Item M1 M.1
County f � .�� ",�, 1 BOARD OF COUNTY COMMISSIONERS
Mayor Craig Cates,District 1
Mayor Pro Tem Holly Merrill Raschein,District 5
The Florida Keys
Michelle Lincoln,District 2
James K.Scholl,District 3
David Rice,District 4
County Commission Meeting
December 7, 2022
Agenda Item Number: M.1
Agenda Item Summary #11501
BULK ITEM: No DEPARTMENT: BOCC District 1
TIME APPROXIMATE: STAFF CONTACT: Amanda Leggett(305) 292-3430
no
AGENDA ITEM WORDING: Discussion and direction about whether the Board would support
the use of Tourist Development Taxes to fund affordable housing projects for employees of tourist
related businesses if that is determined to be a permissible use of funds as a"public facility".
ITEM BACKGROUND: Tourism is the County's leading industry in terms of employment and
economic impact. Tourist-related businesses, including the lodging industry, often cannot find a
sufficient number of employees due to the shortage of workforce housing, as the Florida Keys have
been suffering from a shortage of affordable housing for its workforce for decades. The County
collects a 4-cent Tourist Development Tax ("TDT" also known as the "bed tax")for every dollar
spent on hotel rooms and other lodging. While the County collects an additional 1-cent"tourist
impact tax" under F.S. 125.0108, the funds collected under that statute and allocated for affordable
housing have yet to sufficiently address the affordable housing needs of the tourist industry
employees.
The use of the TDT revenues are limited to those specified in statute. One of the uses authorized is
the authority to spend a portion of those funds to acquire, develop, and finance"public facilities" if
those facilities"are needed to increase tourist-related business activities in the county" . . . "and are
recommended by the county tourist development council." F.S. 125.0104(5)(a)6. That statute goes
on to condition the use of TDTs for public facilities if the five criteria are met:
a. In the county fiscal year immediately preceding the fiscal year in which the tax revenues were
initially used for such purposes, at least$10 million in tourist development tax revenue was
received; [Monroe collects far in excess of$10 million per year]
b. The county governing board approves the use for the proposed public facilities by a vote of at
least two-thirds of its membership; [would require a 4/5'vote of the Board at a future date]
c. No more than 70 percent of the cost of the proposed public facilities will be paid for with
tourist development tax revenues, and sources of funding for the remaining cost are identified
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M.1
and confirmed by the county governing board; [match decision would be made at a future
date]
d. At least 40 percent of all tourist development tax revenues collected in the county are spent to
promote and advertise tourism as provided by this subsection; [Monroe spends at least 50% as
required by the statute levying the first and second pennies]
and
e. An independent professional analysis,performed at the expense of the county tourist
development council, demonstrates the positive impact of the infrastructure project on tourist-
related businesses in the county. [This study would need to be completed].
This provision of the statute is relatively new and a determination on whether these funds could be
used for"affordable/workforce house" has not yet been made by any court or the Attorney General.
Brevard County recently amended its Tourist Development Plan and County Code to authorize the
use of TDTs for public facilities as part of its capital project budget. As part of that discussion, the
Brevard BOCC expressed support for using TDTs to fund affordable housing projects for the
tourism industry employees in that County under the"public facilities" category of their Tourist
Development Plan. However, the Representative for that area who sponsored the change advised
that he did not think that affordable housing fell within the intent of his amendment.
This preliminary discussion will focus on whether the Board is interested in using some portion of
TDTs to fund affordable housing for workers in the tourism industry, and, if so, what steps would
need to be taken to do so. Any decisions would require, at a minimum, future action by the BOCC
that would be based, in part, upon recommendations of the Tourist Development Council. Currently
the County has approved a capital application process whereby applicants, including the County,
seeks funding for various capital projects as specified in F.S. 125.0104(5).
