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HomeMy WebLinkAboutO-12927City of Miami Legislation Ordinance: 12927 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 07-00562 Final Action Date: 6/14/2007 AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER 23 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, ENTITLED "HISTORIC PRESERVATION," MORE PARTICULARLY BY ADDING A NEW ARTICLE ENTITLED "AD VALOREM TAX EXEMPTION," WHICH ESTABLISHES A CITY OF MIAMI ("CITY") AD VALOREM TAX EXEMPTION PROCESS FOR IMPROVEMENTS TO ARCHITECTURALLY AND HISTORICALLY SIGNIFICANT STRUCTURES IN THE CITY; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the citizens of Florida have amended the Florida Constitution, Article VII, Section 3(e) to authorize counties and municipalities to allow certain tax exemptions for historic properties; and WHEREAS, the Florida legislature has enacted Sections 196.1997 and 196.1998, Florida Statutes to govern the allowance of such exemptions; and Whereas, the City Commission has deemed it necessary to establish a city ad valorem tax exemption process for improvements to architecturally and historically significant structures in the City of Miami ("City"); and WHEREAS, the City Historical and Environmental Preservation Board endorse the proposed amendment to the Historic Preservation section of the Code of the City of Miami, Florida, as amended ("City Code"); and Whereas, the amendment encourages restoration, rehabilitation and renovation of designated historic structures in the City; and WHEREAS, the amendment would improve the appearance of designated Historic Landmarks in the City, therefore enhancing their appeal as places to live, to work or to visit; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Ordinance are adopted by reference and incorporated as if fully set forth in this Section. Section 2. Chapter 23 is amended in the following particulars:{1} " Chapter 23 HISTORIC PRESERVATION ARTICLE I. HISTORIC PRESERVATION City of Miami Page 1 of 9 File Id: 07-00562 (Version: 1) Printed On: 3/31/2017 File Number: 07-00562 Enactment Number: 12927 ARTICLE II. AD VALOREM TAX EXEMPTION DIVISION 1. GENERALLY Sec. 23-7. Short Title. This article shall be known and may be cited as the "Historic Tax Exemption Ordinance". Sec. 23-8. Purpose. The provisions of this article shall create a method that provides the City Commission to allow tax exemptions for the taxes levied by the City of Miami for the restoration, rehabilitation or renovation of historic properties. Sec. 23-9. Definitions. For the purposes of this article, the following words and phrases shall have the meanings respectively ascribed to them by this section: Assessed value. The total value of a tax parcel, excluding the value of the land, as determined by the Miami -Dade County property appraiser, and shown on the property tax bill sent to the owner of record by Miami -Dade County. Board. The Historic and Environmental Preservation Board Contributing resource. A building, landscape feature, site, structure, or object that adds to the historical architectural qualities, historic associations, or archaeological values for which a district is significant because: (a) It was present during the period of significance of the district, and possessed historic integrity reflecting its character at that time; (b) It is capable of providing important information about the period; or (c) It independently meets the National Register of Historic Places criteria for evaluation set forth in 36 CFR Part 60.4, incorporated by reference. Historic Property Tax Exemption covenant. The Historic Preservation Property Tax Exemption Covenant is a form that complies with applicable Florida Statutes and accompanying rules, and is an agreement made between the property owner and the city, indicating that the owner agrees to maintain and repair the property so as to retain the architectural and historical integrity of the property during the exemption period. Historic property. A building, site, structure, or object that is: (a) Individually listed in the National Register of Historic Places; or (b) A contributing property in a National Register listed historic district; or (c) Designated as a historic property or landmark under the provisions of Chapter 23 of the Miami City Code; or (d) A contributing property in a historic district designated under the provisions of Chapter 23 of the City of Miami Page 2 of 9 File Id: 07-00562 (Version: 1) Printed On: 3/31/2017 File Number: 07-00562 Enactment Number: 12927 Miami City Code. Improvement. Any change in the condition of any eligible real property brought about by the expenditure of money on labor or materials for the restoration, renovation, or rehabilitation of such property. Expenditures for interior or exterior work, including construction of additions or accessory structures, shall be included in the meaning of improvements (i.e., garage, cabana, guest cottage, storage/utility structure) so long as the new construction is compatible with the historic character of the building and site in terms of size, scale, mass, design and materials, and preserves the historic relationship between a building or buildings, landscape features and open space. National Register of Historic Places. The list of historic properties significant in American history, architecture, archaeology, engineering and culture, maintained by the Secretary of the Interior, as established by the National Historic Preservation Act of 1966 (Public Law 89-665; 80 STAT. 915; 16 U.S.C. 470), as amended. Noncontributing