State nixes Seminole tax collector Greenberg’s unusual real-estate deal
The state Department of Revenue dealt a blow to Seminole County Tax Collector Joel Greenberg’s unusual plan of selling off four branch offices for $13.2 million and using the money to buy shopping centers in distressed areas, saying in a memo delivered last week it could not approve such a deal.
Greenberg, acting as a landlord, would rent out between 80 percent and 90 percent of the space in four or five shopping centers to tenants and use the remaining space for drivers-license operations for residents in Orange and Seminole counties, according to the plan. The cash generated from those tenants would be used to pay for the tax collector’s operations.
But in a memo to Greenberg and Seminole County Attorney Bryant Applegate, Stephen Keller, an executive senior attorney for the Department of Revenue, said Greenberg’s plans would take on the risks of any commercial landlord, including issues with maintenance of the properties, undesirable tenants, vacancies and rent instability.
“These issues and costs are wholly unrelated to the function of a tax collector branch office,” Keller wrote. “Additionally, no cost benefit analysis has been presented to the Department [of Revenue] that shows this activity be in a commercially reasonable manner.”
Greenberg said he had not seen the memo and therefore could not comment. He earlier said that regional drivers-license offices in shopping centers would serve the area’s growing population and an increasing influx of Puerto Ricans relocating to Central Florida from the hurricaneravaged island. In effect, the new offices would alleviate wait times.
Seminole commissioners last week asked the Department of Revenue to look into Greenberg’s plan because the agency oversees the tax collector’s budget and would have to approve any purchases using revenue from the sale of the branch properties.
Keller acknowledged that state law gives tax collectors the authority to buy and sell properties, but only to the extent of running their operations.
But “the facts appear that the tax collector does not need to acquire all the space to carry out his duties prescribed by law as tax collector,” Keller wrote. “We conclude that Florida law does not authorize the Department to approve such an expenditure for purchase by a tax collector of commercial real estate holdings for such use.”
As part of the transaction, the tax collector’s office would pay rent over the next 13 years on branches in Casselberry, Winter Springs and two in Lake Mary after selling them to Boyd State Winter Springs LLC, a subsidiary of a Chicago real-estate investment firm.
The sale of the properties is scheduled to close on Jan. 18, according to an agreement Greenberg’s office signed with the buyer on Dec. 4.
County Commission Chairman John Horan said he is pleased the revenue department weighed in on the issue.
“Obviously, the tax collector has no authority to pursue these unnecessary, risky and ill-advised transactions,” Horan said.
Commissioner Lee Constantine said he is glad that the state agrees with the county attorney and commission “that these are not functions of the tax collector.”
Commissioners Brenda Carey and Carlton Henley could not be reached for comment. Commissioner Bob Dallari said he would have to see the memo before commenting.