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Item I3 L3 County �� � .�� �y,4 ' �, "tr, BOARD OF COUNTY COMMISSIONERS Mayor Michelle Coldiron,District 2 �1 nff `_ll Mayor Pro Tem David Rice,District 4 -Ile Florida.Keys Craig Cates,District 1 Eddie Martinez,District 3 w � Holly Merrill Raschein,District 5 County Commission Meeting October 203, 2021 Agenda Item Number: I.3 Agenda Item Summary #9334 BULK ITEM: No DEPARTMENT: County Land Acquisition and Land Management TIME APPROXIMATE: STAFF CONTACT: Christine Hurley (305) 295-5180 9:25 AM AGENDA ITEM WORDING: Approval to resume the Less than Fee program utilizing existing Program Resolution 438-2018, starting with the waiting list of applicants when the program was placed on hold at the April 15, 2020 Board Meeting in response to COVID-19. ITEM BACKGROUND: In June 2018, the BOCC adopted Resolution 175-2018, which established the County's Less Than Fee program. In December 2018, the BOCC adopted Resolution 438-2018 which clarified the prioritization and eligibility of parcels participating in the program. Under the program, the County purchases the development rights from the owners of qualifying vacant parcels. "Less Than Fee" is a term of art in real property law denoting ownership of less than all property rights for a particular parcel. The program is designed to reduce the residential density in neighborhoods in certain residential land use districts (IS, IS-M, and URM) by purchasing and retiring the development rights from vacant lots that are adjacent to lots containing houses. This willing seller program is one of several strategies adopted by the Board to address its potential future liability for property rights claims due to the exhaustion of state issued rate of growth ordinance (ROGO) allocations that is scheduled to occur in 2026 under current law. The program has the benefit of retiring development rights while leaving the property in private ownership. The property owner retains the ability to build limited accessory structures that support the principal structure, e.g. parking or a pool. The County is relieved from the financial burden of maintaining such vacant lots, which it would have to bear were the County to purchase such lots outright. To be eligible to participate in the program, subject parcels must be: a) Located within an Improved Subdivision (IS), Improved Subdivision—Masonry (IS-M), or Urban Residential-Mobile Home (URM) Land Use District; b) A lot with at least one (1) buildable unit or Transfer of Development Right(TDR). • Priority shall be given to otherwise eligible lots located on Big Pine Key and No Name Key regardless of the lot's Tier designation. • Priority shall also be given to properties with an agreed upon purchase price of less than $100,000; Packet Pg. 1994 L3 c) Held in common ownership with an immediately adjacent parcel that contains a residential structure as its principal structure; d) Eligible to receive a building permit for construction of a new residential dwelling unit under the current Monroe County Comprehensive Plan and Land Development Code, and not prohibited by deed restriction or other instrument or legal impairment from receiving such a building permit; e) Free of all code compliance liens and not the subject of a current code compliance case or other enforcement proceeding by the County or other regulatory agency; however the property owner should be notified that the County does not waive its right to prosecute existing but undiscovered code violations at the time of the transaction; and f) Owned by a seller who is willing to convey the building rights to the County under the terms and conditions of the program. The Less Than Fee program began acquiring (retiring) development rights in December of 2018. To date, the Less than Fee program has been able to Retire 74 development rights utilizing $3.692 million (average purchase price of$50,000 per development right). In April 2019, the BOCC placed the program on hold due to Covid-19 revenue projections. Program activity had been steadily increasing and it is likely that the rate of these acquisitions would have continued to increase were it not for the pandemic. Response to the Less Than Fee Program by the public has been favorable and there has been high interest evidenced by the number of applications that have been submitted. There are approximately 160 people on the Less Than Fee waitlist. If each of those parcels are eligible, and based on an average purchase price of$50,000 per development right,it would take $8 million to acquire them all. If approved to resume, staff will begin working with applicants that were put on hold, and will begin accepting new applications. The County Commission budgeted $1,212,715 for Acquisition programs in Fund 316. PREVIOUS RELEVANT BOCC