Senate Bill sb2170

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    Florida Senate - 2002                                  SB 2170

    By Senator Latvala





    19-1207A-02

  1                      A bill to be entitled

  2         An act relating to community redevelopment;

  3         amending s. 163.340, F.S.; redefining the terms

  4         "governing body," "slum area," and "blighted

  5         area"; amending s. 163.355, F.S.; providing

  6         requirements for counties and municipalities

  7         with respect to adopting a resolution that

  8         makes a finding of a slum or blighted area;

  9         amending s. 163.361, F.S.; providing for the

10         modification of community redevelopment plans;

11         amending s. 163.362, F.S.; revising

12         requirements for completing redevelopment

13         financed by increment revenues; amending s.

14         163.385, F.S.; providing for maturation of

15         bonds, notes, or other forms of indebtedness;

16         amending s. 163.387, F.S.; requiring that a

17         county or municipality fund the redevelopment

18         trust fund for the duration of the

19         redevelopment plan; providing an exception;

20         providing for application of the act; providing

21         an effective date.

22

23  Be It Enacted by the Legislature of the State of Florida:

24

25         Section 1.  Subsections (3), (7), and (8) of section

26  163.340, Florida Statutes, are amended to read:

27         163.340  Definitions.--The following terms, wherever

28  used or referred to in this part, have the following meanings:

29         (3)  "Governing body" means the council, commission, or

30  other legislative body charged with governing the county or

31  municipality.

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  1         (7)  "Slum area" means an area in which the physical or

  2  economic conditions are conducive to disease, infant

  3  mortality, juvenile delinquency, poverty, or crime because a

  4  predominance of buildings or improvements, whether residential

  5  or nonresidential, are impaired by reason of dilapidation,

  6  deterioration, age, or obsolescence, and exhibit one or more

  7  of the following factors:

  8         (a)  Inadequate provision for ventilation, light, air,

  9  sanitation, or open space;

10         (b)  A high density of population, as evidenced by

11  comparison to the population density of adjacent areas within

12  the county or municipality, and overcrowding, as evidenced by

13  government-maintained statistics and rules in the State

14  Building Code; or

15         (c)  Conditions that endanger life or property by fire

16  or other causes. in which there is a predominance of buildings

17  or improvements, whether residential or nonresidential, which

18  by reason of dilapidation, deterioration, age, or

19  obsolescence; inadequate provision for ventilation, light,

20  air, sanitation, or open spaces; high density of population

21  and overcrowding; the existence of conditions which endanger

22  life or property by fire or other causes; or any combination

23  of such factors is conducive to ill health, transmission of

24  disease, infant mortality, juvenile delinquency, or crime and

25  is detrimental to the public health, safety, morals, or

26  welfare.

27         (8)  "Blighted area" means either:

28         (a)  an area in which there are a substantial number of

29  slum, deteriorated, or deteriorating structures in which and

30  conditions, as evidenced by government-maintained statistics,

31  are leading that lead to economic distress or endangering

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  1  endanger life or property and in which two by fire or other

  2  causes or one or more of the following factors are present

  3  that substantially impairs or arrests the sound growth of a

  4  county or municipality and is a menace to the public health,

  5  safety, morals, or welfare in its present condition and use:

  6         (a)1.  Predominance of defective or inadequate street

  7  layout, parking facilities, roadways, bridges, or

  8  public-transportation facilities.;

  9         (b)  An unemployment rate for the previous 5 years

10  which is higher and rising faster than that of the county or

11  municipality in which the proposed redevelopment area is

12  situated.

13         (c)  A tax base that has failed to show an appreciable

14  increase for the previous 5 years.

15         (d)2.  Faulty lot layout in relation to size, adequacy,

16  accessibility, or usefulness.;

17         (e)  An increase in the number of tax-exempt

18  properties.

19         (f)3.  Unsanitary or unsafe conditions.;

20         (g)4.  Deterioration of site or other improvements.;

21         (h)5.  Inadequate and outdated building density

22  patterns.;

23         (i)  Falling lease rates per square foot for office,

24  commercial, or industrial space.

25         (j)6.  Tax or special assessment delinquency exceeding

26  the fair value of the land.;

27         (k)  High residential and commercial vacancy rates, as

28  compared to the remainder of the county and municipality.

29         (l)  A high incidence of crime, as compared to the

30  remainder of the county and municipality.

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  1         (m)  A large number of fire and emergency medical

  2  service calls within the area, as compared to the remainder of

  3  the county and municipality.

  4         (n)  A large number of violations to the building code

  5  within the area, as compared to the remainder of the county

  6  and municipality.

  7         7.  Inadequate transportation and parking facilities;

  8  and

  9         (o)8.  Diversity of ownership or defective or unusual

10  conditions of title which prevent the free alienability of

11  land within the deteriorated or hazardous area.; or

12         (b)  An area in which there exists faulty or inadequate

13  street layout; inadequate parking facilities; or roadways,

14  bridges, or public transportation facilities incapable of

15  handling the volume of traffic flow into or through the area,

16  either at present or following proposed construction.

