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34-95 FAILED ON 2ND/FINAL READING - JUNE 20, 1995 ORDINANCE NO. 34-95 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING ARTICLE 4.5, "OVERLAY AND ENVIRONMENTAL MANAGEMENT DISTRICTS", OF THE LAND DEVELOPMENT REGULATIONS OF THE CITY OF DELRAY BEACH, FLORIDA, BY ENACTING A NEW SUBSECTION 4.5.1(M), "TAX EXEMPTION FOR HISTORIC PROPERTIES", TO AUTHORIZE AD VALOREM TAX EXEMPTIONS FOR HISTORIC PROPERTIES; ESTABLISHING REQUIREMENTS AND PROCEDURES; DESIGNATING THE HISTORIC PRESERVATION BOARD TO REVIEW APPLICATIONS AND MAKE RECOMMENDATIONS TO THE CITY COMMISSION; ESTABLISHING PENALTIES; PROVIDING A SAVING CLAUSE, A REPEALER CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the citizens of Florida amended the Florida Constitution, Article 7, Section 3(e), to authorize counties and municipalities to grant a partial ad valorem tax exemption to owners of historic properties for improvements to such properties which are the result of the restoration, renovation or rehabilitation of the historic properties; and WHEREAS, the Florida legislature enacted Sections 196.1997 and 196.1998, Florida Statutes (1992) to govern the allowance of such exemptions; and WHEREAS, the City Commission desires to create a partial ad valorem tax exemption for qualifying improvements of historic properties as a means to encourage more restoration, renovation and rehabilitation of such properties and to stabilize and improve property values in the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That Article 4.5, "Overlay and Environmental Management Districts", Section 4.5.1, "Historic Preservation Sites and Districts", of the Land Development Regulations of the Code of Ordinances of the City of Delray Beach, Florida, be, and the same is hereby amended by enacting a new subsection 4.5.1(M), "Tax Exemption for Historic Properties", to read as follows: 4.5.1(M) Tax Exemption for Historic Properties. (1) The City Commission hereby creates a tax exemption for the restoration, renovation or rehabilitation of qualifying historic properties designated in Section 4.5.1(M)(4). Qualifying properties shall be exempt from that portion of ad valorem taxation levied by the FAILED ON 2ND/FINAL READING - JUNE 20, 1995 FAILED ON 2ND/FINAL READING - JUNE 20, 1995 City of Delray Beach on 100% of the increase in assessed value resulting from any renovation, restoration or rehabilitation of the qualifying property made on or after the effective date of this ordinance. The above exemption does not apply to: (a) Taxes levied for payment of bonds; (b) Taxes authorized by a vote of the electors pursuant to Section 9(b) or Section 12, Article 7 of the Florida Constitution; or (c) Personal property. (2) Duration of Tax Exemption. (a) The exemption period shall be for ten (10) years, beginning January 1st following the year in which final approval is given by the City Commission and the Palm Beach County Property Appraiser has been instructed to provide such exemption. However, the City Commission shall have the discretion to set a lesser term if requested by the property owner in the original application. (b) The term of the exemption shall be specified in the resolution approving the exemption and shall continue regardless of any changes in the authority of the City to grant such exemption or change in ownership of the property. To retain an exemption, the historic character of the property and the improvements which qualified the property for an exemption must be maintained in their historic state over the period for which the exemption was granted. (3) Effective Date of Exemption, The effective date of the tax exemption shall be January ! of the year following the year in which a historic preservation exemption covenant is recorded and a copy of the Final Application and resolution of the City Commission, as approved, have been transmitted to the Palm Beach County Property Appraiser. (4) Oualifying Properties and Improvements. (a) The following real property in the City is qualifying property for the purposes of this ordinance if at the time the exemption is approved by the City Commission, the property: - 2 - Ord. No. 34-95 FAILED ON 2ND/FINAL READING - JUNE 20, 1995 (1) is individually listed in the National Register of Historic Places pursuant to the National Historic Preservation Act of-1966, as amended, or (2) is a contributing property to a National Register-listed district; or (3) is designated as a historic property, or as a contributing property to a historic district, under the terms of the City's historic preservation ordinance; and (4) has been certified by the Historic Preservation Board as satisfying (a)(1), (2), or (3). (b) For an improvement to a historic property to qualify the property for an exemption, the improvement must: (1) be consistent with the United States Secretary of the Interior's Standards for Rehabilitation, as amended; (2) be determined by the Historic Preservation Board to meet criteria established in rules adopted by the Department of State, Division of Historical Resources, FAC 1A-38, as amended, and (3) be consistent with Section 4.5.1(E), "Development Standards", of the City's Land Development Regulations. (5) Evaluation of Property Used for Government or Nonprofit Purposes. (a) For purposes of the exemption under Section 196.~99B, Florida Statutes, a property is being used for government or nonprofit purposes if the sole occupant of at least 65 percent of the useable space is an agency of the federal, state or a local government unit or a nonprofit organization certified by the Department of State under Section 617.013, Florida Statutes. (b) For purposes of the exemption under Section 196.1998, Florida Statutes, a property is considered regularly and frequently open to the public if public access to the property is provided not less than 12 days a year on an equitably spaced basis, and at other times by appointment. Nothing herein shall prohibit the owner from charging a reasonable nondiscriminatory admission fee, comparable to fees charged at similar facilities in the area. - 3 - Ord. No. 34-95 FAILED ON 2ND/FINAL READING - JUNE 20, 1995 (6) Application for Exemption. Any property owner, or the authorized agent of the owner, that desires' an ad valorem tax exemption for the improvement of a historic property must file a written application with the Planning and Zoning Department. The application shall be made on the two-part Historic Preservation Property Tax Exemption Application, approved by the State of Florida, Division of Historical Resources. Part 1 of the application, the Preconstruction Application, shall be submitted before qualifying improvements are initiated and Part 2, the Final Application/Request for Review of Completed Work, shall be submitted upon completion of the qualifying improvements. The Final Application shall contain the Historic Preservation Exemption Covenant, as provided for herein. (7) Part 1. Preconstruction Application. A Preconstruction Application shall be filed with the Planning and Zoning Department before the qualifying project is initiated. The Preconstruction Application shall also contain information concerning the proposed cost of the qualifying improvement and be accompanied by a copy of the most recent tax bill from the Palm Beach County Property Appraiser for the property. Upon receipt of the Preconstruction Application, the Historic Preservation Planner shall review the application and determine whether the application is complete and whether the property satisfies the requirements of Section 4.5.1(M)(4)(a) and is therefore eligible for review by the Historic Preservation Board. (8) Review of Preconstruction Application by the Historic Preservation Board. The Historic Preservation Board shall review the Preconstruction Application within 60 days of the Historic Preservation Planner's determination of eligibility. If all or part of the proposed work involves exterior work requiring the issuance of a Certificate of Appropriateness, the exterior portion of the work shall be reviewed in accordance with the Certificate of Appropriateness process simultaneously with the Part Preconstruction Application. If site plan approval or a variance is required for the project, the respective applications shall be presented to the Historic Preservation Board in conjunction with the Certificate of Appropriateness review process. A Preconstruction Application which requires a Certificate of Appropriateness shall not be considered until the Certificate of Appropriateness is approved by the Historic Preservation Board. - 4 - Ord. No. 34-95 FAILED ON 2ND/FINAL READING - JUNE 20, 1995 (a) If the Historic Preservation Board determines that the work as proposed is a qualifying improvement and is in compliance with the review standards contained in Section 4.5.1(M)(4), the Preconstruction Application and, if applicable, the Certificate of Appropriateness shall be approved by the Historic Preservation Board, and the Board shall issue a written order to the applicant. (b) If the Historic Preservation Board determines that the work as proposed is not a qualifying improvement or is not in compliance with the review standards contained in Section 4.5.1(M)(4), the applicant shall be so advised in writing. (9) Issuance of Other Permits or ApDroval. The Building Department must review and approve all Preconstruction Applications with respect to the applicable code requirements before issuing a building permit. The Building Department shall review all plans prior to the Historic Preservation Board's review. (10) Part 2. Final Application/Request for Review of Completed WQrk. (a) If the Historic Preservation Board determines that the work is a qualifying improvement and is in compliance with the review standards contained in Section 4.5.1(M)(4), the Board shall approve the Final Application/Request for Review of Completed Work and issue a written order to the applicant. The City will inspect the completed work to verify such compliance. The review of the Historic Preservation Board shall be completed within thirty (30) days of the receipt of the Final Application/Request for Review of Completed Work. (b) The Final Application/Request for Review of Completed Work shall be accompanied by documentation of the total cost of the qualifying improvements. Appropriate documentation may include, but is not limited to, paid contractor's bills, AIA Form 702-703, cancelled checks, and an approved building permit application listing the cost of work to be performed. Upon the receipt of a Final Application/Request for Review of Completed Work and all required supporting documents, the Historic Preservation Board shall conduct a review at a regularly scheduled public meeting to determine whether or not the completed improvements are in compliance with the work described in the Preconstruction Application, approved amendments, if any, and Section 4.5.1(M)(4)(b). After the above review, the Historic Preservation Board shall recommend that the City Commission grant or deny the exemption. - 5 - Ord. No. 34-95 FAILED ON 2ND/FINAL READING - JUNE 20, 1995 (c) If the Historic Preservation Board determines that the work as completed is either not a qualifying improvement or is not in compliance with the review standards contained in Section 4.5.1(M)(4), the applicant shall be advised that the Final Application has been denied. Such denial shall be in writing and the Historic Preservation Planner shall provide a written summary of the reasons for the determination. (11) Appeal to the Historic Preservation Board's Decision. Review and reversal of any action taken by the Historic Preservation Board is appealable to the City Commission pursuant to Section 2.4.7(E), "Appeals". (12) Approval by the City Commission. Upon approval of a Final Application/Request for Review of Completed Work by the Historic Preservation Board, the Final Application shall be placed by resolution on the agenda of the City Commission for approval. The resolution of the City Commission approving the Final Application shall provide the name of the owner of the property, the property address and legal description, require the owner to record the restrictive covenant as provided in Section 4.5.1(M)(13) in the official records of Palm Beach County as a condition of receiving the exemption, the period of time the exemption will remain in effect, and the expiration date of the exemption. (13) Historic Preservation Exemption Covenant. To qualify for an exemption, the applicant must sign and return the Historic Preservation Exemption Covenant with the Final Application/Request for Review of Completed Work. The covenant shall be in a form as established by the Department of State, Division of Historical Resources, and applicable for the term for which the exemption is granted and shall require the character of the property and qualifying improvements to be maintained during the period that the exemption is granted. On or before the effective date of the exemption, the owner of the property shall have the covenant recorded in the official records of Palm Beach County, Florida, and shall cause a certified copy of the recorded covenant to be delivered to the Historic Preservation Planner. Such covenant shall be binding on the current property owner, transferees, and their heirs, assigns and successors. A violation of the covenant shall result in the property owner being subject to the payment of the differences between the total amount of the taxes which would have been due in March of each of the previous - 6 - Ord. No. 34-95 FAILED ON 2ND/FINAL READING - JUNE 20, 1995 years in which the covenant or agreement was in effect had the property not received the exemption and the total amount of taxes actually paid in those years, plus interest on the difference calculated as provided in Sec. 212.12(3), Florida Statutes. (14) Completion of Work. An applicant must complete all work within two (2) years following the date of approval of a Part ! Preconstruction Application by the Historic Preservation Board. A Preconstruction Application shall be automatically revoked if the property owner has not submitted a Final Application/Request for Review of Completed Work within two (2) years following the date of approval of the Preconstruction Application. The City Commission, upon the recommendation of the Historic Preservation Board, may extend the %ime for completion of a substantial improvement in accordance with the procedures of the City's Building Code. (15) Notice of Approval to the Property Appraiser. Upon the receipt of a certified copy of the recorded restrictive covenant by the Historic Preservation Planner, the Preservation Planner shall transmit a copy of the approved Final Application/Request for Review of Completed Work, the exemption covenant and the resolution of the City Commission approving the Final Application and authorizing the tax exemption to the Palm Beach County Property Appraiser. (16) Revocation Proceedings. (a) The Historic Preservation Board may initiate proceedings to revoke the ad valorem tax exemption provided herein, in the event the applicant, or subsequent owner or successors in interest to the property, fails to maintain the property according to the terms, conditions and standards of the Historic Preservation Exemption Covenant. (b) The Historic Preservation Board shall provide notice to the current owner of record of the property and hold a revocation hearing in the same manner as in Section 4.5.1(M)(10), and make a recommendation to the City Commission. - 7 - Ord. No. 34-95 FAILED ON 2ND/FINAL READING - JUNE 20, 1995 (c) The City Commission shall review the recommendation of the Historic Preservation Board and make a determination as to whether the tax exemption shall be revoked. Should the City Co~mission determine that the tax exemption shall be revoked, a written resolution revoking the exemption and notice of penalties as provided in Paragraph 4 of the covenant shall be provided to the owner, the Palm Beach County Property Appraiser, and filed in the official records of Palm Beach County. (d) Upon receipt of the resolution revoking the tax exemption, the Palm Beach County Property Appraiser shall discontinue the tax exemption on the property as of January 1st of the year following receipt of the notice of revocation. (17) Reapplication. An applicant previously granted a Historic Preservation Tax Exemption by the Historic Preservation Board may undertake an additional substantial improvement project during the Exemption Period, or following its expiration, and reapply for an additional Historic Preservation Tax Exemption for such subsequent work. Section 2. