4358 2016 Referendum Question Ordinance No. 2015-4358
An ordinance of the City of Sanford, Florida, relating to a referendum
election pertaining to the issue of economic development or
community development ad valorem tax exemptions as permitted by
Article VII, Section (3)(c), Constitution of the State of Florida, as
implemented by Section 196.1995, Florida Statutes; providing for
legislative findings and recitals; providing for authorization and
authority; directing the Supervisor of Elections of Seminole County
to hold a referendum election on March 15, 2016; providing for ballot
language; providing for actions upon approval at referendum
election; providing for the requirements of implementing ordinances;
directing the City Clerk to advertise the special referendum election
in accordance with controlling law and coordinate activities with the
Supervisor of Elections; providing for definitions; providing for
matters to be considered in evaluating applications and generalized
criteria; providing for processes and procedures and related matters
upon passage of referendum relative to the consideration of
applications for tax exemptions; providing direction to the City
Manager; providing for implementing administrative actions and
responsibility for implementation relating to tax exemptions;
providing for a savings provision; providing for conflicts; providing
for severability; providing for codification as well as the correction of
scrivener's errors; providing for severability and providing for an
effective date.
Whereas, Article VII, Section (3)(c), Constitution of the State of Florida,
authorizes local governments to provide for an ad valorem tax exemption for certain
purposes and provides as follows:
Any county or municipality may, for the purpose of its respective tax levy
and subject to the provisions of this subsection and general law, grant
community and economic development ad valorem tax exemptions to new
businesses and expansions of existing businesses, as defined by general
law. Such an exemption may be granted only by ordinance of the county
or municipality, and only after the electors of the county or municipality
voting on such question in a referendum authorize the county or
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municipality to adopt such ordinances. An exemption so granted shall
apply to improvements to real property made by or for the use of a new
business and improvements to real property related to the expansion of an
existing business and shall also apply to tangible personal property of
such new business and tangible personal property related to the
expansion of an existing business. The amount or limits of the amount of
such exemption shall be specified by general law. The period of time for
which such exemption may be granted to a new business or expansion of
an existing business shall be determined by general law. The authority to
grant such exemption shall expire ten years from the date of approval by
the electors of the county or municipality, and may be renewable by
referendum as provided by general law.
and
Whereas, Section 196.1995, Florida Statutes, implements the provisions of
Article VII, Section (3)(c), Constitution of the State of Florida, and provides, in pertinent
part in Subsection (1)(a), as follows:
The . . . governing authority of any municipality shall call a referendum
within its total jurisdiction to determine whether its respective jurisdiction
may grant economic development ad valorem tax exemptions under s. 3,
Art. VII of the State Constitution if:
(a) The . . . governing authority of the municipality votes to hold such
referendum;
and
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Whereas, accordingly, the above-cited constitutional provision has been
implemented in Florida law through Section 196.1995, Florida Statutes, by setting forth:
(1). The process to call for a referendum by petition or vote of the
county or city commission; and
(2). The form of the ballot question; and
(3). The applicability of the exemption to various types of businesses;
and
(4). The general requirements for a local government application
process.
and
Whereas, the City Commission of the City of Sanford desires to ensure and
enhance the economic development of the City and the economic wellbeing of the
citizens of the City; and
Whereas, the City Commission of the City of Sanford has determined that the
electors of the City of Sanford should be provided the opportunity to authorize ad
valorem tax exemptions that are aimed at encouraging economic and community
development; and
Whereas, the City Commission of the City of Sanford, upon approval of the
electors of the City of Sanford, would act on a case-by-case basis, by means of the
enactment of ordinances considered at public hearings, to grant any such economic
development or community development ad valorem tax exemptions; and
Whereas, the City Commission of the City of Sanford has concluded that the
citizens of the City of Sanford would receive benefits should the City Commission be
authorized to develop a system of economic development and community development
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incentives in accordance with State law to draw businesses into the City or cause
business expansion within the City that will favorably impact the economy of the City
and the economic health of the citizens of the City.
Now, Therefore, Be It Enacted By The People Of The City Of Sanford,
Florida:
Section 1. Legislative Findings And Intent.
(a). The City Commission of the City of Sanford hereby adopts and
incorporates into this Ordinance the City staff report and City Commission agenda
memorandum relating to this Ordinance.
(b). The City of Sanford has complied with all requirements and procedures of
Florida law in processing and advertising this Ordinance.
Section 2. Authorization and Authority. This Ordinance is specifically is
authorized by Article VII, Section (3)(c), Constitution of the State of Florida, Section
196.1995, Florida Statutes, Section 8 of the City of Sanford Charter, and other
applicable and controlling law.
Section 3. Referendum Election Relating to Economic and Community
Development Tax Exemptions.
(a) The Supervisor of Elections of Seminole County is hereby directed to hold
a referendum election on March 15, 2016 in accordance with the provisions of this
Ordinance and controlling law.
(b) The Supervisor of Elections of Seminole County shall cause the following
question to be placed on the ballot before the electors of the City of Sanford:
CONSTITUTIONALLY PERMITTED TAX EXEMPTIONS TO
NEW BUSINESSES AND EXPANDING BUSINESSES FOR
COMMUNITY AND ECONOMIC DEVELOPMENT.
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Shall the City Commission of the City of Sanford be authorized to grant
property tax exemptions based upon City-established criteria, pursuant to
Article VII, Section (3)(c), Constitution of the State of Florida, to new
businesses and expansions of existing businesses to create jobs?
Yes -- For authority to grant exemptions.
No --Against authority to grant exemptions.
(c). Should the Supervisor of Elections discern any issue with the ballot
question set forth in Subsection (b), the City Clerk and City Attorney are hereby
delegated authority to revise the ballot question to conform with the controlling
requirements of State law.
Section 4. Actions Upon Approval of Referendum Election.
(a). Upon a majority vote of the electors of the City of Sanford voting at the
referendum election called in Section 3 in favor of the authority vested in Article VII,
Section (3)(c), Constitution of the State of Florida, and Section 196.1995, Florida
Statutes, the City Commission, at its discretion, by enactment of such ordinances as it
may determine to be appropriate, may exempt from ad valorem taxation up to one
hundred percent (100%) of the assessed value of all improvements to real property
made by or for the use of a new business and of all tangible personal property of such
new business, or up to one hundred percent (100%) of the assessed value of all added
improvements to real property made to facilitate the expansion of an existing business
and of the net increase in all tangible personal property acquired to facilitate such
expansion of an existing business, provided that the improvements to real property are
made or the tangible personal property is added or increased on or after the day the
ordinance is enacted. Property acquired to replace existing property shall not be
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considered to facilitate a business expansion. The ad valorem tax exemption shall apply
only to taxes levied by the City of Sanford. The exemption shall not apply, however, to
taxes levied for the payment of bonds or to taxes authorized by a vote of the electors
pursuant to Article VII, Section 9(b) or Section 12 of the Constitution of the State of
Florida. Any such exemption shall remain in effect for up to ten (10) years with respect
to any particular facility, regardless of any change in the authority of the City of Sanford
to grant such exemptions. The exemption shall not be prolonged or extended by
granting exemptions from additional taxes or by virtue of any reorganization or sale of
the business receiving the exemption.
