20-2172 Amending Chapter 82, Article VI Exemption from Ad-Valorem Taxation -LEDTAORDINANCE NO. 20-2172
AN ORDINANCE OF THE CITY OF LONGWOOD, FLORIDA, AMENDING THE LONGWOOD CITY
CODE CHAPTER 82 "TAXATION," ARTICLE VI "EXEMPTION FROM AD VALOREM TAXATION" TO
UPDATE THE LONGWOOD ECONOMIC DEVELOPMENT TAX ABATEMENT (LEDTA) PROGRAM;
PROVIDING FOR AND MODIFYING DEFINITIONS; PROVIDING FOR AND MODIFYING THE
PROCESS AND CRITERIA FOR RECEIVING THE ECONOMIC DEVELOPMENT TAX ABATEMENT;
PROVIDING FOR CHANGE OF OWNERSHIP, REPORTING, EXTENSIONS, AND OTHER MATTERS
RELATED TO THE LEDTA PROGRAM; AND PROVIDING FOR CONFLICTS, CODIFICATION,
SEVERABILITY AND EFFECTIVE DATE.
WHEREAS, the City of Longwood desires to foster and maintain a local economic
development climate that results in a healthy business sector and sustains a quality of life desired
by the residents of our community; and
WHEREAS, a prosperous economic base supports self-sufficiency for maintaining quality
municipal services, maximizing economic multiplier effects, and improving the community's
overall quality of living; and
WHEREAS, the City of Longwood desires to update the Longwood Economic Development
Tax Abatement Program, which provides incentives that enable the community to advance
opportunities for quality, sustainable economic development; and
NOW, THEREFORE BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
LONGWOOD, FLORIDA, AS FOLLOWS:
SECTION 1. The Longwood City Code shall be Amended as follows (Words that are StFieken gut
are deletions; words that are underlined are additions; Articles, Sections, Subsections and
Provisions not referenced in this ordinance are not modified):
ARTICLE VI. - EXEMPTION FROM AD VALOREM TAXATION
Sec. 82-252. - Definitions.
When used in this article, the following terms shall have the following meanings, unless the
context clearly requires otherwise:
Annual report means City of Longwood LEDTA reporting form to be completed annually as
established in the LEDTA application package.
Applicant means any person, firm, partnership, or corporation who files a LEDTA application
with the city commission seeking an exemption.
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Average annual wage as established by the Metro Orlando Economic Development Commission
for #ie Gity ef Lengweed Seminole County reviewed annually for new LEDTA applications.
Benefits means the value to the City of providing the exemption, which generally includes
increased property values, increased revenues from property taxes, business license fees, and
permit fees the improvement of existing buildings and construction of new buildings, direct and
induced impacts which includes employee compensation, direct employment and indirect
employment and induced employment into other supportive business sectors and the value
added due to those increased employment numbers through business revenues and retail sales
tax.
Business means activity engaged in by any person, firm, partnership, corporation, or other
business organization or entity with the object of private or public gain, benefit, or advantage,
either direct or indirect.
City means the City of Longwood, a charter city located in Seminole County, a political
subdivision of the State of Florida.
City commission means the City of Longwood Commissioners.
City manager means the chief executive officer of the city.
Department means the Florida Department of Revenue.
Exemption means a City of Longwood economic development ad valorem tax exemption
granted pursuant to F.S. § 196.1995 and this article.
Expansion of an existing business means:
(1) A business or organization establishing ten or more new jobs to employ ten or more
full-time employees in this state, paying an average wage for such new jobs that is above
the average wage in Seminole County, Florida the area, which principally engages in any
of the following operations: Manufactures, processes, compounds, fabricates, or
produces for sale items of tangible personal property at a fixed location and which
comprises an industrial or manufacturing plant; or is a target industry business; or
(2) A business or organization establishing 25 or more new jobs to employ 25 or more full-
time employees in this state, the sales factor of which, as defined by F.S. § 220.15(5), for
the facility with respect to which it requests an economic development ad valorem tax
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exemption is less than 0.50 for each year the exemption is claimed, including but not
limited to retail restaurants, entertainment venues, financial & insurance services,
wholesale trade informational industries, professional, scientific or technical services,
management services, administration & support services; provided that such business
increases operations on a site located within the same county, municipality, or both
colocated with a commercial or industrial operation owned by the same business or
organization under common control with the same business or organization, resulting
in a net increase in employment of not less than ten percent or an increase in productive
output or sales of not less than ten percent; or
Implementing ordinance means an ordinance enacted pursuant to section 82-255 for the
purpose of granting an exemption.