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18  However, For purposes of qualifying for the tax credits

19  authorized in chapter 220, "blighted area" means an area

20  described in this subsection paragraph (a).

21         Section 2.  Section 163.355, Florida Statutes, is

22  amended to read:

23         163.355  Finding of necessity by county or

24  municipality.--

25         (1)  A No county or municipality may not shall exercise

26  the authority conferred by this part with respect to community

27  redevelopment until after the appropriate governing body has

28  adopted a resolution, supported by a detailed justification,

29  which finds that the conditions in the area meet the criteria

30  described in s. 164.340(7) or (8). In addition, the resolution

31  must state finding that:

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  1         (a)(1)  One or more slum or blighted areas, or one or

  2  more areas in which there is a shortage of housing affordable

  3  to residents of low or moderate income, including the elderly,

  4  exist in such county or municipality; and,

  5         (b)(2)  The rehabilitation, conservation, or

  6  redevelopment, or a combination thereof, of such area or

  7  areas, including, if appropriate, the development of housing

  8  that which residents of low or moderate income, including the

  9  elderly, can afford, is necessary in the interest of the

10  public health, safety, morals, or welfare of the residents of

11  such county or municipality.

12         (2)  This section does not apply to a community

13  redevelopment agency created before October 1, 2002, unless

14  the agency modifies its community redevelopment area or plan.

15         Section 3.  Section 163.361, Florida Statutes, is

16  amended to read:

17         163.361  Modification of community redevelopment

18  plans.--

19         (1)  If at any time after the approval of a community

20  redevelopment plan by the appropriate governing body it

21  becomes necessary or desirable to amend or modify such plan,

22  the governing body may amend such plan upon the recommendation

23  of the agency. The agency recommendation to amend or modify a

24  redevelopment plan may include a change in the boundaries of

25  the redevelopment area to add land to or exclude land from the

26  redevelopment area, or may include the development and

27  implementation of community policing innovations.

28         (2)  The appropriate governing body shall hold a public

29  hearing on a proposed modification of a community

30  redevelopment plan after public notice thereof by publication

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  1  in a newspaper having a general circulation in the area of

  2  operation of the agency.

  3         (3)  If a community redevelopment plan is modified by

  4  the county or municipality after the lease or sale of real

  5  property in the community redevelopment area, such

  6  modification may be conditioned upon such approval of the

  7  owner, lessee, or successor in interest as the county or

  8  municipality may deem advisable and, in any event, shall be

  9  subject to such rights at law or in equity as a lessee or

10  purchaser, or his or her successor or successors in interest,

11  may be entitled to assert.

12         Section 4.  Subsection (10) of section 163.362, Florida

13  Statutes, is amended to read:

14         163.362  Contents of community redevelopment

15  plan.--Every community redevelopment plan shall:

16         (10)  Provide a time certain for completing all

17  redevelopment financed by increment revenues.

18         (a)  Such time certain shall occur no later than 30

19  years after the end of the fiscal year in which the plan is

20  initially approved or, adopted, or amended pursuant to s.

21  163.361(1).

22         (b)  For a plan amended or modified under s. 163.361

23  after October 1, 2002, the time certain occurs not later than

24  30 years after the fiscal year in which the plan was amended

25  or modified. However, a community redevelopment agency in

26  existence before October 1, 2002, must complete all

27  redevelopment financed by increment revenues by October 1,

28  2032.

29         Section 5.  Paragraph (a) of subsection (1) of section

30  163.385, Florida Statutes, is amended to read:

31         163.385  Issuance of revenue bonds.--

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  1         (1)(a)  When authorized or approved by resolution or

  2  ordinance of the governing body, a county, municipality, or

  3  community redevelopment agency has power in its corporate

  4  capacity, in its discretion, to issue redevelopment revenue

  5  bonds from time to time to finance the undertaking of any

  6  community redevelopment under this part, including, without

  7  limiting the generality thereof, the payment of principal and

  8  interest upon any advances for surveys and plans or

  9  preliminary loans, and has power to issue refunding bonds for

10  the payment or retirement of bonds or other obligations

11  previously issued. Any redevelopment revenue bonds or other

12  obligations issued to finance the undertaking of any community

13  redevelopment under this part shall mature within 30 60 years

14  after the end of the fiscal year in which the initial

15  community redevelopment plan was approved or adopted. However,

16  in no event shall any redevelopment revenue bonds or other

17  obligations issued to finance the undertaking of any community

18  redevelopment under this part mature later than the expiration

19  of the plan in effect at the time such bonds or obligations

20  were issued. The security for such bonds may be based upon the

21  anticipated assessed valuation of the completed community

22  redevelopment and such other revenues as are legally

23  available. Any bond, note, or other form of indebtedness

24  pledging increment revenues to the repayment thereof shall

25  mature no later than the end of the 30th fiscal year after the

26  end of the fiscal year in which the initial community

27  redevelopment plan was approved or adopted increment revenues

28  are first deposited into the redevelopment trust fund or the

29  fiscal year in which the plan is subsequently amended.