(b). Property annexed into the City shall be controlled by the provisions of
State law relating to annexed properties and other controlling law.
(c). Should the referendum election result in an approval by the electorate, the
following provisions of the City Code shall be added:
Definitions (See Footnotes Below).
The following words, phrases and terms shall have the meanings set forth below.
Except where indicated otherwise such words, phrases and terms shall have the same
meanings attributed to them in the Florida Statutes' and the Florida Administrative Code
1 The definitions set forth in Section 196.012,Florida Statutes,are as follows:
Definitions.—For the purpose of this chapter, the following terms are defined as follows, except where the context
clearly indicates otherwise:
(1) "Exempt use of property" or "use of property for exempt purposes" means predominant or exclusive use of
property owned by an exempt entity for educational, literary, scientific, religious, charitable, or governmental
purposes,as defined in this chapter.
(2) "Exclusive use of property'means use of property solely for exempt purposes. Such purposes may include more
than one class of exempt use.
(3) "Predominant use of property"means use of property for exempt purposes in excess of 50 percent but less than
exclusive.
(4) "Use" means the exercise of any right or power over real or personal property incident to the ownership of the
property.
(5) "Educational institution" means a federal, state, parochial, church, or private school, college, or university
conducting regular classes and courses of study required for eligibility to certification by, accreditation to, or
membership in the State Department of Education of Florida, Southern Association of Colleges and Schools, or the
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- Florida Council-of Independent Schools,-a nonprofit private-school-the-principal-activity--of-which-is-conducting regular
classes and courses of study accepted for continuing postgraduate dental education credit by a board of the Division
of Medical Quality Assurance;educational direct-support organizations created pursuant to ss. 1001.24, 1004.28,and
1004.70; facilities located on the property of eligible entities which will become owned by those entities on a date
certain; and institutions of higher education, as defined under and participating in the Higher Educational Facilities
Financing Act.
(6) Governmental, municipal, or public purpose or function shall be deemed to be served or performed when the
lessee under any leasehold interest created in property of the United States, the state or any of its political
subdivisions, or any municipality, agency, special district, authority, or other public body corporate of the state is
demonstrated to perform a function or serve a governmental purpose which could properly be performed or served by
an appropriate governmental unit or which is demonstrated to perform a function or serve a purpose which would
otherwise be a valid subject for the allocation of public funds. For purposes of the preceding sentence, an activity
undertaken by a lessee which is permitted under the terms of its lease of real property designated as an aviation area
on an airport layout plan which has been approved by the Federal Aviation Administration and which real property is
used for the administration,operation,business offices and activities related specifically thereto in connection with the
conduct of an aircraft full service fixed base operation which provides goods and services to the general aviation
public in the promotion of air commerce shall be deemed an activity which serves a governmental, municipal, or
public purpose or function.Any activity undertaken by a lessee which is permitted under the terms of its lease of real
property designated as a public airport as defined in s. 332.004(14) by municipalities, agencies, special districts,
authorities, or other public bodies corporate and public bodies politic of the state, a spaceport as defined in s.
331.303, or which is located in a deepwater port identified in s. 403.021(9)(b) and owned by one of the foregoing
governmental units, subject to a leasehold or other possessory interest of a nongovernmental lessee that is deemed
to perform an aviation, airport, aerospace, maritime, or port purpose or operation shall be deemed an activity that
serves a governmental, municipal,or public purpose.The use by a lessee, licensee,or management company of real
property or a portion thereof as a convention center,visitor center, sports facility with permanent seating,concert hall,
arena,stadium, park,or beach is deemed a use that serves a governmental, municipal,or public purpose or function
when access to the property is open to the general public with or without a charge for admission. If property deeded
to a municipality by the United States is subject to a requirement that the Federal Government, through a schedule
established by the Secretary of the Interior, determine that the property is being maintained for public historic
preservation, park, or recreational purposes and if those conditions are not met the property will revert back to the
Federal Government, then such property shall be deemed to serve a municipal or public purpose. The term
"governmental purpose" also includes a direct use of property on federal lands in connection with the Federal
Government's Space Exploration Program or spaceport activities as defined in s. 212.02(22). Real property and
tangible personal property owned by the Federal Government or Space Florida and used for defense and space
exploration purposes or which is put to a use in support thereof shall be deemed to perform an essential national
governmental purpose and shall be exempt."Owned by the lessee"as used in this chapter does not include personal
property, buildings, or other real property improvements used for the administration, operation, business offices and
activities related specifically thereto in connection with the conduct of an aircraft full service fixed based operation
which provides goods and services to the general aviation public in the promotion of air commerce provided that the
real property is designated as an aviation area on an airport layout plan approved by the Federal Aviation
Administration. For purposes of determination of"ownership," buildings and other real property improvements which
will revert to the airport authority or other governmental unit upon expiration of the term of the lease shall be deemed
"owned" by the governmental unit and not the lessee. Providing two-way telecommunications services to the public
for hire by the use of a telecommunications facility, as defined in s.364.02(14),and for which a certificate is required
under chapter 364 does not constitute an exempt use for purposes of s. 196.199, unless the telecommunications
services are provided by the operator of a public-use airport, as defined in s. 332.004, for the operator's provision of
telecommunications services for the airport or its tenants, concessionaires, or licensees, or unless the
telecommunications services are provided by a public hospital.
(7) "Charitable purpose" means a function or service which is of such a community service that its discontinuance
could legally result in the allocation of public funds for the continuance of the function or service. It is not necessary
that public funds be allocated for such function or service but only that any such allocation would be legal.
(8) "Hospital"means an institution which possesses a valid license granted under chapter 395 on January 1 of the
year for which exemption from ad valorem taxation is requested.
(9) "Nursing home" or "home for special services" means an institution which possesses a valid license under
chapter 400 on January 1 of the year for which exemption from ad valorem taxation is requested.
(10) "Gross income" means all income from whatever source derived, including, but not limited to, the following
items, whether actually owned by or received by, or not received by but available to, any person or couple: earned
income, income from investments, gains derived from dealings in property, interest, rents, royalties, dividends,
annuities, income from retirement plans, pensions, trusts, estates and inheritances, and direct and indirect gifts.
Gross income specifically does not include payments made for the medical care of the individual, return of principal
on the sale of a home, social security benefits, or public assistance payments payable to the person or assigned to
an organization designated specifically for the support or benefit of that person.
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(11)----"Totally-and-permanently-disabled-person"-means-a-person who is currently_certified by two licensed_physicians
of this state who are professionally unrelated,by the United States Department of Veterans Affairs or its predecessor,
or by the Social Security Administration,to be totally and permanently disabled.
(12) "Couple"means a husband and wife legally married under the laws of any state or territorial possession of the
United States or of any foreign country.
(13) "Real estate used and owned as a homestead"means real property to the extent provided ins.6(a),Art.VII of
the State Constitution,but less any portion thereof used for commercial purposes,with the title of such property being
recorded in the official records of the county in which the property is located. Property rented for more than 6 months
is presumed to be used for commercial purposes.
