(A) Definitions. The definitions contained in F.S. § 196.012 and related Florida Administrative code sections as same may be amended from time to time are hereby adopted.
(B) General.
(1) Upon the application of an eligible business, the City Commission may grant, in its sole discretion, an Economic Development Ad Valorem Tax Exemption to the eligible business.
(2) To apply for an Economic Development Ad Valorem Tax Exemption, a business meeting the requirements set forth herein must file an application (Florida Department of Revenue Form DR-418) with the city.
(3) The tax exemption described herein shall not apply to improvements to real property made by or for the use of new or expanding existing businesses when such improvements have been added or increased prior to the adoption of this ordinance.
(4) No tax exemption granted hereunder shall exceed 25% of the city portion of the ad valorem tax, not a term of eight years from the date of the adoption of the ordinance. The City Commission may at its sole discretion allow a tax exemption of up to 50% for new or expanding business meeting the applicable definition which locates in Liberia Area Business Corridor. An annual review, as provided in subsection (C)(2) below, governed by rules promulgated by the Director of Financial Planning and Administration, shall be required to continue the ad valorem abatement beyond the first year after the adoption of the ordinance. The rules shall be available for review in the City Clerk's office.
(C) Procedure.
(1) Property Appraiser Review. Before the City Commission acts on an application the city must submit the application to the Broward County Property Appraiser for review. After careful consideration, the Property Appraiser, pursuant to state statute, shall report to the City Commission concerning the fiscal impact of granting the exemption. The Property Appraiser's report shall contain the following information:
(a) The total revenue available to the city for the current fiscal year from ad valorem tax sources, or an estimate of such revenue if the actual total revenue available cannot be determined.
(b) Any revenue lost to the city for the current fiscal year by virtue of exemptions previously granted under this section, or an estimate of such revenue if the actual total revenue lost cannot be determined.
(c) An estimate of the revenue which would be lost to the city during the fiscal year if the exemption applied for were granted had the property for which the exemption is requested otherwise been subject to taxation; and
(d) A determination as to whether the property for which an exemption is requested is to be incorporated into a new business or the expansion of an existing business, as defined in F.S. § 196.012(15) or (16) or into neither, which determination the property appraiser shall also affix to the face of the application. Upon the request of the property appraiser, the department shall provide to him such information as it may have available to assist in making such determination.
(2) City Commission Review. The City Commission shall undertake consideration of the property appraiser's report and determine whether the information contained in it presents a basis for denying an applicant's Economic Development Ad Valorem Tax Exemption. If not, then the City Commission, in its sole discretion, may grant such tax exemption pursuant to the Economic Development Ad Valorem Tax Exemption guidelines.
Upon the City Commission's determination that an applicant may obtain a tax exemption hereunder, the City Commission shall adopt an ordinance in the same manner as any regular ordinance of the city and shall include the following information:
(a) The name and address of the new or expanding business.
(b) The total amount of revenue available from ad valorem tax sources for the current fiscal year, the total amount of revenue lost for the current fiscal year because of economic development ad valorem tax exemptions currently in effect, and the amount of estimated revenue which would be lost for the current fiscal year as well as over the duration of the exemption because of the exemption granted to the new or expanding business.
(c) The period of time for which the exemption will remain in effect and the expiration date of the exemption. Per division (B)(4) of this section, no exemption shall exceed eight years from date of City Commission adoption of the ordinance granting this exemption.
(d) A finding that the business meets the definition of a new business or an expansion of an existing business, as defined in F.S. §§ 196.012(15) and (16), as amended from time to time.
(D) Fees. There shall be no fee charged by the city to process an Economic Development Ad Valorem Tax Exemption application.
(E) Ineligible Business.
(1) A business that is determined by the City Commission to have a detrimental impact on the environmental quality of the city, including a business that contributes air, water or noise pollution, is ineligible to receive an Economic Development Ad Valorem Tax Exemption.
(F) Criteria for Exemption.
(1) Capital Investment Points
250,000 - 5000,000 1
501,000 - 1,000,000 3
1,000,000 - 5,000,000 5
5,000,000 + 7
(2) Number of Employees Points
5 - 14 1
15 - 24 3
25 - 60 5
61 - 100 7
100 + 9
(3) Wage Rates Points
Below area average -1
Average area 1
Above average area 3
(4) Investment in
Target Area Points
Out of target area 1
In target area 3
(G) Target areas.
(1) Downtown Redevelopment Area. That area lying within the jurisdictional boundaries of the "CRA" (Community Redevelopment Area).
(2) US-441 Corridor Area. That area, to be defined, lying within the boundaries of the "441 Corridor Business Neighborhood Improvement District".
(3) Central Beach Area. That area lying between the broadwalk and the intercostal waterway bounded on the north by Connecticut Street and on the south by Harrison Street.
(4) Liberia Area Business Corridor. That area lying between Sheridan Street on the south, Ely Boulevard on the east, C-10 Canal on the west and Stirling Road on the north.
(5) Any slum or blighted area as defined by F.S. § 163.355.
(H) Exemption by weighted points.
(1) Total Points Years of Exemption
1 - 3 2
4 - 6 4
7 - 9 6
10 above 8
(I) Appeal. The decision of the City Commission not to grant an Economic Development Ad Valorem Tax Exemption to particular business or industry is subject only to judicial review in a court of competent jurisdiction.
(J) Revocation of Exemption. Should any new business or expansion fail to file the annual report or any other report required in division (B)(5) of this section, or fail to continue to meet the definition of a new business or an expansion of an existing business, and/or fail to fulfill any other representation made to the city during the application process, the city may adopt an ordinance revoking the ad valorem tax exemption effective the end of the current year said ordinance is adopted. Nothing herein shall prohibit a business from reapplying for an ad valorem tax exemption pursuant to state law.
(Ord. 0-95-3, passed 1-18-95)