Subject:
Title
Resolutions granting ad valorem tax exemptions for five historic properties located within the City of St. Petersburg.
label
Recommended Action:
Recommended Action
Adopt the proposed resolutions granting ad valorem tax exemptions for five historic properties located within the City of St. Petersburg.
Authorize the Chairman to sign and the Clerk to attest the tax exemption covenants for the subject properties.
Body
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Summary:
On March 2, 2017, the St. Petersburg City Council adopted five resolutions approving municipal property tax exemptions for five properties within the City. The properties are located at:
1. 2601 3rd Avenue N, Lathrop Residence (Contributing to Kenwood Historic District)
2. 436 12th Avenue NE, Rosenberg Residence (Contributing to North Shore Historic
District)
3. 806 18th Avenue NE, Reid/Winters Residence (Sargent House Local Historic
Landmark and Contributing to North Shore Historic District)
4. 600 Beach Drive NE, Sadler Residence (Ridgely House Local Historic Landmark and
Contributing to North Shore Historic District)
5. 750 3rd Street N, Grimes Residence (Monticello Apartments Local Historic
Landmark)
The City Council subsequently forwarded the City resolutions, staff report and associated covenants to the Board for review and consideration for exemption from County ad valorem taxes. If approved, the exemptions would be valid for a period of ten years beginning on January 1, 2017 and ending on December 31, 2026.
The tax exemptions for these properties are based on the assessed value of qualified improvements to the exterior and interior of these properties. The specific improvements to each property are identified within the attached City of St. Petersburg City Council staff report. Further, the City has formally reviewed and approved the work with regard to its historical significance by issuing a Certificate of Appropriateness for each property.
If approved, each property owner must have an executed covenant recorded in the official records of Pinellas County. The covenant requires that the property owner maintain and repair the property so as to preserve and maintain the historic architectural qualities or historical integrity of the qualifying property for which the exemption is granted. The recorded covenant shall be binding on the property owner, transferees, and their heirs, successors or assigns. The property owner must provide a certified copy of the recorded covenant to City and County officials within 120 days of County approval of the exemption.
Background Information:
In 1992, the voters of Florida approved a constitutional amendment allowing ad valorem tax exemptions for up to ten years on improvements to designated historic properties. In 1994, the City of St. Petersburg became the first city in Pinellas County to adopt provisions in response to this amendment, giving property owners financial incentives to preserve the City’s historic resources. In January of 1996 the Board of County Commissioners adopted similar ad valorem tax exemption provisions into Chapter 118 of the County Code. This allowed the Board to grant exemptions from County ad valorem taxation equal to 100 percent of the assessed value of all improvements to historic properties which result from the restoration, renovation or rehabilitation of such properties located in unincorporated Pinellas County and in municipalities with similar ordinances.
The County has approved ad valorem property tax exemptions for 65 properties to date.
Fiscal Impact:
According to the City staff report, the total assessed value for the five properties in 2016 was $1,362,150 and the owners of these properties paid a pre-rehabilitation total of $25,360 annually in combined City and County taxes. Eligible construction costs for the qualifying improvements to these properties is $692,291.
Using information provided by the City, it is estimated that the total value for the 10-year exemptions would be approximately $15,700 in City taxes and $12,410 in County taxes. In today's dollars, therefore, the County and the City would be foregoing about $2,811 in taxes annually over the ten year tax exemption period (i.e., $1,241 in County taxes plus $1,570 in City taxes per year).
Calculating the exact value of the 10-year exemptions in advance is impossible due to the fact that there is no guarantee the improvements made will result in the property being assessed at a higher value by the Property Appraiser. The types of improvements and their effects on the historic property, as well as fluctuations real estate market values all influence the final value of the exemption.The following table provides the estimated fiscal impact described above:
|
Case # |
Property |
AVT File # |
Pre-construction Assessed Value |
Pre-construction Tax Basis (City & County) |
Allowable Construction Costs |
Estimated Annual Exemption of City Ad Valorem Taxes |
Estimated Annual Exemption of County Ad Valorem Taxes |
Estimated Combined City and County Annual Exemption of Ad Valorem Taxes |
|
1 |
Lathrop Residence, 2601 3rd Avenue N |
16-90400001 |
$100,457 |
$1,922 |
$18,511 |
$42 |
$33 |
$75 |
|
2 |
Rosenberg Residence, 436 12th Avenue NE |
14-90400013 |
$279,411 |
$5,422 |
$152,405 |
$346 |
$273 |
$619 |
|
3 |
Reid/Winters Residence (Sargent House), 806 18th Avenue NE |
15-90400002 |
$397,892 |
$9,816 |
$79,065 |
$179 |
$142 |
$321 |
|
4 |
Sadler Residence (Ridgely House), 600 Beach Drive NE |
14-90400004 |
$239,955 |
$4,541 |
$239,310 |
$543 |
$429 |
$972 |
|
5 |
Grimes Residence (Monticello Apartments), 750 3rd Street N |
13-90400005 |
$344,435 |
$3,659 |
$3,659 |
$460 |
$364 |
$824 |
|
Totals |
$1,362,150 |
$25,360 |
$692,291 |
$1,570 |
$1,241 |
$2,811 |
Staff Member Responsible:
Renea Vincent, Director, Planning Department
Partners:
City of St. Petersburg
Attachments:
City of St. Petersburg Staff Report
Fully Executed City Resolutions
Proposed County Resolutions
Proposed Covenants