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 3. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 4. That this ordinance shall become effective immediately upon its passage on second and final reading. PASSED AND ADOPTED in regular session on second and final reading on this the day of . . , 1995. MAYOR ATTEST: City Clerk First Reading Second Reading - 8 - Ord. No. 34-95 FAILED ON 2ND/FINAL READING - JUNE 20, 1995 MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER ~ SUBJECT: AGENDA ITEM ~ /0'~'- MEETING OF JUNE 20. 1995 SECOND READING AND PUBLIC HEARING FOR ORDINANCE NO. ~4-9~ (TAX EXEMPTION FOR HISTORIC PROPERTIES) DATE: JUNE 16, 1995 This is second reading and public hearing for Ordinance No. 34-95 which amends the Land Development Regulations by enacting a new subsection 4.5.1(M), "Tax Exemption for Historic Properties" It authorizes a partial ad valorem tax exemption for qualifying improvements to historic properties and is intended to encourage more restoration, renovation and rehabilitation of these properties in an ongoing effort to stabilize and improve property values in the City. The ordinance establishes requirements and procedures in order to receive and maintain an exemption for the specified term, and designates the Historic Preservation Board to review applications and make recommendations to the City Commission. It also provides for revocation of the exemption in the event the applicant fails to maintain the property according to the terms and conditions of the Historic Preservation Exemption Covenant. This ordinance was first reviewed in April, 1994. Action was delayed to allow additional time to address concerns expressed by the Community Redevelopment Agency and for further review by the Historic Preservation Board and the Planning and Zoning Board. Questions raised have been addressed and are included in the attached staff report. On February 9, 1995, the CRA recommended the ordinance for approval. On March 15th, the Historic Preservation Board unanimously recommended approval. On May 15, 1995, the Planning and Zoning Board voted unanimously to recommend approval of the ordinance. At first reading on June 6, 1995, questions were raised by Mayor Lynch concerning whether the tax exemption would apply to eligible properties in the CBD in light of the tax increment financing (TIF). The City Attorney's office is reviewing this issue and will provide a report at Tuesday's meeting. The Commission passed Ordinance No. 34-95 on first reading by a vote of 4 to 1 (Mayor Lynch dissenting). Recommend consideration of Ordinance No. 34-95 on second and final reading. MEMQRANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER~ SUBJECT: ASENDA ITEM ~ /~-~' - MEETING OF JUNE 6. 1995 FIRST READING FOR ORDINANCE NO. 34-95 (TAX EXEMPTIQN FQR HISTORIC PROPERTIES~ DATE: JUNE 2, 1995 This is first reading for Ordinance No. 34-95 which amends the Land Development Regulations by .enacting a new subsection 4.5.1(M), "Tax Exemption for Historic Properties". It authorizes a partial ad valorem tax exemption for qualifying improvements to historic properties and is intended to encourage more restoration, renovation and rehabilitation of these properties in an ongoing effort to stabilize and improve property values in the City. The ordinance establishes requirements and procedures in order to receive and maintain an exemption for the specified term, and designates the Historic Preservation Board to review applications and make recommendations to the City Commission. It also provides for revocation of the exemption in the event the applicant fails to maintain the property according to the terms and conditions of the Historic Preservation Exemption Covenant. This ordinance was first reviewed in April, 1994. Action was delayed to allow additional time to address concerns expressed by the Community Redevelopment Agency and for further review by the Historic Preservation Board and the Planning and Zoning Board. Questions raised have been addressed and are included in the attached staff report. On February 9, 1995, the CRA recommended the ordinance for approval. On March 15th, the Historic Preservation Board unanimously recommended approval. On May 15, 1995, the Planning and Zoning Board voted unanimously to recommend approval of the ordinance. Recommend approval of Ordinance No. 34-95 on first reading. If passed, a public hearing will be held on June 20, 1995. CITY COMMISSION DOCUMENTATION TO: ~,~,VID T. HAI~N, CITY MANAGER DEPARTMENT OF PLANNING AND' ZONING SUBJECT: MEETING OF JUNE 6, 1995 AMENDMENT TO THE LDRS ALLOWING FOR AN EXEMPTION FROM CERTAIN PROPERTY TAXES WHEN ASSOCIATED WITH IMPROVEMENTS TO HISTORIC STRUCTURES ACTION REQUESTED OF THE COMMISSION: The action requested of the City Commission is approval of an amendment to the Land Development Regulations (LDRs), creating a new subsection 4.5. I(M), "Tax Exemption for Historic Properties." BACKGROUND: This item was the subject of a City Commission workshop discussion in April of last year. The ordinance was drafted subsequent to a constitutional amendment approved by Florida voters allowing local governments to authorize property tax exemptions for improvements to historic structures. The intent of the ordinance is to provide incentives for the restoration and preservation of historic properties, and to assist in efforts to revitalize older neighborhoods. Adoption of the ordinance was delayed in response to concerns expressed by the CRA over the potential impact of the exemptions on its tax base. In particular, there was concern that recipients of CRA loans might also apply for the tax exemption, thus receiving a double benefit that would detract from the agency's ability to fund future loans. This issue was discussed further at the CRA's meeting of February 9, 1995, at which time it was recommended for approval. Additional background and analysis related to the ordinance is contained in the attached Planning and Zoning Board staff report. City Commission Documentation LDR Amendment RE: Tax Exemption for Historic Structures Page 2 PLANNING AND ZONING BOARD CONSIDERATION: The Planning and Zoning Board first considered this item at its meeting of March 20, 1995. The Board had certain questions regarding the implementation of the exemption, and continued the item. Those questions were addressed in the attached staff report. On May 15, 1995, the Board voted unanimously to recommend approval of the ordinance. RECOMMENDED ACTION: o By motion, approve the amendment creating LDR subsection 4.5.1 (M), "Tax Exemption for Historic Properties." Attachment: o P&Z Staff Report of May 15, 1995 PLANNING AND ZONING BOARD MEMORANDUM STAFF REPORT MEETING OF: MAY 15, 1995 AGENDA ITEM: V.K. - AMENDMENT TO THE LAND DEVELOPMENT REGULATIONS ALLOWING FOR AN EXEMPTION FROM CERTAIN PROPERTY TAXES WHEN ASSOCIATED WITH IMPROVEMENTS TO HISTORIC PROPERTIES. ITEM BEFORE THE BOARD: ' The item before the Board is that of recommending to the City Commission approval of an amendment to the Land Development Regulations to allow for an exemption from certain property taxes when associated with improvements to Historic Properties. BACKGROUND: On November 3, 1992 Florida voters approved an amendment to the State Constitution that allows local governments to provide property tax exemption on improvements to historic properties. The Florida Legislature enacted Section 196.1997 and 196.1988 to govern the allowance of such exemptions. The goal of this legislation is to encourage preservation and rehabilitation of historic properties and to assist in efforts to revitalize older neighborhoods and commercial areas. Section 196.1997 provides a great deal of flexibility for communities in drafting an incentive ordinance. The Historic Preservation Board recommended that a draft ordinance be prepared and has made suggestions with respect to the philosophy and objectives of the ordinance as follows: Encourage restoration, renovation and rehabilitation without adversely affecting the property tax base or finances of the City. Assure that the work visibly improves the exterior of the property and therefore improves the neighborhood. Assure that the program is easy to administer by the City. Assure that the incentive is significant enough that property owners will want to participate. On April 5, 1994 a draft of the proposed ordinance for the City .was sent to a City Commission Workshop meeting for comments. V.K. P&Z Board Memorandum Staff Report Amendment to the LDRs Allowing for an Exemption from Certain Property Taxes when Associated with Improvements to Historic Properties. Page 2 The Commission favored the ordinance but had concerns with respect to. its impact on the CRA's tax base, as the majority of eligible properties are located within its boundaries. It was felt that by exempting certain property taxes less money would be collected for the CRA's interest free loan program. Applicants applying for both the exemption and the loan would be doubly depriving those whose properties were not historically eligible and who depend on the loan program for help with renovation. The Commission recommended that a draft of the ordinance be submitted to the CRA. On May 4, 1994 the Historic Preservation Board reviewed and approved the final~ draft of the ordinance with several minor changes in the language. The Board agreed to make its formal recommendation to the Planning and Zoning Board after comments from the CRA were received. The CRA reviewed the final draft at its meeting of May 12, 1994, however, no formal comments were forthcoming. On February 9, 1995, the CRA Board considered the ordinance again, and recommended that it be adopted with the proviso that an individual exercising the tax exemption not apply for a CRA subsidized loan. This will prevent owners of historic properties from receiving the double benefit of an interest free rehabilitation loan and a tax exemption for the improvements. On March 20, 1995, the P & Z Board considered the amendment and, because of questions and concerns, deferred the action to its meeting of May 15, 1995. The following analysis addresses some of the questions and concerns that were expressed by the Board. ANALYSIS OF THE PROPOSED ORDINANCE: A property would qualify for tax exemption~if it is individually listed on the National Register of .Historic Places; is individually listed on the Local Register of Historic Places; or is a contributing (historic) structure located within one of the City's four Historic Districts. * The'Board wanted assurance that this is clearly worded in the ordinance. · Section 4.5.1(M)(4)(a) Qualifying Properties, on page 2 of the ordinance indicates which properties are eligible as required by F.S. 196.1997. The tax exemption will be available to owners of qualifying residential and commercial properties for a period of 10 years. * Board members questioned the 10 year exemption period and felts, that this might put an undue burden on the City's tax base and that it should perhaps be reduced to 5 years. P&Z Board Memorandum Staff Report Amendment to the LDRs Allowing for an Exemption from Certain Property Taxes when Associated with Improvements to Historic Properties. Page 3 Section 1. F.S. 196.1997 (Ad valorem tax exemptions for historic properties), (5) states that "the ordinance must specify that any exemption granted remains in effect for up to 10 years with respect to any particular property regardless of any change in the authority of the county or municipality to grant such exemptions, or any change in ownership of the property". The text of the City ordinance may be changed to. specify "a period of up to 10 years". However, when the period of exemption is optional, the City Commission must establish the period of exemption for each individual property. The arguments in favor of allowing the maximum ten year time period are as follows: Rehabilitation and adaptive re-use of historic properties stabilizes and improves property values and will ultimately enhance the property tax base of the City. The 10 year exemption provides the ,best possible positive financial incentive for rehabilitation of historic properties. The covenant that accompanies the exemption requires that a property's improvements be maintained for the period of the exemption. A 10 year period assures that ~the improvements are maintained long enough to have a substantial positive impact 'on the surrounding neighborhood. Qualifying properties will be exempt from that portion of ad valorem taxes levied by the City on 100% of the increased and assessed value resulting from the renovation. The exemption does not apply to taxes levied for payment of bonds, or taxes authorized by a vote 'of the electors. The exemption does not apply to personal property. * The Board had questions with respect to the Property Appraisers assessments and method of evaluation of the improvements. The Property Appraisers office will assign a percentage of the dollar value of the improvements to the total assessed value of the property. For example, $50,000 of improvement to a property assessed at $100,000 would result in a new assessed value of $150~000. Thus 33% of the new assessed value will be .forgiven. Therefore, if the property values decline or increase in the area, the tax abatement would remain at 33% of the yearly assessed value. P&Z Board Memorandum Staff Report Amendment to the LDRs Allowing for an Exemption from Certain Property Taxes when Associated with Improvements to Historic Properties. Page 4 The ordinance contains a reapplication clause which allows the applicant to reapply for an additional tax exemption for a substantial improvement to the property during or after the exemption period. * The Board questioned the advisability of the reapplication clause. The reapplication clause was taken from the Orlando ordinance, which was one of the first tax abatement. ordinances written and was used as a model by other municipalities. Nothing in F.S 196.1997 prevents a reapplication clause. However, very few of the tax abatement ordinances that staff has reviewed contain this clause. It