Miami-Dade Legislative Item
File Number: 112676
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File Number: 112676 File Type: Ordinance Status: Adopted
Version: 0 Reference: 12-15 Control: Board of County Commissioners
File Name: TRUJILLO OIL PLANT AD VALOREM TAX Introduced: 12/22/2011
Requester: Public Housing and Community Development Cost: Final Action: 3/6/2012
Agenda Date: 3/6/2012 Agenda Item Number: 7G
Notes: TLL- 12/22/2011 Title: ORDINANCE GRANTING ENTERPRISE ZONE AD VALOREM TAX EXEMPTION TO TRUJILLO OIL PLANT, INC., A NEW BUSINESS LOCATED IN THE ENTERPRISE ZONE; PROVIDING SCOPE AND TERMS OF EXEMPTION; AND PROVIDING SEVERABILITY, EFFECTIVE DATE AND EXPIRATION DATE
Indexes: AD VALOREM TAX
  ENTERPRISE ZONE
  ENTERPRISE ZONE AD VALOREM TAX
Sponsors: Jean Monestime, Prime Sponsor
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

Board of County Commissioners 3/6/2012 7G Adopted P
REPORT: First Assistant County Attorney Abigail Price-Williams read the foregoing proposed ordinances into the record simultaneously. Hearing no questions or comments, the Board proceeded to vote on the proposed ordinances, as presented.

Economic Development & Social Services Committee 2/15/2012 1F3 Forwarded to BCC with a favorable recommendation P
REPORT: Assistant County Attorney Cynthia Johnson-Stacks read the foregoing proposed ordinance into the record. Chairwoman Sosa opened the public hearing. After hearing no one wishing to speak, Chairwoman Sosa closed the public hearing. Hearing no questions or comments, the Committee proceeded to vote on this proposed ordinance as presented.

Board of County Commissioners 1/24/2012 Tentatively scheduled for a public hearing Economic Development & Social Services Committee 2/15/2012

Board of County Commissioners 1/24/2012 4K Adopted on first reading 2/15/2012 P
REPORT: The foregoing proposed ordinance was adopted on first reading and scheduled for public hearing before the Economic Development and Social Services Committee on February 15, 2012 at 9:30 a.m.

County Attorney 1/6/2012 Assigned Brenda Kuhns Neuman 1/12/2012

County Mayor 1/4/2012 Assigned County Attorney 1/24/2012
REPORT: PHCD (ASST. COUNTY ATTY: BRENDA KUHNS NEUMAN) (ATTACHMENT(S): ATTACHMENT A: TRUJILLO OIL PLANT EMPLOYEE ROSTER; ATTACHMENT B: TRUJILLO OIL PLANT EZAC MINUTES; ATTACHMENT C: TRUJILLO OIL PLANT REVENUE IMPLICATIONS FORMS) (PENDING CMTE ASSIGNMENT) (BCC SPONSOR: CMSR MONESTIME)

County Mayor 12/22/2011 Assigned Russell Benford 1/10/2012 12/22/2011

Legislative Text


TITLE
ORDINANCE GRANTING ENTERPRISE ZONE AD VALOREM TAX EXEMPTION TO TRUJILLO OIL PLANT, INC., A NEW BUSINESS LOCATED IN THE ENTERPRISE ZONE; PROVIDING SCOPE AND TERMS OF EXEMPTION; AND PROVIDING SEVERABILITY, EFFECTIVE DATE AND EXPIRATION DATE

BODY
WHEREAS, this Board recognizes the need to stimulate economic development in certain areas of Miami-Dade County which are economically depressed, where housing and structural conditions are blighted and deteriorated, and where unemployment and poverty are prevalent, said areas being designated “Enterprise Zones” as defined in Section 196.012 and Section 290.004, Florida Statutes; and

WHEREAS, pursuant to Article VII, Section 3 of the Florida Constitution, the State has enacted Section 196.1995, Florida Statutes, providing a local government option for ad valorem tax exemption to new businesses and expansions of existing businesses in each such Enterprise Zone; and

WHEREAS, this Board authorized Enterprise Zone Ad Valorem Tax Exemptions to new businesses and for the expansion of existing businesses located in the Enterprise Zone through Ordinance No. 96-74, enacted on May 21, 1996; as amended; and

WHEREAS, this Board desires to encourage economic growth and development and alleviate the conditions of unemployment, economic disinvestments and poverty by creating new construction, new jobs, and an enhanced business climate particularly for small or minority owned businesses; and

WHEREAS, Trujillo Oil Plant, Inc., hereinafter referred to as “the Business”, located at 3325 NW 62 Street, Miami, FL 33147 within Enterprise Zone No. 1301 has made application for ad valorem tax exemptions; and

WHEREAS, the Business has committed to this Board that has created a work force with at least five (5) new full-time jobs, and will maintain these new jobs for the life of the abatement; and

WHEREAS, this Board finds that the Business has tax bills which are current; and

WHEREAS, this Board finds that ad valorem tax exemption is appropriate and consistent with the public purpose to eliminate the serious and distressing economic conditions of the designated “Enterprise Zone” in Miami-Dade County,

NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA:

Section 1. Legislative Intent and Findings of Public Purpose. The above recitations of legislative intent and findings of public purpose are fully incorporated herein as part of this ordinance.

