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  • A Primer on Rezoning Your Property in Florida

    Introduction

    The process for rezoning your property varies depending on the municipality or county which has jurisdiction.  However, there are statewide rules that govern the process.  This article focuses on the rules applicable to municipalities.  Unless your property is within unincorporated county jurisdiction, you will need to go through the applicable city with jurisdiction to apply for rezoning.  This is not a quick and easy process, and your options should be carefully weighed with the help of a qualified land use attorney who understands the nuances involved.

    What is Zoning?

    In Florida, zoning is generally a legislative function of cities and counties.  It is a land development regulation that places reasonable, public-interest-serving restrictions on the use of real property.  Cities, in particular, have home rule authority under Florida’s Constitution adopted in 1968.  Under that authority, and implementing statutes in Ch. 166, Florida Statutes, cities have wide latitude to adopt land development (zoning) regulations that say where and how properties can be developed and used.  Pursuant to F.S. 163.3194, these zoning regulations must be consistent with the future land use element of the city’s adopted comprehensive plan, which functions as the city’s constitution for purposes of future land development and use. 

    Only the duly elected legislative body of the city, usually called the City Commission or City Council, can adopt zoning regulations by ordinance.[i]  The adoption process must follow the detailed procedures set forth in F.S. 166.041(3).  To summarize the process, adoption of a zoning ordinance usually will require two separate publicly-noticed hearings. 

    Zoning ordinances typically create a list of classifications, such as ‘Mixed Use or ‘Single Family Residential’ and within each classification, there is typically a list of permitted and/or conditional (or ‘special exception’) uses.  For any given zoning classification, permitted uses are those which are allowed as of right, and the property owner needs no additional permission for that use. Conditional uses are exceptions that are allowed on a case-by-case basis, if certain specified conditions are satisfied.  Conditional uses may only be approved after following the procedural requirements in F.S. 166.041(3).[ii] 

    Zoning Amendments

    Cities have significant discretion to grant or deny an application for rezoning.[iii]    A decision on a zoning amendment application is valid if it strictly adheres to the procedures set forth in F.S. 166.041(3), is consistent with the comprehensive plan, and accomplishes a legitimate public purpose.[iv] “Competent and substantial” evidence[v] must be in the record to support a city commission’s ruling as one that is reasonable, nonarbitrary, and nondiscriminatory.[vi]

    Politics undeniably play a role in the rezoning process.  Community opposition will exert pressure on elected officials to vote against a rezoning application.  To avoid this outcome, effective planning and common sense is critical.  The property owner should not push for a use that is totally incompatible with the surrounding community.  If the use is even arguably incompatible, the City Commission may have a legitimate basis to reject the application, and there is little chance of appealing it successfully if the ruling is supported by competent, substantial evidence. 

    Variance vs. Zoning Amendment

    A variance is a different means of getting to the same end: a change in permissible property use.  Many cities have ordinances that allow property owners to apply for a variance, which is essentially a special exception that may be granted by the city commission based on the property owner’s unique circumstances.  Typically, a showing is required that the property owner would experience a unique hardship if the zoning were applied literally.  It usually must also be established that granting the variance would not be detrimental to the public interest.  These requirements and others will vary depending on the local jurisdiction.

    Whether a property owner should seek a variance or zoning amendment depends on the unique circumstances of each property owner and the rules of the governing local jurisdiction.  A qualified land use attorney can recommend a course of action to the property owner that gives him/her the best chance of success, even if that may involve litigation. 

    Do your Due Diligence  

    It is a terrible thing to purchase land with the intent to use it for a particular purpose, only to later find out that the use is prohibited.  Therefore, by the time you close on the purchase of real property, you should already have a full understanding of the permitted and conditional uses for your property, and importantly, whether your intended use is one of them.  A qualified land use and zoning attorney is critical at this “due diligence” stage.  An attorney knowledgeable in this complex area of law will prepare a report that provides you with the analysis needed to proceed on an informed basis. 

    With that said, if you own a property that is not zoned for the use you intend, it is a good idea to consult with a land use and zoning attorney to review your options.  If the intended use is legitimate and compatible with surrounding uses, you may be well-positioned to obtain a rezoning.

    Conclusion

    As you can see, zoning is complicated.  Each city and county has a different process.  If you intend to use your property in a manner that is inconsistent with zoning regulations, or if you need an evaluation on zoning, you would benefit greatly from a qualified land use and zoning attorney.  Abrams Law Firm, P.A. primarily practices this area of law.  Our government background gives us a depth of knowledge and understanding of the many issues you are likely to deal with throughout the process. Contact us now.    