is probably advisable to eliminate the reapplication clause from the ordinance, unless it is linked to a very substantial improvement to the exterior. All exemption applications will be submitted on a form which has been adopted by the Department of State and all applications will be reviewed by the Historic Preservation Board through the Certificate of Appropriateness process. After reviewing the application at a public meeting the Historic Preservation board will then recommend that the City Commission grant or deny the application. A majority vote of the City Commission will be required to approve the tax exemption. The applicant must complete the renovation within 2 years of the initial exemption application. The tax exemption will become effective on January 1 of the year following completion of the work. * The Board questioned the 2 year completion period and felt that it seemed too generous. The suggestion was made to limit the completion period to 1 year and allow the applicant to apply for an extension. The two year completion date is allowed in all the ordinances staff has reviewed and is recommended by the Division of Historical Resources.. In some cases the applicants will have to phase the financing of the project. For example, adding a bedroom and bath in one year and restoring the exterior in the next. Requesting an extension would require considerably more staff time as the necessity for an extension would have to be documented for HPB review. Documentation would require inspection of the property and proof of financial or other hardship. The ordinance~~ states that the tax exemption shall continue regardless of change in ownership of the property. P&Z Board Memorandum Staff Report Amendment to the LDRs Allowing for an Exemption from Certain Property Taxes when Associated with Improvements to Historic Properties. Page 5 * The Board was concerned that the tax abatement runs with the property and not with the owner. Section 1. F.S. 196.1997(5) states that the ordinance must specify that any exemption granted remains in effect for up to 10 years with respect to any particular property, regardless of any change in the authority of the county or municipality to grant such exemptions, or any change in ownership of the property. Additionally, the covenant that accompanies the exemption requires that a property's improvements be maintained for the period of the exemption. Having-the exemption run with the land assures that the improvements are maintained for the duration of the exemption, long enough to have a substantial positive impact on the surrounding neighborhood. The ordinance states that in order for proposed rehabilitation to qualify for exemption the improvements must conform to the Rules adopted by the Department of State; and be consistent with Section 5.4.1(E) of the Historic Preservation ordinance which includes the criteria set forth by the Secretary of the Interior's Standards for Rehabilitation. * The Board questioned how much additional staff time will be needed to assure that the improvements qualify for exemption. Some additional staff time will be required. However, the application is extensive and must be completed by the applicant, and not staff. The application will be processed through the regular Certificate of Appropriateness (COA) review process which is required for all exterior renovation, whether or not a tax abatement is sought. Interior renovation will be governed by the permitting and inspection process required by the Building Department for any renovation. As of October,.1994 the following governing bodies have adopted tax exemption ordinances: * City of West Palm Beach * Town of Palm Beach * City of Orlando * City of Tampa * City of Coral Gables * City of P~nsacola * Dade 'County * Hillsborough County P&Z Board Memorandum Staff Report Amendment to the LDRs Allowing for an Exemption from Certain Property Taxes when Associated with Improvements to Historic Properties. Page 6 In addition Palm Beach County has an ordinance that will be considered in the near future. Attached is an example of the property tax benefits for an individual property owner. HISTORIC PRESERVATION BOARD CONSIDERATION: As so much time had elapsed since this ordinance was originally drafted, it was presented again for consideration by th6 Historic Preservation Board at its meeting of March 15, 1995. The Board recommended unanimously that the ordinance be adopted. RECOMMENDED ACTION: By motion, recommend to the City Commission approval of the amendment to the Land Development Regulations to allow for an exemption from .certain property taxes when associated with improvements to Historic Properties. Attachments: * Ordinance * Example of the Tax Benefits for an Individual Property Owner Meeting of April5, 1994 Page3 . EXAMPLE: OWNER OCCUPIED RESIDENTIAL PROPERTY Before Rehabilitation: Property Value '. $100,000' Homestead Exemption ." . .' . -25,000 '""" Taxable.ValUe .' .'":::.'~. 75,000 ." .:"~:'!'"':.'~ City Taxes/Yr. (.8 Mils) :"'.'. $600 ''- : - After ~30t.000 Rehabilitation withou~Proposed Exemption: ~%.:"" property'value ... $130,000." .~'.''-'' ' Homestead Exemption " -25,000":':":' Taxable Value .... 105,000 Property Tax/Yr (8-Mils) $840 After ~30,000 Rehabllitatl°n with-prOposed Exemption: Property. Value $$30,000 Homestead Exemption -25,000 Taxable Value 105,000 Property Tax/Yr $75,000 @'8 Mils $600 Taxes/Yr on $30,000 improv. @1.14 Mils +34 Total Property Tax/Yr $6'34 Tax Savings per Year $ 206 ' Total Savings for 10 years $ 2,060 Flle/c: taxy' ' P'UELIC NEAR~NG ~ll be hem W~I~ ~ THE Cl~ ~ DEL~Y '~CH, FL~I~ ANNEXING TO ~E CI~ ~ ~L~Y B~CH, A P~CEL ~ ~O L~TED ON A~OXI~TELY ~TH ~ AT~NTIC AVE. '~) ~ICH ~ND IS ~NTIG~US ~'~ISTIgG MUNIOPAL LIMITS; ~FINING THE ~D; ~ID~NG ~R THE R~HTS ~D ~LIGATI~S C~ ~D ~E ~SIGNATION ~ ~ID ~ND TO THE FURUTE ~O USE ~P ~ C~TAINED ~EHENSIVE P~N; EL~* TO ~EED UNDER THE ~ H~RING ~1~ PRG ~N ~EN~ENTS; ~G VIDJ~ ~ THE Z~G THE~E- TO ~ (P~NED ~FICE ~ER) DIURIl;PROVIDING ,~NE~ REP~LER C~USE, A ~VINGS ~U~, AND AN EFFEC* ~DINANCE M THE Cl~ ~ ~B~CH, F~RI~ KNNEXING TO '~E CI~ ~ ~L~Y ~EACH, P~CEL ~ ~ND L~TED ON ~E ~$T $1DE ~ MILITARY T~I~ A~ROXI~TELY ~ ~H ~ AT~NTIC AVE. EXISTING MUNICIPAL LIMITS; ~DEFINING THE ~NDARIES THE CI~ TO lgCLU~ ~ID ~D ; PR~IDING FOR THE ~ID ~D; AFFIXING AN ~FI- CI~ ~ND USE ~S)G~ATION ~ ~ID ~D TO THE FUTURE ~D ~E ~P ~ ~TAINED IN ~ CI~ ~ ~LRAY ~PREHENSiVE P~N; E~ECT- TO ~EED UNDER THE H~RING ~TION PRG ~ ~ ~LL ~LE P~N ~EN~ENTS; PRG ~DING ~ THE Z~ING THERE. TO ~ (~NRED ~FICE ~NTER) DI~RI~;PR~IDING A ~VI~ C~U~, AND AN EFFEC. ~DI~NCE ~ THE C~ ~ ~CH, ~1~ ~RRECTING FUTURE ~ND USE ~P ~D ~T~ FR~ GENE~ ~ ~RCI~ IN FART, AND T~NSI. T~ IN PART, TO ~TED tN BL~KS ~, R AND ~, ~TICU~RLY ~RIBED ~REI~, ELE~IK TO PR~EED ~R SIKLE H~RING ~D U~ ~N ~EN~ENTS; ~IDIK A GENE~L REPEAL. THE ~ (S~CIAL ACTIVI. ~T~ ~ A P~CEL ~ ~D AT ~E ~Tfl~ ~ GE~GE BU~H ~LE- V~D AND P~ T~IL K~N PARTICU~RLY ~RIBED ~N~ ~ ~E SI~;PROVIDING A MVt~ ~USE, A GENE~L RE- aR ~SE, ~D ~ EFFEC* T~ ~TE. .'~ CITY OF DELRAY BEACH, FLORIDA NOTICE OF PUBLIC HEARING A PUBLIC HEARING will be held on the following proposed ordinances at 7:00 P.M. on TUESDAY, JUNE 20, 1995 (or at any continuation of such meeting which is set by the Commission), in the City Commission Chambers, 100 N.W. 1st Avenue, Delray Beach, Florida, at which time the City Commission will consider their adoption. The proposed ordinances may be inspected at the Office of the City Clerk at City Hall, 100 N.W. 1st Avenue, Delray Beach, Florida, between the"hours of 8:00 a.m. to 5:00 p.m., Monday through Friday, except holidays. All interested parties are invited to attend and be heard with respect to the proposed ordinances. ORDINANCE NO. 29-95 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, ANNEXING TO TME CITY OF DELRAY BEACH, A PARCEL OF LAND LOCATED ON THE WEST SIDE OF MILITARY TRAIL, APPROXIMATELY 1,400 FEET SOUTH OF ATLANTIC AVENUE, WHICH LAND IS CONTIGUOUS TO EXISTING MUNICIPAL LIMITS; REDEFINING THE BOUNDARIES OF THE CITY TO INCLUDE SAID LAND; PROVIDING FOR THE RIGHTS AND OBLIGATIONS OF SAID LAND; AFFIXING AN OFFICIAL LAND USE DESIGNATION FOR SAID LAND TO THE FUTURE LAND USE MAP AS CONTAINED IN THE CITY OF DELRAY BEACH COMPREHENSIVE PLAN; ELECTING TO PROCEED UNDER THE SINGLE HEARING ADOPTION PROCESS FOR SMALL SCALE LAND USE PLAN AMENDMENTS; PROVIDING FOR THE ZONING THEREOF TO POC (PLANNED OFFICE CENTER) DISTRICT; PROVIDING A GENERAL REPEALER CLAUSE, A SAVING CLAUSE, AND AN EFFECTIVE DATE. ORDINANCE NO. 30-95 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OP DELRAY BEACH, FLORIDA, CORRECTING THE FUTURE LAND USE MAP DESIGNATION FROM GENERAL COMMERCIAL, IN PART, AND TRANSITIONAL, IN PART, TO COMMERCIAL CORE, FOR PROPERTY LOCATED IN BLOCKS 77, 78 AND 86, TOWN OF DELRAY PLAT, AS MORE PARTICULARLY DESCRIBED HEREIN, ELECTING TO PROCEED UNDER THE SINGLE HEARING ADOPTION PROCESS FOR SMALL SCALE LAND USE PLAN AMENDMENTS; PROVIDING A GENERAL REPEALER CLAUSE, A SAVING CLAUSE, AND AN EFFECTIVE DATE. ORDINANCE NO. 31-95 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, REESTABLISHING THE SAD (SPECIAL ACTIVITIES DISTRICT) ZONING CLASSIFICATION FOR A PARCEL OF LAND LOCATED AT THE SOUTHEAST CORNER OF GEORGE BUSH BOULEVARD AND PALM TRAIL KNOWN AS MARINA DELRAY, AS MORE PARTICULARLY DESCRIBED HEREIN; GRANTING SITE PLAN APPROVAL WITH CERTAIN CONDITIONS; PROVIDING FOR AN IMPROVEMENT SCHEDULE FOR THE INSTALLATION OF IMPROVEMENTS TO THE SITE; PROVIDING A GENERAL REPEALER CLAUSE, A SAVING CLAUSE, AND AN EFFECTIVE DATE. ORDINANCE NO. 32-95 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, REZONING AND PLACING LAND PRESENTLY ZONED CBD (CENTRAL BUSINESS DISTRICT), IN PART, GC (GENERAL COMMERCIAL) DISTRICT, IN PART, AND SAD (SPECIAL ACTIVITIES DISTRICT), IN PART, IN THE CBD-RC (CENTRAL BUSINESS DISTRICT--RAILROAD CORRIDOR) DISTRICT; SAID LAND BEING GENERALLY LOCATED IN THE DOWNTOWN AREA ADJACENT TO THE F.E.C. RAILROAD CORRIDOR, AS MORE PARTICULARLY DESCRIBED HEREIN; AND AMENDING "ZONING MAP OF DELRAY BEACH, FLORIDA, 1994"; PROVIDING A GENERAL REPEALER CLAUSE, A SAVING CLAUSE, AND AN EFFECTIVE DATE. ORDINANCE NO. 33-95 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING SECTION 4.4.13, "CENTRAL BUSINESS (CBD) DISTRICT", SUBSECTION 4.4.13(H), "SPECIAL REGULATIONS", OF THE LAND DEVELOPMENT REGULATIONS OF THE CITY OF DELRAY BEACH, FLORIDA, BY DELETING SUBPARAGRAPHS 4.4.13(H) (3) AND 4.4.13(H) (4) IN THEIR ENTIRETY; PROVIDING A GENERAL REPEALER CLAUSE, A SAVING CLAUSE, AND AN EFFECTIVE DATE. ORDINANCE NO. 34-95 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING ARTICLE 4.5, "OVERLAY AND ENVIRONMENTAL MANAGEMENT DISTRICTS", OF THE LAND DEVELOPMENT REGULATIONS OF THE CITY OF DELRAY BEACH, FLORIDA, BY ENACTING A NEW SUBSECTION 4.5o1(M), "TAX EXEMPTION FOR HISTORIC PROPERTIES", TO AUTHORIZE AD VALOREM TAX EXEMPTIONS FOR HISTORIC PROPERTIES; ESTABLISHING REQUIREMENTS AND PROCEDURES; DESIGNATING THE HISTORIC PRESERVATION BOARD TO REVIEW APPLICATIONS AND MAKE RECOMMENDATIONS TO THE CITY COMMISSION; ESTABLISHING PENALTIES; PROVIDING A SAVING CLAUSE, A GENERAL REPEALER CLAUSE, AND AN EFFECTIVE DATE. Please be advised that if a person decides to appeal any decision made by the City Commission with respect to any matter considered at this hearing, such person will need a record of these proceedings, and for this purpose such person may need to ensure that a verbatim record includes the testimony and evidence upon which the appeal is to be based. The City does not provide or prepare such record. Pursuant to F.S. 286.0105. PUBLISH: Delray Beach News CITY OF DELRAY BEACH June 9, 1995 Alison MacGregor Harty City Clerk ***************************************************************** Instructions to the NewsDaper: This is a standard legal advertisement to be published in the legal/classified section of the newspaper. There are no special requirements. Thank you. RULES OF THE DEPARTMENT OF STATE ( DIVISION OF HISTORICAL RESOURCES RULE 1A-38, FLORIDA ADMINISTRATIVE CODE TAX EXEMPTION FOR HISTORIC PROPERTIES RULE CHAPTER TITLE: RULE NO. Tax Exemptions for Historic Properties 1A-38 RULE TITLES: RULE NOS. Purpose 1A-38. Definitions 1A-38. 002 Application for Exemption 1A-38.003 Evaluation of Property 1A-38.004 Evaluation of Improvements 1A-38.005 Covenant 1A-38. 006 Certification of Local Historic Preservation Office 1A-38.007 RULES OF THE DEPARTMENT OF STATE DIVISION OF HISTORICAL RESOURCES CHAPTER 1A-38, FLORIDA ADMINISTRATIVE CODE TAX EXEMPTIONS FOR HISTORIC PROPERTIES 1A-38.001 Purpose. The purpose of this rule is to implement Sections 196.1997 and 196.1998, F. S'., which provide a local option property tax exemption for improvements to historic properties. Specific Authority 120.53, 196.1997(6), (13), 196.1998(3) FS. Law Implemented 196.1997, 196.1998, FS. History--New . 1A-38.002 Definitions. The following words and phrases, when used in these rules, shall have the following meanings, except where the context clearly indicates a different meaning: (1) "Contributing property" means a building, site, structure, or object which 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, and possesses historic integrity reflecting its character at that time, b) is capable of yielding 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 herein by reference. (2) "Division" means the Division of Historical Resources of the Department of State. (3) "Local Government" means the Board of County Commissioners or the governing authority of the municipality that has adopted an ordinance providing for property tax exemption for improvements to historic properties pursuant to Sections 196.1997 or 196.1998, F. S. (4) "Local Historic Preservation Office" means a local gouernment agency certified by the Divisio~ as qualified to review applications for property tax exemption. (5) "National Register of Historic Places" means the list of historic properties significant in American history, architecture, archeology, engineering and culture, maintained by the Secretary of the Interior, as established by the National Historic Preservation Act of 1966, as amended. (6) "Noncontributing property" means a building, site, structure, or object which 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, b) due to alterations, disturbances, additions, or other changes, it no longer possess 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. Specific Authority 120.53, 196.1997, 196.1998 FS. Law Implemented 196.1997, 196.1998 FS. History--New . 