(14) "New business"means:
(a)1. A business or organization establishing 10 or more new jobs to employ 10 or more full-time employees in this
state, paying an average wage for such new jobs that is above the average wage in the area, which principally
engages in any one or more of the following operations:
a. Manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a
fixed location and which comprises an industrial or manufacturing plant;or
b. Is a target industry business as defined in s.288.106(2)(q);
2. A business or organization establishing 25 or more new jobs to employ 25 or more full-time employees in this
state, the sales factor of which, as defined by s. 220.15(5), for the facility with respect to which it requests an
economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed;or
3. An office space in this state owned and used by a business or organization newly domiciled in this state;provided
such office space houses 50 or more full-time employees of such business or organization; provided that such
business or organization office first begins operation on a site clearly separate from any other commercial or
industrial operation owned by the same business or organization.
(b) Any business or organization located in an enterprise zone or brownfield area that first begins operation on a
site clearly separate from any other commercial or industrial operation owned by the same business or organization.
(c) A business or organization that is situated on property annexed into a municipality and that, at the time of the
annexation,is receiving an economic development ad valorem tax exemption from the county under s. 196.1995.
(15) "Expansion of an existing business"means:
(a)1. A business or organization establishing 10 or more new jobs to employ 10 or more full-time employees in this
state, paying an average wage for such new jobs that is above the average wage in the area, which principally
engages in any of the operations referred to in subparagraph(14)(a)l.;or
2. A business or organization establishing 25 or more new jobs to employ 25 or more full-time employees in this
state, the sales factor of which, as defined by s. 220.15(5), for the facility with respect to which it requests an
economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed; provided
that such business increases operations on a site located within the same county, municipality,or both colocated with
a commercial or industrial operation owned by the same business or organization under common control with the
same business or organization, resulting in a net increase in employment of not less than 10 percent or an increase
in productive output or sales of not less than 10 percent.
(b) Any business or organization located in an enterprise zone or brownfield area that increases operations on a site
located within the same zone or area colocated with a commercial or industrial operation owned by the same
business or organization under common control with the same business or organization.
(16) "Permanent resident' means a person who has established a permanent residence as defined in subsection
(17).
(17) "Permanent residence" means that place where a person has his or her true,fixed, and permanent home and
principal establishment to which,whenever absent, he or she has the intention of returning.A person may have only
one permanent residence at a time;and,once a permanent residence is established in a foreign state or country, it is
presumed to continue until the person shows that a change has occurred.
(18) "Enterprise zone" means an area designated as an enterprise zone pursuant to s. 290.0065. This subsection
expires on the date specified in s.290.016 for the expiration of the Florida Enterprise Zone Act.
(19) "Ex-servicemember" means any person who has served as a member of the United States Armed Forces on
active duty or state active duty, a member of the Florida National Guard, or a member of the United States Reserve
Forces.
1 "Tangible personal property" means all goods, chattels, and other articles of value (but does not include the
vehicular items enumerated in s. 1(b), Art. VI I of the State Constitution and elsewhere defined) capable of manual
possession and whose chief value is intrinsic to the article itself. "Construction work in progress" consists of those
items of tangible personal property commonly known as fixtures, machinery, and equipment when in the process of
being installed in new or expanded improvements to real property and whose value is materially enhanced upon
connection or use with a preexisting, taxable, operational system or facility. Construction work in progress shall be
deemed substantially completed when connected with the preexisting, taxable, operational system or facility.
Inventory and household goods are expressly excluded from this definition
1 "Target industry business"means a corporate headquarters business or any business that is engaged in one of the
target industries identified pursuant to the following criteria developed by the department in consultation with
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as amended from time to time:
Applicant means any person, firm, partnership or corporation who files an
application with the City Commission seeking an exemption.
Application means a written application for an exemption on the form prescribed
by the department, together with any supplemental form prescribed by the City
Manager, or designee, and any additional information requested by the City Manager,
or designee,.
Average annual employment means the sum of the number of full-time
equivalent employees as of the last day of each month of the preceding calendar year
divided by twelve (12).
Enterprise Florida, Inc.:
1. Future growth.—Industry forecasts should indicate strong expectation for future growth in both employment and
output, according to the most recent available data. Special consideration should be given to businesses that export
goods to,or provide services in,international markets and businesses that replace domestic and international imports
of goods or services.
2. Stability.—The industry should not be subject to periodic layoffs, whether due to seasonality or sensitivity to
volatile economic variables such as weather.The industry should also be relatively resistant to recession, so that the
demand for products of this industry is not typically subject to decline during an economic downturn.
3. High wage.—The industry should pay relatively high wages compared to statewide or area averages.
4. Market and resource independent.—The location of industry businesses should not be dependent on Florida
markets or resources as indicated by industry analysis,except for businesses in the renewable energy industry.
5. Industrial base diversification and strengthening.—The industry should contribute toward expanding or
diversifying the state's or area's economic base,as indicated by analysis of employment and output shares compared
to national and regional trends. Special consideration should be given to industries that strengthen regional
economies by adding value to basic products or building regional industrial clusters as indicated by industry analysis.
Special consideration should also be given to the development of strong industrial clusters that include defense and
homeland security businesses.
6. Positive economic impact.—The industry is expected to have strong positive economic impacts on or benefits to
the state or regional economies. Special consideration should be given to industries that facilitate the development of
the state as a hub for domestic and global trade and logistics.
The term does not include any business engaged in retail industry activities; any electrical utility company as defined
in s. 366.02(2); any phosphate or other solid minerals severance, mining, or processing operation; any oil or gas
exploration or production operation;or any business subject to regulation by the Division of Hotels and Restaurants of
the Department of Business and Professional Regulation. Any business within NAICS code 5611 or 5614, office
administrative services and business support services, respectively, may be considered a target industry business
only after the local governing body and Enterprise Florida, Inc., make a determination that the community where the
business may locate has conditions affecting the fiscal and economic viability of the local community or area,
including but not limited to,factors such as low per capita income, high unemployment, high underemployment,and a
lack of year-round stable employment opportunities, and such conditions may be improved by the location of such a
business to the community. By January 1 of every 3rd year, beginning January 1, 2011, the department, in
consultation with Enterprise Florida, Inc., economic development organizations, the State University System, local
governments, employee and employer organizations, market analysts, and economists, shall review and, as
appropriate, revise the list of such target industries and submit the list to the Governor,the President of the Senate,
and the Speaker of the House of Representatives.
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Average annual private sector wage means the lesser of the average annual
private sector wage throughout the State of Florida, the Metropolitan Statistical Area or
the County.
Average annual wage means the sum of the wages paid to full-time equivalent
employees included in the average annual employment, divided by the average annual
employment.
Business means any activity engaged in by any person, firm, partnership,
corporation, or other business organization or entity, with the object of private or public
gain, benefit, or advantage, either direct or indirect.
Capital investment means any expenditure for an expansion of an existing
business or a new business to be located in the City of Sanford which can be
capitalized under generally accepted accounting principles.
Community Redevelopment Agency means the City's Community
Redevelopment Agency operating in the City as prescribed by the City Commission
under delegation from the Board of County Commissioners of Seminole County.
