Item T4 T.4
G BOARD OF COUNTY COMMISSIONERS
County of Monroe Mayor Sylvia Murphy,District 5
The Florida Keys � � �l'U � Mayor Pro Tern Danny Kolhage,District 1
�pw° Michelle Coldiron,District 2
Heather Carruthers,District 3
David Rice,District 4
County Commission Meeting
August 21, 2019
Agenda Item Number: T.4
Agenda Item Summary #5944
BULK ITEM: No DEPARTMENT: County Attorney's Office
TIME APPROXIMATE: STAFF CONTACT: Bob Shillinger(305) 292-3470
NO
AGENDA ITEM WORDING: Update and discussion on the County's land acquisition efforts to
reduce the anticipated shared potential liability with the State when the supply of ROGO allocations
is exhausted.
ITEM BACKGROUND: Monroe County and the State of Florida could face a significant number
of property rights suits due to the large number of undeveloped privately owned parcels in
unincorporated Monroe County's portion of the Florida Keys Area of Critical State Concern, which
far exceeds the number of new residential building permits allocations (commonly known as
"ROGOS") authorized by the State. In anticipation of this reality, the Board authorized staff to
commence a land acquisition program to supplement the long standing efforts of the Monroe County
Land authority and those of the State of Florida.
Since 2016 Monroe County, working with State partners, has assisted DEP in accelerating the
State's acquisition of conservation lands and has expanded the scope of local government acquisition
to include non-conservation lands for density reduction. In that year, the BOCC set aside six million
dollars from the capital projects budget (304 fund) revenue for the purchase of non-conservation
properties for density reduction and the retirement of building rights. This appropriation was made
to demonstrate to the State the County's commitment to addressing the anticipated future property
rights claims in an effort to convince the State to reinvigorate its own acquisition efforts. Through
these efforts, the State focuses on acquiring properties within the Florida Forever Boundary, the
Land Authority focuses on acquiring conservation lots outside of the Florida Forever Boundary, and
the County focuses on acquiring con-conservation lots primarily in in the infill (Tier III) areas.
COUNTY'S EFFORTS
To accomplish the County's mission, the Board directed staff to implement two strategies for buying
down the potential future liability —purchasing lots outright for density reduction purposes (Density
Reduction Lots) and purchasing and retiring the development rights off of properties from owners
who have homes on the adjacent property (Less than Fee purchases or LTF). Following the storm,
this funding source was also used to acquire five parcels for affordable housing purposes when other
funding sources were not readily available.
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Of the initial appropriation of$6 million, slightly more than $1.9 million dollars remains. Through
July 26, 2019, the Board has approved expenditures of:
Density Reduction Lots $1,405,130 = 19 Development rights retired+ 4 more under contract
Less than Fee Program $2,086,721 =23 Development rights retired+ 14 more under contract
Affordable housing $ 569,987 = 7 ROGO rights acquired
Total $4,061,838 =49 rights retired/acquired+ 18 more under contract
Note, all transactions approved by the Board have not closed yet. In the event that a transaction fails
to close, the money encumbered to close that purchase will be released for use on future transactions.
The initial effort to purchase Density Reduction Lots outright have slowed in recent months due to
market conditions. Moreover, the subsequent launch of the Less than Fee program has gained
momentum and has proven to be a greater value for the County in terms of a lower average purchase
price per development right, no maintenance costs, and retention of the LTF lot on the tax rolls
instead of a removal from the rolls when the lot is purchased outright.
Moreover, at least some of the Density Reduction Lots will be offered for sale soon with a deed
restriction to prohibit their development with new housing units. The likely market for these lots
will be local property owners' associations looking for common area space and adjacent home
owners looking to expand their own lots to incorporate larger yards, expand their homes, and build
accessory structures. The sale of these lots will eliminate the County's maintenance costs. The lots
will then return to the tax rolls while still meeting the program's goals of reducing the County's
overall density and potential for property rights suits associated with build out. The revenue derived
from the sale of these deed restricted lots can help replenish the funds necessary to retire more
development rights.
Staff has received 232 applications for the Less Than Fee program of which 61 have been rejected, a
rejection rate of roughly 26%. There are approximately 135 applications still pending review; those
properties are valued at nearly $7,900,000. Given the experience to date, it is reasonable to project
that about 100 of those 135 applicants will be approved for purchase. Based upon the average values
associated with the 135 lots, it is projected that it will take approximately $5,846,000 dollars to
complete those acquisitions. On the current pace that LTF transactions are closing, the @ $1.9
million remaining dollars in the acquisition fund will last to the middle of FY20. For this reason,
staff has requested that the Board appropriate an additional $2,000,000 for FY20.
Related Efforts
The County's efforts are but a portion of the entire effort. During that same time frame, the Land
Authority has approved expenditures of $6.1 million to acquire conservation land retiring 143
development rights. Similarly, since the passage of the Florida Keys Stewardship Bill in 2016, DEP
has spent $2.8 million, retiring 66 development rights in the Florida Forever acquisition area. All
told, the joint cooperative effort has retired 252 development rights and has another 18 rights under
contract, thereby reducing the liability of potentially undevelopable lots under the ASCS regulations.
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In addition to the acquisition efforts outlined above, the parties have worked cooperatively to assist
with the overall goal of density reduction.
• The County has worked with DEP to identify properties that fit the Florida Forever
mission, as well as eliminate potential takings liability. The County adopted a
memorandum of understanding with the DEP outlining the requirements for the County to
act as an agent to DEP for land acquisition. Since the MOU was first executed, the County
has reviewed and provided data on over 500 parcels for potential acquisition by DEP.
• The County worked to pass the Florida Keys Stewardship Act in 2016 to authorize the
acquisition of land for the purpose of retiring development rights and actively pursues a
legislative appropriation into Florida Forever for Keys land buying.
• The County worked to pass state legislation in 2018 to facilitate DEP land buying in the
Florida Keys by eliminating some programmatic hurdles.
PREVIOUS RELEVANT BOCC ACTION: 2016, appropriated $6 million in 304 funds to fund
the program. On 10/19/16, 11/2/16, 8/16/17, and 6/20/18, approved agreements with the Land
Authority and the State to implement the cooperative effort. On 6/18/18, adopted Resolution 175-
2018 to establish the Less than Fee Program. On 12/19/18, adopted Resolution 438-2018 to modify
the Less than Fee program.
CONTRACT/AGREEMENT CHANGES:
n/a
STAFF RECOMMENDATION: Staff recommends continued financial support for the land
acquisition program.
DOCUMENTATION:
FINANCIAL IMPACT:
Effective Date:
Expiration Date:
Total Dollar Value of Contract:
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:
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Grant:
County Match:
Insurance Required:
Additional Details:
The discussion will have no immediate impact.
REVIEWED BY:
Bob Shillinger Completed 08/13/2019 3:50 PM
Paunece Scull Skipped 08/13/2019 3:49 PM
Cynthia Guerra Skipped 08/13/2019 3:49 PM
Christine Hurley Skipped 08/13/2019 3:50 PM
Bob Shillinger Completed 08/13/2019 5:05 PM
Budget and Finance Skipped 08/13/2019 5:05 PM
Maria Slavik Skipped 08/13/2019 5:04 PM
Kathy Peters Completed 08/13/2019 5:07 PM
Board of County Commissioners Pending 08/21/2019 9:00 AM
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