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Item F12 F12 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE �� i Mayor Holly Merrill Raschein,District 5 The Florida Keys Mayor Pro Tern James K.Scholl,District 3 Craig Cates,District 1 Michelle Lincoln,District 2 ' David Rice,District 4 Board of County Commissioners Meeting January 31, 2024 Agenda Item Number: F12 2023-1980 BULK ITEM: Yes DEPARTMENT: County Land Acquisition And Land Management TIME APPROXIMATE: STAFF CONTACT: Christine Hurley AGENDA ITEM WORDING: Approval of a resolution of the Board of County Commissioners of Monroe County, Florida, combining and replacing Resolution 175-2018, Resolution 438-2018, Resolution 063-2020, and Resolution 128-2022, which created and amended the Less Than Fee Acquisition Program for the purpose of retiring residential development rights on property locate in the IS, IS-M and URM land use districts from willing sellers; to clarify program administration and to include additional prioritization guidance; and providing for an effective date. ITEM BACKGROUND: In June 2018, the BOCC adopted Resolution 175-2018, which established the County's Less Than Fee 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 requires owners to unify the developed and vacant lot(s) and convey the building rights from vacant lots to the County as a condition of any purchase by the County. 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. 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 non-habitable accessory structures that support the principal structure, such as 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. 1738 Since the program was created, over 350 applications have been received and the County has acquired Less Than Fee Development Rights from 88 lots. 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. Resolution 175-2018 established the initial eligibility requirements for participation in the program which specified that parcels must be: • located in IS, IS-M or URM land use districts; • have at least one Transfer of Development Right(TDR); • held in common ownership with an immediately adjacent parcel that contains a residential structure as its principal structure; • eligible to receive a building permit; and, • free of code liens and not subject to code enforcement. Resolution 438-2018 was adopted by the Board on December 19, 2018. Resolution 438-2018 made minor adjustments to the program to: • prioritize any eligible lots on Big Pine Key and No Name Key regardless of Tier designation; • prioritize transactions where the purchase price for the development rights is less than $100,000; • clarify that the County does not waive its right to prosecute code violations on parcels participating in the program; and, • permit the use of market land values on comparable vacant lots as the basis for making a purchase offer from lots that have already been combined with another lot for tax purposes. Resolution 063-2020 was adopted by the Board on February 19, 2020. Resolution 063-2020: • prioritized vacant parcels with no accessory uses or structures. This change allowed staff to prioritize purchases where the adjacent vacant parcel contains no accessory uses or structures. This change enabled the County to target parcels that may seek a permit because the vacant lot owned is completely free of improvements and it would be more likely to require the County to defend a property rights claim, should it seek a building permit vs. a lot that is joined with the lot housing the primary residence and the residence straddles both lots. Resolution 182-2022 combined and replaced Resolutions 175-2018, 438-2018, and 063-2020 so that the program requirements are fully included in one legislative item. This resolution also provided for additional clarifications as follows: • The Monroe County Board of County Commissioners and the Monroe County Comprehensive Plan Land Authority entered into an Interlocal Agreement(ILA) on July 21, 2021, and amended the ILA on September 15, 2021. Per the ILA, the Monroe County Land Authority has assumed administration of the Less Than Fee Program from the County Attorney's office. 1739 • Public response to the program has been positive and robust, so it is necessary to prioritize Less than Fee applications for processing. As noted above,parcels on Big Pine Key and No Name Key have been approved Board priorities. This Resolution includes prior Board approved priorities and provides further guidance: Priority One—Otherwise eligible vacant lots with no accessory structures or uses on Big Pine Key and No Name Key, regardless of Tier designation, in the order of lowest MLV to highest MLV with an agreed upon purchase price of less than $100,000. Priority Two— Otherwise eligible vacant lots with accessory structures or uses on Big Pine Key and No Name Key, regardless of Tier designation, in the order of lowest MLV to the highest MLV with an agreed upon purchase price of less than $100,000. Priority Three— Otherwise eligible vacant lots with no accessory structures or uses outside of Big Pine Key and No Name Key that are designated Tier III, in the order of lowest MLV to highest MLV, with an agreed upon purchase price of less than $100,000. All otherwise eligible vacant lots will be processed after those described in the above priorities in the order of highest Tier designation to lowest Tier designation, with no accessory structures or uses and in the order of lowest MLV to highest MLV, with an agreed upon purchase price of less than $100,000. The proposed resolution on your agenda today combines and replaces Resolutions 175-2018, 438-2018, 063-2020, and 128-2022. This resolution removes the obligation that the property owner obtain the appraisal for any purchase over $100,000. The proposed resolution authorizes County funds to pay for the appraisal. PREVIOUS RELEVANT BOCC ACTION: On June 20, 2018, the BOCC adopted Resolution 175-2018 (Agenda Item P.4.). On December 18, 2018, the BOCC adopted Resolution 438-2018 amending Resolution 175-2018 (Agenda Item P.4.). On February 19, 2020, the BOCC adopted Resolution 063-2020 amending Resolution as previously amended by Resolution 427-2018 (Agenda Item 0.3.) 