PREVIOUS RELEVANT BOCC ACTION: n/a
CONTRACT/AGREEMENT CHANGES:
n/a
STAFF RECOMMENDATION:
DOCUMENTATION:
Brevard County Agenda Item using TDT funds for public facilities including affordable housing
Florida Today Article on Brevard County BOCC on TDT use 11.17.12
FINANCIAL IMPACT:
Effective Date: n/a
Expiration Date:
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M.1
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:
Grant:
County Match:
Insurance Required:
Additional Details:
discussion has no fiscal impact
REVIEWED BY:
Craig Cates Skipped 11/21/2022 3:58 PM
Bob Shillinger Completed 11/21/2022 3:58 PM
Lindsey Ballard Completed 11/21/2022 4:07 PM
Board of County Commissioners Pending 12/07/2022 9:00 AM
Packet Pg. 1488
2725 Judge ay Fran Jamieson
lrpli ,x Agenda Report W
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revard
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Public Hearing
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H.2. 11/15/2022
Subject:
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Proposed Ordinance Amending Chapter 102, Article 111, Section 102-119 of the Brevard County Code,
Pertaining to the Tourist Development Plan.
Fiscal Impact: U)
None. 0
Dept/Office:
District 5 0
Requested Action: S
It is requested that the Board of County Commissioners hold a public hearing and adopt an ordinance
amending Chapter 102, Article III, Section 102-119 of the Brevard County Code of Ordinances, pertaining to U)
the tourist development plan.
Summary Explanation and Background: .2
State law allows tourist development tax revenues to be used for a number of purposes and projects outlined
in section 125.0104, Florida Statutes, also known as the Local Option Tourist Development Act(the "Act"). In 42
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2018, the Florida Legislature amended the Act to authorize the use of tourist development tax revenues for
certain public facilities if the public facilities are needed to increase tourist-related business activities in the 4-
county, and if other statutory requirements set forth in section 125.0104(5)(a)6. of the Act are met. The Board a
of County Commissioners has expressed interest in using unallocated tourist development tax revenues to 0
support Brevard County's tourism and hospitality workers through workforce housing initiatives. The Board
could reasonably conclude that a future public facilities project to provide or support workforce housing is E
needed to increase tourist-related business activities in the county.
Presently, Brevard County's adopted tourist development plan does not include the authority to use tourist a
development tax revenues for public facilities pursuant to section 125.0104(5)(a)6., Florida Statutes. The
proposed amendment would authorize this use within Brevard County Code Section 102-119(3)(c), which
allocates up to 35 percent of the first two pennies of the county's tourist development tax revenues. The
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proposed amendment will also correct existing scrivener's errors and facilitate access to individuals with U
disabilities by spelling out abbreviations and acronyms, such as changing"§" to "section."
Pursuant to section 125.0104(4)(d), Florida Statutes, and Brevard County Code Section 102-119(3)(f), adoption M
of an ordinance amending the tourist development plan requires the affirmative vote of a majority plus one
additional member of the Board. E
Clerk to the Board Instructions:
Brevard County Board of County Commissioners Page 1 of 2 Printed on 11/8/2022
11 Packet Pg. 1489
M.1.a
H.2. 11/15/2022
Upon approval by the Board, execution by the Chair, and attestation by the Clerk,file the ordinance with the
Department of State as required by law within the 10-day deadline.
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Brevard County Board of County Commissioners Page 2 of 2 Printed on 11/8/2022
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M.1.a
ORDINANCE NO. 2022-
AN ORDINANCE OF THE BREVARD COUNTY BOARD OF COUNTY COMMISSIONERS
AMENDING CHAPTER 102, ARTICLE III, SECTION 119, "BUDGET PLAN", OF THE
BREVARD COUNTY CODE OF ORDINANCES; AMENDING BREVARD COUNTY'S
PLAN FOR TOURIST DEVELOPMENT TO AUTHORIZE THE USE OF TOURIST
DEVELOPMENT TAX REVENUES TO ACQUIRE, CONSTRUCT, EXTEND, ENLARGE,
REMODEL, REPAIR, IMPROVE, MAINTAIN, OPERATE, OR FINANCE CERTAIN
PUBLIC FACILITIES; AMENDING THE SECTION TO CORRECT SCRIVENER'S ERRORS
AND ENHANCE ACCESSIBILITY; PROVIDING FOR SEVERABILITY; PROVIDING FOR
AN AREA ENCOMPASSED; PROVIDING AN EFFECTIVE DATE; AND PROVIDING FOR
INCLUSION IN THE CODE OF ORDINANCES OF BREVARD COUNTY, FLORIDA.