    Disclaimer: the information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance. An attorney and client relationship should not be implied. Nothing on this page is intended to substitute for the advice of an attorney.


    [i] § 166.041, Fla. Stat. (2018)

    [ii] Webb v. Town Council of Town of Hilliard, 766 So. 2d 1241, 1244 (Fla. 1st DCA 2000).

    [iii] Board of County Comm’rs of Brevard County v. Snyder, 627 So. 2d 469, 474 (Fla. 1993); St Johns County v. Smith, 766 So.2d 1097, 1100 (Fla. 5th DCA 2000).

    [iv] Id.

    [v] This is a low evidentiary standard. Id. 

    [vi] Id.

  • Five Decisions You Should Make Before Starting A Business In Florida

    Introduction

    So you have decided to take the plunge into starting your own business and creating your own wealth? Or perhaps you are still mulling it over and are researching what it will take to turn the dream into a reality. Starting a business can be stressful, but you can mitigate that stress by having a plan and knowing the consequences that flow from each decision you make toward building your business. The goal of this article is to summarize the important things to consider before formalizing your plans.

    1. Choose your entity

    There are 6 types of formal business entities designated by Florida statutes: Corporation, General Partnership, Limited Liability Company (“LLC”), Limited Partnership (“LP”), Limited Liability Partnership, and Limited Liability Limited Partnership.  With the exception of general partnerships, and general partners in limited partnerships, each type of business entity above protects an owner from personal responsibility for the liabilities of the entity itself. However, the degree of protection may vary.  All have certain benefits and some disadvantages depending on the nature of the business venture, immediate and long term plans for growth, need for formalities and other factors.  Statistically, by far the most common entities in Florida are corporations and limited liability companies.[i]  With an LLC, owners are referred to as members; and with corporations, each owner is referred as a shareholder.  Three important considerations in choosing an entity are tax consequences, asset protection, and management structure.

    A detailed discussion on the benefits and disadvantages of each business entity is beyond the scope of this article.  However, suffice it to say that if your business is a small to medium-size business with no intention of publicly trading on security exchanges, an LLC is probably the best all-around choice.  This is because an LLC is disregarded as an entity for tax purposes, so no corporate taxes are paid.  Additionally, each member’s protection from personal liability for claims against the LLC is arguably superior to other business entities.[ii]  See § 605.0304(2), Fla. Stat. (2018).  Finally, most of the statutory provisions regarding management structure in the LLC can be altered with the operating agreement, so there is significant flexibility in that regard.  See § 605.0105, Fla. Stat. (2018).  With corporations, by comparison, the statutory provisions dealing with management cannot be changed through the By Laws. See § 607.0206, Fla. Stat. (2018).

    Note that each business venture is unique and a more detailed evaluation by a qualified business law attorney is advisable in order to help you determine which type of entity best suits your needs and short-term and long-term goals.  

    2. Choose your business’s name

    After you decide on a name, which is of course a personal decision, check sunbiz.org to make sure the name is not already taken.  You would also be wise to perform a basic internet search to explore whether your name is already being used in another state, which could lead to a court battle in the future.  If you are interested in protecting your brand, we would recommend getting a trademark attorney who can assist with obtaining federal trademark protection.

    Our firm assists businesses by performing a preliminary search of names in the state database.  If you decide to seek trademark protection, we work with a number of excellent trademark attorneys and would be happy to put you in touch.   We take the lead on creating your business, which includes bringing in other specialized attorneys as appropriate.

    3. Choose your registered agent

    Florida law requires you to name a registered agent for your business entity who maintains a full time office within the state.  If the entity is sued, the registered agent must accept service of process on behalf of the business. Our firm serves as registered agent to businesses for a nominal annual fee.

    4. Choose your tax structure

    This consideration mainly applies to corporations.  If your corporation has less than 100 shareholders, than you may elect to be taxed as an “S” corporation by completing and submitting IRS Form 2553.  This will allow your corporation to be taxed as a pass-through entity, allowing you to avoid paying corporate taxes in addition to individual taxes. 

    This consideration may also be important to an LLC or LP that wishes to be publicly traded in securities exchanges.  Note that federal law prohibits LLCs from being publicly traded.  A way around this prohibition is for the LLC to be taxed as a partnership and structure itself as a Publicly Traded Partnership.  The PTP must meet the requirements of 79 U.S.C. 7704(c). 