1740 On July 21, 2021, the Board approved the Interlocal Agreement between the Monroe County Board of County Commissioners and the Monroe County Comprehensive Plan Land Authority(Agenda Item K.12.). On September 15, 2021, the Board approved the First Amendment to the Interlocal Agreement between the Monroe County Board of County Commissioners and the Monroe County Comprehensive Plan Land Authority(Agenda Item G.1.). On April 20, 2022, the BOCC adopted Resolution 128-2022 amending Resolution as previously amended by Resolution 063-2020 and Resolution 427-2018 (Agenda Item G.1) INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: STAFF RECOMMENDATION: Approval DOCUMENTATION: Proposed BOCC Resolution(revised).pdf FINANCIAL IMPACT: N/A 1741 RESOLUTION NO. —2024 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, COMBINING AND REPLACING RESOLUTION 175-2018, RESOLUTION 438-2018, RESOLUTION 063-2020, AND RESOLUTION 128-2022, WHICH CREATED AND AMENDED THE 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; TO CLARIFY PROGRAM ADMINISTRATION AND TO INCLUDE ADDITIONAL PRIORITIZATION GUIDANCE; AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the Board of County Commissioners of Monroe County, Florida hereinafter "BOCC") adopted Resolution 175-2018 on June 20, 2018, which created the Less 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 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 WHEREAS, this 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 July 21, 2021, and amended the ILA on September 15, Page 1 of 6 1742 2021 which includes the acquisition of infill property for density reduction, among other government purposes; and 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 MCLA and County staff have worked together to develop and 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 WHEREAS, the BOCC adopted Resolution 438-2018 which made adjustments to the program to: prioritize any eligible lots on Big Pine Key and No Name Key regardless of Tier designation;prioritize transactions where the purchase price for the development rights is less than $100,000; clarify that the County does not waive its right to prosecute code violations on parcels participating in the program; and allow the use of market land values on comparable vacant lots as the basis for making a purchase offer from lots that have already been combined with another lot for tax purposes; and WHEREAS, the BOCC adopted Resolution 063-2020 to prioritize purchases where the adjacent vacant parcel contains no accessory uses or structures therefore targeting parcels that may be more likely to require the County to defend a property rights claim; and WHEREAS, County staff have recommended additional minor adjustments to the Less Than Fee program to clarify that the Monroe County Land Authority has assumed administration Page 2 of 6 1743 of the Less Than Fee Program from the County Attorney, and to refine the prioritization of Less Than Fee applications; and WHEREAS, if the purchase price is over $100,000 the County is in a better position, than the typical Less Than Fee applicant, to obtain an appraisal in a form that is acceptable to the County: 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. This Resolution combines and replaces Resolution 175-2018,Resolution 438- 2017,Resolution 063-2020, and Resolution 128-2022. Although the adoption of this resolution rescinds those prior resolutions, all actions taken pursuant to those resolutions are ratified and remain valid. Section 3. The BOCC authorizes the MCLA to represent the BOCC in these matters. Section 4. MCLA will identify properties that will be eligible for participation in this program under the parameters set forth below. Section 5. 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 as follows; Page 3 of 6 1744 Priority One— Otherwise eligible vacant lots with no accessory structures or uses on Big Pine Key and No Name Key,regardless of Tier designation, in the order of lowest MLV to highest MLV with an agreed upon purchase price of less than $100,000. Priority Two— Otherwise eligible vacant lots with accessory structures or uses on Big Pine Key and No Name Key,regardless of Tier designation, in the order of lowest MLV to the highest MLV with an agreed upon purchase price of less than $100,000. Priority Three—Otherwise eligible vacant lots with no accessory structures or uses outside of Big Pine Key and No Name Key that are designated Tier III, in the order of lowest MLV to highest MLV, with an agreed upon purchase price of less than $100,000. All otherwise eligible vacant lots will be processed after those described in the above priorities in the order of highest Tier designation to lowest Tier designation, with no accessory structures or uses and in the order of lowest MLV to highest MLV, 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; 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 Page 4 of 6 1745 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 6. The MCLA is 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 without an appraisal, in a form that is acceptable to the County and is paid out of County funds. In the event an otherwise eligible vacant parcel of property has been combined for tax purposes only by 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 7. This resolution shall take effect upon adoption and the additional criteria may be applied to applications already submitted for consideration. Section 8. Each agreement is subject to final approval by the Board, which retains the discretion to reject each transaction and/or otherwise modify this program. Page 5 of 6 1746 PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting held on the 3 1" day of January, 2024. Mayor Holly Merrill Raschein, District 5 Mayor Pro Tem Jim Scholl, District 3 Commissioner Craig Cates, District 1 Commissioner Michelle Lincoln, District 2 Commissioner David Rice, District 4 Attest: KEVIN MADOK, CLERK BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA By: By: As Deputy Clerk Mayor Page 6 of 6 1747