Item P3C ounty of M onroe
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BOARD OF COUNTY COMMISSIONERS
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Mayor David Rice, District 4
The FlOnda Key
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Mayor Pro Tem Sylvia J. Murphy, District 5
Danny L. Kolhage, District 1
George Neugent, District 2
Heather Carruthers, District 3
County Commission Meeting
June 20, 2018
Agenda Item Number: P.3
Agenda Item Summary #4205
BULK ITEM: No DEPARTMENT: County Attorney's Office
TIME APPROXIMATE: STAFF CONTACT: Bob Shillinger (305) 292 -3470
n/a
AGENDA ITEM WORDING: Approval of a Resolution establishing a policy for use and
disposition of vacant lots acquired through voluntary purchase under the density reduction program
and for vacant lots acquired through other means such as foreclosure and donation.
ITEM BACKGROUND: In recognition of the fact that current state regulations will result in build
out in 2023, the County Commission has initiated a program to acquire vacant privately owned lots
with residential development potential in order to help buy down the County's potential liability for
future property rights claims. More than a dozen lots have been purchased so far so it is time to
establish a policy for potential use and disposition of such lots.
County staff has drafted a proposed policy that would prioritize use these lots for public use,
followed by community use, followed by private use, followed by conservation use. The first step
would be to consider whether these lots could be used for parks and other County facilities. If no
such use is appropriate, the County Attorney would contact the property owners' or home owners'
association (POA or HOA) for the lot in question to determine if that entity would like to purchase
the lot for use by the association's members. If none, the County Attorney would contact all of the
adjacent property owners to determine if there is any interest in purchasing the lot for their private
use. If the adjoining owners express interest, the property would be put out for bid as required by
law. (F.S. 125.35).
The policy allows the BOCC to accept or reject any offers or bids made. The policy directs that the
proceeds of any such sale be used to replenish the fund used to purchase such lots. The funds would
then be used to pay for further purchases.
If the property remains unclaimed and /or unused after going through the above process, the property
would be evaluated by the Land Authority for conservation purposes. If neither use is appropriate,
the policy calls for the process to be repeated periodically as part of the statutory process for
evaluation all properties in County ownership for use as potential affordable housing sites.
Given that the original purpose of the acquisition is for density reduction, siting affordable housing
units was not prioritized higher in the draft policy but was included due to the statutory requirement
that the County periodically review all property it owns for such uses. Having a periodic resubmittal
to the process would also allow HOA's, POA's, and adjacent property owners to take a fresh look in
the future about whether a particular lot merits acquisition.
At times, the County takes title to lots through other means such as through foreclosure of code
compliance or other liens or through donation. These non - conservation lots present the same
management issues as the lots purchased for density reduction so the policy was drafted to apply to
these lots as well.
PREVIOUS RELEVANT BOCC ACTION:
5/16/18 (P4) County Attorney requested item be moved to BOCC 6/20/18 meeting agenda
At the April BOCC meeting, the Board directed staff to draft a proposed policy for use and
disposition of lots purchased for density reduction purposes.
CONTRACT /AGREEMENT CHANGES:
n/a
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
stamped Resolution Adopting Policy for Use and Disposition of Density Reduction and other Lots
with REVISED Exhibit A
FINANCIAL IMPACT:
Effective Date: Upon adoption
Expiration Date: Until repeal
Total Dollar Value of Contract: n/a
Total Cost to County:
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: If yes, amount:
Grant:
County Match:
Insurance Required:
Additional Details: Lots sold pursuant to this process would result in periodic revenue to the
County, which could be used to fund additional purchases of lots for density reduction
purposes.
Adoption of resolution will have no fiscal impact but implementation may result in revenue to
the County.