Improvements means physical changes made to raw land, and structures placed on or under
the land surface.
New business means:
(1) A business or organization establishing ten or more new jobs to employ ten or more
full-time employees in this state, paying an average wage for such new jobs that is 15%
or more above the average wage in Seminole County, Floridathe aFea, which principally
engages in any one or more of the following operations: Manufactures, processes,
compounds, fabricates, or produces for sale items of tangible personal property at a
fixed location and which comprises an industrial or manufacturing plant; or
(2) Is a target industry business as defined in F.S. § 288.106(2)(q); or
(3) A business or organization establishing 25 or more new full-time jobs or full-time
equivalent (FTE) to employ 25 or more full-time employees in this state, the sales factor
of which, as defined by F.S. § 220.15(5), for the facility with respect to which it requests
an economic development ad valorem tax exemption is less than 0.50 for each year the
exemption is claimed; or
(4) An office space in this state owned and used by a business or organization newly
domiciled in this state; provided such office space houses 50 or more full-time
employees of such business or organization; provided that such business or organization
office first begins operation on a site clearly separate from any other commercial or
industrial operation owned by the same business or organization; or
(5) Any business or organization located in an enterprise zone or brownfield area that first
begins operation on a site clearly separate from any other commercial or industrial
operation owned by the same business or organization; or
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(6) A business or organization that is situated on property annexed into a municipality and
that, at the time of the annexation, is receiving an economic development ad valorem
tax exemption from Seminole County (F.S. § 196.012(15)).
(7) A mixed -use or single -use project that includes a minimum of 50,000 square feet of
retail restaurants, hotel, or entertainment space and creates 25 or more full-time or
full-time equivalent (FTE) jobs, and the sales factor of which, as defined by F.S.
220.15(5) for the facility is less than 0.50 for each year the exemption is claimed.
Property appraiser means the Seminole County Property Appraiser.
Real property means all land, structures, firmly attached and integrated equipment (such as
light fixtures or a well pump), anything growing on the land, and all "interests" in the property
which may be the right to future ownership, right to occupy for a period of time (tenancy or life
estate).
Sales factor means the sales factor as defined in F.S. § 220.15(5), specifically, the sales factor is
a fraction; the numerator of which is the total sales of taxpayer in Florida during the taxable
year or period; and the denominator of which is the total sales of the taxpayer everywhere
during the taxable year or period.
Tangible personal property means as defined by the Florida Department of Revenue, all goods,
chattel, and other articles of value (excluding some vehicular items) capable of manual
possession and whose chief value is intrinsic to the article itself. Inventory and households
goods are excluded. Examples usually include portable machinery and equipment, office
furniture, tools, vehicles, and supplies held by a business or organization.
Sec. 82-253. - Legislative findings.
It is hereby ascertained, determined and declared that:
(a) Article VII, Section 3, of the Constitution of the State of Florida and F.S. § 196.1995,
empower the City of Longwood to grant ad valorem economic development tax
exemptions after the electors of the city by voting on the question in a referendum,
authorized the city commission have to ability to permit such tax exemptions. In a
referendum held on November 6, 2012, the City of Longwood voters authorized the city
commission are peFfflitted to grant ad valorem tax exemptions.
(b) It is the intent of the city commission in enacting this article to provide an incentive to
new businesses or the expansion of existing businesses which makes a positive
contribution to the economy of the city in terms of new jobs and improvements to real
and personal property.
(c) The intent of the city commission is to promote the economy by creating jobs in the
city in such a way as not to disadvantage existing businesses while recognizing that
productive completion assists in economic growth and development for the entire city.
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(d) The city commission desires to provide incentives to businesses of diverse industries
having a positive impact on the economy of the city. The commission declares that the
provision of exemptions serves the public purpose of fostering economic growth and
development for the city and to benefit the city's residents and business owners' quality
of life.
(e) Based on F.S. § 196.1995, this article shall expire on November 6, 2023, ten years after
the date such authority to grant economic development ad valorem tax exemptions was
approved by the electors of the city.
Sec. 82-254. - Ad valorem tax exemption.
(a) The commission is hereby authorized to grant exemptions in accordance with the terms of
F.S. § 196.1995 and this article. Exemptions may be granted or refused at the sole discretion
of the city commission.
(b) The exemption shall not accrue to improvements to real property made by or for the use
of a new business or the expansion of an existing business or tangible personal property
acquired to facilitate a new business or the expansion of an existing business unless such
improvements are made or such tangible personal property is acquired on or after the
effective date of an implementing ordinance for a specific business, as provided in section
82-255.