    5. Choose your management structure

    Management structure will vary depending on the type of entity.  With the two more common business entities – corporations and LLCs – the management structure is determined both by applicable statutes and the appropriate entity agreement.  With LLCs, the operating agreement can determine the management structure, including by stating whether the LLC is member-managed or manager-managed.  With corporations, management is determined by applicable statutes, the By Laws and/or the shareholder agreement.  Contact our firm to help you design a management structure that best fits your business model and which is consistent with Florida law.

    Conclusion

    We are happy to help you construct a plan that is consistent with Florida law and which is both suitable and adaptive to your unique business model over the long term. Have an overall plan, and implement it with confidence. Call or message us when you are ready to get moving.


    [i] https://dos.myflorida.com/sunbiz/about-us/yearly-statistics/

    [ii] Single member LLCs are not bright line asset protection vehicles as against personal liabilities of the member.  A creditor can take over the member’s interest in the LLC by judgment of the court to foreclose on a member’s unpaid debt.  See§ 605.0503(4), Fla. Stat. (2018).  This threat presumably and similarly exists with single-shareholder corporations in light of the Florida Supreme Court’s decision in Olmstead v. Federal Trade Commission, 44 So.3d 76, 83 (Fla. 2010). 

  • Understanding The Distinction Between Land Use and Zoning

    “Land use” and “zoning” each have different meanings and independent legal significance.  Land use is determined by a city or county’s comprehensive plan, which governs the future use of property within the boundaries of the city or unincorporated county.  Zoning, on the other hand, represents the current permissible uses of specific properties within a given city or county.  In Florida, zoning must not be inconsistent with land use designations.  Sometimes, zoning districts are not compatible with an owner’s intended use of his property.  In such cases, an amendment or variance may be the best option; or it may not be appropriate and may even conflict with the land use designation in the comprehensive plan.  In the event of  conflict, a land use amendment would be required; however, seeking a land use amendment is more likely to invite challenge from citizens.  For this reason, the process of amending zoning is often less fraught with conflict than amending land use.

  • Florida’s Bert J. Harris, Jr. Private Property Rights Protection Act

    Introduction

    Bert J. Harris, Jr. Private Property Rights Protection Act (“Bert Harris Act”), found in Section 70.001, Florida Statutes, was originally enacted in 1995.  This law provides that when “a specific action of a governmental entity has inordinately burdened an existing use of real property or a vested right to a specific use of real property, the property owner of that real property is entitled to…compensation for the actual loss to the fair market value of the real property caused by the action of government”.[i]  The purpose of the law is to provide for “relief, or payment of compensation, when a new law, rule, regulation, or ordinance of the state or a political entity in the state, as applied, unfairly affects real property.”[ii]

    The Bert Harris Act guarantees stronger private property rights than is conferred by the Takings clause in the Fifth Amendment of the U.S. Constitution.[iii]  Before the advent of the Bert Harris Act, the only way to seek compensation for loss of market value resulting from government regulation of real property was to assert that it constitutes a “Taking” under an inverse condemnation theory.   To prevail on this theory, the property owner would need to show that the government regulation deprived the owner of all beneficial or economically viable use of the property, resulting in substantial loss of market value.[iv]  Post Bert Harris, however, a Florida property owner need only show that the government regulation inordinately burdened the existing use or vested right to a specific use of the property.[v]  This provides significantly greater protection against government regulations that are burdensome to real property.  The italicized terms are specifically defined in the statute and are explained in more detail below. 

    Inordinate burden

    The Bert Harris Act defines “inordinate burden”, in part, to mean a government regulation “that directly restricts or limits the use of real property such that the property owner is permanently unable to attain the reasonable, investment-backed expectation for the existing use of the real property or a vested right to a specific use of the real property with respect to the real property as a whole”.[vi] 

    To have a right to relief, the government regulation, such as a zoning change, must have been directly applied to the real property owned by the claimant.[vii]  A property owner thus cannot sue for the lost value of his/her real property resulting from a regulation applied to an adjacent property.[viii]  For example, in Vale v. Palm Beach Cnty., an appeal before the Florida Fourth District Court of Appeal, residential property owners sued for Bert Harris Act violations after Palm Beach County rezoned an adjacent golf course and permitted a planned unit development.[ix]  Although this development might have reduced their homes’ market value, the Court in Vale held that the Bert Harris Act did not apply.[x]  The Court explained that the statute only provides a right to relief where the regulation at issue is directly applied to the claimant’s specific real property.[xi]   