Community Redevelopment Area means the City's Community Redevelopment
Area operating in the City as prescribed by the City Commission under delegation from
the Board of County Commissioners of Seminole County
Economic development ad valorem tax exemption or exemption means an ad
valorem tax exemption granted by the City Commission in its sole and absolute
discretion to a qualified business pursuant to this Ordinance as authorized by Article VII,
Section 3 of the Constitution of the State of Florida and Section 196.1995, Florida
Statutes.
Exemption criteria means the criteria to be applied by the City Commission in
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making its determination as to whether to grant an exemption, as provided for in this
Ordinance.
Goods means all personal property when purchased primarily for personal,
family, or household use, but not including personal property sold for commercial or
industrial use.
High value business means an expansion of an existing business or a new
business that is expected to have a significant economic impact as a result of the
number of its full-time equivalent employees, its average annual wage, the capital
investment in the business, or additional jobs subsequently created as a result of such
business.
Improvements means physical changes made to raw land, and structures placed
on or under the land surface.
Metropolitan Statistical Area or MSA means a geographical region with a
relatively high population density at its core and close economic ties throughout the
area. For purposes of this Ordinance, the MSA includes City of Sanford.
Qualified business means either a new business or an expansion of an existing
business that meets the criteria to be considered for an exemption.
Sales factor means is a fraction the numerator of which is the total sales of the
taxpayer in this state during the taxable year or period and the denominator of which is
the total sales of the taxpayer everywhere during the taxable year or period and as
defined in controlling State law.
Tangible personal property shall have the meaning set forth in Section
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1 92.001(11) (d), Florida Statutes.2
Target industry business means an expansion of an existing business or a new
business that is engaged in a business designated as a target industry business
pursuant to Section 288.106(2)(q), Florida Statutes, or as identified by the City.
Wages means all compensation including salaries, bonuses, commissions and
the value of exercised stock options subject to Federal Income Tax, but excluding fringe
benefits; provided, stock options shall be included in the calculation of wages in a
manner consistent with the program established pursuant to Section 288.106, Florida
Statutes.
Establishment of economic development ad valorem tax exemption.
(a). Incentive. There is herein established an economic development ad
valorem tax exemption ("exemption") for ad valorem taxes levied by the City. The
exemption is a local option tax incentive for a qualified business which may be granted
or refused at the sole and absolute discretion of the City Commission.
(b). Ineligible improvements. The exemption shall not accrue to improvements
made by or for the use of a qualified business when such improvements have been
included on the tax rolls prior to the effective date of an ordinance specifically granting a
business an exemption.
(c). Eligible improvements. At the sole and absolute discretion of the City
Commission, and except as otherwise provided for in this Ordinance, the exemption
2Tangible personal property" means all goods, chattels, and other articles of value (but does not include
the vehicular items enumerated in s. 1(b), Art. V11 of the State Constitution and elsewhere defined)
capable of manual possession and whose chief value is intrinsic to the article itself. "Construction work in
progress" consists of those items of tangible personal property commonly known as fixtures, machinery,
and equipment when in the process of being installed in new or expanded improvements to real property
and whose value is materially enhanced upon connection or use with a preexisting, taxable, operational
system or facility. Construction work in progress shall be deemed substantially completed when
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may be granted for up to one hundred percent (100%) of the assessed value of all
improvements made by or for the use of a qualifying new business and of all tangible
personal property of such new business, or up to one hundred percent (100%) of the
assessed value of all added improvements made to facilitate the qualifying expansion of
an existing business and of the net increase in all tangible personal property acquired to
facilitate such expansion of an existing business, provided that the improvements are
made or the tangible personal property is added or increased on or after the day the
Ordinance specifically granting an exemption is adopted. Exemptions for less than one
hundred percent (100%) of such assessed values may be granted at the sole and
absolute discretion of the City Commission. Property acquired to replace existing
property shall not be considered to facilitate a business expansion.
(d). Land. No exemption shall be granted for the land upon which a new
business or an expansion of an existing business is to be located.
(e). Exemption. Except as otherwise provided for in this Ordinance, the
exemption may be for a period of up to ten years from the date the City Commission
adopts the ordinance specifically granting an exemption.
(f). Taxes applicable. The exemption shall apply only to taxes levied City-wide
by the City. The exemption shall not apply to taxes levied by a the County, a County
municipal services taxing or benefit unit (MSTUIMSBU), the Seminole County School
District, a water management district, or any other special district or to taxes levied for
the payment of bonds or taxes authorized by a vote of the electors pursuant to Section
9(b) or 12, Article VII of the Constitution of the State of Florida.
connected with the preexisting, taxable, operational system or facility. Inventory and household goods are
expressly excluded from this definition
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(g). Maximum amount of annual exemptions. Notwithstanding any other
provision of this Ordinance, the exemptions granted by the City Commission for each
fiscal year shall not result in an estimated aggregate annual amount of forgone ad
valorem tax revenues in excess of $2,000,000.00 or such other amount approved by a
supermajority vote of the City Commission, which amount shall be calculated based on
the property appraiser's estimates on the revenue lost to the City during the then
particular fiscal year by virtue of exemptions previously granted plus exemptions under
consideration in such particular fiscal year.
(h). Mandatory Criteria. The City Commission, in making decisions and
determinations under the provisions of this Ordinance, shall require that the following be
demonstrated by the City Manager, or designee:
(1). That the successful applicant is a business or operation which a targeted
industry as listed in the most recent Enterprise Florida Targeted Industries List.
(2). That the successful applicant will receive a level of tax abatement that
may be up to the maximum authorized by controlling law initially, but shall be calculated
by the City Manager, or designee, to be such that the total amount of the exemption
shall be no more than to average an overall total abatement of 50% calculated over the
entire period of tax exemption.
(i). Other Considerations/Criteria. The City Commission, in making decisions
and determinations under the provisions of this Ordinance, shall be guided by the
following considerations and criteria in a manner which provides for flexibility in
accordance with the best interests of the City as determined solely and exclusively by
the City Commission:
(1). The minimum expected amount of capital investment to be made by an
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applicant shall be $3,000,000.00.
(2), The average annual wage of the new jobs, number of new jobs, minimum
salary, average annual salary with executives' salaries excluded, executives' salaries
and number of jobs in each $10,000 salary range will be considered during the course
of evaluating applications.
(3). The expected time schedule for job creation and the period (total number
of years) needed to fill all of the new jobs will be considered during the course of
evaluating applications.
(4). The current and anticipated volume (in dollars) of business or production
will be considered during the course of evaluating applications.
(5). The total length (number of years) of the exemption period being
requested may be from 1 to 10 years as may be authorized by controlling law and all as
set forth in the agreement relating to the implementation of the exemption.
(6). Preference may be given to redevelopment or infill projects during the
course of evaluating applications.
(7). If known that a project require any variances from City Land Development
Regulation standards, that issue will be considered during the course of evaluating
applications.
(8). The likely compatibility of the project with the surrounding neighborhood
and community will be considered during the course of evaluating applications.
(9). The likely environmental impact of the proposed business or operation will
be considered during the course of evaluating applications.
(10). Whether the project will be or is located in a Brownfield will be considered
during the course of evaluating applications.
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(11). The likely cost and demand for public services will be considered during
the course of evaluating applications.