REVIEWED BY:
Bob Shillinger
Completed
05/01/2018 12:52 PM
Bob Shillinger
Completed
05/01/2018 12:52 PM
Budget and Finance
Completed
05/01/2018 2:02 PM
Maria Slavik
Completed
05/01/2018 2:04 PM
Kathy Peters
Completed
05/01/2018 3:01 PM
Board of County Commissioners
Completed
05/16/2018 9:00 AM
RESOLUTION NO. -2018
A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA
ESTABLISHING A POLICY FOR THE USE AND
DISPOSITION OF VACANT PARCELS ACQUIRED
THROUGH PURCHASE FOR DENSITY REDUCTION
PURPOSES AS WELL AS THROUGH FORECLOSURE OR
DONATION, AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the State of Florida has designated the Florida Keys' portion of Monroe
County as an Area of Critical State Concern (ACSC) since the 1970's; and
WHEREAS, the ACSC designation was imposed to protect and preserve the unique
environmental resources as well as safeguard public safety by ensuring the ability to safely
evacuate people from the Florida Keys in the event of a major hurricane; and
WHEREAS, as a result of the ACSC designation, the State of Florida has imposed
restrictions on the number of new housing units that can be built within Monroe County; and
WHEREAS, the State imposed caps on new housing allocations for the unincorporated
areas of Monroe County are far below the number of privately owned vacant lots within the
unincorporated areas of the County; and
WHEREAS„ under current law and regulation, the State will cease allocating new housing
allocations in 2023, leaving thousands of privately held parcels without a residential building
allocation; and
WHEREAS, the United States and Florida Constitutions provide for the protection of
private property rights through their respective takings clauses; and
WHEREAS, by adopting this policy, the Board in no way admits liability for taking any
private property or for any other type of claim, however, the Board finds that avoiding the costs of
defending against such claims, regardless of their merit, serves a paramount public purpose; and
WHEREAS, in anticipation of the State cutting off new building permit allocations in
2023, the Board has determined it prudent to purchase lots zoned for residential use in an effort to
mitigate the potential liability for takings and other property rights suits following 2023; and
WHEREAS, the County has already started acquiring lots through the density reduction
program; and
WHEREAS, the County also receives title to lots through foreclosure proceedings when
the County holds a lien against the property; and
WHEREAS, the County also receives donated lots from time to time; and
WHEREAS, vacant lots acquired through voluntary purchase, foreclosure, or donation
require management in a manner that often differs for lots acquired for conservation purposes; and
Pagel of 3
BoCC 5/16/1 s CAV Res (kp)
WHEREAS, the Board finds it necessary to adopt a policy for the management, use, and
possible disposition of lots acquired through voluntary purchase for density reduction, foreclosure,
or donation; and
WHEREAS, the Board finds that reselling appropriate lots to qualifying property owners'
associations, home owners' associations, and/or adjacent land owners for uses that do not include
an additional principal residential structure serves a County purpose in that the sale of such
properties would result in a return in at least a portion of the County's investment costs expended
during the County's purchase of the lot, the proceeds of which can then be used to fund additional
purchases, and such properties would remain on the tax rolls when held in private ownership; and
WHEREAS, Sections I25.35, 125.37, and 125.38, Florida Statutes, imposes requirements
that the County must follow when disposing of County owned properties; and
WHEREAS, County staff has drafted a proposed policy which prioritizes public and
County use of lots acquired, if appropriate; followed by disposition to qualified property owners'
associations or home owners' associations for community purposes; followed by disposition to
adjacent and other private property owners for private uses; followed by review of other public
purposes; and
WHEREAS, that proposed policy is attached to this resolution and incorporated herein as
Exhibit "A";
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLOIRDA:
Section 1. The recitals set forth above are incorporated by reference herein as findings
by the Board.
Section 2. The policy attached to this resolution and incorporated herein as Exhibit
"A" is adopted by the Board.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,
Florida, at a regular meeting held on the 16` day of May, 2018.
Mayor David Rice
Mayor Pro Tern Sylvia Murphy
Commissioner Heather Carruthers
Commissioner Danny Kolhage
Commissioner George Neugent
Page 2 of
BOCC s/(6ne CAY nes (kn)
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
(SEAL)
ATTEST: KEVIN MADOK, CLERK
BY:
By: Mayor David Rice
Deputy Clerk
MONROE COUNTY ATTORNEY
APPRO O F
RT er SHiLuNw -K. JR.
CO ITV Am y
Page 3 of 3
BOCC 5116/18 CAY Rcs (kp)
Exhibit A
Policy for Use and Disposition of Density Reduction Lots and
Lots Acquired through Foreclosure or Donation.
1. Acquisition. Lot purchased for density reduction purposes or acquired through
foreclosure or donation.