RECITALS
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WHEREAS, section 125.0104, Florida Statutes, requires the tourist development tax to
be levied and imposed pursuant to an ordinance containing the Brevard County Tourist
Development Plan, enacted by the Board of County Commissioners; and
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WHEREAS, Section 125.0104(5)(a)6, Florida Statutes, authorizes the use of tourist
development tax revenues to acquire, construct, extend, enlarge, remodel, repair, improve,
maintain, operate, or finance certain public facilities within Brevard County, if the public
facilities are necessary to increase tourist-related business activities in Brevard County and if
other statutory prerequisites are met; and
WHEREAS, the current Brevard County Tourist Development Plan does not contemplate 0
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the use of tourist development tax revenues for public facilities as authorized by Section
125.0104(5)(a)(6), Florida Statutes; and
WHEREAS, the Board of County Commissioners desires to update the Tourist
Development Plan to include the use of tourist development tax revenues for such public
facilities as authorized by section 125.0104(5)(a)(6), Florida Statutes; and
WHEREAS, the Board of County Commissioners further desires to amend the Code of
Ordinances to correct scriveners errors and to facilitate access to individuals with disabilities
by spelling out abbreviations and acronyms such as "§" to section and "F.S." to Florida Statutes.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF c)
BREVARD COUNTY, FLORIDA, as follows:
Underline indicates additions.
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M.1.a
SECTION 1. RECITALS. The foregoing recitals are true and correct and are incorporated by
reference into this Ordinance.
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SECTION 2. Chapter 102, Article III, Section 102-119, Brevard County Code of Ordinances, is
hereby amended as follows:
Sec. 102-119. Budget plan.
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The board of county commissioners hereby adopts the following plan of the advisory
tourist development council for tourist development:
(1) Under the provisions of, and pursuant to, the Act, a two-percent tax is levied and
imposed throughout the county beginning on the first day of the month following
elector approval of this article and its tourist development tax by referendum as
provided by this article.
(2) The anticipated net revenue from the tourist development tax to be derived by the
county for the 24-month period beginning on the date of levy, December 1, 1986 to
December 1, 1988, is estimated to be approximately$2,200,000.00.The county
budget, adopted annually at a public hearing, includes the anticipated net tourist
development tax revenue.
(3) The proposed uses of the tax revenue, generated pursuant to F.S. § 125.0104 rw..ti
section 125.0104(3)(c), Florida Statutes, in order of priority, by special use category,
shall be allocated as follows:
a. At least 25 percent of the net revenue would be budgeted and disbursed to
promote and advertise county tourism in the state, nationally and
internationally; however, if tax revenues are expended for an activity, service, U)
venue, or event, the activity, service, venue, or event must have as one of its
main purposes the attraction of tourists as evidenced by the promotion of the
activity, service,venue, or event to tourists.
b. Thirty percent of the net revenue would be budgeted and disbursed to finance
beach park facilities or beach improvement, maintenance, renourishment and
erosion control.