(12). The likelihood that the project relocation or expansion would have occur
without the award of an exemption will be considered during the course of evaluating
applications.
(13). If any other publicly funded economic development incentives have been
granted for the project, that fact and the level of such incentives will be considered.
Application for exemption.
(a). Application. Any eligible person, firm, partnership or corporation which
desires an exemption shall file with the City Commission a written application on a form
approved by the City. The City Commission may adopt a resolution which establishes
criteria for applicants and projects relative to which the City Commission desires to
consider for the award of the exemption provided for in this Ordinance.
(b). Review. Upon submittal of the application, the City Manager, or designee,
shall review same and, within ten (10) days of submission, notify the applicant of any
facial deficiencies. The City Manager, or designee, shall promptly deliver a copy of the
application to the Seminole County Property Appraiser who shall promptly notify the
applicant and the City Manager, or designee, of any additional information he or she
determines to be necessary for adequate consideration of the application. Complete
applications shall be scheduled for a public hearing before the City Commission no later
than 45 (forty-five) days following receipt by the City Manager, or designee, of the
Property Appraiser's report provided for in this Ordinance. The applicant shall be
notified of the date and time of the public hearing. The City Manager may grant time
extensions as needed to appropriately address any application.
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(c). Agreement. As a condition to receiving an exemption, a business will be
required to enter into an agreement with the City, in a form approved by the City
Attorney, to ensure that the business satisfies all requirements associated with the
creation of jobs in the City, the fulfillment of other representations made in applying for
the exemption and the granting of the exemption by the City Commission.
(d). Role Of Community Redevelopment Agency. If a new business is locating
to, or an expansion of an existing business is occurring in, the City's Community
Redevelopment Area, the Community Redevelopment Agency overseeing such area
shall be provided a copy of the application for review and comment. Input from the
Community Redevelopment Agency will be considered by the City Commission in
deciding whether an exemption is to be granted, provided, however, that the City
Commission may waive this procedure.
City Commission consideration of applications.
(a). Property Appraiser review and report. Before the City Commission takes
action on an application, a copy of the application, once deemed complete, shall be
delivered to the Property Appraiser for review. After careful consideration of the
application, the Property Appraiser shall provide a report to the City Commission which
shall include the following:
(1). The total revenue available to the City for the current fiscal year from ad
valorem tax sources, or an estimate of such revenue if the actual total revenue available
cannot be determined;
(2). The amount of any revenue lost to the City for the current fiscal year by
virtue of exemptions previously granted, or an estimate of such revenue if the actual
revenue lost cannot be determined;
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(3). An estimate of the amount of revenue which would be lost to the City
during the current fiscal year if the exemption applied for were granted had the property
for which the exemption is requested otherwise been subject to taxation; and
(4). A determination as to whether the property for which an exemption is
requested is to be incorporated into a new business or the expansion of an existing
business, or into neither, which determination the Property Appraiser shall also affix to
the face of the application. Upon request, the department will provide the Property
Appraiser such information as it may have available to assist in making such
determination.
(b). Eligibility threshold. The threshold for eligibility is whether the business
meets the definition of a new business or of an expansion of an existing business and
satisfies any other economic-related characteristics or criteria deemed necessary or
relevant by the City Commission that promotes the sustainability of economic
development within the City.
(c). Ineligible business. Any business in violation of any Federal, State, or
local law, rule, code, ordinance or regulation, including without limitation, environmental
matters, will not be eligible for an exemption.
(d). Exemption criteria. In making its determination as to whether to grant the
exemption, and, if granted, the duration and percentage of the exemption, the City
Commission shall apply the mandatory criteria and other criteria and considerations set
forth in this Ordinance.
(e). City Commission ordinance. After consideration of the application, the
Property Appraiser's report, input from a community Redevelopment Agency, if
applicable, and such other information it deems relevant, and the application of the
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exemption criteria, the City Commission may choose in its sole and absolute discretion
to enact an ordinance granting an exemption to the applicant. If the City Commission
decides to adopt such an ordinance, the ordinance shall be adopted in the same
manner as any other general ordinance of the City, and shall include, at a minimum, the
following:
(1). The name and address of the new business or the expansion of an
existing business to which the exemption is granted;
(2). The name of the owner(s) of the new business or the expansion of an
existing business to which the exemption is granted;
(3). The total amount of revenue available to the City from ad valorem tax
source for the current fiscal year, the total amount of revenue lost to the City for the
current fiscal year by virtue of exemptions currently in effect, and the estimated revenue
loss to the City for the current fiscal year attributable to the exemption of the business
named in the ordinance;
(4). The percentage of the ad valorem tax exemption approved;
(5). The period of time for which the exemption will remain in effect and the
expiration date of the exemption;
(6). A finding that the business named in the ordinance meets the
requirements of controlling State law; and
(7). A provision conditioning the exemption upon the execution by the
business of, and the ongoing compliance with, an agreement, in a form approved by the
City Attorney, setting forth, among other things, continuing performance obligations of
the business associated with the creation of jobs in the City, the fulfillment of other
representations made in applying for the exemption and the granting of the exemption
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by the City Commission.
(f). Precedent; standard for consideration of applications. No precedent shall
be implied or inferred by the granting of an exemption. Each application shall be
considered by the City Commission in its legislative capacity on a case by case basis,
after considering the Property Appraiser's report on the application and the exemption
criteria.
Continuing performance.
(a). Change in ownership. The business granted an exemption shall inform the
City Commission in writing within ten (10) days as to any changes in ownership of the
business granted an exemption and it is prohibited and unlawful to fail to do so.
Moreover, the transferee business shall continue to comply with all exemption
requirements and shall assume in writing all of the obligations of the transferor business
provided for in the agreement required by this Ordinance. Failure of the business
granted an exemption to notify the City Commission of any such changes in ownership
is cause for revocation of the ordinance granting the exemption, at the City
Commission's discretion.
(b). Annual filings. The ability to receive an exemption for the period granted
shall be conditioned upon the applicant's ability to maintain the qualified business
throughout the entire period. The applicant shall be required to submit an annual
renewal statement and an annual report to the City Manager, or designee, on or before
March 1 of each year for which the exemption was granted. The applicant shall also
timely comply with all filing required pursuant to Section 196.011, Florida Statutes.3 The
3196.011 Annual application required for exemption.—(1)(a) Every person or organization who,on January 1,
has the legal title to real or personal property,except inventory,which is entitled by law to exemption from taxation as
a result of its ownership and use shall, on or before March 1 of each year, file an application for exemption with the
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county property, appraiser,---listing--and--describing-the--property-for which__exemption-is-.claimed and.-certifying its
ownership and use. The Department of Revenue shall prescribe the forms upon which the application is made.
Failure to make application, when required, on or before March 1 of any year shall constitute a waiver of the
exemption privilege for that year,except as provided in subsection(7)or subsection(8).
1(b) The form to apply for an exemption under s. 196.031, s. 196.081, s. 196.091, s. 196.101, s. 196.173, or s.