ACTION: On June 20, 2018, the BOCC adopted Resolution 175-2018 which created the Less than Fee Acquisition Program for the purpose for retiring residential development rights. On December 19, 2018 the BOCC adopted Resolution 438-2018 which clarified the prioritization and eligibility of parcels participating in the program. CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval Packet Pg. 1995 L3 DOCUMENTATION: Resolution 175-2018 Resolution 438-2018 amending 175-2018 FINANCIAL IMPACT: Effective Date: Effective upon approval Expiration Date: Total Dollar Value of Contract: Total Cost to County: Current Year Portion: Budgeted: A total of$1,212,715 has been budgeted for all Acquisition Programs: Less than Fee and Density Reduction. Source of Funds: Fund 316 CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: If yes, amount: Grant: County Match: Insurance Required: NA Additional Details: NA N/A REVIEWED BY: Cynthia Guerra Completed 10/05/2021 8:14 AM Mark Rosch Completed 10/05/2021 8:22 AM Christine Hurley Completed 10/05/2021 8:44 AM Bob Shillinger Completed 10/05/2021 2:09 PM Purchasing Completed 10/05/2021 2:13 PM Budget and Finance Completed 10/05/2021 2:17 PM Risk Management Completed 10/05/2021 2:20 PM Liz Yongue Completed 10/05/2021 2:39 PM Board of County Commissioners Pending 10/20/2021 9:00 AM Packet Pg. 1996 1.3.a RESOLUTION NO. 175 - 2018 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, TO CREATE A LESS THAN FEE ACQUSITION PROGRAM FOR THE PURPOSE OF RETIRING RESIDENTIAL DEVELOPMENT RIGHTS ON PROPERTY LOCATED IN THE (IS), (IS-M), AND (URM) LAND USE DISTRICTS FROM WILLING SELLERS. WHEREAS, the Board of County Commissioners of Monroe County, Florida (hereinafter `BOCC") wishes to purchase residential development rights from willing sellers that own a vacant parcel that is located immediately adjacent to their homes and which are 0. located in the Improved Subdivision (IS), Improved Subdivision - Masonry (IS-M), Urban - Residential- Mobile Home (URM) land use districts; and WHEREAS, the goal is to reduce ongoing development pressures on hurricane evacuation clearance times and demands on public facilities and infrastructure while protecting property owner rights and avoiding unnecessary costs associated with defending property rights claims; and 0 WHEREAS, this program is consistent with Policies 102.4.3 and 102.4.6 of the 2030 Monroe County Comprehensive Plan; and WHEREAS, the BOCC finds that a less than fee acquisition program is an appropriate co alternative to more costly fee simple acquisitions; and T- N LO WHEREAS, the BOCC and the Monroe County Land Authority (hereinafter "MCLA") entered into an interlocal agreement on October 19, 2016 regarding the acquisition of infill property for density reduction, among other government purposes; and 0 WHEREAS, F.S. 125.355 authorizes the BOCC to exempt any purchase of an interest in realty valued at under $100,000 from the requirement of obtaining an appraisal; and WHEREAS, the BOCC agrees to use dollars raised through the local option infrastructure sales surtax as authorized in F.S. 212.055(2)(d), which the County has budgeted in Fund 316 to cover costs associated with this program; and WHEREAS, the BOCC requests the MCLA work with the County Attorney's Office to begin this program upon approval, subject to periodic reports made to the BOCC to evaluate the effectiveness of this program. Page 1 of 3 Packet Pg. 1997 1.3.a NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLOIRDA: Section 1. The BOCC authorizes the MCLA to represent the BOCC in these matters. Section 2. MCLA will identify, with the assistance of the County Attorney, properties that will be eligible for participation in this program under the parameters set forth below. Section 3. To be eligible to participate in the program, subject parcels must be: a) Located within an Improved Subdivision (IS), Improved 0. Subdivision — Masonry (IS-M), or Urban Residential-Mobile Home (URM) Land Use District; b) Consist of a lot with at least one (1) buildable unit or Transfer of Development Right (TDR). Priority shall be given to Tier III properties. c) Be held in common ownership with an immediately adjacent y parcel that contains a residential structure as its principal structure; d) Eligible to receive a building permit for construction of a new residential dwelling unit under the current Monroe County Comprehensive Plan and Land Development Code, and not prohibited by deed restriction or other instrument or legal co co CD impairment from receiving such a building permit; LO e) Free of all code compliance liens and not the subject of a current code compliance case or other enforcement proceeding by the County or other regulatory agency; and y f) Owned by a seller who is willing to convey the building rights to the County