1A-38.003 Application for Exemption. (1) Applications for the property tax exemption shall be made on the Historic Preservation Property Tax Exemption Application, DOS Form No. HR3E101292, incorporated herein by reference. A'Preliminary Application shall be submitted before~ improvemen%s.are initiated to obtain preliminary approval of proposed work. A Final Application shall be filed upon substantial completion of the improvements. (2) Completed applications and all required supporting material shall be submitted by the property owner to the Local Historic Preservation Office or the Division, whichever is applicable under the local ordinance. (3) Within 30 days of receipt of the completed application and supporting materials, the Local Historic Preservation Office or Division shall conduct a review to determine (a) whether or not the property for which an exemption is requested satisfies Section 196.1997 (11) (a), F. S., (b) whether or not the improvement is consistent with the United States Secretary of Interior's Standards for Rehabilitation, incorporated herein by reference, and (c) whether or not the improvement meets the criteria in rule 1A-38, F. A. C. (4) /~he Local Historic Preservation Office or Division shall recommend that the local government grant or deny the exemptioh. The recommendation, and the reasons therefor, must be provided in writing to the applicant and to the local government. Such notice must advise the applicant of his right to a fair hearing pursuant to Section 120.57, F. S. Specific Authority 196.1997(6) FS. Law Implemented 196.1997, 196.1998 FS. History--New 1A-38.004 Evaluation of Property. (1) For properties located in a historic district listed in the National Register of Historic Places, the Local Historic Preservation office or the Division shall apply the definitions of contributing and noncontributing.properties as set forth in rule 1A-38.002(1) and 1A-38.002(6), respectively, to determine whether or not the property is a contributing property. (2) For properties located in a historic district designated by local ordinance, the Local Historic Preservation Office or the Division shall apply the criteria set forth in the local ordinance to determine whether or not the property is a contributing property. If the local ordinance does not include_. criteria to determine whether or not the property is a contributing property in a designated historic district, the Local Historic Preservation Office or the Division shall apply the definitions of contributing and noncontributing properties as set forth in rule 1A-35.004 (1). (3) For purposes of the exemption under Section 196.1998, F. S., a property is being used for government or nonprofit purposes if the sole occupant of at least 65 percent of the useable space is an agency of the federal, state or local government or a nonprofit organization certified by th~ Department of State under Section 617.013, F. S. (4) For purposes of the exemption under Section 196.1998, F. S., a property is considered regularly and frequently open to the public if public access to the property is provided not less than 12 days a year on an equitably spaced basis, and at other times by appointment. Nothing in this rule shall prohibit the owner from charging a reasonable nondiscriminatory admission fee, comparable to fees charged at similar facilities in the area. Specific Authority 120.53, I96.1997(13), 196.1998(3) FS. Law Implemented 196.1997, 196.1998 FS. History--New .. 1A-38.005 Evaluation of Improvements. The Local Historic Preservation office or the Division shall apply the recommended approaches to rehabilitation as set forth in the Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings, revised 1990, incorporated herein by reference, in evaluating the eligibility of improvements to the historic property. Specific Authority 120.53, 196.1997(8) F.S. Law Implemented 196.1997 F.S. History--New . 1A-38.006 'Covenant. (1) The Historic Preservation Property Tax Exemption Covenant, DOS Form No. HR3Ell1292, which the property owner must enter into with the local government granting an exemption pursuant to Sections 196.1997 or 196.1998, F.S., is incorporated herein by reference. Specific Authority 120.53, 196.1997(7) FS. Law Implemented 196.1997, 196.1998 FS. History--New · 1A-38o007 Certification of Local Historic Preservation office. (1) Criteria for certification shall be as set forth in the Florida Certified Local Government Guidelines promulgated by the Division and incorporated herein by reference. (2) Certified Local Governments shall automatically be'Local Historic Preservation Offices for the purposes set forth in Sections 168.1997 and 168.1998, F. S. (3) Other local governments reqUesting certification of the Local Historic Preservation Office shall apply on the Application for Certification, Florida Certified Local Governments Program, which is Appendix C to the Florida Certified Local Government Guidelines. (4) Within 60 days of receipt of a complete application and all required supporting material, the Division shall render a determination regarding the application, either approving or ~ · denying certification. For denials, the Division shall provide the applicant with a written explanation, clearly indicating the reasons for denial. (5) If certification is approved, the Local Historic Preservation office shall enter into an agreement with the Division to maintain a program which meets the minimum requirements set forth in the Florida Certified Local Government Guidelines. The local government shall continue to be certified so long as the terms of the referenced Agreement are met. Specific Authority 120.53, 196.1997(6) FS. Law Implemented 196.1997, 196.1998 FS. History--New DOS Form No. HR3E101292 (' HISTORIC PRESERVATION PROPERTY TAX EX2EMPTION APPLICATION Instructions ii i -This application is to be completed in accordance with rule 1A-38, F. A. C~ and the instructions given be. lo~. Read these instructions carefully before filling out the attached ap£1ication. Type or print clearly in black ink. In cases where complete and adequate documentation ix not £rovide& revfew and eva&att'on cannot be com,olete~ resulting in a recommendation that the tax exemption be denied. Copies of thc rule referenced above, or additional copies of this application may be obtained from thc Division of Historical Resources, Florida Department of State, or' the Local Historic Preservation Office in thos~ jurisdictions where such an office has been certified by the Division of I-F_tstorical Resources. The applicant shall xubmit a Preliminary ~4pplication dexcribing proposed work and receive preliminary approval prior to the xtazt of construction. The Final .4pplication shall be submitted upon substantial complexion of the irnprove, rnent~; and must clearly descn3e the completed work. Owners who undertake improvements without preliminary approval do so at their own risk. Under the procedures outlined in rule 1A-38, F. A. C., Preliminary and Final Application submissions will be reviewed within 30 days of receipt of a completed, adequately documented application. Questions concarnlng the review status of specific applications should be addressed to the Division or the Local Historic Pr~tion Office as applicable. Notification as to approval or denial of the tax exemption will be made by tl~ local government. The Division or the Local Historic Preservation Office will notify the applicant and the local government of its recommendations regarding the application. These recommendations will be: (a) Approval of the request for exemption; ( (b) Conditional approval of the request, subject to specific changes in the proposed project to bring it into -. compliance with the Secretary of the Interior's Standards for Rehabilitation.; or (c) Denial of the request for exemption. Address correspondence to the Division at: Bureau of Historic Preservation 500 South Bronough Street R.A. Gray Building Tallahaasee, Florida 32399-0250 Telephone: (904)487-2333 FAX: (9O4)922-O496 Address correspondence to the Local Historic Preservation Office at: Use blank sheets of paper as needed to pro'~d¢ iai'or'marion for w~ch additional spac~ is needed. Ca each sheet include thc Property Identification Number and thc Proper'ty AdcLrexs. To amend an appl/cation '-"at has already been submitted, submit a completed Amendmer. t Sheet. EVALUATION OF PROPERTY Ov~ers of buildings individually listed in thc National Register or designated as a historic prope~/under a local ordinance need not complete thc section of thc application entitled Evaluation of Property. For properties designated as historic under a local ordinance, the owner must include a copy of the local ordinance ma~ing such designation with thc application. For propeaxies within a hi.Moric district designated under a local ordinance, the owner shall provide a copy of the local ordinance making such designation :nd thc corresponding designation report. Owners of properties containing more than one builcl;ng must submit a .single application that descr,'be$ all the buildings within the listing or designation. Owners mu~t report to the Division or the Local Historic Preservation Office, as applicable, any substantial damage, alteration or change to a property that occurs after the Division or the Local Historic Preservation Office makes a recommendation to the local government to issue the tax exemption. The attached Amendment Sheet shall be used for this purpose. Application Review. The documentation in the Evaluation of Properties for buildings within districts must be sufficient to: (l) make a judgement about how the building relates to the district as a whole, and (2) determine what particular features of the building comprise its historic character. In compiling this information it is helpful to consult the National Register nomination for the district or the local designation documentation. It should not be necessary in most cases for the applicant to do detailed research to deso4be the building and to provide a statement of significance. Completing the Evaluatlou of Property Description o1' physical appearance. Provide information about the major features of the building on both the ertedor and the interior. Describe the building ha its present condition (before improvement), not as it was when first built or as it will be after improvement. Note the architectural s~e, exterior construction materials (wood, '- brick, etc.), type of roof (flat, gable, hipped, etc.), number of stories, basic plan (rectangular, irregular, L- shaped, etc.), and distinguishing architectural features (placement and type of windows, ehi,~neys, porches, decorative interior features or spaces). Fully describe any changes that have been made to the building since it~ original construction--for example, additions, porch enclosures, new storefron~ relocation of doors and windows, and alterations to the interior. Other buildings on the property such as carriage house.s, barns, and sheds should also be fully described. Finally, discuss the way in which the building relates to others in the district in terms of siting, scale, material, construction, and date. Provide date of construction, if available, or indicate the approximate date. State the approximate dates of alterations, and check whether or not the building has been moved. Example Building within a registered historic district: This thre~-story, fiat-roofed, unpainted brick building, rectangular in shape, was constructed in 1850. It features regularly-spaced arched windows on the second and thlrd floors (6 openings on the east elevation have been filled in over the years, exact date unlmown), 1-over-2 double-hung sash, and a prominent bracket cornice. The first floor of the facade has been altered: the existing storefront dates from ca. 1950. On the interior, the first floor is divided into two principal spaces-a large commercial space in front and a smaller offce behind. The front room was modernized in the 1.950's and contains no surviving historic fabric except for a simple wooden staircase running along the party wall. A pressed metal ceiling is the most prominent feature in the rear office; baseboards, panelled doors, and window and door surrounds also su~ive in this room. The upper floors have two rooms each, identical in configuration to the first floor;, these rooms retain their original appearance, although they contain no architectural detailing of any kind (see photographs). Statement of significance. Summarize how the building contn'butci to the si~nificance of the district. This ( summary should relate to the significanc~ of thc district Cmcludlng the district's period of si?i~icanc~) as identified in thc National Register nomination or district designation documentation, la it similar to other buildings in the district in scale, buildln~ materials, style, and period of construction? Note important persons from the past associated with the building, former uses of the property, and the name of the architect or bm~dcr, if known. Example Building within a National Register historic district: The district is an intact groupln~ of arclgtet-lm-ally significant commercial and industrial buildings constructed between 1850 and 1.915 that dlspla)' · rarlely of st~{es and types of architectural ornamentation popular during this era. The district is also slgnh'icant as an earl), manufacturing and distribution center which led to the ciOfs growth as one of the largest cities in the state. Industrial growth ia the late 19th and earl)' 20th centuries required the eonstrucUon of larger buildings and several still exist within the boundaries of the district (see photographs). This modest three- story building is typical In appearance and history to the ma~[ority of the buildings in the district. It was originally built for manufacturing buttons, but was converted into a store with ofliee$ above duri~ the 1880's when wholesaling grew as an important new activity in the district. The building 15 similar to its neighbors in size, scale, materials, and st}de. Photographs and maps. Provide good, clear2~hotogra£hs of the building and its surroundings aa they appeared before improvement. Good photographic coverage is a very importa.ut part of the application. Photographs supplement, and to some extent may substitute for, some of the descrlptiv¢ material in the Descrip6on of' Physical Appearance. They should show all elevations of the building, ~iew~ of the building in its setting on the street, and representative interior spaces and features. ( Photographs should be numbered, dated and labeled with the property name, thc view (e.g~ cast side), and a brief description of what is shown. Photographs should be keyed to the application narrative and sketch map, where appropriate. Provide a map of the historic district, dearly identifying the lot on which the building is located; this is necessary to verify the building's elil~3aility for the property tax exemption. If the exemption is being sought for one of a group of buildings that are listed together in the National Register or locally designated together, a site plan of the group indicating which of the buildings in under consideration is necessary. Special Considerations. Applicants should read carefully the following information about certain special considerations that may apply to their particular ease. If a building is in one or more of the categories descn'bcd below, additional information will lac necessary. If this information is provided at the outset, the review process should not be delayed. Moved Buildings. An applicant must provide additional information to support application for a bu~rmg that has been moved or is a candidate for moving. Such documentation must discuss: (1) thc effect of thc move on the building's appearance (any proposed demolition, proposed changes in foundation% etc.); (2) thc new and general environment of thc proposed site; (3) thc effect of thc move on thc distlnctivc historic and visual character of thc district; (4) thc method to be used for moving the building. Such documentation mu.si also include photographs showing thc previous and proposed en~-koameaL% indudlng site, adjacent buildings, and street, scapes. Multiple Buildings. Properties containing more than one building where the buildinga arc functionally related historically to serve an