C. Up to 35 percent of the net revenue in accordance with F.S. x 1 25.0194(5)(a) +
and sections 125.0104(5)(a)(1), (a)(2), (a)(6), and (5)(b), Florida Statutes,
would be budgeted and disbursed generally to:
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ll acquire, construct, extend, enlarge, remodel, repair, improve, maintain, c)
operate or promote one or more publicly owned and operated convention
centers, sports stadiums, sports arenas, coliseums, or auditoriums within the
county; and further including museums, zoological parks, aquariums,fishing
piers or nature centers which are publicly owned and operated or owned and
operated by not-far-profit organizations and open to the public within the
county; and to further include auditoriums that are publicly owned but are
2 Packet Pg. 1492
M.1.a
operated by organizations that are exempt from federal taxation pursuant to
26 United States Code section 501(c)(3) and open to the public within the
county; or
(2) acquire, construct, extend, enlarge, remodel, repair, improve, maintain,
operate, or finance public facilities within the county if the public facilities are
needed to increase tourist-related business activities in the county, pursuant
to and subject to the requirements of section 125.0104(5)(a)6, Florida
Statutes.
d. Up to ten percent of the net revenue be budgeted and disbursed to promote
county tourism by funding tourist-oriented cultural and special events such as
visual and performing arts including theater, concerts, recitals, opera, dance, art
exhibitions, festivals and other tourist-related activities.
e. There shall be an annual amount established by the board of county
commissioners for administrative and overhead expenses of the board and
council which shall be expended in order to properly coordinate and implement
the tourist development plan.
f. Pursuant to;F.S. § 125.0104(4K4)section 125.0104(4)(d), Florida Statutes,the
above-stated plan may not be substantially amended except by ordinance
enacted by an affirmative vote of a majority plus one additional member of the
board. The council shall, from time to time, make recommendations to the
board for the effective operation of the special projects or for uses of the tax 2
revenue.
g. The setting forth of the anticipated net revenues to be derived from levying the 0
tax during the first 24 months following levy, as required by the Act, shall in no U'
way be interpreted as indicating an intent by the board, through this article, to
in any way limit the plan or the tax to said period and the plan and tax shall
continue, once duly enacted, until amended or repealed, according to this article
and the Act or until it automatically expires pursuant to f
1215.031-0-4R4section 125.0104(71 Florida Statutes, if applicable.
(4) Under the provisions of, and pursuant to;F.S. §§ "5.0104(3)( ) section
125.0104(3)(d), Florida Statutes and section 102-117(b), Brevard County Code of
Ordinances, an additional one-percent tourist tax is hereby levied and imposed
throughout the county as provided by this article.The proposed uses of tax revenue
from this additional one percent tourist development tax, in order of priority, by
special use category, shall be allocated as follows: U
a. Sixty-five percent of the net revenue would be utilized as provided in 4"
1 25.0194(5)(a)(5) section 125.0104(5)(a)(5), Florida Statutes, to finance beach
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park facilities or beach, estuary, or lagoon improvement, maintenance,
renourishment, estoration and erosion control, including shoreline protection,
enhancement, cleanup or restoration of inland lakes and rivers to which there is
3 Packet Pg. 1493
M.1.a
public access as those uses relate to the physical preservation of the beach,
shoreline, estuary, lagoon, or river. However, any funds identified by the county
as the local matching source for beach renourishment, restoration, or erosion
control projects included in the long-range budget plan for the state's beach
management plan, pursuant to F.S. § ,s,.09 section 161.091, Florida Statutes, 0
or funds contractually obligated by the county in the financial plan for federally
authorized shore protection project may not be used or loaned for any other U)
purpose. Beach improvement and maintenance projects are to receive full
funding as the top priority. As the second priority, lagoon-and estuary-related
projects shall only receive up to $1,000,000.00 per year starting in fiscal year
2019, and any such project with a total expected cost that exceeds $50,000.00
must obtain matching funds from one or more source(s) at a minimum ratio of
3/4:1, 75 percent match prior to receiving tourist development tax revenue.The
County may apply for the lagoon grants. Subject to the limitations provided for
in this subsection,the remaining amount of the net revenue shall be used for
acceptable purposes identified in F.S. § !29.9!94(&)(a Section
125.0104(5)(a)(5), Florida Statutes.
b. Twenty-five percent of the net revenue would be used in accordance with
125 n1 n4(5)(b)section 125.0104(5)(b), Florida Statutes to acquire, construct, E
extend, enlarge, remodel, repair, improve, maintain, operate or promote a
zoological park.These revenues are specifically designated to finance the design
and construction of capital projects at the Brevard Zoo.
