Agenda

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County Attorney's Report 7. 1.

BCC Regular Meeting

Discussion

Meeting Date:	02/20/2020
Issue: Daily Convo, LLC, Economic Development Ad Valorem Tax Exemption
From:	ALISON ROGERS
Department:	County Attorney's Office
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Daily Convo, LLC, Economic Development Ad Valorem Tax Exemption.

That the Board take the following action:

A. Interpret its Daily Convo, LLC, EDATE ordinance to require the expiration of the exemption upon the conveyance of the property and authorize the County Attorney to send a letter to the new owner alerting them of the ordinance terms and schedule a public hearing for April 2, 2020 at 5:34 p.m., to consider an ordinance repealing the exemption;

OR

B. Interpret its Daily Convo, LLC, EDATE ordinance to allow the exemption to remain in effect regardless of the transfer of ownership and authorize the County Attorney to send letters to the Property Appraiser and the new owner indicating the exemption shall remain in place.

BACKGROUND:

On November 24, 2015, Daily Convo, LLC, submitted an application as a new business by virtue of being located in an enterprise zone and requested that the Board enact an Ordinance granting an EDATE for all improvements to real property and tangible personal property located at 101 East Romana Street. By Board action on December 10, 2015, the Board of County Commissioners adopted Emergency Ordinance 2015-53 establishing an EDATE for Daily Convo, LLC, providing a 100% exemption for a ten-year term.

As Daily Convo, LLC applied for the EDATE before the anticipated completion of the improvements for which the exemption was sought, Daily Convo, LLC, requested an amendment to the previously enacted Emergency Ordinance to provide for the ten-year term to commence upon the first year the improvements were completed and placed on the ad valorem tax roll. The Board voted to approve this request in Ordinance 2017-09.

Pursuant to Special Warranty Deed dated November 25, 2019, Daily Convo, LLC, conveyed the subject property to three limited liability corporations: Pensacola Southtowne Owner, LLC, Beaumont Pensacola Southtowne, LLC and Vermont Pensacola Southtowne, LLC Each LLC, retains a fractional interest in the property. All three LLCs, appear to come under the umbrella of BH Equities, LLC, that has a contact address in Des Moines, Iowa.

The EDATE ordinances can be read to provide relief solely to Daily Convo LLC, meaning the tax exemption would not convey to new ownership. The Board has the authority to determine its intent with regards to the exemption. Note that the sunset of Florida's Enterprise Zone Act means that should the original exemption expire, no new exemption could be granted by the Board.

BUDGETARY IMPACT:

N/A

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

N/A

IMPLEMENTATION/COORDINATION:

N/A

Attachments
Ord. 2017-09
Ord. 2015-33
Special Warranty Deed