State v. Osceola County
Decision Date | 27 May 1999 |
Docket Number | No. 94,135.,94,135. |
Citation | 752 So.2d 530 |
Parties | STATE of Florida, Appellant, v. OSCEOLA COUNTY, Appellee. |
Court | Florida Supreme Court |
Lawson L. Lamar, State Attorney, and Cloyce L. Mangas, Jr., Assistant State Attorney, Ninth Judicial Circuit, Orlando, Florida, for Appellant.
Gregory T. Stewart and Virginia Saunders Delegal, Tallahassee, Florida, and John R. Stokes, Tampa, Florida, of Nabors, Giblin & Nickerson, P.A., and Jo O. Thacker, Osceola County Attorney, Kissimmee, Florida, for Appellee.
We have on appeal a decision of the trial court declaring that a proposed bond issue is valid. We have jurisdiction. Art. V, § 3(b)(2), Fla. Const. We affirm the bond validation judgment.
In 1997, Osceola County by ordinance declared the levy of a one percent tax pursuant to the Local Option Tourist Development Act, section 125.0104, Florida Statutes (1997).1 The County intended to use this tourist tax to pay the debt service on bonds issued to finance the renovation of an existing stadium and the construction and acquisition of a convention center. According to the ordinance, all monies generated by the tourist tax had to be applied first to the renovation of the stadium, then to the construction of the convention center. In July 1998, the County adopted a resolution, entitled "Tourist Development Tax Revenue Bond Resolution," for the issuance of Series 1998 Bonds not exceeding $35,000,000 for the purpose of acquiring, constructing, and equipping a county-owned convention center.2 The Resolution was adopted pursuant to the ordinance and section 125.0104(3)(l). According to the Resolution, the convention center would be constructed in accordance with design specifications contained in a Purchase and Sale Agreement ("Development Agreement") between the County and Osceola Development Project, L.P. ("ODP"), a private entity. Uncontroverted evidence admitted at the validation proceeding established that ODP, rather than the County, would construct the convention center. The County would then purchase the convention center upon completion if all of the contract conditions have been met.3 Although the County will own the facility, the Resolution provided that ODP will operate the convention center in accordance with the provisions of the Convention Center Operating Agreement ("Operating Agreement"), a separate contract between the County and ODP.4 Under the terms of the Operating Agreement, ODP, as operator of the convention center, will retain all revenue generated by the operation of the convention center throughout the period of the Agreement (i.e., twenty years).
In August of 1998, pursuant to chapter 75, Florida Statutes (1997), the County filed a complaint in circuit court to validate the bonds. The complaint alleged the County was authorized by section 125.0104 of the Florida Statutes to issue revenue bonds to (a) pay for the cost of acquiring and constructing a publicly owned convention center; (b) establish a debt service reserve account, if necessary; and (c) pay costs associated with the issuance of the bonds. The complaint further alleged that the bonds will not constitute a general indebtedness of the County or a pledge of its full faith and credit and taxing power within the meaning of any constitutional or statutory provision or limitation. The State answered the complaint, denying that all requirements of law had been satisfied.5
The Circuit Court of the Ninth Judicial Circuit, after hearing testimony6 and arguments by counsel, issued a Final Judgment validating the bonds. The court found that the County fully complied with all of the requirements of chapter 75, Florida Statutes (1997); that proper notice of the validation proceeding was given as required by law; that the County is authorized under section 125.0104 to issue the bonds for the purposes of financing the acquisition and construction of the convention center, establishing a debt service reserve account, and paying the costs associated with the issuance of the bonds. In addition, the court approved the levy of the one percent tourist tax for repayment of the bonds and approved both the Development Agreement and the Operating Agreement between the County and ODP. Finally, the court found that the construction and operation of the convention center serves a valid and paramount public purpose in that it will directly promote the economy of the County and the State; it will further the development of tourism-related business activity, thereby providing a more stable economy and an increase in employment; it will provide a forum for educational, recreational and entertainment activities for the citizens of the County and State; and it will satisfy an existing need for such facility in Osceola County, thereby promoting the attractiveness of the County and the State to outside business interests and visitors.
The State filed its notice of appeal on October 12, 1998. This appeal follows.
This Court's scope of review in bond validation cases is limited to the following issues: (1) whether the public body has the authority to issue bonds; (2) whether the purpose of the obligation is legal; and (3) whether the bond issuance complies with the requirements of the law. See State v. Inland Protection Fin. Corp., 699 So.2d 1352 (Fla.1997); Poe v. Hillsborough County, 695 So.2d 672 (Fla.1997); Northern Palm Beach County Water Control Dist. v. State, 604 So.2d 440 (Fla. 1992); Taylor v. Lee County, 498 So.2d 424 (Fla.1986). A final judgment validating bonds comes to this Court with a presumption of correctness.7 See Wohl v. State, 480 So.2d 639, 641 (Fla.1985). The appellant has the burden of demonstrating that the record and evidence fails to support the County and the trial court's conclusions. See id. In the case sub judice, the State argues that none of the three prongs have been satisfied. We disagree.
Clearly, the County has the authority to issue bonds. See § 125.01(1)(r), Fla. Stat. (1997) (); see also Rowe v. St. Johns County, 668 So.2d 196 (Fla.1996) ( ); Taylor, 498 So.2d at 426. At issue in this case, however, is the County's authority under section 125.0104 to issue bonds for the purpose of acquiring the convention center. The State contests the County's authority under section 125.0104(3)(l) to levy the additional one percent tax for the purpose of acquiring the convention center. In other words, because the County is not constructing the convention center, but rather, is acquiring it from a private entity to be operated by a private entity, the State argues the County is without statutory authority to levy the additional one percent tax for purposes of repaying the bonds.
To best understand the provisions contained within section 125.0104, we begin our analysis with a brief overview of the taxing purposes permitted by the statute. Under subsection 125.0104(3)(c), the County may impose a one or two percent tax on every dollar of the total consideration received from leases or rentals in any hotel, motel, condominium, and other living quarters or accommodations, for a period of six months or less. In addition to this "base" tax, the statute permits the levy of additional one percent taxes for certain specified uses.8 For example, subsection 125.0104(3)(d) permits the County to impose an additional one percent tax for the purposes set forth in subsection (5). Under that subsection, the County may levy taxes for a number of permitted uses:
§ 125.0104(5)(a)1, Fla. Stat. (1997).
At issue in this case is section 125.0104(3)(l), which permits an additional one percent tax for the specific purpose of paying the debt service on bonds issued to finance the construction of sports facilities or convention centers:
§ 125.0104(3)(l)1.-3., Fla. Stat. (1997)9 (emphasis added).
Notwithstanding the above, subsection 125.0104(5) specifically limits the uses for which each tax may be imposed to those purposes expressly authorized: ...
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