TITLE
RESOLUTION AUTHORIZING HISTORIC PRESERVATION AD VALOREM TAX EXEMPTION FOR THE REHABILITATION TO THE ANGLERS HOTEL AND ANNEX, 634 AND 660 WASHINGTON AVENUE, MIAMI BEACH, FLORIDA PURSUANT TO SECTION 196.1997, AND 196.1998 FLORIDA STATUTE AND SECTION 16A-18, MIAMI-DADE COUNTY CODE

BODY
WHEREAS, the Florida Legislature has authorized counties and local governments to grant tax exemptions to historic properties for the incremental value added by approved restoration work, provided that the owner covenants to maintain the historic nature of the property during the term of the tax exemption; and Miami-Dade County has enacted enabling legislation to provide such exemption, codified at section 16A-18, Miami-Dade County code; and

WHEREAS, the commercial structures located at 634 and 660 Washington Avenue, Miami Beach, Florida are designated historic structures, designated by the City of Miami Beach; and

WHEREAS, the Miami-Dade County Historic Preservation Board recommended that the exemption be allowed and certified to the Board of County Commissioners that 634 and 660 Washington Avenue, Miami Beach, Florida are designated structures and that the proposed improvements are consistent with the United States Secretary of the Interior�s Standards for Rehabilitation and meet the criteria established in the rules adopted by the Department of State; and

WHEREAS, the property owner(s) have executed the necessary covenant, which is attached and made part of this resolution,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board finds that this property meets the requirements of section 16A-18, Miami-Dade County code and therefore the application for a historic preservation tax exemption, pursuant to those provisions, is hereby granted to Anglers Resort, LLC. The owner shall have recorded the original of the attached covenant with the deed for the property in the official records of Miami-Dade County and Miami-Dade County hereby accepts the covenant. The exemption shall run for ten years beginning on January 1st following substantial completion of the improvements. The County Mayor or his designee is hereby authorized and directed to sign the attached covenant on behalf of Miami-Dade County. If any section, subsection, sentence, clause or provision of this resolution is held invalid, the remainder of this resolution shall not be affected by such invalidity.

HEADER
Date:

To: Honorable Chairman Joe A. Martinez
and Members, Board of County Commissioners

From: Carlos A. Gimenez
Mayor

Subject: Historic Preservation Ad Valorem Tax Exemption for 634 and 660 Washington Avenue, Miami Beach, The Angler Hotel and Annex

STAFF RECOMMENDATION
Recommendation
It is recommended that pursuant to the provisions of Florida Statute Section 196.1997 and 196.1998 and Dade County Ordinance 16A-18 that the Board approves the resolution for the Ad Valorem Tax Exemption for the property located at 634 and 660 Washington Avenue, Miami Beach, FL.

Scope
Impact of the agenda item is countywide and does not have a separate impact upon one or more commission districts.

Fiscal Impact/Funding Source
The portions of taxes that will be exempted if this application is granted are estimated at $9,427. (Calculations provided by the Property Appraiser, see the attached �Revenue Implications Report�).

This is not a complete exemption of all taxes on the property. The exempted portion is based on the how much the property value increased, due to the renovation. For the ten-year abatement period, the County will collect taxes on the property using property values previous to the renovation. Following the ten-year abatement period, the County will collect taxes on the full value of the property, including the renovation.

Track Record/Monitor
County Historic Preservation staff or the Preservation Officer of the municipality in which the property is located will conduct periodic reviews of the property to insure that the improvements are maintained for the duration of the tax abatement.

MANAGER'S BACKGROUND
Background
Enabling Legislation: In 1993, the State legislature approved Tax Exemptions for historic properties; and enabled local governments the option to provide property tax exemption for historic properties.
The purpose of this legislation is to encourage historic preservation by offering an economic incentive to those property owners who take on the responsibility of restoring and maintaining a designated historic structure. The exemption is not for the entire assessed value of the property. The tax exemptions are calculated from what the value of the renovations to the historic property were, and only apply to Miami-Dade County�s portion of the taxes.


All applicants must meet certain criteria as set forth by the Florida Department of State, Division of Historical Resources in order for a tax exemption to be allowed, such as:
* Certification, by the applicable preservation board, that the property has been designated historic
* Certification, by the applicable preservation board, that the property has received approval for the improvements.
* Determination, by the applicable preservation board, that the planned improvements are consistent with the Secretary of the Interior�s Standards for Rehabilitation.

Duration: The tax exemption takes effect on January 1 following substantial completion of the improvement and extends for a ten-year period. Failure by the owners to adhere to these standards would result in revocation of the exemption.

Project Details: This is a 3-story Mediterranean Revival hotel in Miami Beach that was built in 1930. It was designed by noted Miami Beach architect Henry J. Maloney, who also designed the Hotel Shelley, the Evans, the Lafayette and the Helens apartments. Fortunately, the building was able to maintain many of its original character defining exterior features, such as the small balconette with French doors above the main entrance and paired arched windows with decorative column mullions. A beautifully detailed parapet tops the building.
The property also includes a more modest two-story building north of the Anglers built in 1922 in the Mission Style. Both Buildings were in derelict and boarded up condition until the rehabilitation by the present owner. Improvements made to the historic buildings included the complete reconstruction of the interiors of the historic structures with new partition walls, a restored lobby, new HVAC, plumbing and electrical systems. In addition, some new construction was added to the south and rear of the property, including a new five story building, but neither of these additions qualifies for the exemption since they are new construction.
The overall investment made to the property was $5,000,000. The value of the renovations to the historic portions of the building, as indicated in the Revenue Implications Report, is $1,948,480. The estimated annual exemption, based on the value of the renovations, will be $9,427.

Application Process: The timeline for submittals on Tax Exemption applications vary because they are dependent on a construction project being completed.

Part I of the application must be submitted and reviewed by County staff prior to construction. Once construction is complete the owner/applicant must submit the Part II and a signed covenant. The local preservation officer or staff must also review the project and submit the Local Authorization. Once all the proper paperwork has been submitted, the item can then be placed on the County�s Historic Preservation Board agenda.

The Property Appraiser prepares the Revenue Implications Report when construction is considered substantially complete, and the tax exemption is calculated using the millage rate for the year in which the project was completed.

Submittal Dates: Part I and Part II of the application, along with the signed covenant, was submitted to County staff by the Miami Beach Local Historic Preservation Officer in November, 2008. The Property Appraiser�s Revenue Implications Report was received in January, 2010, and the County�s Historic Preservation Board approved the application in March, 2010.

As a reminder about the process, Part I of the application is submitted prior to construction. Once construction is complete and the owner/applicant submits the Part II application, the item can then be placed on the County�s Historic Preservation Board agenda. The County�s portion of the review process cannot begin until all required documentation, including a signed covenant, is submitted.

The Property Appraiser prepares the Revenue Implications Report when construction is considered substantially complete, and the tax exemption is calculated using the millage rate for the year in which the project was completed.




______________________
Jack Osterholt
Deputy Mayor