overall purpose, such as a residence a~d carriage house, will be treated as a single hi3toric property. Generally, a single application form may be '~ed to request thc property tax excm~-xion for t~cse buildings. Documentation, however, must be su~--.i~ted fcr e;cD, build_lng to be considered for the cx~mptlo~. For ~nstanc~ ~f a house ~d ~c ho~c ~ but a dcs~pfion ~d ~ statcmcnt of s~~ ~d pro~dcd. ~e o~er ~o~d state ~ffddy ~c b~ for wMch c~oa ~ requite& A sket~ map or site pl~ shoed ~ pro~d~ to show ~c ~cnt rela~o~Mp of made to r~u~t ~ ~cmp~oa ~ ~ where a propcr~ ~ ~m~ of b~ ~t ~re ~~y related ~to~y to sc~ ~ o~r~ p~sc (su~ ~ ~tcd ~ a s~e appH~fioa ~d pro~ for dcmo~on of ~m~nca~ ~ ~ ~idcr~ ~ ~c rc~ of ~provcmcn~. ~b~ ~c ~dcr scp~atc o~crsMp, howc~r, a ~ o~cr. D~C~ON OF ~0~~ ~c D~p~on of ~provcmcn~ m~t ~ ~mplct~ by ~ o~c~ of ~to~c pro~ scc~g to have ~provcmcn~ approved ~ ~g ~tcnt ~ ~c ~to~c ~a~cr of ~c ~c ~ where app~oblc, ~e ~ ~ wM~ ~c s~c ~ l~t~ ~d ~ qu~g for c~mpfion pro~dcd by ~ or~ p~ed by ~ or m~p~ go~cnL ~c D~pfion of ~provemen~ may ~ ~ to d~ pro~s~ or ~mplctcd ~pro~men~ Appliotlon Re~. ~ proje~ ~e rc~cwcd ~d e~uatcd ~ a~r~ ~ ~e Sc~ct~ of ~e ~t~or's ~t~d~ for Rchab~ta~on' (see ~low). ~c~ ten St~& r~iden~s. ~e ~dcrl~g ~n~m ~r~cd ~ ~e St~ ~ ~c pr~oa of s~t ~o~c matc~ ~d f~ of a b~g ~ ~c pr~ of rehab~oa. ~ ~tc~or ~d ~c~or wor~ ~d ~e Dillon or rc~cw ~e en~e ~provcment pro~ ~mdu~g ~y aRach~ adja~nt or re~tcd new ~~on) m~r ~ ]~t a s~c sc~cnt of wor~ E~ua~on ~ b~cd on whe~cr Pro~s~ work ~at do~ not appe~ to ~ ~tent ~ St~d~. Comple~ the ~p~ou of Improvemen~ Da~ on bulling and improvement proj~ ~di~tc m~o~ ~g ~ w~ ~c, steel fr~c, ~n~ct0. Give ~c ~c(s) of ~ b~d~n~ ~forc ~pro~mcnt ~atcd or a~ projc~ ~mplc~oa ~iled desc~ptiou of improvement work In ~e n~rcd bl~ prox~de a d~on of proj~ ~r~ ~u~o~ ~d ~nzlly work on the ~t~or. A ~p~ate bl~ shoed ~ ~ to d~ ~ work it~ ~d i~ cffc~ on ~c~te~ f~t~ or spa~ (see c~pl~ ~low). In ~c left bl~ iden~ ~c ~cMt~ f~c r~g work o~ to ~c b~ ~ added at a ~tcr dat~ or f~c. In ~ approp~atc spa~ dcs~ ~c ph~i~ ~n~on of ~c f~c. In~tc ~e phot~ph or ~ ~c ~t bl~ ~1~ ~ dct~ ~c rchab~ta~on work to ~ ~dc~cn. Dcs~ ~c cffc~ (~u~ s~ or o~cr) on c~ng f~es. L~t ~a~, m~kcd or photo~ap~ or tha~ show ~e ~provcment work ~d i~ ~pa~ on ~c c~g Photog~phs. ~capp~t m~t submit as~cntn~bcrofg~ doc~cnt both ~tcrior ~d c.~c~or couditio~ ~du~g site ~d cn~o~cak ~dor to ~y wor~ ~d to .... ~ I I I Ir1 show thc areas of proposed or completed work. Photographs of 'before' conditions must be submitted cvcn if (' thc improvements arc completed; such documentation is necessary for evaluation of thc effect of thc improvcmcnt~ on thc historic structure. Where .mca docume, ntaffon if not I;ro~qded, revie~ ~nd evalualto~ cannot be completec~ re. rotting ~ a recommtnclafl'on for denim o/ the reclUeit for ezemption. Elcvationa and interior features and spaces of the build;n~ should bc shown. Photographs should be numbered, dated and labeled with thc propcW/name, thc view (c.g., cast side) and a brief description of what is showu; photographs should bc keyed to thc application narrative, where appropriate. In man), cases, it ma), lac helpful to mark directly on thc photographs thc arras of proposed or completed work. Photographs may be black and white or color, but must show architectural features clearly. Photographs arc no{ returnable. Drawings or sketches. Drawings or sketches arc required for proposed work to show planned altcratio~ or new comstrucfion- The)' must bc sufficiently detailed to show existing wall configurations and anticipated changes. Documentation should include floor plans and, where necessary, sections and ¢lcvatioms. All drawin? and sketches submitted with thc application should lac numbered and should bc keyed to thc application narrative. Examples Featur~ 1 Architectural feature facade brick Describe work and impact on cxisting feature: Approx. date of fcatttr¢ ea. 1880 Will selectively hand dean deteriorated joints Dc.sm'be existing feature and its condition: and repoint ~ith mortar and joint width to match existing (see spec. pp. 33-35); chemically' Hard pressed red brick with butter joints in good clean graffiti from first floor piers (see spec. condition. Mortar mostly sound, but deteriorated pp. 30-31). ( and missing around downspout at east end of facade. Some graffiti at first floor. Photo no. 3,6 Drawing no. Feature 2 Architectural feature main staircase Describe work and impact on existing feature: Approx. date of feature ca. 18S0/unknowu Replace missing balusters with matching Dc.sen'be existing feature and its condition: pieces. Sand painted banisters and balusters and varnish. Replace treads as needed. Sand Original stair exists between 1st and 3rd floors, and paint stairs. Retain later stair as needed. Some balusters missing and treads worn. Later s~ir from 3rd to 8th floors. Photo no. 9,10 Drawing no. A-12 PROJECT A~MENDMENTS If changes are made to a proieci at a.ay time after submkslon of the applicatloa, aa Ameadmeat Sh¢~ must b~ submitted for review. Provide the address of the property. Indicate chzages in projea work, giviag the ori~nally proposed tseatmeat and the amended work item descripgoa. Give the ov,~er's name. Sign and date thc form. Give thc ov,~er's address and daytime tclephc--e number. Rc~uru k to thc DRision or the LocaJ ..... ~'~- .... ~ I I I III I I I I Historic Prcscrvatlon O~ce as specified under the local ordinance. Approval ot' amendments conveyed onJy in writing by thc Division or the Local Historic Prcsr. tvation O~ce. SPECIAL REHABILITATION CONCERNS Several areas of spcz:ial concern have been identified ia reviewing and cvaluatln~ preservation projects. The 'Guidelines for Rchabilitatln~ Historic Buildi.~' accompanying thc Secretary of the Interior's 'Standards for Rehabilitation' provide further guidance on these and other arcas of concern. Owners should take care to address these concerns when undertaking work in any of thc areas dcscn'bed below. Storefront alterations. Justify changes to storefronts and'provide photographs of thc areas to be altered. Information should be provided on when thc existing storcfront was constructed; on what the existing physical conditions are; and if a historical treatment is planned, on what evidence thc proposed new storcfront designs are based. Owners are strongly discouraged from introducing a storefront or new design element on the ground floor that allen the character of the structure and its relan'on.~hip with the street or that causes destruction of significant historic material. New heating, ventilating, and air-conditioning (ttVAC) systems. Indicate what cfi'ecl thc new equipment and duct'work will have on thc historic building matcrlaL If thc HVAC system requires removal of windows or portions of walls, desto'be alternative systems considered ia thc de.sign process and why thc proposed system was chosen. Installation of systems that cause damage to the historic building material or cause visual loss of character may result in a recommendation for denial of exemption. New Windows. Indicate the condition of existing ~4ndows (sash, glo,lng, muatin~ etc.) and thc reasons for replacement. Photographs and a window survey must be provided as evidence of severe deterioration; provide data on thc cost of repairing existing windows versus installi.~ replacements. Ovmers are strongly encouraged to retain and repair historic windows. The use of tinted glass often causes a change in character and may result in a recommendation for denial of the exemption. Where replacement of existing windows appears justified by supporting documentation and where the windows are an integral part of the buddings design and character, replacement sash should match thc original material, size, pane, con. figuration, color, trim detail~, and planar and refle~ve qualities.' Scaled ctrawiags comparing the e~t~ng windows with the replacement windows should be provided. Interior partitions and removing interior plaster. Indicate existln~ condition of the interior and document with photographs. Show which walls arc to be removed or altetext. Note whether trim dements and plaster will affected. Owners are strongly discouroged from changing floor plans unnecessarily and from exposing masonry surfaces unless this conch'tion is supported by historical evidence. E. xlerior masonry cleaning. Owners are strongly encouraged to clean masonry only when necessary to halt deterioration or to remove graffiti and stains. Indicate the condition of each material to be deanexl. Spedfy what thc d~nlng is intended to accomplish (soot removal, paint removal, etc.) and what the process is to be used on each masonry element. Provide supporting material to show that thc method selected is thc gentlest means poss~le for this project. Summarize results of test patches, and include dose-up color photographs of masonry surface before and after cleaning as evidence. Exterior masonry repair. Indicate deteriorated areas that rcquixe rcpak and provide evidence that repoiating mortar will match thc original in composition (i.e., ratio of llme, cement, sand and an), additives), color, texture, a. ad tooling. Owners are encouraged to repoint only those portions of the masortry that require repair. New additions and new construction. New exterior additions may alter thc appearance and form of historic structures, and may cause recommendation for denim of the exemption. SLmi.laxly, new construction, ~c~udin~ site work, may affect the relationship of a structure to its site, change the historlc landscape, or damage the historic chaxactcr of the properD,. THE SECRETARY OF THE INTERIOR~ STANDARDS FOR REHABILITATION ( "t~ehabilitation' as used herein is defined as "the process of returning a £ropeny to a state of utility, through repair or alteration, which make~ possible an efficient contemporary use while pre~erving those portion~ and feature, r of the property which are significant to its historic, architectural and cultural value.' These Standards are to be applied to specific rehabilitation projccta in a reasonable manner, taking into consideration economic and tedmical feasibility. Standard 1: A property shall lac used for its hktoric purpose or b~ placed in a new usc that requ. kes tala;mai change to the defining characteristics of the building and its site and environment. Standard 2: The hLstoric character of a building shall be retained and preaerved. The removal of historic materials or alteration of features and spaces that characterize a property shall be avoided. Standard 3: Each property shall be recolpaized as a physical record of its time, plac~ and use. Change~ that create a false sense of historical development, such as adding conjectural features or architectural ¢lemeats fi.om other buildiags shall not be undertaken. Standard 4: Most properties change over time; those changes that have acquired historic si~ificance in their own right shall be retained and preserved. Standard 5: Distinctive features, fmlshes, and construction techniques or examples of craftsman~hip that characterize a historic property shall be retaiaed and preserved. Standard {i: Deteriorated historic features shall be repaired rather than replaced. Where the sev~Hty of deterioratioa requires replacement of a distinctive feature, the new feature shall match the old in design, color, texture, and other visual qualifies and, where possible, materials. Replacement of missing features, shall be ( substantiated by documentary, physical, or pictorial evidence. Standard 7: Chemical or physical treatments, such as sandblasting, that cause damage to historical materials shall not be used. The sttrfac~ denning of a structure, if appropriate, shall be undertaken using the gentlest means poss~le. Standard $: Significant archaeological resources affected by a project shall be protected and preserv~ If such resources must be disturbexl, mitigation measures shall be undertaken. Staudard'~~''New a~ exterior/flter~fiour~ or re. lated u~-w eou.e, ruetiou .tlzall uot d~tro¥ hi. orb: materiah that charaeteriz~ a property. The new work shall be differentiated from the old and shall be compatible with the massing,, size, .~al¢, and archit¢ctm'al featur~ to protect the historic integrity of the property and its environment. Standard 10:..~ddltlous and ad'~l~._~_~elated new construction shall be undcrt~en in such a manner that it' removed in thc future, thc essential form and integrity of thc historic property and its envlronmcnt would be unlmpaircd. As stated in thc dcFmltion, thc trcauncnt 'rehabilitation' assumes that at least some repair or ahcration of the historic building will bc needed in order to provide for an cfl'icicnt contemporary usc; however, the.sc repairs and alteration must not damage or destroy materials, features or finkhc.s that arc important in del'ming thc building's historic character. For ~amplc, certain trcatmcnts--d improperly applied-may cause or accelerate physical deterioration of historic building. This can includc using improper rcpointing or exterior masonry clcaakug tcchnlqucs, or introducing insulation that damages historic fabric_ In almost all of these situations, usc of these materials and treatments will result in a project that does not meet thc Standards. Similarly, cxlcrior additions that duplicatc thc form, material, and detailing of thc structure '~o th: :~cnt that they compromise thc historic character o£ thc structurc will fail to mcct thc Standards. 7 Application Type (Check One): DOS Form No. HR3EI0129Z ( ) Preliminary Application (Proposed.Improvement-s) ( ) F'mal Application (Completed Improvements) HISTORIC PRESERVATION PROPERTY TAX EXEMPTION APPLICATION Instructions: Read the instructions carefully before completing application. No certification will lg made unless a completed application form has been received, Type or print dearly in black ink. ff additional spa~ ia needed, attach additional shee~. L Property Identification and location: Property Identification Number Attach ~egal descM£6on of,vroper~. Address of property:, fitrect ~ty. C. oun~. Zip Code Name of historic district: ( ) National Rcgiatcr dis~ ( ) locally designated dls~'ic~ 2. Type or r~quest: ( ) Exemption under 1~.1997, F. $. (standard exemption) ( ) Exemption under 1%.1998, F. $. (exemption for properti~ occupied by non-profit org~niT~tions or government agenclc~ and regularly open to thc public) If a££1)4ng under s. 1961~ F.$., complete Question 9 on page 3. Owner information: " Name o£ individual or org_~n~7~tion owning the property Mailing Address City. State Zip Code Daytime Telephone Number ( ). If the propeny is in mum'pie ownership, attach a list of all ownem w~th their mailing addresses. Owner Attestation: I hereby attest that the information I have provided is, to the best of my knoMcdge, correct, and that I own thc property descried above or that I am legally the authority in charge of thc property. Signature Typed or printed name Title of duly authorized representative if signing for organization or multiple owners Date ' Page lM'o DOS Form No. HR3E101292 ' III I ..... m I EVALUATIOi~ OF PROPERTY Property Identification Number (' Property Address 4. Description of physical appearance: Date of Construction-' Date(s) of Alteration(s) Has building been moved? ( ) yes ( ) no. If so, when? 5. Statement of significance: 6. Photographs and maps: Attach photographs and maps to application. Page Thre~ DOS Form No. HR3EIOLI9I 7. 