resource. A building, landscape feature, site, structure, or object that does not add to the historic architectural qualities, historic associations, or archaeological values for which a district is significant because: (a) It was not present during the period of significance of the district; or (b) Due to alterations, disturbances, additions, or other changes, it no longer possesses historic integrity reflecting its character at that time or is incapable of yielding important information about the period; or (c) It does not independently meet the National Register of Historic Places criteria for evaluation. Officer. The Hhistoric Preservation Officer. Renovation or rehabilitation. For historic properties or portions thereof that are of historical or architectural significance, "renovation" or "rehabilitation" means the act or process of returning a property to a state of utility through repair or alteration that makes possible an efficient contemporary use, while preserving those portions or features of the property that are significant to its historical, architectural, cultural and archaeological values. For historic properties or portions thereof that are of archaeological significance or are severely deteriorated, "renovation" or "rehabilitation" means the act or process of applying measures designed to sustain and protect the existing form and integrity of a property, or reestablish the stability of an unsafe or deteriorated property while maintaining the essential form of the property as it presently exists. Restoration. The act or process of accurately recovering the form and details of a property and its setting as it appeared at a particular period of time by means of the removal of later alterations or by the replacement of missing earlier work. Sec. 23-10. Historic tax exemption. This exemption shall apply to one hundred (100) per cent of the assessed value of all improvements to eligible historic properties that result from restoration, renovation or rehabilitation made on or after the effective date of this ordinance. The exemption applies only to taxes levied by the City of Miami. The exemption does not apply to taxes levied for the payment of bonds or to taxes authorized by a vote of the electors pursuant to section 9(b) or Section 12, Article VII of the Florida Constitution. City of Miami Page 3 of 9 File Id: 07-00562 (Version: 1) Printed On: 3/31/2017 File Number: 07-00562 Enactment Number: 12927 (1) Eligible Properties A property is qualified for an exemption under this section if at the time the exemption is granted the property is: (a) Individually listed in the National Register of Historic Places, pursuant to the National Historic Preservation Act of 1966, as amended; or (b) A contributing property within a National Register listed district; or (c) Individually listed in the Miami Register of Historic Places, or (d) Identified as a contributing structure within a historic district listed in the Miami Register of Historic Places Sec. 23-11. Completely exempt from property taxes. If an eligible property is used for a non-profit or governmental purpose and is regularly and frequently open for the public's visitation, use and benefit, the city may exempt one hundred (100) per cent of the assessed value of the property, as improved, from ad valorem taxes levied by the city provided that the assessed value of the improvement is equal to at least fifty (50) per cent of the total assessed value of the property as improved. This section applies only if the improvements are made by or for the use of the then existing property owner. An eligible property is considered used for non-profit or governmental purposes if the occupant or user of at least sixty-five (65) per cent of the usable space of the building is an agency of the federal, state or local government or a non-profit corporation whose articles of incorporation have been filed by the Florida department of state in accordance with Section 617.0125, Florida Statutes. Usable space means that portion of the space within a building that is available for assignment or rental to an occupant. A property is considered regularly and frequently open to the public if the public has access to the property not less than fifty-two (52) days a year on an equitably spaced basis, and other times by appointment. This exemption does not prohibit the owner from charging a reasonable, non-discriminatory admission fee. If a property that qualifies for this exemption is no longer used for non-profit or governmental purposes or is no longer regularly and frequently open to the public or if ownership is transferred, this exemption shall no longer be effective and the property shall, instead, be subject to the exemption provided for by section 23-10 above. Sec. 23-12. Term of exemption. Any exemption granted shall remain in effect for up to ten (10) years with the effective date being October 1, of the year that the applicant and the city have entered into the exemption covenant, and following the Miami -Dade County Property Appraiser's formal evaluation of the completed improvements, and their subsequent valuation. The City Commission shall have the discretion to set a lesser term for the duration of the exemption. The exemption shall continue in force if the authority of the city to grant exemptions changes or if ownership of the property changes, including any change from a tax exempt entity to a tax paying entity except as set forth in section 23-10 above. In order to retain an exemption the historic character of the property, and