under the terms and conditions set forth herein. e Section 4. The MCLA and County Attorney are authorized to make offers to purchase the right to build a separate residential unit on the subject property at the most recent "Market Land Value" indicated on the Monroe County Property Appraiser's website in exchange for the retirement of that development right and execution of a title restriction, unity of title instrument, and other documents prepared by the County Attorney and/or MCLA legal counsel which are necessary to implement this program subject to the limitation that no purchase shall be made for more than $99,999.00 without an appraisal, in a form that acceptable to the County, which is paid for by the property owner. Page 2 of 3 Packet Pg. 1998 1.3.a Section 5. Each agreement is subject to final approval by the Board, which retains the discretion to reject each transaction and/or otherwise modify this program. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting held on the 20th day of June, 2018. Mayor David Rice Yes Mayor Pro Tem Sylvia Murphy Yes Commissioner Heather Carruthers Yes 0 c�c Commissioner Danny Kolhage YesCL Commissioner George Neugent Yes W ° BOARD OF COUNTY COMMISSIONERS .° OF MONROE COUNTY, FLORIDA A VIN MADOK, CLERK 0 y �J BY: W By: Mayor David Rice Deputy Clerk i €mot CD c) . an = rn w 79' P M: ' CO�� r-&-NGER,iFt 0w. Page 3 of 3 Packet Pg. 1999 L3.b RESOLUTION NO. 438 - 2018 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, AMENDING RESOLUTION 175-2018, WHICH CREATED THE LESS THAN FEE ACQUISITION PROGRAM FOR THE PURPOSE OF RETIRING RESIDENTIAL DEVELOPMENT RIGHTS ON PROPERTY LOCATED IN THE (IS), (IS-M),AND (URM) LAND USE DISTRICTS FROM WILLING SELLERS; TO CLARIFY THE PRIORITY CRITERIA WITH RESPECT a, TO LOTS ON BIG PINE KEY AND NO NAME KEY; TO PRIORITIZE THE PURCHASE OF DEVELOPMENT RIGHTS OF LOTS WITH AN AGREED UPON PURCHASE PRICE OF ' LESS THAN $100,000; TO AUTHORIZE A BASIS FOR MAKING A PURCHASE OFFER FOR OTHERWISE ELIGIBLE LOTS THAT HAVE BEEN COMBINED INTO ONE PARCEL NUMBER FOR TAX PURPOSES; AND TO CLARIFY THAT THE COUNTY DOES NOT WAIVE ITS RIGHT TO PROSECUTE CODE VIOLATIONS IN EXISTENCE BUT ru UNDISCOVERED AT THE TIME OF THE TRANSACTION; AND PROVIDING FOR AN EFFECTIVE DATE. W WHEREAS, the Board of County Commissioners of Monroe County, Florida co co CD (hereinafter `BOCC") adopted Resolution 175-2018 on June 20, 2018, which created the Less LO Than Fee Program that is designed to purchase residential development rights from willing sellers that own a vacant parcel that is located immediately adjacent to their homes and which are located in the Improved Subdivision (IS), Improved Subdivision - Masonry (IS-M), Urban Residential-Mobile Home (URM) land use districts; and M co WHEREAS, the goal of the Less Than Fee Program is to reduce ongoing development T- pressures on hurricane evacuation clearance times and demands on public facilities and co infrastructure while protecting property owner rights and avoiding unnecessary costs associated with defending property rights claims; and WHEREAS,the Less Than Fee Program is consistent with Policies 102.4.3 and 102.4.6 of the 2030 Monroe County Comprehensive Plan; and WHEREAS, in adopting Resolution 175-2018, the BOCC found that a less than fee acquisition program was an appropriate alternative to costlier fee simple acquisitions; and WHEREAS, the BOCC and the Monroe County Land Authority(hereinafter"MCLA") entered into an interlocal agreement on October 19, 2016 regarding the acquisition of infill property for density reduction, among other government purposes; and Page 1 of 4 Packet Pg. 2000 L3.b WHEREAS, F.S. 125.355 authorizes the BOCC to exempt any purchase of an interest in realty valued at under $100,000 from the requirement of obtaining an appraisal; and WHEREAS, the BOCC agreed to use dollars raised through the local option infrastructure sales surtax as authorized in F.S. 212.055(2)(d), which the County has budgeted in Fund 316 to cover costs associated with this program; and WHEREAS, the MCLA and County staff have been working together to develop and c implement the Less Than Fee Program; and WHEREAS, due to additional growth limits on Big Pine Key and No Name Key, which are imposed as a result of the Incidental Take Permit, both islands are closer to build out than the rest of the County; and y WHEREAS, County staff has determined that a significant number of otherwise eligible parcels have been combined by the Property Appraiser, at the request of the owner, into a single parcel for tax purposes, thus rendering it impossible to use the methodology for making an offer c as set forth in Resolution 175-2018; and 0. WHEREAS, County staff has received inquiries from property owners whose properties have been valued by the Property Appraiser as having a