'DESCRIPTION OF IMPROVEMENTS: Include site work, new coastrucfioa, alterations, etc. Complete the blocks below. Feature 1 I Architectm-al feature Describe work and impact on existiag feature: Approx. date of feature Describe existiag feature and its condition: Photo no. Drawing no. Feature :~ Architectural feature Describe work and impact on existing feature: Approx. date of feature Describe existing feature and its condition: Photo no. Drawing no. Feature 3 Architectural feature De. scan'be work and impact on existing feature: Approx. date of feature Describe existing feature and its condition: Photo no. Drawing no.~ Feature 4 ] Architectural feature De. sm'be work and impact on existing feature: Approx. date of feature Describe existing featm'e and its condition: Photo no. Drawing no. Page Four DOS Form No. HR3EI01292 __~ II ri II I Featur~ 5 1 Axch~tectural feature Dcscn'be work and impact on cx~stiag feature: Approx. date of feat~xe Dcscn'bc existing feature and its condition' Photo no. Drawing no. Feature 6 Axchitcctural feature D~scn'b~ work and impact on ~isti~ feature: Approx. date of f~atur~ Describe cxlstiag feature and its condition: Photo no. Drawlag no. Feature 7 [ Architectural feature Dcscn'bc work and impact on existing feature: Approx- date of feature Dcscn'bc existing feature and its condition: Photo no. Drawiag no. Fea~re 8 { ~chit~c~al feature Dc,sm'be work and impact on existing feature: Approx. date of feature Dcscribc c:dsting fcaturc and ils condition' Photo no.__ Drawing no. Page Five DOS Form No. HR3EI01.29Z ~.-,~-- -- -'.,. · · [ I I .... L II S. Property Use ; Uses(s) before improvement: Proposed use(s) after improvement: 9.Complete only if applying for exemption under s. 196.1998, F. S. (,property occupied by non-profit organiT:~tion or government agency and regularly open to the public) Identify the governmental agency or non-profit organi:,ation that occupies the building How often does thk organization or agency use the buildingl What is the total useable area of the building? square feet How much area does the organiT~fion or agency use? square feet What percentage of thc useable square footage does the organiTation or agency tt~? % Is the property open to the public? ( ) Yes ( ) No If so, when? Are there regular hours? ( ) Yes ( ) No If so, what are they.'?. Is the property also open by appointment? ( ) Yes ( ) No Is thc property open only by appointment? ( ) Yes ( ) No ( II III II II I I I II I III Local Historic Preservation Office or Division Use Only The Local Historic Preservation Office or Division has reviewed the Historic Preservation Property Tax Exemption Application for the above named property and hereby:. ( ) certifies that the above referenced property qualifies as a historic property consistent with the provisions of s. 196.1997 (11), F. S. ( ) determines that improvements to the above referenced property axe consistent with the United States Secretary of Interior's Standards for Rehabilitatiom ( ) determines that improvements to the above referenced property meet the criteria set forth in rule 1A-38, F. A. C. Comments: Recommendation to the local go~-.rnment is to ( ) issue the tax exemption or ( ) deny the tax exemption. Signature Typed or printed name 'rifle Date DOS Form No. HR3E10129~ AM EN'D M E,'~I' SHEET Property Identification Number Address of property:. Street City. County. Zip Code Name of historic district: ( ) National Register district ( ) locally designated district Indicate all changes in the project work, giving the originally proposed treatment and the amended work item description (use additional blank sheets if necessary): (' Attach photographs and drawings as neccss~x'y to illustrate the proposed changes. Local Historic Preservation Office or Division Use Only The Local Historic Preservation Oftlee or Division has reviewed the Amendment Sheet for the above named property and hereby: ( ) certifies that the above referenced property qualifies as a historic property consistent with the provisions of s. 196.1997 (11), F. S. ( ) determines that improvements to the above referenced property are consistent with the United States Secreta~/of Interior's Standards for Rehabilitation. ( ) determines that improvements to the above referenced property meet the criteria set forth ia rule 1A-38, F. A. C. Comments: Recommendation to the local govcrmment is to ( ) issue thc tax exempfon or ( ) deny the tax exemption. Signature Typed or pf, nted name Title Date DOS Form No. HR3Ell1292 HISTORIC PRESERVATION PROPERTY TAX EXEMPTION COVENANT This Covenant is made the day of , 19__, by (hereinafter referred to as the Owner) and in favor of the State acting through the Division of Historical Resources or the Local Historic Preservation office for the purpose of the rehabilitation of a certain Property located at which is owned in fee simple by the Owner and is listed in the National Register of Historic Places or locally designated under the terms of a local preservation ordinance or is a contributing ( property to a National Register listed district or a contributing property to a historic district under the terms of a local preservation ordinance. The Property is comprised essentially of grounds, collateral, appurtenances, and improvements. The property is more particularly described as follows: (include city reference, consisting of repository, book, and page numbers) Pa.~e Two In consideration of the tax exemption granted by (local government), the Owner hereby agrees to the following for the period of the tax exemption which is years: 1. The Owner agrees to assume the cost of the continued maintenance and repair of said Property so as to preserve the architectural, historical, or archaeological integrity of the same in order to protect and enhance those qualities that made the Property eligible for listing in the National Register of Historic Places or designation under the terms of the local preservation ordinance. 2. The Owner agrees that no visual or structural alterations will be made to the Property without prior written permission of the (Division of Historical Resources or the Local Historic Preservation Office). 3. The Owner agrees that the (Division of Historical Resources or the Local Historic Preservation office), its agents and designees shall have the right to inspect the Property at all reasonable times in order to ascertain whether or not the conditions of this Covenant are being observed. Page Three 4. In the event of the non-performance or violation of the maintenance provision of the Covenant by the Owner or any successor-in-interest during the term of the Covenant, the (Division of Historical Resources or the Local Historic Preservation office) will report such violation to the Property Appraiser who shall take action pursuant to s. 196.1997 (7), F. S. The Owner shall be required to pay the differences between the total amount of taxes which would have been due in March in each of the previous years in which the Covenant was in effect had the property not received the exemption and the total amount of taxes actually paid in those years, plus interest on the difference calculated as provided in s. 212.12 (3), F. S. 5. If the Property is damaged by accidental or natural causes during the Covenant period, the Owner will inform the (Division of Historical Resources or Local Historic Preservation Office) in writing of the damage to the Property, including (1) an assessment of the nature and extent of the damage; and (2) an estimate of the cost of restoration/reconstruction work necessary to return the Property to the condition existing at the time of project completion. In order to maintain the tax exemption, the Owner shall complete the restoration/reconstruction work necessary to return the Property to the condition existing at the time of Page Four project completion on a time schedule agreed upon by the Owner and the ( Division of Historical Resources or Local Historic Preservation Office). 6. If the Property has been destroyed or severely damaged by accidental or natural causes, that is, if the historical integrity of the features, materials, appearance, workmanship, and environment which made the property eligible for listing in the National Register of Historic Places or designation under the terms of the local preservation ordinance have been lost or so damaged that restoration is not feasible, the Owner will notify the (Division of Historical Resources or Local Historic Preservation Office) in writing of the loss. The (Division of Historical Resources or Local Historic Preservation office) will evaluate the findings and notify the Owner in writing of the decision to remove the Property from eligibility for tax exemption. The Property Appraiser of the county in which the Property is located shall also be notified in writing so that the tax exemption can be cancelled for the remainder of the Covenant period. In such cases, no penalty or interest shall be assessed against the Owner. 7. If it appears that the historical integrity of the features, materials, appearance, workmanship, and environment which made Page Five the Property eligible for listing in the National Register of Historic Places or designation.under the terms of the local preservation ordinance have been lost or damaged deliberately or through gross negligence of the Owner, the (Division of Historical Resources or Local Historic Preservation office) shall notify the Owner in writing. The Owner shall have 30 days to respond indicating any extenuating circumstances which show that the damage was not deliberate or due to gross negligence. If the Owner cannot show such extenuating circumstances he shall develop a plan for restoration of the Property and a schedule for completion of the restoration. In order to maintain the tax exemption, the Owner shall complete the restoration work necessary to return the Property to the condition existing at the ( time of project completion on a time schedule agreed upon by the Owner and the ( Division or Local Historic Preservation office). If the Owner does not complete the restoration work on the agreed upon time schedule, the (Division of Historical Resources or Local Historic Preservation Office) will report such violation to the Property Appraiser who shall take action pursuant to s. 196.1997 (7), F. S. The Owner shall be required to pay the differences between the total amount of taxes which would have been due in March in each of the previous years in which the Covenant was in effect had the property not received Page Six the exemption and the total amount of taxes actually paid in those years, plus interest on the difference calculated as provided in s. 212.12 (3), F. S. 8. The terms of this Covenant shall be binding on the current Property owner, transferees, and their heirs, successors, or assigns. This Covenant shall be enforceable in specific performance by a court of competent jurisdiction. Signature of Owner Chief, Bureau of Historic Preservation or authorized loc~i official ~ (enter date of signature) (enter date of signature) STAFF REPORT HISTORIC PRESERVATION BOARD MEETING MARCH 15, 1995 AGENDA ITEM V-B ACTION REQUESTED OF THE BOARD The action requested of the Board is that of making a recommendation to the Planning & Zoning Board that the proposed Ordinance pertaining to ad valorem tax exemptions for historic properties be approved. BACKGROUND On November 3, 1992 Florida voters approved an amendment to the State constitution that allows local governments to provide certain property tax exemptions on improvements to historic properties. At its meeting of March 10, 1993 the HPB approved a recommendation to the Planning and Zoning Board that an ordinance be initiated to facilitate the City's participation in the tax exemption program. However, preparation of the proposed ordinance was premature due to fact that the rules and applications to be used statewide had not been made final by the Division of Historical Resources. Early in 1994 the City Attorney began preparing the ordinance and on April 5, 1994 a draft was sent to a City Commission Workshop meeting for comments. The Commission favored the ordinance but had concerns with respect to its impact on the CRA's tax base, as the majority of eligible properties are located within its boundaries. It was felt that by exempting certain property taxes less money would be collected for the CRA's interest free loan program. Applicants applying for both the exemption and the loan would be doubly depriving those whose properties were not historically eligible and who depend on the loan program for help with renovation. The Commission recommended that a draft of the ordinance be submitted to the CRA. On May 4, 1994 the HPB reviewed and approved the final draft of the ordinance with several minor changes in the language. The Board agreed to make its formal recommendation to the P & Z Board after comments from the CRA were received. The CRA reviewed the final draft at its meeting of May 12, 1994, however, no formal comments were forthcoming. On February 9, 1995, the CRA Board recommended that the City adopt the ordinance, with the proviso that an individual exercising the tax exemption not apply for a CRA subsidized loan. This provision minimizes the negative impact of any loses to the CRA's tax base. Tax Exemption Ordinance Staff Report for HPB Meeting 3/15/95 Page 2 ANALYSIS The HPB approved this same ordinance, with minor language changes, on May 4, 1994. However, final adoption of the ordinance was deferred in order to glean comments from the CRA Board. With the approval of the CRA, it is appropriate to recommend approval of the ordinance at this time. As of October, 1994 the following governing bodies have adopted tax exemption ordinances: City of West Palm Beach Town of Palm Beach City of Orlando City of Tampa City of Coral Gables City of Pensacola Dade County Hillsborough County In addition Palm Beach County has an ordinance that will be considered in the near future agenda. EXPLANATION OF THE ATTACHMENTS The attachments are provided for members who were not on the Board at the time of the ordinance's approval. 1. For a summary of the ordinance please refer to the City Commission Worksession Documentation dated April 5, 1994. 2. The ordinance, incorporating the requested text changes, as approved by the HPB on May 4, 1994. Tax Exemption Ordinance Staff Report for HPB Meeting 3/15/95 Page 3 3. Section 196.1997 of the Florida Statutes provides the City the authority to adopt an ordinance to grant ad valorem tax exemptions. It also directs the Florida Division of Historical Resources to provide Rules with which to implement the Statute. 4. Rule 1A-38 provides the guidelines which govern the proposed ordinance. 5. The Application will be required for all tax exemption requests. 6. The Covenant, required for all exemptions, insures that the property and improvements are maintained for the duration of the tax exemption. RECOMMENDED ACTION Recommend to the Planning & Zoning Board that the Tax Exemption Ordinance be adopted. file/y:tax-1 CXTY COMMISSION WORKSESSION DOCUMENTATION SUBJECT: INFORMATION REGARDING A PROPOSED ORDINANCE AMENDING SECTION 4.~. 