Section 2. Eligibility Requirements. This Board finds the Business is a “new business” as defined in Section 196.012(15)(b) Florida Statutes (1991) and as defined in Miami-Dade County Code Section 29-82(b), and after careful consideration of certain factors including those enumerated in Section 29-84(a) and (b) of the Miami-Dade County Code finds and determines the Business is eligible for ad valorem tax exemption.

Section 3. Granting the Exemption. This Board hereby grants ad valorem tax exemptions pursuant to Ordinance No. 96-74, enacted on May 21, 1996, to Trujillo Oil Plant, 3325 NW 62 Street, Miami, FL 33147 a “new business”. The exemption shall be up to 100 percent of the eligible assessed value of the improvements to eligible tangible personal property, if the Business complies with the residency requirement that 20 percent of their employees live in the Enterprise Zone. If the Business cannot comply with the 20 percent residency requirement then the exemption, for that year, will be 50 percent of the eligible assessed value of the improvements to the eligible tangible personal property acquired and owned by the Business and located at 3325 NW 62 Street, Miami, FL 33147.

Section 4. Revenue Implications. The total amount of revenue foregone by the County for Businesses previously approved, with the addition of the remaining three Businesses seeking approval by virtue of the Enterprise Zone Ad Valorem Tax Exemption for FY 2011-12 is $676,306. The revenue foregone by the County attributable to the exemption of the Business named in the ordinance for tangible personal property based on the assessment by the Property Appraiser of Miami-Dade County for the five (5) year period is a total award of $53,749.

Section 5. Duration and Expiration of the Tax Exemption. The duration of the Enterprise Zone Ad Valorem Tax Exemption granted to the Business is five (5) years, retroactive to FY 2006-07 and expiring in FY 2010-11. The tax exemption granted hereby shall be credited in the current tax year.

Section 6. Scope of Exemptions. In addition to the scope and limitations described in Section 3, the following apply. The exemption shall apply only to Miami-Dade County countywide operating millage and, when applicable, the unincorporated municipal service area millage and shall not apply to taxes levied for payment of bonds or to taxes authorized by vote of the electors pursuant to Section 9(b) of Section 12, Article VII of the State Constitution. The exemption shall not be prolonged or extended by granting exemption from additional taxes or by virtue of any reorganization or sale of the Business receiving the exemption.

Section 7. Penalties. Non-compliance during the life of the tax exemptions with any of the eligibility requirements of Section 29-84 of the Miami-Dade County Code, unless expressly waived by the Board, will nullify the tax exemption benefits granted through this ordinance and the Business shall be required to make payments of taxes exempted in addition to interest accrued from the date of non-compliance.

Section 8. Fee. The Business named in the ordinance will pay a $50 application fee and a fee of 10 percent of the first year tax exemption to cover administrative expenses of Miami-Dade County in processing the application for tax exemption. All fees are non-refundable even if Miami-Dade County rescinds the tax exemptions due to non-compliance with eligibility requirements. Fees are payable to Miami-Dade County Board of County Commissioners.

Section 9. Severability. If any section, subsection, sentence, clause or provision of this ordinance is held invalid, the remainder of this ordinance shall not be affected by such invalidity.

Section 10. Effective Date. This ordinance shall become effective ten (10) days after the date of enactment unless vetoed by the Mayor, and if vetoed, shall become effective only upon an override by this Board.

HEADER
Date:

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

From: Carlos A. Gimenez
Mayor

Subject: Ordinance Granting Enterprise Zone Ad Valorem Tax Exemption Under Ordinance No. 96-74 for Trujillo Oil Plant, Inc.

STAFF RECOMMENDATION
Recommendation
It is recommended that the Board of County Commissioners (BCC) approve the attached Ordinance granting Enterprise Zone (EZ) Ad Valorem Tax Exemption to Trujillo Oil Plant, Inc., hereinafter referred to as “Business” pursuant to the provisions of Section 196.1995, Florida Statutes, and Miami-Dade County (County) Ordinance No. 96-74, as amended.