market land value in excess of$100,000 but who are willing to accept less than $100,000 for the purchase of the development rights to TCO - expedite the process; and cv LO WHEREAS,MCLA and County staff have recommended minor adjustments to the Less Than Fee Program as set forth in Resolution 175-2018, to wit: a) to prioritize any otherwise eligible lot on Big Pine Key and No Name Key, regardless CO of tier designation; CD CO b) to permit the use of the market land values on comparable vacant lots as the basis for making a purchase offer to purchase and retire the development rights from lots that have been combined with another lot for tax purposes only; c) to prioritize transactions where the purchase price for the development rights is less than $100,000; and d) to clarify that despite the purchase of development rights, the County does not waive its right to prosecute code violations on the subject parcels in existence but undiscovered at the time of the transaction; Page 2 of 4 Packet Pg. 2001 L3.b' NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY,FLORIDA: Section 1. The recitals set forth above are incorporated herein as findings of fact by the Board. Section 2. Section 3. of Resolution 175-2018 is hereby amended to read as follows: To be eligible to participate in the program, subject parcels must be: a) Located within an Improved Subdivision (IS), Improved Subdivision - Masonry (IS-M), or Urban Residential-Mobile Home (URM) Land Use District; b) Consist of a lot with at least one (1) buildable unit or Transfer of Development Right (TDR). Priority shall be given to Tier III E properties and to otherwise eligible lots located on Big Pine Key y and No Name Key regardless of the lot's Tier designation. Priority shall also be given to properties with an agreed upon purchase price of less than $100,000; > c) Be held in common ownership with an immediately adjacent parcel that contains a residential structure as its principal structure; co �-- T_ d) Eligible to receive a building permit for construction of a newCD residential dwelling unit under the current Monroe County LO Comprehensive Plan and Land Development Code, and not prohibited by deed restriction or other instrument or legal impairment from receiving such a building permit; cu e) Free of all code compliance liens and not the subject of a current co co CD code compliance case or other enforcement proceeding by the co County or other regulatory agency; however, the property owner should be notified that the County does not waive its right to prosecute existing but undiscovered code violations at the time of - the transaction; and f) Owned by a seller who is willing to convey the building rights to the County under the terms and conditions set forth herein. Section 3. Section 4. of Resolution 175-2018 is hereby amended to read as follows: The MCLA and County Attorney are authorized to make offers to purchase the right to build a separate residential unit on the subject property at the most recent"Market Land Value"indicated on the Monroe County Property Appraiser's website in exchange for the retirement of that development right and execution of a title restriction, unity of title instrument, and other Page 3 of 4 Packet Pg. 2002 documents prepared by the County Attorney and/or MCLA legal counsel which are necessary to implement this program subject to the limitation that no purchase shall be made for more than $99,999.00 without an appraisal, in a form that is acceptable to the County, which is paid for by the property owner. In the event an otherwise eligible vacant parcel of property has been combined for tax purposes only the Property Appraiser into a single parcel with another lot with a residential principal structure on it, MCLA staff is authorized to use the market land value from a comparable vacant lot in the vicinity as the basis for the offer to purchase the remaining,unused development rights. Section 4. This resolution shall take effect upon adoption and the additional criteria may be applied to applications already submitted for consideration. Section 5. Except as amended above, Resolution 175-2018 shall remain in full force and effect. For purposes of clarity, the new language amending Resolution 175-2018 appears as underlined. 0 PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting held on the 191h day of December, 2018. 3 =� o 2 co Mayor Sylvia Murphy Yes : Mayor Pro Tem Danny Kolhage Yes `J V,.. � No Commissioner Heather Carruthers Yes � � T- Commissioner Michelle Coldiron Yes �_.... Commissioner David Rice Yes co CD BOARD OF COUNTY COMMISSIONERS OF MONRO COUNTY, FLORIDA co c, ATTEST': KEVIN MADOK, CLERK 2 BY: — By: qa—a'�� Mayor Sylvia Murphy a Deputy Clerk MONROE NTy ATTO Ey APP vE � . P BERT.8,SHWNC." 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