improvements that qualify the property for an exemption, must be maintained in the historic state over the period for which the exemption was granted. DIVISION 2. APPLICATION PROCESS FOR EXEMPTION Sec. 23-13. Forms/ Fees. Any person, firm, or corporation which desires a tax exemption for historic properties shall, in City of Miami Page 4 of 9 File Id: 07-00562 (Version: 1) Printed On: 3/31/2017 File Number: 07-00562 Enactment Number: 12927 the year the exemption is desired to take effect, file a completed application on the appropriate forms obtained from the City of Miami Historic Preservation Officer. The forms shall contain all the information required by the Division of Historical Resources, Florida Department of State, and promulgated in accordance with Rule 1A-38, F.A.C., but may also contain additional information as determined necessary by the board. Application forms and summaries of deadlines and application procedures shall be maintained by the Officer and shall be made available to the general public upon request. A non-refundable fee of $250.00 will be payable upon submission of the application, with the check made payable to the "City of Miami." Sec. 23-14. Preconstruction application (Part I). Only expenditures made to an eligible property after the effective date of this ordinance may be reviewed by the Officer for approval. Work that has already been completed before an application is approved may not be considered eligible for inclusion in the tax exemption. The Board may consider applications of non -eligible properties if the proposed work would restore the building to its original appearance, thus making it an eligible property. (a) Applications for the ad valorem tax exemption may be reviewed concurrently with an application for a Special Certificate of Appropriateness; however, all additional materials, the non-refundable application fee, the specific forms and additional submittal requirements for the historic tax exemption must accompany the request. (b) The application will be made on forms approved by the Florida Department of State, and all applicable fees shall be paid at the time the application is submitted. The application must include the following information: (1) The name of the property owner and the location of the historic property. (2) A description of the real property for which an exemption is requested and the anticipated date of commencement of such improvements. (3) Proof to the satisfaction of the Board that the property that is to be rehabilitated or renovated is an eligible property under this section. (4) Proof to the satisfaction of the Board that the improvements to the property will be consistent with the Secretary of the Interior's Standards for Rehabilitation, and any other design guidelines previously promulgated by the Board. Sec. 23-15. Review of Preconstruction Application by Officer. (a) Upon receipt of the completed preconstruction application and all required materials, the Officer shall conduct a review to determine: (1) Whether the property for which an exemption has been requested is or is not a historic property pursuant to Section 23-10 of this code; and (2) Whether the proposed, in progress, or completed improvements are consistent with the Secretary of Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings and any other design guidelines previously promulgated by the Board; and (3) For applications claiming a 100% exemption as a qualifying non-profit or governmental agency, the Officer shall verify the specified conditions under Section 23-11 of this code. (b) The Officer shall complete their review of the preconstruction application within fifteen (15) days following receipt of the completed application and all required supporting materials. (c) The Officer shall submit the preconstruction application to the board that shall contain copies of City of Miami Page 5 of 9 File Id: 07-00562 (Version: 1) Printed On: 3/31/2017 File Number: 07-00562 Enactment Number: 12927 the preconstruction application, reviews by the Officer, and the Officer's recommendation for approval, denial, or approval with conditions. Sec. 23-16. Project amendments. If changes to a project are planned at any time after submission of the preconstruction application, an amendment sheet must be submitted for review. This amendment sheet will allow an applicant to indicate planned changes in project improvements, giving the originally proposed treatment and the amended work item description. Sec. 23-17. Request for review of Completed Work (Part II). (a) A request for review of completed work shall be submitted by the applicant upon substantial completion of the improvements as represented in the preconstruction application and any amendments. The request for review must provide a comprehensive photographic description of the completed improvements. Photographs of the completed improvements should show the same views as the "before" photographs included in the preconstruction application. All photographs should be numbered, dated and labeled with the property name or address, the view, and a brief description of what is shown. The review shall also provide information on project budgets and what portion of the budget went to historical renovations. (b) Upon receipt of a request for review of the substantially completed work and all required supporting materials, the Officer shall conduct a review to determine whether or not the completed improvements are in compliance with the renovation, restoration, or rehabilitation described in the preconstruction