2. County Use. Upon acquisition, County Attorney shall notify the County
Administrator or his designee that a qualifying lot has been acquired.
a. Facilities Maintenance (FM) shall be given primary responsibility for
determining whether a particular lot serves a county purpose.
b. If FM passes on lot, the County Administrator or his designee shall seek
input from other departments for a County use. In the event multiple
departments propose a use of the property, the County Administrator or
his designee shall determine the best use to propose to the BOCC.
c. The County Administrator or his designee shall notify the BOCC at the
next BOCC meeting of staff's intended use of the property. The BOCC
retains the final authority to approve that use or reject it and direct further
disposition.
d. If a County use is approved by the BOCC, the department head of the
department assigned to use the property shall-
i. notify the Risk Administrator so that appropriate insurance
coverages can be obtained; and
ii. apply for any permits or regulatory changes needed to use that lot
for the department's desired purpose.
e. If no County department asserts a proposed use, proceed to step 3.
3. Property Owners Association /Home Owners Association purchase & use.
If a subject lot falls within area covered by a not for profit Property or Home
Owners Association (POA /HOA) which is eligible to receive County property
under F.S. 125.38, the County Attorney or his designee shall write to local
POA/HOA to inquire if it has interest in purchasing lot and its proposed use(s).
This letter shall contain input from planning on permitted uses and language
making clear that there shall be no residential principal structures built upon lot.
a. If POA/HOA replies with a proposal to purchase lot(s) for an intended use,
i. County Attorney's office places item on BOCC agenda seeking
BOCC direction on conveyance for proposed use. Planning
provides report on whether intended use is permitted or would
require change in regulations.
ii. If BOCC approves sale at proposed price,
1. Planning processes change in regulations, Future Land Use
Map, or Land Use District based upon POA /HOA's
application and payment of applicable fees;
2. County Attorney prepares conveyance documents with deed
restriction consistent with purposes of density reduction. .
3. Conveyance to POA /HOA.
4. Proceeds from sale shall be deposited in the County fund
established to purchase such lots to help pay for future
acquisitions.
iii. If BOCC rejects sale at POA /HOA's proposed price, it may direct
County Attorney to make a counter offer to POA /HOA.
1. If County's counteroffer is accepted, complete sale as set
forth in (3)(a)(ii);
2. if County's counter offer is rejected, proceed to step 4.
b. If POA/HOA replies that it has no interest or fails to respond in 90 days,
proceed to step 4.
c. If a subject lot is located in area where no POA/HOA that is eligible to
receive County property under F.S. 125.38, County Attorney shall skip
step 3 and proceed immediately to step 4.
4. Adjacent Property Owner purchase & use. County Attorney or his designee
shall write letter to all adjacent property owners, seeking owners' interest in
purchasing the lot. Letter shall contain input from planning on permitted uses.
The letter shall indicate that there shall be no residential principal structures built
upon the deed restricted lot unless the purchaser of said lot tears down the
existing house on the adjacent lot and rebuilds one house on the newly
combined lot or substantially improves the existing lot so that it overlaps onto the
newly combined lot.
a. If at least one adjacent property owner replies indicating that owner is
interested in purchasing the lot, County Attorney
i. prepares item for BOCC approval to institute the process set forth
in F.S. 125.35 for sale of County property with condition of a
density reduction deed restriction; then
ii. advertises the proposed sale in a newspaper pursuant to the
statutory requirements and notifies all adjacent owners of
opportunity to purchase the vacant lot through the competitive
bidding process.
b. Once bidding on the vacant lot closes, the County Attorney shall prepare
an item for BOCC's next meeting with a proposed sale to the highest
bidder.
c. If the BOCC approves the sale, the County Attorney shall the conveyance
documents including a density reduction deed restriction and complete the
sale.
d. Proceeds from sale shall be deposited in the County fund established to
purchase such lots to help pay for future acquisitions.
e. If proposed sales price is not acceptable to BOCC, BOCC may
i. Reject all bids as too low pursuant to F.S. 125.35, and solicit new
bids, or
ii. Direct staff to proceed to step 5.
5. Residual Lots. If no County Department, POA /HOA, or adjacent property owner
expresses an interest in lot exists, the lot shall be referred to the Monroe County
Land Authority to determine if the lot is compatible for use as a conservation lot
or an affordable housing lot.
a. If either use is deemed appropriate, the MCLA shall place an item on the
Board's agenda to approve or reject that use.
b. If neither use is deemed appropriate, proceed to step 6.
6. Periodic Review. Property remains in County ownership.
a. Lots are maintained as appropriate.
b. MCLA staff shall include these properties in the review of county owned
properties for affordable housing purposes as set forth in F.S. 125.379.
c. If, upon completion of this periodic review, no subject parcels are
repurposed by the BOCC for affordable housing, the process starts over