1 NISTORIC PRES~-RVATION~ TO AUTHORIZE AD VALOREM TAX EXEMPTIONS FOR HISTORIC PROPERTI ES. MEETING DATE: APRIL 5t 1994 THRU: DIANE DOMINGUEZt DIRECTOR ~ DEPARTMENT OF PLANNING AND ~ONXNG PREPARED BY~ PAT CAYC TORIC PRESRRVATION PLANNER BACKGROUND On November 3, 1992 Florida voters approved an amendment to the State constitution that allows local governments to provide property tax exemptions on improvements to historic properties. The Florida legislature enacted Section 196.1997 and 196.1988 to govern the allowance of such exemptions. Tho goal of this legislation is to encourage preser~ation and rehabilitation of historic properties and to assist in efforts to revitalize older neighborhoods and ~ommercial areas. Section 196.1997 provides a great deal of flexibility for communities in drafting an incentive ordinance. The Historic Preservation Board recommended that a draft ordinance be prepared and has made suggestions with respect to the philosophy and objectives of the ordinance as follows: Encourage restoration, renovation and rehabilitation without adversely affecting the property tax base or finances of the City. Assure that the work visibly improves tho exterior of the property and therefore improves the neighborhood. Assure that the program Is easy to administer by the City. Assure that the incentive is significant enough that property owners will want to participate. SUMMARY OF THE PROPOSED ORDINANCE A property would qualify for tax exemption if it is individually listed on the National Register of Historic Places; is individually listed on the Local Register of Historic Places; or is a contributing (historic) structure located within one of City co~nisston Documentation Meeting of April 5, 1994 Page 2 the City's four Historic Districts. The tax exemption will be available to owners of qualifying residential and co~mercial properties for a period of 10 years. Qualifying properties will be exempt from that portion of ad valorem taxes levied by the City on 100% of the increased and assessed value resulting from the renovation. The exemption does not apply to taxes levied for payment of bonds, or taxes authorized by a vote of the electors. The exemption does not apply to personal property. In order for p~oposed rehabilitation to qualify for the improvements must conform to the Rules adopted by the Department of State~ and be consistent with Section $.4.1(E) the Historic Preservation ordinance which includes the set forth by the Secretary of the Interior's Standards for Rehabilitation. In order to retain an exemption, ho~ever~..the historic character of the property, and ~s~rove~ents which qualified the property for an exemption, ~ust be ~aintained over the period for which the exemption is granted. Ail exemption applicatio~e wIXX be submitted on a fom whlch has been adopted by the Department of State and al! applications will by reviewed by the Historic Preservation Board through the Certificate of Appropriateness process. After reviewing the application at a public meeting the Historic Preservation Board will then recommend that the City Commission grant or deny the application. A ~aJorlty vote of the City Coe~ssion will be required to approve the tax exemption. The applicant must complete the renovation within 2 years of the Initial exemption application. The tax exemption will become effective on January I of the year followlnq completion of the work. Palm Beach County has not yet passed a tax incentive ordinance for historic properties, however such ordinances have been established by West Palm Beach and the To~rn of Palm Beach. Attached Is a hypothetical example of the tax benefits as reflected by the proposed ordinance. City commission Documentation Meeting of April 5, 1994 Page3 EXAMPLE: OWNER OCCUPIED RESIDENTIAL PROPERTY Before Rehabilitation: Property Value $100,000 Homestead Exemption -25,000 Taxable Value 75,000 City Taxes/Yr. (8 Mils) $600 Afte= ~30t000 Rehabilitation without Proposed Exemptionl Property Value $130,000 Homestead Exemption -25,000 Taxable Value 105,000 Property Tax/Yr (8 Nils) $840 After ~30fO00 Rehabilitation with Proposed Exemption= Property Value $130,000 Homestead Exemption -25,000 Taxable Value 105,000 Property Tax/Yr $75,000 @ 8 Mils $600 Taxes/Yr on $30,000 lmprov. @1.14 Mils +34 Total Property Tax/Yr $634 Tax Savings per Year $ 206 Total Savings for 10 years $ 2,060 Flle/c=taxy STAFF REPORT HISTORIC PRESERVATION BOARD MEETING MAY 4, 1994 AGENDA ITEM V Review of a proposed ordinance to establish ad valorem tax exemptions for historic properties. ITEM BEFORE THE BOARD The action requested of the Board is to review the attached draft of the proposed ordinance which would provide certain City tax exemptions for historic properties. The Board is urged to make comments and recommendations. BACKGROUND An initial draft of the ordinance was prepared by the City Attorney's office and was based on the ordinance which has been adopted by the City of West Palm Beach. Because the Delray Beach Preservation Ordinance and the HPB's procedures differ from those of West Palm Beach, staff made certain changes in the administrative portions of the initial draft. A summary of the changes will be found in the April 25, 1994 memorandum to Assistant City Attorney, David Tolces. The draft presented for your review incorporates these changes. As you review the draft you will note references to Florida Statute 196.1997; Rule 1A-38; the Tax Exemption Application; and the Covenant. I have included these, and a brief explanation, with this staff report. EXPLANATION OF THE ATTACHMENTS 1. For a summary of the ordinance please refer to the City Commission Worksession Documentation dated April 5, 1994. 2. The April 25, 1994 memo to David Tolces summarizes the basic changes to the initial draft which are incorporated in the current draft. 3. Section 196.1997 of the Florida Statutes provides the City the authority to adopt an ordinance to grant ad valorem tax exemptions. It also directs the Florida Division of Historical Resources to provide Rules which which to implement the Statute. 4. Rule 1A-38 provides the guidelines which govern the proposed ordinance. 5. The Application will be required for all tax exemption requests. 6. The Covenant, required for all exemptions, insures that the property and improvements are maintained for the duration of the tax exemption. The CRA is reviewing the draft ordinance at its meeting of April 28, 1994. Comments and recommendations from their Board will be presented at the meeting. Community Redevelopment Agency Delray Beach February 16, 1995 Ms. Diane Dominguez Director of Planning City of Delray Beach 100 NW 1st Avenue Delray Beach, FL 33444 RE: Historic Property Tax Exemption Dear Diane: At the regular meeting of the CRA Board on Thursday, February 9, 1995, it was the general consensus to approve the City moving forward with the Historic Property Tax Exemption Ordinance. We would, however, appreciate it if anyone who qualifies for this exemption and whose p/r~ol~erty is within the CRA district, that they sign an agreement saying they will not ap~/0~Sh t~e CRA for one of our subsidized loans. Christopher J. Brown Executive Director /d 207 E. Atlantic Avenue, Delray Beach, FL 33444 (407) 276-8640 / Fax (407) 276-8558 PLANNING AND ZONING BOARD MEMORANDUM STAFF REPORT MEETING OF: MARCH 20, 1995 AGENDA ITEM: V.B. - AMENDMENT TO THE LAND DEVELOPMENT REGULATIONS ALLOWING FOR AN EXEMPTION FROM CERTAIN PROPERTY TAXES WHEN ASSOCIATED WITH IMPROVEMENTS TO HISTORIC PROPERTIES. ITEM BEFORE THE BOARD: The item before the Board is that of recommending to the City Commission approval of an amendment to the Land Development Regulations to allow for an exemption from certain property taxes when associated with improvements to Historic Properties. BACKGROUND: On November 3, 1992 Florida voters approved an amendment to the State Constitution that allows local governments to provide property tax exemption on improvements to historic properties. The Florida Legislature enacted Section 196.1997 and 196.1988 to govern the allowance of such exemptions. The goal of this legislation is to encourage preservation and rehabilitation of historic properties and to assist in efforts to revitalize older neighborhoods and commercial areas. Section 196.1997 provides a great deal of flexibility for communities in drafting an incentive ordinance. The Historic Preservation Board recommended that a draft ordinance be prepared and has made suggestions with respect to the philosophy and objectives of the ordinance as follows: Encourage restoration, renovation and rehabilitation without adversely affecting the property tax base or finances of the City. Assure that the work visibly improves the exterior of the property and therefore improves the neighborhood. Assure that the program is easy to administer by the City. Assure that the incentive is significant enough that property owners will want to participate. On April 5, 1994 a draft of the proposed ordinance for the City was sent to a City Commission Workshop meeting for comments. The Commission favored the ordinance but had concerns with respect to its impact on the CRA's tax base, as the majority of eligible properties are located within its boundaries. It was felt that V.B. P&Z Board Memorandum Staff Report Amendment to the LDRs Allowing for an Exemption from Certian Property Taxes when Associated with Improvements to Historic Properties. Page 2 by exempting certain property taxes less money would be collected for the CRA's interest free loan program. Applicants applying for both the exemption and the loan would be doubly depriving those whose properties were not historically eligible and who depend on the loan program for help with renovation. The Commission recommended that a draft of the ordinance be submitted to the CRA. On May 4, 1994 the Historic Preservation Board reviewed and approved the final draft of the ordinance with several minor changes in the language. The Board agreed to make its formal recommendation to the Planning and Zoning Board after comments from the CRA were received. The CRA reviewed the final draft at its meeting of May 12, 1994, however, no formal comments were forthcoming. On February 9, 1995, the CRA Board considered the ordinance again, and recommended that it be adopted with the proviso that an individual exercising the tax exemption not apply for a cRA subsidized loan. This will prevent owners of historic properties from receiving the double benefit of an interest free rehabilitation loan and a tax exemption for the improvements. ANALYSIS OF THE PROPOSED ORDINANCE: A property would qualify for tax exemption if it is individually listed on the National Register of Historic Places; is individually listed on the Local Register of Historic Places; or is a contributing (historic) structure located within one of the City's four Historic Districts. The tax exemption will be available to owners of qualifying residential and commercial properties for a period of 10 years. Qualifying properties will be exempt from that portion of ad valorem taxes levied by the City on 100% of the increased and assessed value resulting from the renovation. The exemption does not apply to taxes levied for payment of bonds, or taxes authorized by a vote of the electors. The exemption does not apply to personal property. In order for proposed rehabilitation of qualify for exemption the improvements must conform to the Rules adopted by the Department of State; and be consistent with Section 5.4.1(E) of the Historic Preservation ordinance which includes the criteria set forth by the Secretary of the Interior's Standards for Rehabilitation. In order to retain an exemption, however, the historic character of the property, and improvements which qualified the property for an exemption, must be maintained over the period for which the exemption is granted. P&Z Board Memorandum Staff Report Amendment to the LDRs Allowing for an Exemption from Certian Property Taxes when Associated with Improvements to Historic Properties. Page 3 Ail exemption applications will be submitted on a form which has been adopted by the Department of State and all applications will be reviewed by the Historic Preservation Board through the Certificate of Appropriateness process. After reviewing the application at a public meeting the Historic Preservation board will then recommend that the City Commission grant or deny the application. A majority vote of the City Commission will be required to approve the tax exemption. The applicant must complete the renovation within 2 years of the initial exemption application. The tax exemption will become effective on January 1 of the year following completion of the work. As of October, 1994 the following governing bodies have adopted tax exemption ordinances: * City of West Palm Beach * Town of Palm Beach * City of Orlando * City of Tampa * City of Coral Gables * City of Pensacola * Dade County * Hillsborough County In addition Palm Beach County has an ordinance that will be considered in the near future. Attached is an example of the property tax benefits for an individual property owner. HISTORIC PRESERVATION BOARD CONSIDERATION: As so much time had elapsed since this ordinance was originally drafted, it was presented again for consideration by the Historic Preservation Board at its meeting of March 15, 1995. The Board recommended unanimously that the ordinance be adopted. RECOMMENDED ACTION: By motion, recommend to the City Commission approval of the amendment to the Land Development Regulations to allow for an exemption from certain property taxes when associated with improvements to Historic Properties. Attachments: * Ordinance * Example of the Tax Benefits for an Individual Property Owner ORDINANCE NO. AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRA¥ BEACH, FLORIDA, AMENDING ARTICLE 4.5, "OVERLAY AND ENVIRONMENTAL MANAGEMENT DISTRICTS", OF THE LAND DEVELOPMENT REGULATIONS OF THE CITY OF DELRAY BEACH, FLORIDA, BY ENACTING A NEW SUBSECTION 4.5.1(M), "TAX EXEMPTION FOR HISTORIC PROPERTIES", TO AUTHORIZE AD VALOREM TAX EXEMPTIONS FOR HISTORIC PROPERTIES; ESTABLISHING REQUIREMENTS AND PROCEDURES; DESIGNATING THE HISTORIC PRESERVATION BOARD TO REVIEW APPLICATIONS AND MAKE RECOM- MENDATIONS TO THE CITY COMMISSION; ESTABLISHING PENALTIES; PROVIDING A SAVING CLAUSE, A REPEALER CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the citizens of Florida amended the Florida Consti- tution, Article 7, Section 3(e), to authorize counties and ~unici- palities to grant a partial ad valorem tax exemption to owners of historic properties for improvements to such' properties which are the result of the restoration, renovation or rehabilitation of the historic properties; and WHEREAS, the Florida legislature enacted Sections 196.1997 and 196.1998, Florida Statutes (1992) to govern the allowance of such exemptions; and WHEREAS, the City Commission desires to create a partial ad valorem tax exemption for qualifying improvements of historic properties as a means to encourage more restoration, renovation and rehabilitation of such properties and to stabilize and improve property values in the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That Article 4.5, "Overlay and Environmental Management Districts", Section 4.5.1, "Historic Preservations Site and Districts", of the Land Developmgnt regulations of the Code Ordinances of the City of Delray Beach, Florida, be, and the same is hereby amended by enacting a new subsection 4.5.1(M), "Tax Exemption for Historic Properties" which reads as follows: 4.5.1(M) Tax Exemption