application, subsequent approved amendments, if any, and the Secretary of the Interior's Standards for Rehabilitation. The Officer reserves the right to inspect the completed improvements to verify such compliance. Sec. 23-18. Time of completion. An applicant must substantially complete all renovation, restoration or rehabilitation within two (2) years following the date of approval of a preconstruction application and the approval of a Special Certificate of Appropriateness by the Board. A preconstruction application approval shall automatically be void in the event the applicant fails to submit a Part II request for Review of Completed Work within two (2) years following the date of approval of a preconstruction application and Special Certificate of Appropriateness, except that the Officer may, in his/her discretion, extend such period of time not to exceed one (1) year. Sec. 23-19. Completed Work Application (Part II). Once an applicant has filed a request for review of the substantially completed work application with the Officer, the Officer will prepare a completed work report to submit to the board. The completed work application will include a discussion on the project as completed and a recommendation from the Officer to approve or deny the application. The completed work application should also include copies of the preconstruction application, any amendments, the request for review of completed work, and photographs of the project conditions before and after the improvements. Sec. 23-20. Review by the Board. City of Miami Page 6 of 9 File Id: 07-00562 (Version: 1) Printed On: 3/31/2017 File Number: 07-00562 Enactment Number: 12927 The City of Miami's Historic and Environmental Preservation Board is designated to review applications for exemptions. The Board must recommend to the City Commission that it either grant or deny the exemption. Such reviews must be conducted in accordance with the rules adopted by the Florida Department of State. The recommendations and the reasons, therefore, must be provided to the applicant and to the City Commission before consideration of the application at an official Commission meeting. The Commission shall also be furnished with a covenant executed between the property owner and the city, confirming their intent to maintain the qualifying improvements for the duration of the tax exemption granted by the City Commission. The applicant shall also be advised of his/her right to a fair hearing pursuant to Section 120.57 Florida Statutes, and procedures set forth by the City Commission. Sec. 23-21. Appeals. Following the Board's denial of the preconstruction application, and the Officer's notification by mail, the applicant shall have thirty (30) days from the date of the mailing to file an appeal of the determination to the City Commission. The written notice of appeal shall be filed with the Hearing Boards Department, with a copy to the Historic Preservation Officer. The appeal shall set forth precisely the reasons or grounds for the appeal, and shall be accompanied by the applicable fee. Sec. 23-22. Final review. (a) The City Commission shall grant or deny the tax exemption based on the recommendations of the board. A vote of the Commission shall be required to adopt a motion. (b) If the final application is granted, the City Commission shall adopt a resolution granting the historic tax exemption to the property owner. The resolution shall contain the following: (1) The name of the owner and the street address and legal description of the historic property that the exemption is granted to; and (2) The period of time that the exemption shall remain in effect; and (3) A finding that the historic property meets the requirements of this article. (c) Upon adoption of the resolution, and following the Officer's receipt of the executed Historic Property Tax Exemption Covenant, the Officer shall record the covenant, along with any supporting documents, with the deed for the property in the official records of Miami -Dade County. The applicant will be responsible for payment of all fees associated with the recording of the documents. Following the recording of the covenant, the Officer will transmit to the property appraiser a copy of the City Commission resolution granting the exemption, with instructions to provide the historic tax exemption to the applicant as provided for in the resolution. A copy of the Officer's letter of transmittal to the property appraiser shall be furnished to the applicant. Sec. 23-23. Covenant. (a) To qualify for an exemption, the property owner must enter into a covenant or agreement with the city for the term for which the exemption is granted. The form of the covenant shall be approved by the Florida Department of State and will require that the character of the property and the qualifying improvements to the property be maintained during the period that the exemption is granted. (b) The covenant shall be binding on the current property owner, transferees, and their heirs, successors, or assigns. DIVISION 3. ADMINISTRATIVE PROVISIONS City of Miami Page 7 of 9 File Id: 07-00562 (Version: 1) Printed On: 3/31/2017 File Number: 07-00562 Enactment Number: 12927 Sec. 23-24. Revocation. (a) The following conditions shall provide justification for removal of a property from eligibility for the property tax exemption by the City Commission, provided under this code. (1) The owner is in violation of the provisions of the historic preservation tax exemption covenant; or (2) The property has been damaged by accidental or natural