Rollins proposes payment equivalent to some taxes on faculty apartments
The liberal arts college is often exempt from property taxes as a nonprofit educational institution. The agreement now before the City Commission would be a first for the city.
Aug. 23, 2024
By Beth Kassab
In a first-of-a-kind deal for Winter Park, Rollins College is proposing it pay a fee equal to a portion of the city property taxes it would owe on a faculty housing project up for City Commission approval next week.
The potential agreement comes after months of back-and-forth with city officials and residents over the liberal arts college first unveiled plans to build 48 apartments on land it already owns at Welbourne and Virginia avenues.
College administrators say the apartments, which would be rented to faculty and staff below market rate, will serve as a recruiting tool for early-career professors who would otherwise likely live much farther from campus as a result of the high cost of rent in Winter Park, where homes routinely sell for more than $1 million.
But criticism over the architecture of the project, lack of commercial space on a portion that once fronted New England Avenue, parking concerns and the college’s typical exemption from property taxes contributed to major revisions of the plans.
The project now contains 30 units vs. 48, a pocket park, additional parking and no longer includes a building fronting New England Avenue.
In what appears to be an effort to satisfy calls from the Planning & Zoning Board to contribute to funds for city services, the college says it will enter into a Payment in Lieu of Taxes or PILOT agreement with Winter Park if the typical exemption for nonprofit educational institutions is granted on the land.
The payment would equal about 50% of the taxes owed to the city or about 2 mills. Rollins estimated the payment at between $18,000 to $20,000 a year, though an exact figure won’t be available until it is built and assessessed by the Orange County Property Appraiser.
“The PILOT payment is intended to offset the costs of emergency services for the multi-unit residential project,” the college said in the language it submitted to the city.
“Currently, we have 14 units on the site, and we pay no taxes,” said college spokeswoman Jo Marie Hebeler. “So this is a significant commitment and contribution from Rollins.”
Rollins uses an older building on the site for graduate student housing, but that would be torn down as part of the new project.
The private college, known for its lakefront Spanish-Mediterranean campus and tuition and fees totaling more than $76,000 a year, had resisted such an agreement in previous meeting, citing what it said was already significant contributions toward city services such as allowing the police and fire departments to use old buildings for training and argued such a deal would set a bad precedent.
Much of Rollins’ property holdings in the city are exempt from the tax rolls and some residents have voiced concerns that the college is growing too far outside of its main campus and should contribute more toward the cost of development.
The college does pay taxes on some of its land that doesn’t qualify as exempt such as on The Alfond Inn, a luxury hotel it runs as a for-profit business. The college owes $767,000 in taxes this year on the inn, which is assessed at nearly $50 million, according to property appraiser records.
Jeff Briggs, the city’s longtime planning director, said this is the first time a nonprofit group has reached a PILOT agreement with the city. The deal will likely be closely watched by other nonprofits across the region including hospitals such as AdventHealth and Orlando Health and other colleges and universities.
The City Commission will take up the project at its meeting on Wednesday, Aug. 28.
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Why would it be only half the rate that city taxes would be?
If it has to do with Rollins they will require twice the services that other city citizens will require.
Housing projects built by nonprofit colleges are typically considered part of the educational purpose by local government and, as a result, are typically exempt from taxes such as the property is today. The 2 mills is what Rollins is proposing and it would equal about half the city taxes, but not county/school.
I think Rollins is heading in the right direction by offering this deal, and in the longer run , I think it is in their best interest.
Wow, looks like a win-win situation for all. City collects payments and we get academics who are problem solvers living in the middle of our city with diverse skills that can help the community.
Mark- If Rollins meant to pay any of the tax bill, they would have offered this and agreed they would do so in the document known as the “Community Benefit Agreement”. Instead, Rollins’ lawyer has been adamant all along. Rollins considers a tax payment to the city a deal breaker. They will agree to pay as little as possible and only under threat of losing this sweetheart deal for Rollins.
If Rollins does not pay the full tax bill, WP residents will be subsidizing this wealthy non-profit’s staff dormitory which dormitory can later be sold or leased at full market rate. Great deal for Rollins. (And we won’t share in the eventual profit to the extent of our subsidy.) Bad deal for taxpayers. And it’s in the CRA which is part of a much larger problem. Would we also want to subsidize housing for Advent Health employees? Who else? Rollins is now well on the road to devouring Winter Park. A PILOT at the full tax rate is not only fair but sensible. This is the first Rollins apartment project, not the last.
This is a positive step forward.
It is a step in the right direction, operative word, step.
Suggest it’s more important to speak to this issue in dollars and cents.
Look at your tax bill and of the total, how much goes to The City of Winter Park?
Yes, at the time it was built I believe there was a commitment that the Alfond Inn would not be exempt from property tax. Yes the annual property tax is $767,623.75. It’s important to note however that of that $202,016 or 27% is City of Winter Park plus City of Winter Park Debt Service, 2017 and 2020; $10,894.84 for another 1%.
It’s important to be clear the amount that the City of Winter Park receives; it’s not $767,623.75.
So the real question is how much will Rollins pay? Suggest it should be the full amount of the tax to the City of Park, not a portion.
Will be very interesting the position our Commissioners take on the issue.
Bad move by Rollins. Where does it stop? Diocese of Orlando owns a 12,000 sf “rooming house” (per OC Property Appraiser) on Knowles Ave. and they pay no property tax. The church holds 5,6 services a week drawing thousands of people on our roads and no tax. Their school is a huge traffic generator. No tax. Look at the reactions on here: The crowd that wants taxes from Rollins for 30 apartments used by the staff/faculty says the 2 mils is not good enough. Rollins offers and the naysayers not happy. Short-sighted, Rollins.
Rollins College should pay the full tax bill. This building will solely be used and inhabited by those employed by Rollins College. It is not intended for any use by the general public, but will require the full use of city services. If Rollins College is not held to this commitment, surely other interests will seek and demand the same tax break as well.
BTW, Dinky Dock was once a lovely park providing pristine water for swimming and boating, but is now encroached upon by the Rollins Parking Garage and other campus buildings which occlude its’ visibility and lakefront from the general public. The storied building just east of Rollins Parking Garage has been repurposed for student housing. It once provided lakefront condos for Winter Park residents.
Why should the residents subsidize Rollins’ services outside the main campus. It’s ridiculous. Especially with the profit this “for profit” college is generating.
They have to pay something.
Rollins College should pay the full tax bill. This building will solely be used and inhabited by those employed by Rollins College. It is not intended for any use by the general public, but will require the full use of city services. If Rollins College is not held to this commitment, surely other interests will seek and demand the same tax break as well.
There’s an old saying, “There’s no such thing as a free lunch.” But wait! I see where the Orange County School Board has decided to provide free lunches for ALL students this year. So, I guess there IS such a thing as a “free lunch.” That being the case in these days and times, I guess Rollins paying a full half of their property tax lunch is quite magnanimous of them.