30  However, any refunding bonds issued pursuant to this paragraph

31  may not mature later than the final maturity date of any bonds

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  1  or other obligations issued pursuant to this paragraph being

  2  paid or retired with the proceeds of such refunding bonds.

  3         Section 6.  Subsection (1) and paragraphs (a) and (c)

  4  of subsection (2) of section 163.387, Florida Statutes, are

  5  amended to read:

  6         163.387  Redevelopment trust fund.--

  7         (1)  After approval of a community redevelopment plan,

  8  there shall be established for each community redevelopment

  9  agency created under s. 163.356 a redevelopment trust fund.

10  Funds allocated to and deposited into this fund shall be used

11  by the agency to finance or refinance any community

12  redevelopment it undertakes pursuant to the approved community

13  redevelopment plan. A No community redevelopment agency may

14  not receive or spend any increment revenues pursuant to this

15  section unless and until the governing body has, by ordinance,

16  provided for the funding of the redevelopment trust fund for

17  the duration of a community redevelopment plan. Such ordinance

18  may be adopted only after the appropriate governing body has

19  approved a community redevelopment plan. The annual funding of

20  the redevelopment trust fund shall be in an amount not less

21  than that increment in the income, proceeds, revenues, and

22  funds of each taxing authority derived from or held in

23  connection with the undertaking and carrying out of community

24  redevelopment under this part. Such increment shall be

25  determined annually and shall be that amount equal to 95

26  percent of the difference between:

27         (a)  The amount of ad valorem taxes levied each year by

28  each taxing authority, exclusive of any amount from any debt

29  service millage, on taxable real property contained within the

30  geographic boundaries of a community redevelopment area; and

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  1         (b)  The amount of ad valorem taxes which would have

  2  been produced by the rate upon which the tax is levied each

  3  year by or for each taxing authority, exclusive of any debt

  4  service millage, upon the total of the assessed value of the

  5  taxable real property in the community redevelopment area as

  6  shown upon the most recent assessment roll used in connection

  7  with the taxation of such property by each taxing authority

  8  prior to the effective date of the ordinance providing for the

  9  funding of the trust fund.

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11  However, the governing body of any county as defined in s.

12  125.011(1) may, in the ordinance providing for the funding of

13  a trust fund established with respect to any community

14  redevelopment area created on or after July 1, 1994, determine

15  that the amount to be funded by each taxing authority annually

16  shall be less than 95 percent of the difference between

17  paragraphs (a) and (b), but in no event shall such amount be

18  less than 50 percent of such difference.

19         (2)(a)  Except for the purpose of funding the trust

20  fund pursuant to subsection (3), upon the adoption of an

21  ordinance providing for funding of the redevelopment trust

22  fund as provided in this section, each taxing authority shall,

23  by January 1 of each year, appropriate to the trust fund for

24  so long as any indebtedness pledging increment revenues to the

25  payment thereof is outstanding (but not to exceed 30 years

26  following the date of approval or adoption of the initial

27  plan) a sum that is no less than the increment as defined and

28  determined in subsection (1) accruing to such taxing

29  authority.  If the community redevelopment plan is amended or

30  modified pursuant to s. 163.361(1), each such taxing authority

31  shall make the annual appropriation for a period not to exceed

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  1  30 years after the date of approval or adoption of the initial

  2  the governing body amends the plan.

  3         (c)  The following public bodies or taxing authorities

  4  created prior to July 1, 1993, are exempt from paragraph (a):

  5         1.  A special district that levies ad valorem taxes on

  6  taxable real property in more than one county.

  7         2.  A special district the sole available source of

  8  revenue of which is ad valorem taxes at the time an ordinance

  9  is adopted under this section.

10         3.  A library district, except a library district in a

11  jurisdiction where the community redevelopment agency had

12  validated bonds as of April 30, 1984.

13         4.  A neighborhood improvement district created under

14  the Safe Neighborhoods Act.

15         5.  A metropolitan transportation authority.

16         6.  A water management district created under s.

17  373.069.

18         7.  Any other special district that exists for the

19  improvement of the public health, safety, and welfare.

20         Section 7.  This act does not apply to any ordinance or

21  resolution authorizing the issuance of bonds, notes, or other

22  forms of indebtedness to which is pledged increment revenues

23  pursuant to a community redevelopment plan or amendment, or

24  modification thereof, which was approved or adopted before

25  October 1, 2002.

26         Section 8.  This act shall take effect October 1, 2002.

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  2                          SENATE SUMMARY

  3    Revises various provisions of part III of ch. 163, F.S.,
      governing community redevelopment. Redefines the terms
  4    "slum area" and "blighted area." Requires that
      redevelopment financed by increment revenues be completed
  5    within a time certain or within 30 years. Requires that
      the redevelopment trust fund be funded for the duration
  6    of the redevelopment plan. (See bill for details.)

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