196.202 must include a space for the applicant to list the social security number of the applicant and of the applicant's
spouse,if any. If an applicant files a timely and otherwise complete application, and omits the required social security
numbers, the application is incomplete. In that event, the property appraiser shall contact the applicant, who may
refile a complete application by April 1. Failure to file a complete application by that date constitutes a waiver of the
exemption privilege for that year,except as provided in subsection(7)or subsection(8).
(2) However, application for exemption will not be required on public roads rights-of-way and borrow pits owned,
leased, or held for exclusive governmental use and benefit or on property owned and used exclusively by a
municipality for municipal or public purposes in order for such property to be released from all ad valorem taxation.
(3) It shall not be necessary to make annual application for exemption on houses of public worship, the lots on
which they are located, personal property located therein or thereon, parsonages, burial grounds and tombs owned
by houses of public worship, individually owned burial rights not held for speculation, or other such property not
rented or hired out for other than religious or educational purposes at any time; household goods and personal effects
of permanent residents of this state; and property of the state or any county, any municipality, any school district, or
community college district thereof.
(4) When any property has been determined to be fully exempt from taxation because of its exclusive use for
religious, literary, scientific, or charitable purposes and the application for its exemption has met the criteria of s.
196.195, the property appraiser may accept, in lieu of the annual application for exemption, a statement certified
under oath that there has been no change in the ownership and use of the property.
(5) The owner of property that received an exemption in the prior year, or a property owner who filed an original
application that was denied in the prior year solely for not being timely filed, may reapply on a short form as provided
by the department. The short form shall require the applicant to affirm that the use of the property and his or her
status as a permanent resident have not changed since the initial application.
(6)(a) Once an original application for tax exemption has been granted, in each succeeding year on or before
February 1, the property appraiser shall mail a renewal application to the applicant, and the property appraiser shall
accept from each such applicant a renewal application on a form prescribed by the Department of Revenue. Such
renewal application shall be accepted as evidence of exemption by the property appraiser unless he or she denies
the application.Upon denial,the property appraiser shall serve,on or before July 1 of each year,a notice setting forth
the grounds for denial on the applicant by first-class mail.Any applicant objecting to such denial may file a petition as
provided for in s. 194.011(3).
(b) Once an original application for tax exemption has been granted under s. 196.26, in each succeeding year on or
before February 1,the property appraiser shall mail a renewal application to the applicant on a form prescribed by the
Department of Revenue. The applicant must certify on the form that the use of the property complies with the
restrictions and requirements of the conservation easement. The form shall include a statement that the exemption
granted under s. 196.26 will not be renewed unless the application is returned to the property appraiser.
(7) The value adjustment board shall grant any exemption for an otherwise eligible applicant if the applicant can
clearly document that failure to apply by March 1 was the result of postal error.
(8) Any applicant who is qualified to receive any exemption under subsection (1)and who fails to file an application
by March 1, must file an application for the exemption with the property appraiser on or before the 25th day following
the mailing by the property appraiser of the notices required under s. 194.011(1). Upon receipt of sufficient evidence,
as determined by the property appraiser, demonstrating the applicant was unable to apply for the exemption in a
timely manner or otherwise demonstrating extenuating circumstances judged by the property appraiser to warrant
granting the exemption, the property appraiser may grant the exemption. If the applicant fails to produce sufficient
evidence demonstrating the applicant was unable to apply for the exemption in a timely manner or otherwise
demonstrating extenuating circumstances as judged by the property appraiser, the applicant may file, pursuant to s.
194.011(3), a petition with the value adjustment board requesting that the exemption be granted. Such petition must
be filed during the taxable year on or before the 25th day following the mailing of the notice by the property appraiser
as provided in s. 194.011(1). Notwithstanding the provisions of s. 194.013, such person must pay a nonrefundable
fee of$15 upon filing the petition. Upon reviewing the petition, if the person is qualified to receive the exemption and
demonstrates particular extenuating circumstances judged by the value adjustment board to warrant granting the
exemption,the value adjustment board may grant the exemption for the current year.
(9)(a) A county may, at the request of the property appraiser and by a majority vote of its governing body,waive the
requirement that an annual application or statement be made for exemption of property within the county after an
initial application is made and the exemption granted.The waiver under this subsection of the annual application or
statement requirement applies to all exemptions under this chapter except the exemption under s. 196.1995.
Notwithstanding such waiver, refiling of an application or statement shall be required when any property granted an
exemption is sold or otherwise disposed of, when the ownership changes in any manner, when the applicant for
homestead exemption ceases to use the property as his or her homestead,or when the status of the owner changes
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annual renewal statement shall certify that the information provided in the original
so as to change the exempt status of the property. In its deliberations on whether to waive the annual application or
statement requirement, the governing body shall consider the possibility of fraudulent exemption claims which may
occur due to the waiver of the annual application requirement.The owner of any property granted an exemption who
is not required to file an annual application or statement shall notify the property appraiser promptly whenever the use
of the property or the status or condition of the owner changes so as to change the exempt status of the property. If
any property owner fails to so notify the property appraiser and the property appraiser determines that for any year
within the prior 10 years the owner was not entitled to receive such exemption,the owner of the property is subject to
the taxes exempted as a result of such failure plus 15 percent interest per annum and a penalty of 50 percent of the
taxes exempted. Except for homestead exemptions controlled by s. 196.161, the property appraiser making such
determination shall record in the public records of the county a notice of tax lien against any property owned by that
person or entity in the county, and such property must be identified in the notice of tax lien. Such property is subject
to the payment of all taxes and penalties. Such lien when filed shall attach to any property, identified in the notice of
tax lien, owned by the person who illegally or improperly received the exemption. If such person no longer owns
property in that county but owns property in some other county or counties in the state, the property appraiser shall
record a notice of tax lien in such other county or counties, identifying the property owned by such person or entity in
such county or counties,and it shall become a lien against such property in such county or counties.
(b) The owner of any property granted an exemption under s. 196.26 shall notify the property appraiser promptly
whenever the use of the property no longer complies with the restrictions and requirements of the conservation
easement. If the property owner fails to so notify the property appraiser and the property appraiser determines that for
any year within the preceding 10 years the owner was not entitled to receive the exemption,the owner of the property
is subject to taxes exempted as a result of the failure plus 18 percent interest per annum and a penalty of 100 percent
of the taxes exempted.The provisions for tax liens in paragraph (a)apply to property granted an exemption under s.
196.26.
(c) A county may, at the request of the property appraiser and by a majority vote of its governing body,waive the
requirement that an annual application be made for the veteran's disability discount granted pursuant to s. 6(e), Art.
VII of the State Constitution after an initial application is made and the discount granted. The disabled veteran
receiving a discount for which annual application has been waived shall notify the property appraiser promptly
whenever the use of the property or the percentage of disability to which the veteran is entitled changes. If a disabled
veteran fails to notify the property appraiser and the property appraiser determines that for any year within the prior
10 years the veteran was not entitled to receive all or a portion of such discount, the penalties and processes in
paragraph (a) relating to the failure to notify the property appraiser of ineligibility for an exemption shall apply.
(d) For any exemption under s. 196.101(2),the statement concerning gross income must be filed with the property
appraiser not later than March 1 of every year.
