BRADENTON, Fla. - Tax increment financing in Florida is back in limbo again.
A motion was filed last Monday with the state Supreme Court by Gregory Strand's attorney seeking what would be a rare second rehearing in the Strand versus Escambia County TIF case.
At issue would be a rehearing of the high court's long-awaited opinion, released last Thursday, which said it is constitutional for tax increment financing bonds to be sold by issuers in Florida without first getting public approval through a referendum.
The decision upheld decades of established case law on the issue in the state. Although last week's was a split opinion, it also reversed a previous unanimous decision.
In addition to a rehearing, Strand's attorney, David Theriaque, is asking the court to reverse its validation of the $135 million of TIF bonds that Escambia County wants to sell to finance the widening of a road.
The Supreme Court first held oral arguments in the Strand case and ruled on Sept. 6, 2007, that TIF bonds could not be sold without first holding a referendum.
Justices then held oral arguments in a rare rehearing of the case Oct. 9, but did not release a new opinion until last Thursday. That opinion was not due to become final until 10 days after it was issued.
Waiting for more than a year for the high court to act essentially froze all new and refunding TIF bond issuance from Florida.
"As you know, this matter has already had two hearings before the Florida Supreme Court and the court has taken much time to deliberate and deliver its recent opinion, so I'd be surprised if there were a third," said Richard Miller, a partner at Edwards Angell Palmer & Dodge LLP, co-counsel to Escambia County.
The county, which has 10 days to respond to Theriaque's motion, sought to use TIF financing by asserting its home-rule power to provide funding for a road, as opposed to using Florida's community redevelopment laws.
Theriaque also argued in his motion that Escambia did not have authority to use TIF financing under Florida law granting home-rule powers.
If the court decides to rehear Strand v. Escambia County a second time, it is not clear if it could impact two other TIF cases that the court also ruled on last week, validating $100 million of TIF bonds.
Those cases involved the city of Parker and Bay County in Florida's panhandle. The two municipalities wanted to issue TIF bonds under Florida's Community Redevelopment Act - which specifically authorizes the use of TIF financing - for more traditional redevelopment projects.
There is set no time frame for the court to respond to the motion for rehearing.
Several major redevelopment projects in Florida have been held up due to the TIF cases pending before the state's high court, including a $515 million bond-financed Major League Baseball stadium for the Florida Marlins and a major condominium, hotel, and retail project in Gainesville.
