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HomeMy WebLinkAboutReso 2009-1398 RESOLUTION NO. 2009-l39B A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, ESTABLISHING A FORMAL POLICY TO PROVIDE FOR EXTENSION OF TIME FOR THE UTILIZATION OF DEVELOPMENT RIGHTS THAT ARE PRIVATELY OWNED; PROVIDING FOR ADMINISTRATIVE APPROV AL OF EXTENSION REQUEST; PROVIDING THE CITY MANAGER AND THE CITY ATTORNEY WITH THE AUTHORITY TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Commission wishes to extend the time period for the utilization of development rights owned by private parties; and WHEREAS, the City Commission wishes to adopt a formal policy and establish a fee structure to provide for the extension of time-period. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1, Policy Statement. The City Commission understands that development rights ("TDRs") are valuable commodities that must be preserved to spur development within the City and to preserve open space, The City Commission further understands that the current economic crisis has prevented owners of privately owned TDRs from utilizing the TDRs in development projects. The City Commission believes that it is in the best interest of the City to extend the useful life of TDRs. Section 2. Fee for Extension. Any owner of privately owned development rights ("TDRs") acquired pursuant to Section 265-23 of the City Code may request a ten (10) year extension to utilize development rights purchased from a private party. The owner of said TDRs shall pay to the City an annual fee in accordance with the following formula: (1) The total amount of TD Rs shall be multiplied by a base square foot price of $30.00 and divided by the value per 1000 square feet of TDRs. This calculation shall yield a price per 1000 square feet of TDRs, This price shall be multiplied by the millage rate to yield the fee per year for the extension. The base square feet and millage rate are subject to annual change. However, any change will not lower the base square feet and millage rate from a minimum of $30 and 2.48. Example: 100,000 sq, ft. privately owned x 30 base sq. f1. price 3,000,000 -:- 1000 value per thousand= 3000 3000 x 2.48 = $7440 Establishing policy for lISC of Development Rights Page I of2 (2) Fees can be paid on a quarterly basis. Failure to pay will result 10 the automatic termination of development rights. Section 3. Authorization of City Manager and City Attorney. The City Commission hereby provides the City Manager and City Attorney with the authority to create guidelines to approve extension requests administratively. The City Manager and the City are hereby authorized to do all things necessary to effectuate this Resolution. Section 4, Effective Date. This Resolution shall become effective upon adoption. PASSED AND ADOPTED this ,q~'" day of MPrRc.t\ 2009. ATTEST: .. ~'A~ Jane A. Hines, City Clerk . ...., ,. Moved by: Co~ <;:<..~ "lu. vY\~~V" T~t\UR. Seconded by: Vote: S-D Mayor Edelcup Vice Mayor Thaler Commissioner Goodman Commissioner Brezin Commissioner Scholl ~(Yes) ~(Y es) v"(Yes) &/'(Yes) --;7(Yes) _(No) _(No) _(No) (No) _(No) Establishing policy for IISC of Development Rights Page 2 of2 City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, Florida 33160 Ci(y Commissioll Norman S. EdeIcup, Mayor Lewis J. Thaler, VI,r Mayor Roslyn Brezin, Commioioner Gerry Goodman, CfJl1lmil)'ioller George "Bud" Scholl, CfJmmir,.ioller (305) 947-0606 City lIall (305) 949-3113 Fax (305) 947-2150 Building Department (305) 947-5107 Fax Rick Conner, Adill~ City AlalltJ,~er Hans Ouinol, City /lIIol71ey Jane A, Hines, City Clerk MEMORANDUM TO: The Honorable City Commission FROM: HaDS OttiDOI, City Attorney ~ DATE: March 19, 2009 RE: Annual Fee for Extension of Development Rights RECOMMENDA TION: This Resolution is presented for your consideration. REASONS: The City has been approached recently by several owners of privately owned development rights ("TDRs") about extending the useful life of the TORs. The attached Resolution will provide owners of privately owned development rights an opportunity to request a ten (10) year extension to utilize development rights purchased from a private party, In order to obtain an extension, the owner must pay an annual fee based on a per square foot price, The fee is based on the assumption that development rights are property rights that would have been subject to ad valorem taxes if such rights were not extracted from the property. It is important to note that the fee formula was created by the in-house financial expert- Mayor Edelcup, / Attachment Agenda Item \ 0 C9 Date 3- tq- 0'1