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c. Ten percent of the net revenue would be budgeted and disbursed generally, in
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accordance with;.c § 125 0104(5)(a)4section 125.0104(5)(a)(4), Florida
Statutes,to fund convention bureaus,tourist bureaus, tourist information U)
centers, and news bureaus as county agencies or by contract with the chambers
of commerce or similar associations in the county, which may include any
indirect administrative costs for services performed by the county on behalf of
the promotion agency.
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d. There shall be an annual amount established by the board for administrative and
overhead expenses of the board and council which tourist development plan for
the additional one-percent tourist development tax shall be expended in order
to properly coordinate and implement the additional one-percent tourist
development tax.
r c §§ 125 9 94(g)(I
(5) Under the provisions of, and pursuant to, . ._. ,,,, ___.___ .,_„_)section 0
125.0104(3)(1), Florida Statutes and section 102-117(c), Brevard County Code of U
Ordinances, an additional one-percent tourist tax is hereby levied and imposed
throughout the county as provided by this article. The proposed uses of the net
revenue from this additional one-percent tourist development tax, in order of ..
priority, by special use category, shall be allocated as follows:
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M.1.a
a. At least$350,000.00 of the net revenue per year and up to the entire remaining
amount of the net revenue, minus the planned renovations, improvements, and
maintenance budgeted in the annual plan for capital maintenance and
renovation, shall be budgeted and disbursed to promote and advertise tourism
in the state and nationally and internationally. In addition, if tax revenues are
expended for an activity, service, venue, or event,the activity, service, venue, or
event shall have as one of its main purposes the attraction of tourists as E
evidenced by the promotion of the activity, service,venue, or event to tourists.
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b. Up to $500,000.00 of the net revenue per year shall be allocated for capital
renovations, improvements, and maintenance of the Space Coast Stadium
Complex or other professional sports facility, in accordance with an annual plan
for the capital maintenance and renovation approved by the board of county
commissioners. In order to receive such funds, the Space Coast Stadium
Complex or other professional sports facility shall have as one of its main
purposes the attraction of tourists as evidenced by the promotion of the venue
to tourists.
(6) Under the provisions of, and pursuant to,F.S. §§ 125.0- ^"r"rR'section
125.0104(3)(n), Florida Statutes and section 102-117(d), Brevard County Code of
Ordinances, an additional one-percent tourist tax is hereby levied and imposed
throughout the county as provided by this article. The proposed uses of the tax
revenue from this additional one-percent tourist development tax, in order of
priority, by special use category, shall be allocated as follows: 2
a. One hundred percent of the net revenue per year would be budgeted and
disbursed to promote and advertise tourism in the state and nationally and 0
internationally; however if the tax revenues are expended for an activity, U'
service,venue, or event, the activity, service, venue, or event shall have as one
of its main purposes the attraction of tourists as evidenced by the promotion of
the activity, service, venue, or event to tourists.
b. There shall be an annual amount established by the board for administrative and
overhead expenses of the board and council which tourist development plan for
the additional one-percent tourist development tax shall be expended in order
to properly coordinate and implement the additional one-percent tourist
development tax.
(7) Such anticipated revenue shall be administered by the board of county
commissioners through established county government administration, county 0
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agencies, existing or hereafter created, or by contract with chambers of commerce or
similar nonprofit associations within the county in a manner prescribed by
subsequent ordinance or resolution.
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(8) The clerk to the board of county commissioners is hereby directed to establish a
county tourist development trust fund. All collections received by the tax collector
from the tax imposed and levied by this article shall be placed in such trust fund.
SECTION 3. Conflicting Provisions. In the case of a direct conflict between any provision of this
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ordinance and a portion or provision of any other appropriate federal, state or county law,
rule, code or regulation, the more restrictive shall apply.