(c) Any exemption granted may apply up to 100 percent of the assessed value of all
improvements to real property made by or for the use of a new business and of all tangible
personal property of such new business, or up to (100 percent of the assessed value of all
added improvements to real property made to a facility for the expansion of an existing
business and of the new increase in all tangible personal property acquired to facilitate such
expansion of an existing business, provided that the improvements to real property are
made or the tangible personal property is added or increased on or after the effective date
of an implementing ordinance for a specific business, as provided in section 82-255.
(d) Property acquired to replace existing property shall not be considered to facilitate the
expansion of an existing business.
(e) The exemption may be granted for a period up to ten years from the date the commission
enacts an implementing ordinance to a specific business.
(f) No exemption shall be granted for the land upon which a new business or the expansion of
an existing business is to be located.
(g) The exemption applies only to taxes levied by the City of Longwood. The exemption does
not apply to taxes levied by Seminole County, the school district, the water management
district, taxes levied for payment or taxes levied as authorized by the electors pursuant to
Section 9 and Section 12, Article VII of the State Constitution of Florida.
(h) Each exemption shall be the subject to each of the following conditions:
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(1) Each business granted an exemption shall maintain the new business or the expansion
of an existing business as defined in section 82-253 and this article throughout the entire
period of the exemption.
(2) Each business granted an exemption shall be required to meet with and submit an
annual report and employee roster to the community development rpryirnpr director or
designee evidencing satisfaction of the foregoing condition. The annual report and
employee roster must be submitted on or before January 15 each year the exemption
is in effect.
(3) Each business granted an exemption shall furnish to the community development
i;ppoiees-director or their designee, and will be distributed to the commission, such
information and reports as the commission deems reasonable for the purpose of
determining continued performance and execution of conditions stated in the
implementing ordinance and the representations made in the Longwood Economic
Development Tax Abatement Program (LEDTA) application and annual reporting.
Sec. 82-255. - Application packages.
(a) Any eligible person, firm, partnership, or corporation which desires an exemption must file
with the community development services director or their designee a written application in
the form prescribed by the LEDTA application package.
(b) The LEDTA application package process shall request the city commission adopt by normal
and required procedures an implementing ordinance granting the applicant tax exemption.
Applications and implementing ordinance shall have by F.S. § 196.1995(8)(a)—(g) a
minimum of the following components:
(1) The name and location of the new business or the expansion of an existing business;
(2) The name of the owner or owners of the new business or the expansion of an existing
business;
(3) A description of the improvements to real property for which an exemption is
requested and the date of commencement of construction of such improvements;
(4) A description of the tangible personal property for which an exemption is requested
and the dates when such property was or is to be purchased;
(5) Proof, to the satisfaction of the commission that the applicant is a new business or an
expansion of an existing business, as defined in F.S. § 196.012(15) or (16) and in section
82-253;
(6) Provide the following information:
a. The current number of full-time/equivalent (FTE) and seasonal employees of the
expanding business; the total number of FTE and seasonal jobs to be created and
maintained by the new or expanding business, and the period (total number of
years) needed to fill all of the new jobs;
b. The expected number of employees that will reside in the city and Seminole County;
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c. The average annual wage of the new jobs, identifying the average annual salary
with executives' salaries included and with executives' salaries excluded;
d. The type of industry or business;
e. The environmental impact of the industry or business;
f. The current and anticipated volume (in dollars) of business or production, and the
percentage of total product sales;
g. Whether the new business relocation or expansion would occur without the
exemption with supporting documentation;
h. The anticipated cost of and demand for blic services;
i. The source of supplies (local or otherwise);
J. The total length (number of years) and amount (in dollars) of the LEDTA exemption
period being requested and iustification for both; and
k. The expected time schedule for job creation; and
(7) Any such other information as may be deemed necessary by the city commission.
(c) A business will be required to commence the creation of full-time jobs within the period of
the exemption and to maintain any newly filled jobs for its facility in the City of Longwood,
at a minimum, through the expiration of the exemption granted by the commission. If a
business requires additional time beyond the date of the expiration of the exemption to
satisfy all new job creations, maintenance and salary commitments identified in the LEDTA
application, it will be necessary for the business or organization and the city to enter into a
separate agreement which will obligate the business to comply fully with those
commitments.
(d)(e4 Upon submittal of the application the community development services director or their
designee shall review same, and within ten days of submission, and notify the applicant of
any facial deficiencies.
