Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 22-R28, Addressing the City Center Special Assessment District Fees, the City Center Stormwater Fees and the Ad Valorem Taxes for Tax Roll Years 2010 through the Date of Closing on the City Center Parcels, Assessed on the City Center Parcels Being Acquired for the City Center Project.
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Submitted By: Jennifer Davis, Project Manager, Community Redevelopment Agency
Strategic Plan Link: The City’s Vision for a diverse local economy and employment options.
Executive Summary (General Business): The City of Port St. Lucie is in the process of acquiring twenty-two (22) City Center parcels from the Court-appointed Receiver. Pursuant to Chapter 196, Florida Statutes, all outstanding taxes shall be due on any parcels acquired at the time of closing.
Presentation Information: City staff will provide a brief presentation.
Staff Recommendation: Move that the Council approve the Resolution.
Alternate Recommendations:
1. Move that the Council amend the recommendation and Approve the Resolution.
2. Move that the Council not approve the Resolution and provide staff with additional direction.
Background: At the November 9, 2020 City Council meeting, the City Manager was authorized by the City Council to negotiate a Purchase and Sale Agreement to acquire the twenty-two (22) City Center Parcels from the Securities and Exchange Commission court-appointed Receiver. Upon receiving notice of the City’s intent to purchase the City Center Parcels, the St. Lucie County Tax Collector offered to facilitate the negotiations with tax certificate holders and major taxing authorities. This approach was in lieu of the Tax Collector enforcing Section 196.295(1), Florida Statutes, which requires that the taxpayer (owner of the property being conveyed to the government unit) place in escrow with the county tax collector, an amount equal to the current taxes prorated to the date of transfer of title, to be used to pay any ad valorem taxes due. The statute further provides that, in the event fee title to property acquired is by a governmental unit exempt under Chapter 196 by any means except condemnation for use exclusively for federal, state, county or municipal purposes, the taxpayer is required to pay all taxes due from prior years.
In the months following, the Tax Collector, City Manager and City staff conducted several meetings with the majority tax certificate holder and taxing authorities. These meetings were successful in negotiating with the majority tax certificate holder and major taxing authorities, with all outstanding tax certificates and a majority of the outstanding taxes being satisfied as part of the City’s purchase of the City Center Parcels. At closing, and in lieu of further negotiations, the City intends to pay the smaller taxing authorities outstanding taxes owed.
With much consideration given to negotiations with the majority tax certificate holder and outside taxing authorities, at this time the City Council needs to consider its intent to waive collection of any outstanding special assessment district fees, stormwater fees and ad valorem taxes due to the City and assessed on the City Center Parcels for tax roll years 2010 through the date of closing on the City Center Parcels. The City Council forgoing these amounts for the tax roll years 2010 through the date of closing on the City Center Parcels will not impact or reduce any future special assessment district fees, stormwater fees, and ad valorem taxes due on the parcels. This responsibility will fall upon the City until such time as any parcel or parcels are sold for redevelopment purposes. As part of the upcoming master planning process, the City may elect to retain certain parcels for cultural / civic use, in which case any applicable assessments or fees would be the responsibility of the City.
Issues/Analysis: N/A
Financial Information: The Receiver and City agreed to a purchase price of $400,000. In addition to the terms set forth in the major taxing authorities settlement agreements, the City must settle the taxes owed to the smaller taxing authorities.
Special Consideration: The execution of this Resolution represents the City’s acknowledgement that no further collection of funds will be pursued related to any outstanding past due ad valorem taxes, special assessments or stormwater assessments assessed on the twenty-two (22) City Center parcels being acquired from the court appointed Receiver.
Location of Project: City Center is located at the southeast corner of U.S. Highway One and Walton Road.
Attachments: 1. Resolution; 2. Exhibit A to Resolution - Motion to Sell; 3. Exhibit B to Resolution - Court Order Granting Motion to Sell; 4. City Center SAD & Stormwater E&I for tax roll years 2010 to 2021; 5. Map showing parcel ownership
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 7581
Legal Sufficiency Review:
Reviewed by Margaret M. Carland, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.