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Exh 7A & BAGENDA ITEM #7A & B NOVEMBER 26, 2001 MEMORANDUM TO: City Commission and Mayor FROM: Sonya Doerr, AICP Community Development. Director DATE: November 19, 2001 SUBJECT: Changes proposed to the zoning regulations and rights of property owners after the regulations are adopted Two issues with respect to changes in the zoning regulations. and how these changes may impact the rights of property owners have been discussed throughout the zoning code amendment process. The first issue involves owners of lots in the core area that is proposedlo be rezoned from RG-1 (two-family) to RS-2 (single-family.) A one-yeaz "grace" period has been proposed to allow property owners a period of time to proceed with plans to develop duplexes in this. area. A proposed. section has been added to the rezoning ordinance that will allow property owners one yeaz. to obtain building permits to build Two- family dwellings or Duplexes in this azea. Other changes in the regulations, and how these changes may impact "works-in-progress" may be dealt with through vesting provisions that have been proposed as Section 24-51 of the amended zoning regulations. Following is a definition and summary of vested rights, and how this process will be administered by the City. Definition of Vested Development Vested Development means a proposed Development project or an existing Structure or Use, which in accordance with applicable Florida law or the specific terms of this Chapter, is exempt from certain requirements of the Zoning and Land Development Regulations and/or the Comprehensive Plan. There are two types of vested rights. recognized by Florida law, however, the City under its own authority, may also "deem vested" certain rights when zoning and ]and use regulations change. This is the method that will be used to recognize the rights entitled to owners of those. duplexes now' existing in the core azea proposed to be rezoned to RS-2. With the adoption of pt•oposed Section 24-86, vested rights are automatically conveyed, and those property owners will not have ask to be vested. In other situations, a property owner may request a vesting determination: from the City, and based upon the circumstances of that individual project, one of the following two types of vested rights may be due to the property owner. AGENDA ITEM #7A & B NOVEMBER 26; 2001 a) Statutory vested rights - In order for a project to be entitled to'this type of vested right, each of the following must occur: 1. A "final local development order" must be issued by the City prior to the change in regulations. The most common example of a fmal local development order is a Building Permit. 2. The project must commence.. It should be noted that commencement may vary based upon the type of project, but generally, some physical work (properly permitted, of course) within the property should have begun. 3. The project must continue in good faith. In other words, if a project obtains permits and work begins, and then work on the project stops for an extended period of time, any vested rights may expire. b) Commou law vested rights, or the term "equitable estoppel" as often used by attorneys, are closely related legal concepts. Florida Courts have long recognized the fairness doctrines of common law vested rights and equitable estoppel. Common law vested tights are acknowtedged and derived from the past collection of Court decisions which have concluded when a property owner is entitled to complete a project under previous regulations. In order for a property owner to have common law vested rights, the following requirements must be met. 1. There must be an act or omission by the government. For example, an act of the government may include the adoption. of new zoning regulations, the issuance of Building Permits, approval of a Vaziance, or alternatively, a failure or omission of the government to follow its own. procedures and regulations. 2. The property owner or developer relies in good faith on that act of the. government. For example, a property owner might have house plans designed and construction plans prepared in good faith reliance on the previous zoning regulations. 3. The property owner or developer has a substantial change in position, which is most commonly considered to be the expenditure of significant funds, but a change in position can also be physical changes that have already been. made to a property in preparation for a project. The expenditure of significant funds may vary based on the size and scale of a project. For instance, if the project is one single-family or a duplex residence, the expenditure of $1000.00 to purchase a set of house plans is probably a significant expenditure for. that property owner. On the other hand, the expenditure of $10,000.00 for a lazge condominium project would probably not be considered a significant expenditure to the point that the developer would havea substantial change in financial position. Determinations of vested rights, whether Statutory or common.. law, must be evaluated and determined on a case-by-case basis. Requests for vested rights determinations must be supported by factual evidence provided by the property owner, and any fording of a vested right must be very specific. in stating the terms of the vested right and what regulations a project is vested against. It should be anticipated that other vesting issues, in addition to the "duplex issue," will arise after the new regulations become effective. The establishment of the 50% percent .maximum impervious surface limitation is one issue that could result in the need for major changes to the development of a residential lot. For example, in the case where a property owner has designed and engineered a house and associated improvements prior to the new regulations, that property owner is ikely entitled to vested rights, which AGENDA ITEM #7A & B NOVEMBER 26, 2001 would allow the project to be completed as designed rather than re-design and re-engineer the proposed construction. In this case, the owner would submit in writing a chronology of the project along with other necessary documentation. The City .would issue a letter finding the. project vested to continue as originally designed. The vesting letter would identify the property and the specific project and would clearly state that this project is not subject to the 50°/n impervious surface limitation and cite that section of the Code. The letter would also document any other relevant information associated with the specific project including any conditions of the vesting and the expiration date of the vesting determination. (Although not required, some jurisdictions choose to record or certify vesting determinations:) F:\USERS\Planning\Chapter 24\Vestmg Memo 11-19-01.Doc