causes to the extent that the historic integrity of the features, materials, appearance, workmanship and environment, or archaeological integrity that made the property eligible for listing in the National Register or designation under the provisions of Chapter 23 of the Miami City Code have been lost or so damaged that restoration is not feasible. (b) For the exemption granted for non -profits and governmental agencies, the circumstances have changed and the property no longer meets the tests established in Section 23-11 of this code. (c) Proceedings under this section may also be initiated following a finding by the code enforcement board that a housing code violation has occurred. The board shall provide notice to the current owner of record to the property and hold a hearing in the same manner as in a review of a certificate of appropriateness as specified in section 23-5, City Code, before forwarding their recommendation to the City Commission. (d) Upon a determination by the City Commission that the historic tax exemption is to be revoked, the Officer shall provide written notice of the Commission's decision to the applicant and the property owner of record, if different, as well as to the property appraiser. The notice to the applicant, or owner of the property, if different, shall be accompanied by reasons and recommendations for changes to the property that may result in reinstatement of the exemption. (e) Upon receipt of a notice of revocation, the property appraiser shall discontinue the historic tax exemption on the property as of October 1, of the year following receipt of the notice of revocation. (f) The notice of revocation shall include a statement that a penalty equal to the total amount of taxes that would have been due in March and each of the previous years in which the historic preservation exemption covenant was in effect had the property not received the exemption, less the total amount of taxes actually paid in those years, plus interest calculated as provided in Section 212.12(3), Florida Statutes, shall be imposed by the tax collector for violation of the terms, conditions, and standards of the historic preservation exemption covenant. Sec. 23-25. Reinstatement. A property may be reinstated for the historic tax exemption upon satisfactory submission of evidence that the recommendations for changes to the property previously made by the Officer and Board, and which have been approved by the City Commission, have been completed. The process for reinstatement shall be the same as the process for revocation proceedings. Upon reinstatement by the City Commission of the exemption, the Officer shall notify the property appraiser and the historic tax exemption shall then be reinstated for the remaining unexpired term of the initial exemption. Sec. 23-26. Reapplication. An applicant previously granted a historic tax exemption by the City Commission may undertake an additional substantial improvement project during the exemption period, or following its expiration, and may reapply for additional historic tax exemption for such subsequent work. Sec. 23-27. Annual report. The Officer shall prepare an annual report to the City Commission concerning the historic City of Miami Page 8 of 9 File Id: 07-00562 (Version: 1) Printed On: 3/31/2017 File Number: 07-00562 Enactment Number: 12927 preservation tax exemption program. The report shall be filed at least thirty (30) days before the Commission adopts a budget for the following fiscal year, and shall summarize activities of the Officer and the Board related to the historic tax exemption program during the previous fiscal year. The information contained in the annual report shall include, but not be limited to, the following: (a) A list of the properties that preconstruction applications and completed work applications were made for during the preceding year; (b) An explanation of the disposition of each application; (c) The total exempted amount for each completed project during the preceding year; (d) The total number of properties currently participating in the historic tax exemption program as of the end of the previous year; (e) The total expenditure on all improvement projects currently participating in the program; and (f) Any other information requested by the commission or considered significant by the Officer. Sec. 23-29. Judicial review. Judicial review of decisions made by the board or the City Commission shall be by certiorari in accordance with Florida Rules of Appellate Procedure. *If Section 3. All Ordinances or parts of Ordinances that are inconsistent or in conflict with the provisions of this Ordinance are repealed. Section 4. If any section, part of section, paragraph, clause, phrase or word of this Ordinance is declared invalid, the remaining provisions of this Ordinance shall not be affected. Section 5. This Ordinance shall become effective immediately upon its adoption and signature of the Mayor.{2} Footnotes: {1} Words/and or figures stricken through shall be deleted. Underscored words and/or figures shall be added. The remaining provisions are now in effect and remain unchanged. Asterisks indicate omitted and unchanged material. {2} This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten days from the date it was passed and adopted. If the Mayor vetoes this Ordinance, it shall become effective immediately upon override of the veto by the City Commission or upon the effective date stated herein, whichever is later. City of Miami Page 9 of 9 File Id: 07-00562 (Version: 1) Printed On: 3/31/2017