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AGENDA REQUEST
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Date: Julv 15. 1992
CONSENT
NEW
BUSINESS 8/3/92
UNFINISHED
BUSINESS
PUBLIC
HEARING
REBOLUTION
ORDINANCE
ITEM DESCRIPTION/SUBJRCT:
Economic Development l\d Valorerr. Tax Exemption
BACKGROUND:
The Industrial Development Board has been discussing the grant of
authority to municipalities to issue economic development ad
valorem tax ex~mptions under Section 196.1995, Florida Statutes.
(Copy attached.) If authorized in a referendum of the electors of
the municipality, the governing body of a municipality may by
'It
ordinance exempt from ad valorem taxation up to 100 percent of the
assessed value of all improvements to real property made by or for
the use of a new business and of all tangible personal property of
such new business, or up to 100 percent of the assessed value of
all added improvements to real property made to facilitate the
expansion of an existing business and of the net increase in all
tangible personal property acquired to facilitate such expansion of
an existing business, provided that the improvements to real
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property are made or the tangible personal property is added or
increased on or after. the day the ordinance is adopted. The
exemption applies only to taxes levied by the municipality and may
remain in effect for up to ten years. Ten years from the date of
the original referendum the authority to grant ad valorem tax
exemptions expires. In order to continue granting exemptions, the
municipality would have to hold another referendum.
Attached is a copy of an ordinance drafted by the Industrial
Development Board in consultatio,n with the City .Attorney which
could be utilized to grant an ad valorem tax exemption if the City
Council were given such authority by the electors of Edgewater.
RECOMMENDATION/CONCLUSION:
The Industrial Development noard recommends that the City Council,
pursuant to Section 196.1995, Florida Statutes, consider placing on
the ballot in November the following referendum question:
Shall the City Council be authorized to grant, pursuant
to Article VII, Section 3 of the State Constitution,
property tax exemptions to new businesses and expansions
of existing businesses?
FUNDS AVAILABLE: ACCOUNT NUMBER:
(SPECIFY IF BUDGET AMEHDMENT IS REQUIRED)
PREVIOUS AGENDA ITEM:
YES
NO
xx
DATE:
AGENDA ITEM NO.
Respectfully submitted,
Joe Martin
Chairman, Industrial
Development Board
Concurrence:
George E. McMahon
City Manager
JM/kas
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ORDINl\NCB NO. 92-0-13
AN ORDINANCE OF TnE CITY OF EDGEWATER, FLORIDA
AUTHORIZING A M1iNUFACTURING DEVELOPMENT AD
VALOREM TAX EXEMP~ION F'OR XXXXXi PROVIDING FOR
ELIGIBILITY FOR EXEMPTION; PROVIDING FOR PROOF
OF ELIGIBILITY FOR EXEMPTION; PROVIDING FOR
CONFLICTING PROVISIONS AND SEVERABILITY;
PROVIDING AN EFFECTIVE DATE AND ADOPTION.
WHEREAS, the City Council of the City of Edgewater, Florida,
has made the following determinations:
1. Local economic vitality is an essential ingredient of the
total economic environment.
2. The citizens of Edgewater deserve the opportunity to
improve their standard of living.
3. Actions taken by the City to promote industrial growth
enhance the ability of its citizens to improve their standard of
living.
4. The proper type of industrial growth is an effective means
to temper the rate of growth in ad valoren taxes.
5. Subject to certain conditions, Section 196.1995, Florida
Statutes, authorizes the City to exempt both new and expanding
businesses from ad valorem taxes on real and tangible personal
property.
6. It is in the best interest of the City to assist its
citizens by providing opportunities to achieve a higher standard of
living.
7. Pursuant to Section 196.1995, Florida Statutes, XXXXX has
applied for an ad valorem tax exemption.
8. The Volusia County Property Appraiser has reported as
follows:
a. The to~al revenue available to the City for the
current. fiscal year from ad valorem tax sources is
$
b. There has been a $ annual gross gain
(loss) of reVnnUE! to the City for the current fiscal
year by virt.ue of exempti ons previously granted
pursuant to Section 196.1995, Florida Statutes.
c. There i.s a proje~ted $ gross annual gain
of revenue to the City by virtue of previous
improvements to real property and previous
acquisition of tangible pel~:;onal property that were
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facilitated pursuant to Section 196.1995, Florida
Statutes, after expiration of granted exemptions to
date.
d. That the annual gain of ad valorem tax revenue to
the City after expiration of this exemption based on
current millage rate applied to the property
described in Exhibit A would be approximately
$
9. The granting of the tax exemption to the Company will not
be effective until January 1, 199X.