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SECTION 4. Severability. If any section, subsection, clause, phrase, word or provision of this
ordinance is for any reason held invalid or unconstitutional by any court of competent _
jurisdiction, such invalid unconstitutional portion shall be deemed a separate, distinct and
independent provision, and such holding shall not affect the validity of the remaining portions
of this ordinance, provided the remaining portions effectuate the purpose and intent of this
ordinance.
SECTION 5. Area Encompassed. The area encompassed by the tourist development tax is
unchanged, including both the incorporated and unincorporated areas of Brevard County,
Florida.
SECTION 6. Effective Date. A certified copy of this ordinance shall be filed with the Office of
the Secretary of State, State of Florida within ten (10) days of enactment. Unless specified
otherwise, this ordinance shall take effect immediately upon adoption and filing as provided by
law.
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SECTION 7. Inclusion in the Code. It is the intention of the Board of County Commissioners that
the provisions of this ordinance shall become and be made a part of the Brevard County Code
of Ordinances; and that the sections of this ordinance may be renumbered or re-lettered and U)
that the word "ordinance" may be changed to "section," "article," or such other appropriate
word or phrase in order to accomplish such intentions.
DONE, ORDERED AND ADOPTED, in regular session, this day of 2022.
Attest: BOARD OF COUNTY COMMISSIONERS
OF BREVARD COUNTY, FLORIDA
BY: BY:
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Rachel Sadoff, Clerk Kristine Zonka, Chair U
(as approved by the Board on )
(SEAL)
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11/21/22, 12:22 PM Brevard hotel tax can be used for more things under ordinance change
florida today
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Drevard County &%commissioners 011%
adding f lexibility to use of t"ourist" tax
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and l oco Florida Today DaveBerman P P Y U)
PUlJhsh ed 11:3 4 a inn,. II 11 INov, 16, 2022 J UII'datad 5:15 a,rn Ii:..:."r Ii4ov, 117, 2022
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Brevard County commissioners have unanimously approved changes to how the county's 5
tourist development tax can be used, potentially expanding the opportunity to use revenue In
from the tax for everything from affordable housing initiatives to infrastructure projects to
help the Indian River Lagoon. a
The tax is levied on the rental of hotel and motel rooms, as well as on other short-term
rentals. U)
Commissioners Tuesday night voted 4-0 in favor of a proposal by Chair Kristine Zonka to
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allow the tax to be used to "acquire, construct, extend, enlarge, remodel, repair, improve, c0
maintain, operate or finance public facilities within the county, if the public facilities are
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needed to increase tourist-related business activities in the county."
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Charter amendments ' :Voters OK changes to charter, allowing for school board U
recalls, affordable housing fund
Palm y's plan: Palm Bay City Council approves $5M for affordable housing programs 0
022- 3 budget year allocations approved: Brevard commissioners approve io grants
for projects to help restore Indian River Lagoon
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That use already is allowed by state legislation spearheaded by Florida Rep. Randy Fine, R-
Palm Bay. But, until now, Brevard County had not added that provision to its local ordinance
for use of the tax.
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"This would just add that tool to the toolbox" for use of the tax locally, Brevard County
Attorney Morris Richardson told commissioners.
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11/21/22, 12:22 PM Brevard hotel tax can be used for more things under ordinance change
Fine, though, contends that affordable housing isn't something that could be covered by the
tourist tax. He said using revenue from the tourist development tax to help fund housing
"would be a grossly illegal use" of the tax.
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Charter change supports housing
Zonka has been an advocate for affordable housing. also known as workforce housing. One of
her appointees to the Brevard County Charter Review Commission, Jordin Chandler,
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introduced a proposed change to the county's charter to address that issue.
Under the "workforce and supportive housing" charter change — which Brevard voters
approved in the Nov. 8 election, with 53% support — an affordable housing trust fund was
created that would be funded through the sale of surplus lands or by an ordinance passed by
the County Commission.
