Summary:
The Downtown South Neighborhood Improvement District (the "district") is a dependent special district of the City of Orlando committed to the development and redevelopment of the 523-acre Downtown South neighborhood. The district was established by the Orlando City Council in 2011 by City Ordinance No. 2011-28. By Florida Statute, the district has the authority to annually levy up to 2 mills of ad valorem taxes on real and personal property, but such authority was conditioned by the Orlando City Council on the successful passage of a referendum of property owners in the district.
This referendum is being conducted by mail-in ballot and is scheduled for May 5, 2014 through May 20, 2014, with results from the City Clerk due by May 25, 2014. City Ordinance No. 2014-6 provides that "[b]allots cast by freeholders exempt from ad valorem taxes shall be counted if the freeholder agrees by contract to make an annual payment to the district equal to the amount of ad valorem taxes that it would pay to the district if not wholly tax exempt. Such contract must be dated as of the closing of the registration list and must obligate the exempt freeholder to such payments for a period of time equal to the term of years for which the tax is authorized."
The attached PILOT Agreement between the City, the district, and Orlando Health commits Orlando Health to pay to the district an amount each year equaling what Orlando Health would pay in ad valorem taxes to the district if not tax exempt. (Orlando Health owns both taxable and exempt properties within the district.) This commitment will allow Orlando Health to participate in the referendum in relative proportion to their voluntary payment in lieu of taxes.
In accordance with the terms and conditions of the Letter of Financial Commitment from Orlando Health to the City and dated July 8, 2011, the Agreement will provide a credit against Orlando Health's PILOT payment for voluntary financial contributions already made by Orlando Health to the district.
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