10. The intent of Section 196.1995, Florida Statutes, is not
satisfied unless the Company continues to utilize the real property
and improvements which are the subject of the granted exemption for
a manufacturing purpose as defined in Section 1 of this ordinance
during the entire period for which the exemption has been granted.
11.
This ordinance insures that the intent of Section
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196.1995, Florida Statutes, will be
satisfied by providing
procedures for the revocation of the granted tax exemption if
during the tax exemption period the Company fails to utilize the
real property and improvement/; for a manufacturing purpose as
defined in Section 1 of thiu ordinance.
NOW, THEREFORE, BE IT EN~~TED by the People of the City of
Edgewater, Florida:
Section 1.
DElfinitions
go!...
New manufacturing business
A business which
manufactures, processes, compounds, fabricates, or produces for
sale items of tangible personal property at a fixed location and
establishes 10 or more jobs to employ 10 or more fulltime employees
at a median income greater than the Volusia County average income
based on the most current information available from the Florida
Department of Labor and Employment Security at the time of review.
b. Expansion of an existing manufacturing business - A
business which manufactures, pr::>cesses, compounds, fabricates, or
produces for sale items of tangible personal property at a fixed
location and establishes 10 or more additional jobs to employ 10 or
more additional full time emploYE!es at a median income greater than
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the Volusia County average income based on the most current
information available from the Florida Department of Labor and
Employment Security at the time of review.
Section 2.
An ad valorem tax exemption is hereby granted
to XXX for a period of ten (10) years subject to the Council's
right of revocation provided herein and commencing January 1, 199X,
upon one hundred percent (100%) of the assessed value of all
improvements to the real property and all tangible personal
property described in Exhibit A which is attached hereto and
incorporated by reference.
Section 3.
Before
January 1,
199X,
and annually
thereafter during the time period of the granted ad valorem tax
exemption the Company shall file with the City Manager a
certificate that affirmatively states that the property described
in Exhibit A is being used for a manufacturing purpose pursuant to
Section 1 of this ordinance and that the representations made by
the Company in its application are currently true and correct as of
each certification.
Section 4.
If the Company fails to file the certificate as
required in Section 3 or at any ti.me during the exemption period
established by this ordinance fails to operate as a manufacturing
business pursuant to Section 1, the City Manager shall provide
notice to the Company by certified mail return receipt requested of
the Council's intent to revoke the ad valorem tax exemption. Such
notice shall include a brief statement of the facts and the basis
for revoking the exemption.
If the Company disputes the facts
provided in the notice or the proposed ::-evocation, the Company
shall within ten (10) days of receipt of the notice request in
writing a hearing before the Council.
If the Company fails to
timely request a hearing, the exemption shall be deemed revoked.
If the Company timely requests a hearing, the Council shall
schedule a hearing at the next available Council meeting to review
the proposed revocation and hear such relevant matters as may be
presented by the Company.
The hearing shall be conducted in a
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manner designed to obtain all relevant information.
The formal
rules of civil procedure and evidence shall not apply, however the
hearing shall be conducted in a fair and impartial manner with each
party having an opportunity to be heard and present information.
Thereafter, the Council shall determine whether the exemption
should be revoked. The decision of the Council shall be in writing
and provided to the Company.
Nothing herein shall prohibit the
Company or its successor in interest from reapplying for an ad
valorem tax exemption in the future.
Section 5.
All conflicting ordinances and resolutions, or
parts thereof, in conflict with this ordinance, are hereby
superseded by this ordinance to the extent of such conflict.
Section 6.
If any portion of this ordinance is for any
reason held or declared to be unconstitutional, inoperative, or
void, such holding shall not affect the remaining portions of this
ordinance.
If this ordinance or any provision thereof shall be
held to be inapplicable to any person, property, or circumstances,
such holding shall not affect its applicability to any other
person, property, or circumstance.
Section 7.
This ordinance shall take effect on XX.
After Motion by XXX and Second by XXX, the vote on the first
reading of this ordinance held on XX, was as follows:
Mayor Tanya B. Wessler XXX
Councilman Kirk Jones XXX
Councilperson Louise Martin XXX
Councilperson NoraJane Gillespie XXX
Councilman Hichael Hays XXX
After Motion by XX and Second by XX, the vote on the second
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reading of this ordinance was as follows:
Mayor Tanya B. Wessler
XXX
Councilman Kirk Jones
XXX
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Councilperson Louise Martin XXX
Councilperson NoraJane Gillespie xxx
Councilman Michael Hays XXX
PASSED AND DULY ADOPTED this XX day of XX, 1992.
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ATTEST:
CITY COUNCIL OF THE
CITY OF EDGEWATER, FLORIDA
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By:
Tanya B. Wessler
Mayor
Susan J. Wadsworth
City Clerk
APPROVED FOR FORM
AND CORRECTNESS;
Krista A. Storey
City Attorney
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