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In her agenda report to other county commissioners related to the changes in the tourist tax a—
rules approved Tuesday, Zonka wrote:
"The Board of County Commissioners has expressed interest in using unallocated tourist
development tax revenues to support Brevard County's tourism and hospitality workers
through workforce housing initiatives. The board could reasonably conclude that a future
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public facilities project to provide or support workforce housing is needed to increase tourist• u
related business activities in the county."
Under state statute, these conditions must be met before Brevard County could use the tax 0
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for such a purpose or for other purposes that the ordinance amendment allows:
The project is recommended by the Brevard County Tourist Development Council, a
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nine-member advisory board appointed by county commissioners.
The county must collect at least $10 million in tourist development tax revenue in the
previous budget year. Brevard County collected a record $23.31 million from the tax in
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the budget year that ended Sept. 30.
The County Commission must approve the use for the proposed public facilities by a vote "
of at least two-thirds of its membership. In Brevard, that would be four of the five
commissioners.
No more than 70% of the cost of the proposed public facilities will be paid for with tourist
development tax revenues, and sources of funding for the remaining cost are identified
and confirmed by the County Commission.
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11/21/22, 12:22 PM Brevard hotel tax can be used for more things under ordinance change
At least 40% of all tourist development tax revenues collected in the county are spent to
promote and advertise tourism.
An independent professional analysis, performed at the expense of the county Tourist
Development Council, demonstrates the positive impact of the infrastructure project on
tourist-related businesses in the county.
Chandler said that, since he first proposed his affordable housing charter amendment in U)
May, "I knew what challenges we were faced with, and what it would take to shift people's
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minds and hearts, and change the stigma associated with affordable housing."
"I think the results spoke volumes, but I am cognizant that there is still much more work to ul
be done," Chandler said, in discussing voter approval of the charter amendment. "I am
grateful to every individual who cast a vote on this amendment, whether for or against this
ballot initiative, because it shows that you were engaged in the process, and that is all that I
could have asked for. I intend to see this process through until the very end, because I want
to ensure that we are leaving no stone unturned to ensure that this trust fund truly works for
the residents of Brevard."
'A little more flexibility'
Zonka said the tourist development plan update to the county code that commissioners 0
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approved Tuesday does not specifically allocate money to any new project, but does "give us , 0
little more flexibility in the future."
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"We worked hard to come up with a plan that would keep us within the law and allow us to al
least expand the possibility of use" of the tourist development tax "for other opportunities,"
Zonka said. "This doesn't categorize anything. This doesn't necessarily commit anything."
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But, Zonka added, it does allow the Tourist Development Council to make recommendations
that will come back to the County Commission, "and we can make a little bit modifications to
the plan to address some other issues that impact our tourism industry." 0
Fine, however, was not happy that his state legislation now is being tied to the potential for
use of the tourist development tax for affordable housing.
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"I don't believe any interpretation of the bill would allow for that," Fine said Wednesday.
"That would be a grossly illegal use of the tourist development tax. The reason I ran the bill
was that the County Commission was wasting money."
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11/21/22, 12:22 PM Brevard hotel tax can be used for more things under ordinance change
Fine said he pushed the bill in Tallahassee after Hurricane Irma had hit the state in 2017, ane
the county had released raw sewage into the Indian River Lagoon. Around that time, Fine
said, county commissioners allocated tourist tax money toward such things as a basketball
arena, a recreational-vehicle park and lighthouse museum.
"That was insane," Fine said. "If your sewer system doesn't work, that is your fundamental
job." U)
The Florida Legislature in 2o18 approved an amendment to the act that details how a county U
can spend its tourist development tax revenue, so that counties can use the tax revenue for
public facilities, if they are needed to increase tourist-related business activities. But Brevard "
County's tourist development plan until now did not include such public facilities as an
authorized use of the tax collected locally.
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Fine had envisioned the levy as a way to provide an additional funding source for
infrastructure projects to help clean up the Indian River Lagoon. He crafted the legislation to "
allow the tourist development tax money to be spent for infrastructure projects that are
directly tied to tourism.
