Subject:
Title
Resolution granting ad valorem tax exemption for the renovation of the historic property located at 2326 Andalusia Way Northeast, St. Petersburg.
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Recommended Action:
Recommended Action
Approval of the resolution authorizing an ad valorem tax exemption for the renovated historic property at 2326 Andalusia Way Northeast located in the Granada Terrace Local Historic District in the City of St. Petersburg.
• An exemption of County ad valorem taxes is requested by the property owner for a recently renovated contributing historic building located in the Granada Terrace Local Historic District as designated by the City of St Petersburg.
• On April 16, 2020, the St. Petersburg City Council approved a resolution waiving City ad valorem taxes for a period of ten years for the increase in value resulting from the renovation of this historic property.
• The annual estimated property tax savings for the property owner is $751.00 (both City and County) based on a formula provided by city staff.
Authorize the Chairman to sign the county resolution and to be a signatory party on the associated covenant; and authorize the Clerk of the Circuit Court to attest the resolution and covenant.
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Strategic Plan:
Practice Superior Environmental Stewardship
3.2 Preserve and manage environmental lands, beaches, parks, and historical assets
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Summary:
Summary
The City of St. Petersburg has forwarded the city’s resolution, city staff report, and joint covenant to the Board of County Commissioners for review and consideration for exemption of County ad valorem taxes for renovation of the designated historic property located at 2326 Andalusia Way Northeast, a contributing property in the Granada Terrace Historic District in St Petersburg.
The tax exemption is for the assessed value of renovation improvements made to the interior and exterior of the building in 2019. The work has been reviewed and approved by the City under its Certificate of Appropriateness procedures. The attached City staff report identifies the specific improvements made to the historic building.
The St. Petersburg City Council approved the property owner’s request for a historic preservation exemption of City ad valorem taxes equal to 100% of the value of the improvements for a ten (10) year period. A copy of the City of St Petersburg Resolution #2020-131 adopted on April 16, 2020 has been provided. Also, a copy, and originals for signature, of the associated preservation covenant have been provided by the City.
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Background Information:
In 1992, the citizens of Florida passed a constitutional amendment enabling counties and municipalities to adopt ordinances that allow owners of designated historic properties to apply for ad valorem tax exemptions when making substantial improvements. The Florida Legislature adopted Chapters 196.1997 and Chapter 196.1998, Florida Statutes that establishes parameters and requirements for these historic preservation tax exemptions. Specifically, up to a ten-year exemption is allowed on up to 100% of the assessed value of improvements made to designated historic properties.
In January 1996, the Pinellas County Board of County Commissioners adopted an ordinance (Chapter 118, Article V, Pinellas County Code) providing for ad valorem tax exemptions ten years in duration on 100% of the assessed value of improvements made in renovating, rehabilitating or restoring a designated historic property. Eligible properties include buildings/structures individually listed on the National Register of Historic Places; listed as a contributing resource in a National Register Historic District; designated as a historic property by local ordinance; or designated by ordinance as a contributing resource in a local historic district. The County’s tax exemption is available to owners of eligible historic properties in the unincorporated area and in municipalities that have adopted a similar historic preservation tax exemption ordinance.
To date, the County has approved the historic preservation ad valorem tax exemption for 75 applicants.
Fiscal Impact:
According to the City staff report provided, the pre-construction assessed value of this historic property was $519,484 in 2019 and the owner paid a total of $10,097 in City and County ad valorem taxes, combined. Eligible construction costs associated with qualifying improvements made by the property owner totals $185,093.
Using information provided by the City based on current millage rates*, the estimated total value for the 10-year ad valorem tax exemption is approximately $7,512 (City = $4,189 and County = $3,323). Please note that this is only an estimate-the calculation of exact figures is not possible because of fluctuating real estate market values and changing millage rates over the 10-year period.
*Formula provided by the City for this estimate is based on ((‘Qualifying Construction Costs’ x (millage rate/2)) / 1,000) x (0.67).
Staff Member Responsible:
Brian Lowack, Interim Director, Housing & Community Development
Tom Scofield, Principal Planner, Historic Preservation
Partners:
City of St. Petersburg
Attachments:
City of St Petersburg Resolution ATF
City of St Petersburg Staff Report ATF
Multi-Party Covenant FE
BCC Resolution FE
Chap 118, Article V, PCC