Of annual oosts for munioipal servioes reoeived; and (7) escalator clauses to defleot affects of inflation. Seotion 7. The aforementioned guidelines are not all enoompassing. The Committee is free to propose new and oreative inoentives to the City Commission or suggest the disoontinuanoe of unworkable or nonproductive initiatives. Seotion 8. The City Manager is hereby direoted to prepare a Resolution for the appointments of the five oommunity R representatives to said Committee, and sohedule said Resolution for the next Regular City Commission Agenda. r .1 a'] Motion 0, This Resolution Aball bdOOMe effeOtilft innediately Ulm its adoption. PASSED AND ADOPTED this _13th day of XAVIER ISUARAZ, MAYOR ATT (Ag 1 4i5��L NATTY HIRAI CITY CLERK PREPARED AND APPROVED BY: 6 E. MAXWELL IF ASSIOTANT CITY ATTORNEY :B$S:mi84.osk:K3587 APPROVED AS TO FORK AND CORRECTNESS: A. QUM ?O)ms. I I CITY ATTTEY fi BY 8- 6-93 ; 3:11PM LAW WT. t� ft=dble► Maym amd of city coat Se dclo FA01A Osedt 1. odi o City massager r,rTY ot- MIAMI, FLOHIDA 10 INTEROFFICE MEMORANDUM DATE: may G, 19A3 f 4 t47 LUWtCT P8910.1.utL i omtw a Trmc NAsspt ftopearty ug o mdttae for Payi0mv-Tor-iuu Of Tam Program MI ! t l�tNGE3 : city C1rxt iCr� 1.%H:1.0AuF%S : YkV 13, Ii i It ie ed that the City of Miami eefiahli& a !P= RM=Pt ftOMty Steerir4e 00ni ttee MG _CWm: ttee") fOr thO Puy TOM of Adstag the c armt; paymmt -mm-Zaim of 'I'"W ( "PnDT") Prosrsm in the City Of Me City in p V d14 8W410 3 to 'at =Mpt which aSt10mt: to appwoodnately 3M of ad valorem ash. On March 12, I=, the My Caa d wS ou adopted Resolution NO. w1"r03. initi5tirt estebai sent of a Tex-ft mnpt Property SbeeriV Ckx=itbae tom. he City AttoYs Cfotgin direoted aia estawOmmu .ttee . The PnToee of the comdttee is to reoov er to the f1>nest a ctenst Powdu , the cost Of FwV1rl .V Ch ty samVioes to to c-eao®pt Pacorper Tire couni ttee dn.11 foarimt Ate► impZmsmt mid =itor tha PnW Propem. 2te My Cbnodalcma da3l appoint five (B) izidivIdWalffil W 009MMity repmentatAve members to the Was ttee at the react rcagn wly teahed1.7.ed =q&Wxg of the City Clommd sed.00k (too aliov time saw you to considw 9>AdivisbWa - for ft1 d posi ). ljdtii ticant9.11y, the *m d ttee Mau 0oa81st Of tilag re Ieeatdtim fro® the City 16ea7elger's Office. Me Depa-tomb, Ma oW, 941diwd zonal ed. eaod City ,Att msy'a Office. A Aesa7.uti<aat is 0tacbed whL& sots forth elIrma for the Comami tree, azd fociu ses on the of teat �avPea: hi t. This p AU q ban t28 pre pst is advaatalge of al1ovivg a wept Swtituti= to imoinds tlse coat Of my poop mt In the fa.. �? soanrA of =w 2AW IS des. in additim, this y0lay 3aa1u&W institatt mo tb t. their intent to ' ®cpamd, aqnwn a fas a BnarA ial paad tioa. _7bewetwat as &&LVC 3 impeWrb it Prvywti n Mbout; s the a ctwo qe finavaial on emea>opt dnstitutioos. Nanem. this poUpy V= act precalude the C7oamitts8 facan ialtiati o •JAfor eudaltl , epalmap parogaeart.iee as the Progsam pa+ogrVesee. MK*.bsa:P8W