Fine said an example of such a project would be the construction of an offramp leading to the
planned aquarium at Port Canaveral.
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"Housing would not meet that definition by any interpretation," Fine said. U
He added that the County Commission's logic could extend to a whole host of projects, such
as the construction of a new police station, because the facility provides security for tourists cS
visiting the area, or for a fire station.
County Commissioner Rita Pritchett — who also chairs the Tourist Development Council —
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on Wednesday said, while nothing is final yet, she would support using some of the tourist
development tax revenue for a workforce housing initiative.
Pritchett said the County Commission's action on Tuesday "opens up options for what our 0
CU
community wants," adding that she has confidence in Richardson to advise commissioners
on what is legal for the use of the tourist tax revenue.
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How tax is allocated
The largest share of Brevard's tourist development tax — 47% — goes toward a
comprehensive plan to market the Space Coast as a destination for tourists.
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11/21/22, 12:22 PM Brevard hotel tax can be used for more things under ordinance change
The rest of the money is distributed for various purposes: 25% for beach improvement, 14%
for tourism-related capital facilities, 5% for the Brevard Zoo in Viera, 4% for cultural events,
3% for the USSSA Space Coast Complex in Viera and 2% for visitor information centers.
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Any money the county allocates under its more flexible guidelines would come out of the 14
for tourism-related capital projects.
Before the change approved Tuesday, that fund could be used only to "acquire, construct,
extend, enlarge, remodel, repair, improve, maintain, operate or promote" convention U
centers, sports stadiums, sports arenas, coliseums or auditoriums within the county; as well
as museums, zoological parks, aquariums, fishing piers or nature centers which are publicly
owned and operated or owned and operated by not-for-profit organizations and open to the
public within the county.
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Dave Berman is business editor at FLORIDA TODAY. Contact Berman at
dberman@floridatoday.com. Twitter: @bydaveberman.
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It-
Ralph Chapoco is government and politics watchdog reporter. You can reach Chapoco at17
It-
rchapoco@floridatoday.com and follow him on Twitter @rchapoco.
U)
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Use of Bed Taxes for
Public Facilities / Tourism
Industry Workforce Housing
December 712022 BOCC Meeting
Item M-1 — Mayor Cates
F. S . 125 . 0104 ( 5 ) ( a ) 6 . — Public Facilities
Bed Taxes can be used to :
To acquire, construct, extend, enlarge, remodel, repair, improve,
maintain, operate, or finance public facilities within the boundaries
of the county . . . ji
• the public „facilities are needed to increase tourist-related business
activities in the county
and
• are recommended by the TDC.
Bed tax revenues may be used for
• any related land acquisition, land improvement, design and
engineering costs, and all other professional and related
costs required to bring the public facilities into service.
• As used in this subparagraph, the term "public facilities" means major
capital improvements that have a life expectancy of 5 or more years,
including, but not limited to, transportation, sanitary sewer, solid
waste, drainage, potable water, and pedestrian facilities.
Tax revenues may be used for these purposes only if the
following conditions are satisfied :
(a) at least $10 million in TDT received in prior year;
(b) BOCC approves use by 2/3 vote;
(c) At least a 30% match for cost of the public facilities be paid for with
non tourist development tax revenues ID's by BOCC;
(d) At least 40% of all TDTs collected are spent on promoting tourism;
and
(e) Independent professional analysis, paid for by TDC, demonstrates
positive impact of infrastructure project on tourist-related
businesses
8 step analysis
a sis
y
• Meets "public facility" test
• Used to increase tourist related business activities
• Recommended by TDC
• Over $10 million in TDT collections per year
• 2/3 vote of BOCC
At Least_ 30%_ match with non_ TDT_funds
• At least 40% of bed taxes spent on promotions/ads
• TDC funded study demonstrates positive impact
Next Steps
• Attorney General's Opinion?
• Follow legislative session
• TDC input on proposal and funding the required study
• Amend Code to authorize using TDT's for public facilities in general