for Historic Properties. (1) The City Commission hereby creates a tax exemption for the restoration, renovation or rehabilitation of qualifying historic properties designated in Section 4.5.1(M)(4). Qualifying properties shall be exempt from that portion of ad valorem taxation levied by the City of Delray Beach on 100% of the increase and assessed value resulting from any renovation, restoration or rehabilitation of the qualifying property made on or after the effective date of this ordinance. The above exemption does not apply to: (a) Taxes levied for payment of bonds; (b) Taxes authorized by a vote of the electors pursuant to Section 9(b) or Section 12, Article 7 of the Florida Constitution; or (c) Personal property. (2) Duration of Tax Exemption. (a) The exemption period shall be for ten (10)~ ~ears, beginning January 1st following the year in which final approval is given by the City Commission and the Palm Beach County Property Appraiser has been instructed to provide such exemption. However, the City Commission shall have the discretion to set a lesser term if requested by the property owner in the original application. (b) The term of the exemption shall be specified in the resolution aPproving the exemption and shall continue regardless of any changes in the authority of the City to grant such exemption or change in ownership of the property. To retain an exemption, the historic character of the property and the improvements which qualified the property for an exemption, must be maintained in their historic state over the period for which the exemption was granted. (3) Effective Date of Exemption. The effective date of the tax exemption shall be January 1 of the year following the year in which a historic preservation exemption covenant is recorded and a copy of the Final Application and resolution of the City Commission, as approved, have been transmitted to the Palm Beach County Property Appraiser. (4) Qualifying Properties and Improvements. (a) The following real property in the City is qualifying property for the purposes of this ordinance if at the time the exemption is approved by the City Commission, the property: 2 ORD. NO. (1) is individually listed in the National Register of Historic Places pursuant to the National Historic Preservation Act of 1966, as amended, or (2) is a contributing property to a national register- listed district; or (3) is designated as a historic property, or as a contributing property to a historic district, under the terms of the City's historic preservation ordinance; and (4) has been certified by the Historic Preservation Board as satisfying (a)(1), (2), or (3). (b) For an improvement to a historic property to qualify the property for an exemption, the improvement must: (1) be consistent with the United States Secre~gry of Interior's Standards for Rehabilitation, as amended. (2) be determined by the Historic Preservation Board to meet criteria established in rules adopted by the Department of State, Division 'of Historical Resources, FAC 1A-38, as amended, and (3) be consistent with Section 4.5.1(E) "Development Standards" of the City's Land Development Regulations. (5) Evaluation of Property Used for Government or Nonprofit Purposes. (a) For purposes of the exemption under Section 196.1998, Florida Statutes, a property is being used for government or nonprofit purposes if the sole occupant of at least 65 percent of the useable space is an agency of the federal, state or a local government unit or a nonprofit organization certified by the Department of State under Section 617.013, Florida Statutes. (b) For purposes of the exemption under Section 196.1998, Florida Statutes, a property is considered regularly and frequently open to the public if public access to the property is provided not less than 12 days a year on an equitably spaced basis, and at other times by appointment. Nothing herein shall prohibit the owner from charging a reasonable nondiscriminatory admission fee, comparable to fees charged at similar facilities in the area. 3 ORD. NO. (6) Application for Exemption. Any property owner, or the authorized agent of the owner, that desires an ad valorem tax exemption for the improvement of a historic property must file a written application with the Planning and Zoning Department. The application shall be made on the two-part Historic Preservation Property Tax Exemption Application, approved by the State of Florida, Division of Historical Resources. Part 1 of the application, the Preconstruction Application, shall be submitted before qualifying improvements are initiated and Part 2, the Final Application/Request for Review of Completed Work, shall be submitted upon completion of the qualifying improvements. The Final Application shall contain the Historic Preservation Exemption Covenant, as provided for herein. (7) Part 1~ Preconstruction Application. A Preconstruction Application shall be filed with the ~%anning and Zoning Department before the qualifying project is initiated. The Preconstruction Application shall also contain information concerning the proposed cost of the qualifying improvement and be accompanied by a copy of the most recent tax bill from the Palm Beach County Property Appraiser for the property. Upon receipt of the Preconstruction Application, the Historic Preservation Planner shall review the application and determine whether the application is complete and whether the property satisfies the requirements of Section 4.5.1(M)(4)(a) and is therefore eligible for review by the Historic Preservation Board. (8) Review of Preconstruction Application by the Historic Preservation Board. The Historic Preservation Board shall review the Precon- struction Application within 60 days of the Historic Preservation Planner's determination of eligibility. If all or part of the proposed work involves exterior work requiring the issuance of a Certificate of Appropriateness, the exterior portion of the work shall be reviewed in accordance with the Certificate of Appro- priateness process simultaneously with the Part 1, Preconstruction Application. If Site Plan approval or a variance is required for the project, the respective applications shall be presented to the Historic Preservation Board in conjunction with the Certificate of Appropriateness review process. A Preconstruction Application which requires a Certificate of Appropriateness shall not be considered until the Certificate of Appropriateness is approved by the Historic Preservation Board. (1) If the Historic Preservation Board determines that the work as proposed is a qualifying improvement and is in compliance with the review standards contained in Section 4 ORD. NO. 4.5.1(M)(4), the Preconstruction Application and, if applicable, the Certificate of Appropriateness shall be approved by the Historic Preservation Board, and the Board shall issue a written order to the applicant. (2) If the Historic Preservation Board determines that the work as proposed is not a qualifying improvement or is not in compliance with the review standards contained in Section 4.5.1(M)(4), the applicant shall be so advised in writing. (9) Issuance of Other Permits or Approval. The Building Department must review and approve all Pre- construction Applications with respect to the applicable code requirements before issuing a building permit. The Building Department shall review all plans prior to the Historic Preservation Board's review. (10) Part 2, Final Application/Request for Review of Comple~'~d W~rk. (a) If the Historic Preservation Board determines that the work is a qualifying improvement and is in compliance with the review standards contained in Section 4.5.1(M)(4), the Board shall approve the Final Application/Request for Review of Completed Work and issue a written order to the applicant. The City will inspect the completed work to verify such compliance. The review of the Historic Preservation Board shall be completed within thirty (30) days of the receipt of the Final Application/Request for Review of Completed Work. (b) The Final Application/Request for Review of Completed Work shall be accompanied by documentation of the total cost of the qualifying improvements. Appropriate documentation may include, but is not limited to, paid contractor's bills, AIA Form 702-703, cancelled checks, and an approved building permit application listing the cost of work to be performed. Upon the receipt of a Final Application/Request for Review of Completed Work and all required supporting documents, the Historic Preservation Board shall conduct a review at a regularly scheduled public meeting to determine whether or not the completed improvements are in compliance with the work described in the Preconstructton Application, approved amendments, if any, and Section 4.5.1(M)(4)(b). After the above review, the Historic Preservation Board shall recommend that the City Commission grant or deny the exemption. 5 ORD. NO. (c) If the Historic Preservation Board determines that the work as completed is either not a qualifying improvement or is not in compliance with the review standards contained in Section 4.5.1(M)(4), the applicant shall be advised that the Final Application has been denied. Such denial shall be in writing and the Historic Preservation Planner shall provide a written summary of the reasons for the determination. (11) Appeal to the Historic Preservation Board's Decision. Review and reversal of any action taken by the Historic Preservation Board is appealable to the City Commission pursuant to Section 2.4.7(E), "Appeals." (12) Approval by the City Commission. Upon approval of a Final Application/Request for Review of Completed Work by the Historic Preservation Board, the Final Application shall be placed by resolution on the agenda of ~he City Commission for approval. The resolution of the City Commission approving the Final Application shall provide the name of the owner of the property, the property address and legal description, require the owner to record the restrictive covenant as provided in Section 4.5.1(M)(13) in the official records of Palm Beach County as a condition of receiving the exemption, the period of time the exemption will remain in effect, and the expiration date of the exemption. (13) Historic Preservation Exemption Covenant. To qualify for an exemption, the applicant must sign and return the Historic Preservation Exemption Covenant with the Final Application/Request for Review of Completed Work. The covenant shall be in a form as established by the Department of State, Division of Historical Resources and applicable for the term for which the exemption is granted and shall require the character of the property and qualifying improvements to be maintained during the period that the exemption is granted. On or before the effective date of the exemption, the owner of the property shall have the covenant recorded in the official records of Palm Beach County, Florida, and shall cause a certified copy of the recorded covenant to be delivered to the Historic Preservation Planner. Such covenant shall be binding on the current property owner, transferrees, and their heirs, assigns and 6 ORD. NO. successors. A violation of the covenant shall result in the property owner being subject to the payment of the differences between the total amount of the taxes which would have been due in March of each of the previous years in which the covenant or agreement was in effect had the property not received the exemption and the total amount of taxes actually paid in those years, plus interest on the difference calculated as provided in Sec. 212.12(3), Florida Statutes. (14) Completion of Work. An applicant must complete all work within two (2) years following the date of approval of a Part 1 Preconstruction Appli- cation by the Historic Preservation Board. A Preconstruction Application shall be automatically revoked if the property owner has not submitted a Final Application/Request for Review of Completed Work within two (2) years following the date of approval of the Preconstruction Application. The City Commission, upon the recommendation of the Historic Preservation Board, may extend the time for completion of a sub- stantial improvement in accordance with the procedures of the City's Building Code. (15) Notice of Approval to the Property ADpraiser. Upon the receipt of a certified copy of the recorded restric- tive covenant by the Historic Preservation Planner, the Preservation Planner shall transmit a copy of the approved Final Application/Request for Review of Completed Work, the exemption covenant and the resolution of the City Commission approving the Final Application and authorizing the tax exemption to the Palm Beach County Property Appraiser. (16) Revocation Proceedinqs. (a) The Historic Preservation Board may initiate pro- ceedings to revoke the ad valorem tax exemption provided herein, in the event the applicant, or subsequent owner or successors in interest to the property, fails to maintain the property according to the terms, conditions and standards of the Historic Preservation Exemption Covenant. (b) The Historic Preservation Board shall provide notice to the current owner of record of the property and hold a revocation hearing in the same manner as in Section 4.5.1(M)(10), and make a recommendation to the City Commission. 7 ORD. NO. (c) The City Commission shall review the recommendation of the Historic Preservation Board and make a determination as to whether the tax exemption shall be revoked. Should the City Commission determine that the tax exemption shall be revoked, a written resolution revoking the exemption and notice of penalties as provided in Paragraph 4 of the covenant shall be provided to the owner, the Palm Beach County Property Appraiser and filed in the official records of Palm Beach County. (d) Upon receipt of the resolution revoking the tax exemption, the Palm Beach County Property Appraiser shall discontinue the tax exemption on the property as of January 1st of the year following receipt of the notice of revocation. (17) Reapplication. An applicant previously granted a Historic Rehabilitation tax Exemption by the Historic Preservation Board may undertake an additional substantial improvement project during the Exemption Period, or following its expiration, and reapply for an additional Historic Preservation Tax Exemption for such subsequent work. Section 2. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 3. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 4. That this ordinance shall become effective immediately upon its passage on second and final reading. PASSED AND ADOPTED in regular session on second and final reading on this the day of , 1994. MAYOR ATTEST: City Clerk First Reading Second Reading tax.ord 8 ORD. NO. EXAMPLE: OWNER OCCUPIED RESIDENTIAL PROPERTY Before Rehabilitation: Property Value $ 100,000 Homestead Exemption - 25,000 Taxable Value 75,000 City Taxes/Yr (8 Mils) 600 After $30~000 Rehabilitation without Proposed Exemption: Property Value $ 130,000 Homestead Exemption - 25,000 Taxable Value 105,000 Property Tax/Yr (8 Mils) 840 After $30~000 Rehabilitation with Proposed Exemption: Property Value $ 130,000 Homestead Exemption - 25,000 Taxable Value 105,000 Property Tax/Yr $75,000 @ 8 Mils $ 600 Taxes/Yr on $30,000 improv. @ 1.14 mils + 34 (for Bonds) Total Property Tax/Yr 634 Tax Savings Per Year $ 206 Total Savings for 10 Years 2,060