(e) If an exemption for which the annual application is waived pursuant to this subsection will be denied by the
property appraiser in the absence of the refiling of the application, notification of an intent to deny the exemption shall
be mailed to the owner of the property prior to February 1. If the property appraiser fails to timely mail such notice,the
application deadline for such property owner pursuant to subsection (1) shall be extended to 28 days after the date
on which the property appraiser mails such notice.
(10) At the option of the property appraiser and notwithstanding any other provision of this section, initial or original
applications for homestead exemption for the succeeding year may be accepted and granted after March 1.
Reapplication on a short form as authorized by subsection (5) shall be required if the county has not waived the
requirement of an annual application. Once the initial or original application and reapplication have been granted,the
property may qualify for the exemption in each succeeding year pursuant to the provisions of subsection (6) or
subsection(9).
(11) For exemptions enumerated in paragraph (1)(b), granted for the 2001 tax year and thereafter, social security
numbers of the applicant and the applicant's spouse, if any, are required and must be submitted to the department.
Applications filed pursuant to subsection (5) or subsection (6) may be required to include social security numbers of
the applicant and the applicant's spouse, if any, and shall include such information if filed for the 2001 tax year or
thereafter. For counties where the annual application requirement has been waived, property appraisers may require
refiling of an application to obtain such information.
(12) Notwithstanding subsection (1), if the owner of property otherwise entitled to a religious exemption from ad
valorem taxation fails to timely file an application for exemption, and because of a misidentification of property
ownership on the property tax roll the owner is not properly notified of the tax obligation by the property appraiser and
the tax collector, the owner of the property may file an application for exemption with the property appraiser. The
property appraiser must consider the application, and if he or she determines the owner of the property would have
been entitled to the exemption had the property owner timely applied, the property appraiser must grant the
exemption. Any taxes assessed on such property shall be canceled, and if paid, refunded. Any tax certificates
outstanding on such property shall be canceled and refund made pursuant to s. 197.432(11).
221 ° age
application has not changed. The annual report shall provide a report on the status of
the business, evidencing satisfaction of the business maintenance and continued
performance conditions set forth in the application. The report shall be prepared in
substantially the form approved by the City Manager, or designee, and shall contain
such information as the City Manager, or designee, may reasonably deem necessary
for the purpose of determining continuing performance by the business of the conditions
provided for in this Ordinance, the ordinance specifically granting the business an
exemption and the representations made in the application.
City Commission revocation.
Should any business granted an exemption pursuant to this Ordinance fail to file
the annual renewal statement and/or annual report on or before March 1 of each year
the exemption has been granted as required by this Ordinance, fail to continue to meet
the definition of a new business or an expansion of an existing business, fail to timely
inform the City Commission of a change of ownership, fail to file a new application upon
any change in the information provided in the original application, fail to fulfill any other
representation made to the City Commission during the application process, and/or fail
to comply with any other requirement provided for in this Ordinance, the City
Commission, may, upon 30 days' written notice to the respective business, adopt an
ordinance revoking the exemption or take such other action with respect to the
exemption as it deems appropriate.
Notification. Upon revocation, the City Commission shall immediately notify the
Property Appraiser.
Recovery of taxes. If it is determined that a business was not in fact entitled to
an exemption in any year for which the business received an exemption, the City,
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Property Appraiser or tax collector or any other governmental agency shall be entitled to
recover all taxes not paid on tangible personal property as a result of the exemption,
plus interest at the maximum rate allowed by law, plus all costs of collection, including,
without limitation, reasonable attorney's fees.
Reapplication. Nothing herein shall prohibit a business from reapplying for an ad
valorem tax exemption pursuant to controlling State law.
Sunset date.
This Ordinance shall expire ten (10) years after the date of the election granting
authority to grant economic development ad valorem tax exemptions, as set forth
herein, was approved by the electors of the City of Sanford voting on the question in the
referendum called by this Ordinance; provided that for purposes of enforcement and
revocation, this Ordinance shall survive such expiration date. No business shall be
allowed to begin receiving an exemption after that date; however, the expiration shall
not affect the operation of any exemption for which a business has qualified under this
Ordinance prior to expiration. Authority, as set forth in this Ordinance, may be renewed
for subsequent periods of ten (10) years in a referendum called and held pursuant to the
provisions of Florida law.
Review.
The decision of the City Commission, in its sole discretion, to not grant an
exemption shall not be reviewable by the Value Adjustment Board or any other body.
Section 5. Advertisement/Duties of City Manager and City Clerk. The City
Manager is hereby directed to provide for such administrative actions as may be
necessary and convenient in order to implement the provisions of this Ordinance. The
City Clerk is hereby directed to ensure that the referendum election occurs in
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accordance with the provisions of all controlling law such as that notice of this
referendum shall be advertised in accordance with the provisions of Section 100.342,
Florida StatuteS.4 Proof of publication shall be provided to the City Manager by the City
Clerk. The City Clerk shall also coordinate all activities necessary to conduct the
referendum election called for in Section 3 of this Ordinance with the Supervisor of
Elections for Seminole County in order to ensure the effective implementation of the
referendum election.
Section 6. Savings; Effect Of Ordinance.
The prior actions of the City of Sanford relating to economic development and the
collection of ad valorem taxes, as well as any and all related matters and processes and
procedures of the City pertaining thereto, are hereby ratified and affirmed.
Section 7. Conflicts.
All ordinances or part of ordinances in conflict with this Ordinance are hereby
repealed.
Section 8. Severability.
If any section, sentence, phrase, word, or portion of this Ordinance is determined
to be invalid, unlawful or unconstitutional, said determination shall not be held to
invalidate or impair the validity, force or effect of any other section, sentence, phrase,
word, or portion of this Ordinance not otherwise to be invalid, unlawful, or
unconstitutional.
Section 9. Codification.
4 100.342 Notice of special election or referendum.—In any special election or referendum not otherwise
provided for there shall be at least 30 days' notice of the election or referendum by publication in a newspaper of
general circulation in the county, district, or municipality, as the case may be.The publication shall be made at least
twice,once in the fifth week and once in the third week prior to the week in which the election or referendum is to be
held. If there is no newspaper of general circulation in the county,district,or municipality,the notice shall be posted in
no less than five places within the territorial limits of the county,district,or municipality.
251 Page
(a). This Ordinance shall be codified, as determined to be appropriate by the
Code codifier, if the referendum election called for in Section 3 results in a positive vote
of the electors of the City of Sanford. If the election results in a non-affirmative vote of
the electors of the City of Sanford, none of the provisions of this Ordinance shall be
codified.
(b). The sections, divisions, etc., and provisions of this Ordinance may be
renumbered or re-lettered as deemed appropriate by the Code codifier.
(c). Typographical errors and other matters of a similar nature that do not
affect the intent of this Ordinance, as determined by the City Clerk and City Attorney,
may be corrected with the endorsement of the City Manager, or designee, without the
need for a public hearing.
Section 10. Effective Date.
This Ordinance shall take effect immediately upon passage and adoption.
Passed and adopted this 16th day of November, 2015.
