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Home My WebLink AboutR-92-0173J-92-216 3/6/92 RESOLUTION NO. 9 2 -- 173 A RESOLUTION INITIATING ESTABLISHMENT OF 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; PROVIDING PURPOSE AND RESPONSIBILITIES; DIRECTING PREPARATION OF ENABLING LEGISLATION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, a compelling need exists to mitigate the fiscally debilitating impact to the City's budget of tax-exempt property in the City of Miami; and WHEREAS, the City must be reimbursed, to the fullest extent possible, for services it provides to tax-exempt properties; and WHEREAS, a program to solicit voluntary contributions from the owners of said tax-exempt properties is in order; and WHEREAS, the establishment of a Tax -Exempt Property Steering Committee is necessary to effectuate the herein objectives; and WHEREAS, the City of Miami, pursuant to a Cooperation Agreement with Dade County, and federal law, receives an annual Payment In -Lieu of Taxes contribution from Dade County H.U.D. ("Little HUD") for Little HUD's low rent housing developments located in the City; CITY corouSSION MEETING OF MAR1 2 1992 Resolution No. 92- 173 NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The purpose of the Tax -Exempt Property Steering Committee ("TEPSC") shall be to monitor tax-exempt institutional expansion and seek voluntary Payment In -Lieu of Tax (PILOT) contributions. Section 3. The TEPSC's responsibilities shall include: a) reformulating, as necessary, upon City Commission approval, general guidelines and criteria in carrying j' out its stated purpose; b) negotiating PILOT agreements for City Commission approval; c) monitoring the progress of all PILOT agreements; d) initiating and implementing administrative initiatives; e) initiating and implementing legislative initiatives, upon City Commission approval, pertaining to tax-exempt property; f) preparing annual reports to the City Commission; and g) serving as the City's principal advisory body on all fiscal matters relating to tax-exempt properties. Section 4. The City Attorney is hereby directed to prepare, for City Commission approval, legislation establishing a TEPSC as set forth herein. -2- 92- 173 r Section 5. The City Commission shall initially appoint five (5) individuals as community representative members on the TEPSC. Additionally, the TEPSC shall consist of a representative from the City Manager's Office, the Budget Department, Finance Department, Planning, Building and Zoning Department, and City Attorney's Office. Section 6. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 12th day of MM4 1992. ATTE MATTY HIRAI CITY CLERK PREPARED AND APPROVED BY: TY ATTORNEY 2�- XAL. S AREZ, APPROVED AS TO FORM AND CORRECTNESS: CITY ATT • •� MART 5-92 THU I6;58 CITY 0� M MI BUDGET FAX N0, 3055796081 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO : Honorable Mayor and Members DATE . _ r^ �� ? FILE: of the City Commission OR 9•.- SuUeCT : Tax Exempt Properties FROM Cesar H. Od REFERENCES City Manage'. ENCLOSURES: B •E.. aM NI?8T.t4,��. It is recommended that the City of Miami establish a Tax -Exempt Property Steering Committee (TEPSC) for the purpose of expanding the current Payment in Lieu of Tax program in the City of Miami. SACx , nT D_ The City is providing services to tax exempt properties which amount to approximately 30% of ad valorem assessments. The purpose of the committee iE to recover to the fullest extent polssible, the cost of providing city services to tax exempt properties. The Committee shall formulate, implement and monitor the above said program. The City Commission, shall appoint five (5) individuals as Community representative members on the TEPSC. Additionally, the TEPSC shall consist of a representative from; the City Manager's Office, Budget Department, Finance Department, Planning, Building and Zoning Department and City Attorney's Office. Attached please find a brief Summary of other CitiesPILOT programs. 92` 173 rs- MAR- 5-92 THU 16:59 CITY OF Mid' BUDGET FAX NO, 30 n6081 P, 03 I BRIEF SLW..ARY OF OTHER CITIES' P.I.L.O.T. PROGRAM BOSTON - $17,000,000 The City of Boston created a .Tax -Exempt Property Steering Committee (TEPSC) in 1985 although its PILOT program had been in existence since 1977. The committee issues general guidelines to be followed in negotiating all payment in lieu of tax agreements and is responsible for approving, by majority vote, all such agreements. Events triggering attention of the committee - owners of currently taxable property requesting tax exempt status; entities with current tax exempt property aoquiring �,.uitional or expanding property will result in discussions regarding voluntary annual payment to the City. Each agreement is based upon the characteristics of the type of property or orUdItls,a LIV14 1R'Rti►tll'trlr*t►t►WWVW.tVA-ft-------... --- 1 1 1 I I I I.I..1.1111LILL91100••egr•g&lllg■ Nrw xuktE - $103, 300, 000 New :u,l.n e,ll.Y'o r2LQT e4&ywaw to hZ00H Mn rnntrAntlIMI arrangements between public agencies and private property holders which offer real property tax relief in order to: 1) induce businesses to remain in New York Cityf 2) attract now businesses; 3) provide subsidies for low income housing and 4) promote trade. PILOT payments are either fixed sums based upon real property taxes paid on underlying property in the year preceding the agreement, formulas calculated on the income derived from business operations at the PILOT facility, or a combination of both. There are four primary sponsor dgencies which serves as intermediaries between the City and the PILOT facility owners New York City Housing Authority, Port Authority of New York and New Jersey, Industrial Development Agency and Battery park City Authority. Theme agencies administer projects that comprise approximately 970 of the PILOT payments received. The City does not receive PILOT's from nonprofit hospitals or universities. 92- 173 - '3 CAMBRIDGE - $4,000,000 In 1972, the City of Cambridge embarked upon a PILOT program requesting voluntary payments from all owners of tax exempt properties to ease the escalating cost of municipal services. This program has taken municipal services and related them to square footage of land based upon the tax revenue being generated by land throughout the entire city. They increase to keep pace with inflation and make up revenue losses. PITTSBURGH - $31000,000 Approximately 33 percent of the properties in Pittsburgh is tax exempt and the Mayor has implemented a fee system to get —;versitiea, hospitals, churches and other tax exempt group• to pay for public services. This represents a modification of a 20 year old system used previously by the statals public utilities. Fees already implemented for hospitals are collected by the Pennsylvania Revenue Department, which will then distribute the money to host municipalities based on the amount of tax exempt hospital property in each jurisdiction. 92- 1�3