(e){#} As a condition to receiving an rebate a business will be required to enter into an
agreement with the City, in a form approved by the City Attorney, to ensure that the business
satisfies all requirements associated with the creation of jobs in the City, the fulfillment of
other representations made in applying for the rebate and the granting of the rebate by the
City Commission. A busiRessR t Will l3m egWiFed to eRteF into aR Rt with
Obligations
Sec. 82-256. - City commission consideration of city economic development tax abatement
application package.
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(a) The commission shall take action on each Longwood Economic Development Tax
Abatement (LEDTA) application; including the enactment of the implementing ordinance
should the commission decide to grant the application within 90 days of the date on which
a completed LEDTA application is filed with the department of community services director
or their designee. During the implementing ordinance process interested agencies and
parties shall have an opportunity to review and comment on the LEDTA application during
two regular city commission meetings. The City Manager may grant time extensions as
needed to appropriately address any application.
(b) The threshold for eligibility is whether the business meeting the definition of a new business
or an expansion of an existing business defined in section 82-252, and one which is not an
ineligible business or industry as set provided for in section 82-256(d).
(c) The next level to determine eligibility is the commission's consideration of the information
the applicant provided to determine whether the exemption, if granted, would result in an
economic benefit to the City of Longwood.
1) The City Commission, in making decisions and determinations under the provisions of this
Ordinance, shall further be guided by the following considerations and criteria in a
manner which provides for flexibility in accordance with the best interests of the City as
determined solely and exclusively by the City Commission:
a. Consistency of the project with the Comprehensive Plan, relevant retail studies,
and the City's goals and objectives
b. The likelihood that the project would occur absent the provision of incentives
c. The total number of net new iobs to be created by the project
d. The current and anticipated volume (in dollars) of business or production
e. The type of business or operation and whether it qualifies as a targeted industry
f. The advancement of goals to promote the redevelopment of existing sites and the
provision of retail, restaurant, and hotel space
g. The diversification of the City's economic base and the promotion of economic
sustainability
h. That the project provides a minimum $1,000,000 capital investment
i. The likely cost and demand for public services balanced against the proposed
incentive
j. If any other publicly funded economic development incentives have been
granted for the proiect, that fact and the level of such incentives
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(d) Any existing business in violation of any federal, state, or local law or regulation governing
environmental matters is not eligible for an exemption.
(e) Before any commission action is taken, the city shall deliver a copy of the completed LEDTA
application to the county property appraiser for review. The county property appraiser shall
report to the city commission the fiscal impact of granting the exemption.
(f) The county property appraiser shall include the following in a report to the city commission:
(1) The total revenue available to the city for the current fiscal year from ad valorem tax
sources or an estimate of such revenue if the actual total available revenue cannot be
determined;
(2) The amount of revenue lost to the city for the current fiscal year by virtue of
exemptions previously granted, or an estimate of such revenue if the actual revenue lost
cannot be determined;
(3) An estimate of the amount of revenue which would be lost to the city for the current
fiscal year if the exemption applied for was granted had the property for which the
exemption is requested otherwise been subject to taxation; and
(4) A determination as to whether the property for which an exemption is requested is to
be incorporated into a new business or the expansion of an existing business, or into
neither, which determination of the property appraiser shall also affix to the face of the
LEDTA application. Upon request, the state department of revenue will provide the
property appraiser such information as it may have available to assist in making this
determination.
(h) After consideration of the LEDTA application and report of the county property appraiser
on the LEDTA application the commission may choose to adopt an implementing ordinance
granting the exemption to a new business or the expansion of an existing business. If an
exemption is granted, the implementing ordinance shall include the following:
(1) The name and address of the new business or the expansion of an existing business;
(2) The name of the owner or owners of the new business or the expanding existing
business;
(3) The total amount of revenue available to the city from ad valorem tax sources for the
current fiscal year, and the amount of the revenue lost to the city for the current fiscal
year by virtue of exemptions currently in effect, and the estimated revenue loss
attributable to the exemption granted to the new business or expanding existing
business;
(4) The period of time the exemption will remain in effect and the expiration date of the
exemption; and
(5) A finding that the business meets the definition of a new business or an expansion of
an existing business, as set forth in section 82-252.
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Qi (j} No precedent shall be implied or inferred by the granting of an exemption to any new
business or expansion of an existing business. LEDTA applications for exemptions shall be
considered by the commission on an individual basis for each LEDTA application, after
consideration of the county property appraiser report on the LEDTA application and agenda
recommendations of the City of Longwood's finance department and community
development services staff recommendation.
Sec. 82-257. - Continuing performance.