Attest. City Co mmi sion of the City of
Sanford, Flo
Cynthia Porter, City Clerk Jeff Triplett, r
Approved as to form and
Legality:
illiam L. Colbert, Esquire
City Attorney
26 Page
1 0 ' -
ws Iuvl x
—1877� Item No.vt
CITY COMMISSION MEMORANDUM IS-197
NOVEMBER 16, 2015 AGENDA
TO: Honorable Mayor and Members of the City Commission
PREPARED BY: Cynthia Porter, City Clerk
SUBMITTED BY: Norton N. Bonaparte, Jr., City Manager
SUBJECT: Tax Abatement(Exemption) Program Ordin e
STRATEGIC PRIORITIES:
❑ Unify Downtown&the Waterfront
❑ Promote the City's Distinct Culture
❑ Update Regulatory Framework
❑ Redevelop and Revitalize Disadvantaged Communities
SYNOPSIS:
Ordinance No. 2015-4358, relating to a tax abatement (exemption) program to complement the
City's existing economic development programming and stimulate job-creation and investment
in the City, is being submitted for second reading and adoption.
FISCAL/STAFFING STATEMENT:
The proposed tax abatement program will be submitted to the City's electors on March 15, 2016,
which is the date of the Statewide Presidential Primary Election; thus, the costs of submitting the
proposal for approval will be nominal. The program would go into effect only after a successful
referendum election. The economic impact, upon a successful referendum election, would be
controlled by the City Commission as it evaluates each application for tax relief under the
program on a case-by-case basis while evaluating the potential economic benefits to the City.
By direction of the City Commission, the proposed ordinance limits the exemptions granted by
the City Commission for each fiscal year such that they shall not result in an estimated aggregate
annual amount of forgone ad valorem tax revenues in excess of$2,000,000 or such other amount
approved by a supermajority vote of the City Commission. This amount shall be calculated based
on the property appraiser's estimates on the revenue lost to the City during the then particular
fiscal year by virtue of exemptions previously granted plus exemptions under consideration in
such particular fiscal year.
Also, the City Commission directed that successful applicants will receive a level of tax
abatement that may be up to the maximum authorized by controlling law initially (100%), but
shall be such that the total amount of the exemption awarded to a successful applicant shall be no
more than to average an overall total abatement of 50% calculated over the entire period of tax
exemption.
BACKGROUND:
-What is the legal authority?
Tax abatement programs, such as the one proposed, are authorized pursuant to Article VII,
Section 3 of the Constitution of the State of Florida and Section 196.1995, Florida Statutes. The
proposed ordinance would implement a tax abatement program as authorized by the City's
electors. The tax abatement program would be part of the City's continued economic
development programming which is aimed at creating jobs and stimulating capital investment in
the City.
-What is the Tax Abatement program?
The tax abatement program is part of the City's continued economic development programming
aimed at creating jobs and stimulating capital investment in the City. The tax abatement program
is a local option tax incentive for a businesses which may be granted or refused at the sole and
absolute discretion of the City Commission. The potential exemptions may be applied to the
value of new construction, equipment or improvements to the site. Land is not eligible for tax
abatement. The City may only abate City ad-valorem taxes and may not abate County taxes,
School District assessments, Community Redevelopment Agency (CRA) assessments or other
special district assessment.
- Who can participate?
Expanding or new businesses that make physical improvements or additions to their facilities
may apply.
-How does the process work?
Applicants would apply for tax relief under the program and all applications would be evaluated
and approved or rejected by the City Commission which would act in its sound discretion
without an obligation to approve any application.
Upon applications being submitted to the City for tax relief, the proposed ordinance establishes
eligibility requirements including the following mandatory criteria:
(1). That the successful applicant is a business or operation which a targeted
industry as listed in the most recent Enterprise Florida Targeted Industries
List.
(2). That the successful applicant will receive a level of tax abatement that
may be up to the maximum authorized by controlling law initially, but
shall be calculated by the City Manager, or designee, to be such that the
total amount of the exemption shall be no more than to average an overall
total abatement of 50% calculated over the entire period of tax exemption.
Similarly, the proposed ordinance provides that the City Commission, in making decisions and
determinations, would be guided by the following other considerations and criteria:
(1). The expected amount of capital investment to be made by an applicant
shall be a minimum $3,000,000.
(2), The average annual wage of the new jobs, number of new jobs, minimum
salary, average annual salary with executives' salaries excluded,
executives' salaries and number of jobs in each $10,000 salary range will
be considered during the course of evaluating applications.
(3). The expected time schedule for job creation and the period (total number
of years) needed to fill all of the new jobs will be considered during the
course of evaluating applications.
(4). The current and anticipated volume (in dollars) of business or production
will be considered during the course of evaluating applications.
(5). The total length (number of years) of the exemption period being
requested may be from 1 to 10 years as may be authorized by controlling
law and all as set forth in the agreement relating to the implementation of
the exemption.
(6). Preference may be given to redevelopment or infill projects during the
course of evaluating applications.
(7). If known that a project requires any variances from City Land
Development Regulation standards, that issue will be considered during
the course of evaluating applications.
(8). The likely compatibility of the project with the surrounding neighborhood
and community will be considered during the course of evaluating
applications.
(9). The likely environmental impact of the proposed business or operation
will be considered during the course of evaluating applications.
(10). Whether the project will be or is located in a Brownfield will be
considered during the course of evaluating applications.
(11). The likely cost and demand for public services will be considered during
the course of evaluating applications.
(12). The likelihood that the project relocation or expansion would have occur
without the award of an exemption will be considered during the course of
evaluating applications.
(13). If any other publicly funded economic development incentives have been
granted for the project, that fact and the level of such incentives will be
considered.
Upon approval of an application, the City Commission would draft and enact an ordinance
granting an exemption (abatement) to the successful applicant. The ordinance should contain at a
minimum:
• The name and address of the new business or expansion of an existing
business.
• The name of the owner(s) of the business.
• The total amount of revenue available to the City from ad-valorem sources for
the current fiscal year, the total revenue lost to the City for the current fiscal
year attributable to the exemption of the business named in the ordinance.
• The percentage of the ad-valorem exemption approved.
• The period of time for which the exemption will remain in effect and the
expiration date of the exemption.
• A finding that the business named in the ordinance meets the requirements of
controlling State law and the Ordinance which is now proposed for enactment.
• A provision that conditions the exemption on on-going compliance with
performance terms and fulfillment of other representation made by the
business in applying for the exemption (i.e., the number of new jobs created,
salary levels of new jobs, retention of new jobs, etc.).
Again,the overall goal of the program is to provide the City Commission with another tool in its
tool box to ensure and enhance the economic development of the City and the economic
wellbeing of the citizens of the City. The City Commission is not bound to grant tax relief to any
applicant, but may do so when determining that the tax abatement approval will benefit the City
and its citizens.
The City Commission approved the first reading of Ordinance No. 2015-4358 on October 26,
2015.
The City Clerk published notice of the public hearing in the Sanford Herald on October 25, 2015.
LEGAL REVIEW:
The City Attorney's office participated in drafting the proposed ordinance and provided legal
guidance as the proposed program was developed.
STAFF REGOMMENDATION:
It is Staff's recommendation that the City Commission adopt Ordinance No. 2015-4358.
SUGGESTED MOTION:
"I move to adopt Ordinance No. 2015-4358."
Attachment: Ordinance No. 2015-4358