    There has been limited court interpretation on the meaning of “reasonable, investment-backed expectation”, which is not defined in the statute.  The most recent guidance comes from an appellate decision from the Florida Fourth District Court of Appeal in the case Ocean Concrete, Inc. v. Indian River Cnty.[xii]  The court in Ocean Concrete held that whether expectations are “reasonable” and “investment backed” depends on the physical and regulatory aspects of the property.[xiii]  It went on to find that the property owner in the case was reasonable for expecting to use his property for a concrete batch plant, because this was a permitted zoning use when he purchased the property and this use was feasible under the circumstances.[xiv]  In contrast, in another appellate matter, City of Jacksonville v. Coffield, the court held that the owner did have a reasonable expectation to develop the property into residential subdivision where no public road connected to the property.[xv]    

    Existing Use

    “Existing Use” is defined in the Bert Harris Act to mean either: (1)“the actual, present use or activity on the real property”; or (2) “activity or such reasonably foreseeable, nonspeculative land uses which are suitable for the subject real property and compatible with adjacent land uses….”[xvi]  If a proposed use was permitted by the zoning code prior to the government action, courts will find that this is conclusive evidence that the proposed use is “reasonably foreseeable, nonspeculative”, “suitable for the subject real property,” and “compatible with adjacent land uses”.[xvii] 

    Vested Right

    According to the Bert Harris Act, a vested right is “determined by applying the principles of equitable estoppel or substantive due process under the common law”.[xviii]  Under the common law principles of equitable estoppel, a property owner has a vested right if he or she 1) in good faith, 2) upon some act or omission of the government, 3) has made such a substantial change in position or has incurred such extensive obligations and expenses that it would be highly inequitable and unjust to destroy the right he or she acquired.[xix] 

    Courts will not permit an estoppel claim against a government entity except in exceptional circumstances, and equitable estoppel does not apply to transactions that are forbidden by law or contrary to public policy.[xx]  Thus, if a government entity misleads a developer regarding his development rights on real property, the developer will not then be permitted to assert an estoppel claim against the government entity if he purchases the property in reliance on the misrepresentation.[xxi]  This is because the property owner is made responsible for knowing the law as it applies to his property, and government misrepresentations about the law cannot change the outcome.

    Procedural Considerations

     A Bert Harris Act claim must be presented within one year from the time the government action is first applied to the property at issue.[xxii]  At least 150 days before filing a lawsuit, written notice of the claim must be given to the appropriate governmental entity.[xxiii]  When the pre-suit notice is received, the government has 150 days to consider its options, which include retracting or modifying its action, taking no action, or granting relief in a variety of ways and making an offer to settle.[xxiv]  

    Conclusion

    If you believe that a government action, including but not limited to a zoning regulation, has inordinately burdened an existing use or vested right to a specific use of your real property, you should consult with an attorney to review your options.  You may be entitled to substantial compensation for the loss of your property’s market value.  

    Our firm is prepared to advise you on all options and help you find the best legal course of action.  We have experience representing local government entities, which allows for a more complete understanding of both sides of this complex area of law.

    Last updated: February 25, 2019   


    [i] § 70.001(2), Fla. Stat. (2018)

    [ii] § 70.001(1)

    [iii] § 70.001(9)

    [iv] City of Riviera Beach v. Shillingburg, 659 So.2d 1174 (Fla. 4th DCA 1995); Hadar v. Broward Cnty, No. 16-14569 (11th Cir. 2017); Bakus v. Broward Cnty, 634 So.2d 641 (Fla. 4th DCA 1993). 

    [v] § 70.001(2)

    [vi] § 70.001(3)(e)

    [vii] Vale v. Palm Beach Cnty., No. 4D18-1037 (Fla. 4th DCA Nov. 21, 2018). 

    [viii] Id.

    [ix] Id.

    [x] Id.

    [xi] Id.

    [xii] 241 So.3d 181 (Fla. 4th DCA 2018). 

    [xiii] Id.

    [xiv] Id.

    [xv] 18 So.3d 589 (Fla. 1st DCA 2009). 

    [xvi] § 70.001(3)(b)

    [xvii] Ocean Concrete, Inc., supra

    [xviii] § 70.001(3)(a)

    [xix] Citrus County v. Halls River Development, 8 So.3d 413 (Fla. 5th DCA 2009). 

    [xx] Id. 

    [xxi] Id. 

    [xxii] § 70.001(11)

    [xxiii] § 70.001(4)(a)

    [xxiv] § 70.001(4)(c)