(a) Change in ownership. The -.,,.-,.,ess gFanted an exemptieR shall be „d W ;RfOF A the
die+. The _business _granted a rebate shall inform the City Commission in writing within
10 days as to any changes in ownership of the business granted a rebate and it is prohibited
and unlawful to fail to do so. Moreover, the transferee business shall continue to comply
with all rebate requirements and shall assume in writing all of the obligations of the
transferor business provided for in the agreement required by this Ordinance. Failure of the
business granted a rebate to notify the City Commission of any such changes in ownership is
cause for revocation of the ordinance granting the rebate, at the City Commission's
discretion.
(b) Annual reporting. The h,-Sin „-r „ . ted an exemptign shall her ed to cemplete ap
The ability to receive a rebate for the period granted shall be conditioned upon the
applicant's ability to maintain the Development giving rise to the award of the rebate
throughout the entire period. The applicant shall be required to submit an annual renewal
statement and an annual report to the City Manager, or designee, on or before January 15
of each year for which the rebate was granted. The annual renewal statement shall certify
that the information provided in the original application has not changed. The annual report
shall provide a report on the status of the business, evidencing satisfaction of the business
maintenance and continued performance conditions set forth in the application. The report
shall be prepared in substantially the form approved by the City Manager, or designee, and
shall contain such information as the City Manager, or designee, may reasonably deem
necessary for the purpose of determining continuing performance by the business of the
conditions provided for in this Ordinance, the ordinance specifically granting the business an
rebate and the representations made in the application.
Sec. 82-258. - Revocation.
(a) Should any new business or expansion of an existing business:
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(1) Fail to file the annual report and employee roster with the community development
services director or their designee on or before January 15 each year the exemption has
been granted as required in section 82-254(g) hereof;
(2) Fail to continue to meet the definition of a new business or an expansion of an existing
business;
(3) Fail to fulfill any other representation(s) made',to the commission during the application
process, including but not limited to the creation and maintenance of the total number
of new jobs identified in the application; or
(4) Fail to comply with any other statutory requirement(s) for continuation or renewal of
the exemption, the commission may enact an ordinance revoking the exemption.
(b) The exemption may be revoked after expirations, of this implementing ordinance before
November 6, 2022, for a business that fails to fulfill its obligations as provided under the
implementing ordinance. The effective date for revocation of the exemption will be
identified in the implementing ordinance. The City May also choose to allow a period of time
of no more than a year to allow the business to fullfill its obligations, but is not required to
do so.
(c) Upon revocation of an exemption, the commission shall immediately notify the county
property appraiser.
(d) For any year that taxes may have been exempted and the commission finds that the
business was not entitled to the exemption, such taxes may be recovered as provided by
Florida Statute.
(e) Nothing herein shall prohibit a business from reapplying for an exemption.
Sec. 82-259. - Conflicts.
If any resolution or ordinance or part thereof is in conflict herewith, this article shall control to
the extent of the conflict.
Sec. 82-260. - Severability.
if any section, paragraph, sentence or work of this article or the application thereof to any
person or circumstances are held to be invalid, that invalidity shall not affect other sections or
applications of this article.
Sec. 82-261. - Effective date.
This article shall become effective immediately upon adoption.
SECTION 2. CONFLICTS. If any ordinance or part thereof is in conflict herewith, this Ordinance
shall control to the extent of the conflict.
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SECTION 3: CODIFICATION. Section 1 of this Ordinance shall be codified; and any sections,
subsection, paragraph, or subparagraph may be renumbered or re -lettered as appropriate and
to accomplish the intent of this Ordinance.
SECTION 4: SEVERABILITY. The provisions of this Ordinance are declared to be separable and if
any section, paragraph, sentence or word of this Ordinance or the application thereto any person
or circumstance is held invalid, that invalidity shall not affect other sections or words or
applications of this Ordinance. If any part of this Ordinance is found to be preempted or
otherwise superseded, the remainder shall nevertheless be given full force and effect to the
extent permitted by the severance of such preempted or superseded part.
SECTION 5: This Ordinance shall take effect immediately upon its adoption.
FIRST READING: February 3, 2020
SECOND READING AND ADOPTION: February 17, 2020
PASSED AND ADOPTED THIS 1711 DAY OF February, 2020
�J
MATTHEW MORGAN, MAYOR
ATTEST:
MICHELLE LONGO, CIVIC, FCRM
CITY CLERK
Approved as to fo nd legality for the use and reliance of the City of Longwood, Florida, only.
ram---_
DANIEL W. LANG , C AV612016
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