§ 23.5-5. Tax exemption for historic property.

a)

Scope of tax exemptions. A method is hereby created for the city commission to allow tax exemptions for the restoration, renovation or rehabilitation of historic properties, whether designated as a landmark or a contributing property. The exemption shall apply to a maximum of one hundred (100) percent of the assessed value of all improvements to a historic property which result from and are directly attributable to restoration, renovation or rehabilitation made on or after the effective date of this section. The exemption applies only to taxes levied by the city. The exemption does not apply to taxes levied for the payment of bonds or to taxes levied authorized by a vote of the electors pursuant to Section 9(b) or 12, Article VII of the Florida Constitution. The exemption does not apply to taxes on personal property.

b)

Duration of tax exemptions. Any exemption granted under this section to a particular property shall remain in effect for a maximum of ten (10) years, as specified in the ordinance approving the exemption. The exemption shall continue regardless of any change in the authority of the city to grant exemptions or any changes in ownership of the property. In order to retain an exemption, however, the historic character of the property and improvements which qualified the property for an exemption must be maintained over the period for which the exemption was granted.

c)

Eligible properties and improvements. The property is qualified for an exemption under this section if:

1.

At the time the exemption is granted, the property is:

(A)

Individually listed in the National Register; or

(B)

A contributing property within a historic district listed in the National Register; or

(C)

Is designated as a city landmark or is a contributing property within a designated historic district under the terms of this article; and

(D)

The HRPB has certified to the city commission that the property for which an exemption is sought satisfies the provisions of this section.

2.

In order for an improvement to a historic property to qualify the property for an exemption, the improvement must be:

(A)

Consistent with the United States Secretary of the Interior's Standards for Rehabilitation; and

(B)

Determined by the HRPB to meet the criteria established in rules adopted by the Florida Department of State.

d)

Applications.

1.

Any person, firm or corporation that declares ad valorem tax exemption for the improvement of a historic property must, in the year the exemption is desired to take effect, file with the department for community sustainability, a written application on a form approved by the Florida Department of State.

2.

The application shall consist of two (2) parts. Part 1, the preconstruction application, shall be submitted by the property owner or his agent before improvements are initiated, and Part 2, the request for review of completed work, shall be submitted by the property owner or his agent upon completion of the improvements.

3.

Application deadline shall be established by the city then ensures that a resolution approving an application for historic preservation tax exemption shall be transmitted to and received by the Palm Beach County property appraiser no later than March 1 of each year.

4.

All applicable fees shall be paid at the time the application is submitted. The application must include the following information:

A.

The name of the property owner and the location of the historic property;

B.

A description of the improvements to real property for which an exemption is requested and the date of commencement of construction of such improvements;

C.

Proof, to the satisfaction of the HRPB, that the property that is to be rehabilitated or renovated is either listed on the National Register or is a designated landmark or a contributing property within a designated historic district;

D.

Proof, to the satisfaction of the HRPB, that the improvements to the property will be consistent with the Secretary of the Interior's Standards for Rehabilitation and will be made in accordance with the guidelines developed by the Florida Department of State; and

E.

Such other information identified in applicable Florida Department of State regulations.

5.

The economic hardship portion of this chapter may not be applied to a property requesting tax abatement.

e)

Required covenant. To qualify for an exemption, the property owner must enter into a covenant or agreement with the city for the term for which the tax exemption is granted. The form of the covenant or agreement must be approved by the Florida Department of State and must require that the character of the property and the qualifying improvements to the property be maintained during the period for which the exemption is granted. The covenant or agreement shall be binding on the current property owner, transferees and their heirs, successors and assigns. Violation of the covenant or agreement results in the property owner being subject to payment of the differences between the total amount of taxes which would have been due in March of each of the previous years in which the covenant or agreement was in effect had the property not received the exemption and the total amount of taxes actually paid in those years, plus interest on the difference calculated as provided in F.S. § 212.12(3).

f)

Approval procedure.

1.

Review by HRPB.

(A)

Preconstruction applications. The HRPB, or its successor, shall review completed preconstruction applications and all required supporting materials to determine whether the property for which a proposed exemption is requested satisfies F.S. § 196.1997(11)(a); whether the proposed improvements are consistent with the Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings (Revised 1990), U.S. Department of the Interior, National Park Service, which are hereby incorporated by reference into this section, and the criteria specified in Chapter 1A-38, F.A.C.; and for applications submitted under the provisions of F.S. § 196.1998, whether the improvements meet the criteria in Rule 1A-38.004(3) and (4), F.A.C. Upon completion of the review of a pre-construction application, the HRPB shall notify the applicant of the results of the review and shall make recommendations for correction of any planned work deemed to be inconsistent with the standards cited in Rule 1A-38.005, F.A.C. Each review of a preconstruction application shall be completed within thirty (30) days of receipt of a completed application and all required supporting materials.

(B)

Review of completed work. Upon receipt of a request for review of completed work, and all required supporting materials, the department for community sustainability shall conduct a field inspection to determine whether or not the completed improvements are in compliance with the work described in the appropriate preconstruction application, subsequent approved amendments thereto, if any, and the Secretary of the Interior's Standards or Rehabilitation and Guidelines for Rehabilitating Historic Buildings. The staff recommendation shall be presented to the HRPB for review and consideration. Each review of a request for review of completed work shall be completed within thirty (30) days of receipt of the completed request and all required supporting materials.

(C)

Recommendation regarding tax exemption. Upon completion of the review of a request for review of completed work, the HRPB shall recommend that the city commission grant or deny the exemption. Such review shall be conducted in accordance with the terms of this article and regulations governing historic preservation tax abatement which may be adopted by the Florida Department of State. The HRPB's recommendation and the reasons therefore, shall be provided to the applicant and to the city commission before consideration of the application by the city commission.

2.

Approval by city commission. A majority vote of the quorum of the city commission shall be required to approve an application for tax exemption. Such exemption shall take effect on the January 1 following substantial completion of the improvements. The city commission shall include the following in its resolution or ordinance approving the tax exemption:

(A)

The name of the owner and the address and property control number of the historic property for which the exemption is granted.

(B)

The period of time for which the exemption will remain in effect and the expiration date of the exemption.

(C)

A finding that the historic property meets the requirements of this section and section 23.5-4.

3.

Recording in public record. The covenant evidencing the tax abatement shall be recorded by the city at the owner's expense in the public records of Palm Beach County, Florida.

(Ord. No. 2017-27, § 2, 12-5-17)