ANNA MARIA – City officials are exploring the possibility of using grants and other incentives to attract and retain full-time residents.
City Commissioner Charlie Salem first proposed the idea during the commission’s June 22 budget meeting and he suggested budgeting $75,000 for a feasibility study to help determine what can be done.
Salem proposed possible tax breaks and possible building code allowances for property owners who formally and voluntarily agree to not use their home as a short-term vacation rental. He also proposed marketing Anna Maria as a place for full-time residents to live.
City Attorney Becky Vose said she’d research what can and can’t be legally done before the commission seeks a feasibility study.
On July 13, Vose provided the commission with an update on her initial and ongoing research. She said property tax reductions and rebates are not allowed in Florida.
“The state has preempted the issues having to do with ad valorem taxation, exemptions and assessments. That’s a non-starter, but that does not get rid of the possibility of giving grants to full-time residents or property owners who lease to tenants who are full-time residents,” Vose said.
Vose is still investigating the parameters of a grant program that would include participating property owners voluntarily entering into restrictive covenants that would prohibit their property from being used as a short-term vacation rental for a specific number of years.
Vose said development and building code incentives might also be possible for the construction or redevelopment of dwellings used for full-time residency.
“It’s still being looked into and I’ll come back with a comprehensive report as soon as it’s ready,” Vose said.
Vose said the city can advertise and market Anna Maria as a destination for permanent residents.
According to Mayor Dan Murphy, approximately 70% of the dwellings in Anna Maria are used as short-term vacation rentals.
Salem thanked Vose for her research and analysis and said, “I’m encouraged by the progress that we’re making, even with some changes as to how we might deliver the relief to permanent residents here. It might not be possible to do it through ad valorem (taxes) but there are other avenues we can pursue. The marketing piece is something we can do however we choose to pursue it. That’s something I think we could fast-track if the commission and mayor are interested.”
Regarding a feasibility study, Salem said, “It’s important to do a study because we are in uncharted territory. If we stay focused on the ultimate goal, which is to increase the number of permanent residents we have here and by extension make our community stronger, I think we’ll have something to be proud of.”
Commissioner Robert Kingan asked Vose if she’s aware of any other Florida city using grants to attract full-time residents. Vose said she’s not aware of any other city doing that, but she is aware of cities that use grants to incentivize desired commercial activity. Vose noted that grants, in general, are given to people in the private sector to accomplish the goals of a municipality.
Kingan asked Vose if the state might perceive a grant program as an attempt to circumvent the state’s ad valorem tax restrictions.
“I would not tie the grant to the tax assessments. I think that would be a mistake. There are numerous sources of funds the city receives that are not otherwise obligated,” Vose said.
“I think this is an exciting path to explore. I think it’s a great idea. There are places we can get money to fund a program such as this,” Murphy said.
Vose is still researching whether ad valorem property tax revenues could be used to help fund a grant program.
“It can’t come as a rebate on your property taxes,” Salem clarified.
Vose said that was correct and the incentives would not be related to how much a property owner pays in property taxes.
Salem said he’s aware of ski towns in Colorado that are having trouble finding employees because of the high rent in those areas. He believes grants are being used there to help attract employees and he intends to research that.
Vose said she looked at several grant programs in other states but there aren’t a lot of residential grant programs in Florida.
“It’s a very exciting concept and I’m hoping we’ll be able to be on the cutting edge of this in Florida,” she said.
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