The EZ Ad Valorem Tax Exemption is a component of the EZ Program designed to stimulate economic growth of distressed areas with the use of State and local tax incentives. Pursuant to the County Code of Ordinances (Code), any person, firm, or corporation that desires an economic ad valorem tax exemption shall file a written application, containing certain information as detailed in the Code, with the Board. After receipt of a report by the County Mayor, the Board at its discretion is authorized to grant by Ordinance, ad valorem tax exemptions to new and expanding businesses located within the EZ and hiring EZ residents.

In addition, the Code provides that all qualified applications that were submitted by June 30, 2005 shall be eligible under the program, regardless of the year in which the improvements were made or placed on the tax assessment rolls of the County. The Business submitted the application for tax abatement in 2004.

Scope
The Business is located at 3325 NW 62nd Street, Miami, Florida in Commission District 2, within the boundaries of the City of Miami and the Central EZ. The Business is not located in a Community Redevelopment Area (CRA).

Fiscal Impact Analysis/Funding Source
If the exemption for this Business is granted, the impact on the County’s countywide general fund budget totals $53,749 for the five year period between FY 2006-2007 and FY 2009-2010. The exemptions for the Business will be credited in the current tax year based on the actual countywide millage for the respective fiscal year.

The total revenue available to the County from ad valorem sources for FY 2011-12 is $957 million. The total amount of this County incentive for Businesses previously approved in addition to the remaining three Businesses for the EZ Ad Valorem Tax Exemption for FY 2011-12 is $676,306. The public benefits of this project are the investment and job creation in Miami-Dade County’s distressed areas.

Track Record/ Monitoring
Public Housing and Community Development (PHCD) is responsible for monitoring on an annual basis the employment requirement of maintaining five new full-time jobs and, if required, maintaining the requirement that 20 percent of the newly created jobs are occupied by residents of the EZ (Attachment A).

MANAGER'S BACKGROUND
Background
On April 19, 1988, the Board enacted Ordinance 88-27, which authorized the EZ Ad Valorem Tax Exemption Program. Ordinance No. 88-27 as amended and codified in section 29-88 of the Code of Miami-Dade County authorizes the Board of Miami-Dade County at its discretion to grant Ad Valorem Tax Abatement to new and expanding businesses located within the EZ, as defined therein. To be eligible for such exemption a new or expanding business in the EZ must create five or more new full time jobs at such location or due to such expansion.

If, in a given year of the five-year exemption, 20 percent or more of a business’ permanent full-time employees are residents of the EZ, the exemption for that year will be 100 percent of the assessed value of all improvements to real property and/or 100 percent of the assessed value of all improvements to tangible personal property. In case the business cannot comply with the 20 percent residency requirement of their employees living in the EZ, then the exemption for that year will be 50 percent of the assessed value of the improvements to real estate and/or to tangible personal property.

According to Section 29-88 of the Code of Miami-Dade County, businesses that applied for tax exemptions prior to June 30, 2005 are eligible to receive tax exemptions. The Business submitted the application for tax abatement in 2004, and is therefore eligible to be considered under the program

The Business is requesting an exemption on the assessed value of new qualified tangible personal property improvements which were made prior to the creation of the new jobs. Detailed information regarding the Business and the exemptions are provided below.

Trujillo Oil Plant Inc.

Address: 3325 NW 62nd Street, Miami, FL 33147

Commission District: 2

Community Redevelopment Area No

Business Activity: Manufacturer of plastic bottles

Contact Person: Lucas Trujillo, Jr.

Basis for Application: Improvements to tangible personal property


Tangible Personal Property

Taxes Levied on Qualified
Trujillo Oil Assessed Value of EZ Assessed Value of EZ Assessed Value of Value of EZ Tax Exemptions
Plant, Inc Qualified Improvements Qualified Improvements Qualified Improvements-2 on Qualified EZ Assessed Value

FY 2005-06 $2,100,483-1 $2,100,483--1 $16,934 $16,934
FY 2006-07 $1,964,348-1 $1,964,348-1 $13,006 $13,006
FY 2007-08 $1,863,838-1 $1,863,838-1 $12,760 $12,760
FY 2008-09 $1,546,483-1 $1,546,483-1 $10,588 $10,588
FY 2009-10 $59,688-1 $59,688-1 $461 $461

Total Value $53,749 $53,749

1- 100% EZ Assessed Value for Tax Abatement as determined by the Property Appraiser’s Office

2- Figures only illustrate the Countywide operating taxes paid on the improvements

The EZ Advisory Council, a BCC appointed body with oversight of the EZ Program, approved forwarding this ordinance to the BCC on March 10, 2010 (Attachment B).

Please see attached revenue implication statements prepared by the Property Appraiser’s Office for this project (Attachment C).

Additional Information
The initial cost of processing the application is offset by a $50 application fee, plus 10 percent of the first year’s exemption.


Attachments



____________________________
Deputy Mayor



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