Businesses give $100,000 in political donations before vote to expand Property Appraiser’s powers. On the line: massive tax breaks

Aug 4

Written By

On the same day that County Commissioner Raquel A. Regalado voted for a measure to give the Property Appraiser’s office more power, her political committee received $13,000 in donations from a group of businesses pushing for the measure. Those same businesses had given her father, Tomás P. Regalado $4,500 in donations one month earlier. Mr. Regalado is running for property appraiser.

A New Ordinance Expands The Property Appraiser’s Power

Tomas P. Regalado, 77, former mayor of the City of Miami, is running for Miami-Dade Property Appraiser. Photo: EVTV

On March 19, 2024, Miami-Dade Commissioners voted 10-2 without taking public comment to create a new commercial district outside Miami-Dade’s Urban Development Boundary (UDB). The Redland farming area had been zoned for agriculture and lies outside the UDB.

The ordinance, sponsored by Commissioner Kionne McGhee, allows productive farmland outside of Miami-Dade's Urban Development Boundary to be turned into commercial businesses under the guise of "agritourism."

The ordinance also gives the Miami-Dade Property Appraiser more power. The ordinance ensures the Property Appraiser will have the power to determine who receives an agricultural tax exemption, spanning both traditional crop growing, nurseries, and the expanded commercial activities designated “agritourism”.

This vote comes at the same time that Commissioner Regalado’s father, former City of Miami Mayor Tomas Regalado, is running for Property Appraiser.

$13,000 in same-day campaign donations to Raquel Regalado’s political committee

Raquel Regalado, Board of County Commissioner Meeting — Commissioner Raquel Regalado speaks at the Miami-Dade Board of County Commissioners meeting on March 19, 2024

On the same day the County Commission voted to pass the ordinance, businesses poised to benefit from its passage donated $13,000 to Commissioner Regalado’s political committee. Her political committee is named "Citizens for Excellence in Miami-Dade County Government."

Some of the businesses that stand to benefit from this ordinance are controlled by Victor and Nelson Guzman and other members of the Guzman family, according to Sunbiz records. For example, both “Ig Kitchen Cabinet Corp” and “Three Star Farm & Fruit Stand LLC” list Victor Guzman and Daniela Guzman as registered agents or officers.

These businesses stand to benefit from deregulating productive farmland outside the Urban Development Boundary (UDB). They also stand to profit considerably from enormous tax breaks made possible by the new power given to the Property Appraiser’s office.

Our research suggests that the $13,000 in same-day donations are just the tip of the iceberg.

$100,000 in donations to county politicians

Campaign finance records show that the same businesses who gave to Commissioner Regalado’s political committee on the day of the vote are part of a group of businesses who have given $100,000 to various county politicians.

Many of the businesses donating to key political committees in the months leading up to the vote for the Agritourism district are clustered in one area.

$4,500 in campaign donations to Tomás P. Regalado

Just a month before the County Commission voted for the zoning change, campaign finance records show that several businesses controlled by the Guzman family donated $4,500 to Tomás P. Regalado's campaign for Property Appraiser. If elected, Mr. Regalado would have significant influence over property classifications and tax exemptions. These could result in windfall tax breaks for these businesses.

These donations track with some of the large donations made to Commissioner Kionne McGhee’s political committee, “1 South Dade” in the months leading up to the vote. Commissioner McGhee sponsored the ordinance.

$37,000 in contributions to Commissioner McGhee’s Political Committee

Commissioner Kionne McGhee speaks at the Miami-Dade Board of County Commission meeting on March 19, 2024

Commissioner Kionne McGhee's political committee, “1 South Dade,” took in at least $37,000 from businesses pushing for the zoning change in the months leading up to the vote. The contributions came from Barn Crafters, LLC; F.& J. Holdings LLC; Nando Grill LLC; Honey Bee Farm LLC; Adventure World LLC; Three Star Farm and Fruit Stand LLC; and Rey Chavez Distributor Corp.

$33,000 in Contributions to Commissioner Anthony Rodriguez’s political committee

Commissioner Anthony Rodriguez speaks at the Miami-Dade Board of County Commissioners meeting on March 19, 2024.

The businesses who made contributions to Commissioner Regalado’s PC, Commissioner McGhee’s PC and Mr. Regalado’s campaign did not stop there.

We found contributions to Commissioner Anthony Rodriguez’s political committee, “A Bolder Florida” totaling $33,000. The contributions came from Barn Crafters, LLC, Nando Grill LLC, and Three Star Farm and Fruit Stand LLC.

$12,500 in Contributions to Commissioner Roberto Gonzalez’s political committee

Commissioner Roberto J. Gonzalez - Miami Herald file photo

We also found contributions to Commissioner Roberto Gonzalez’s political committee “America First, Florida First” totalling $12,500. The contributions came from Honey Bee Farm LLC and Three Star Farm and Fruit Stand LLC.

When you add the sums together ($12,500 to Commissioner Gonzalez’s committee, $33,000 to Commissioner Rodriguez’s committee, $37,000 to Commissioner McGhee’s committee, $4,500 to Mr. Regalado’s campaign account, and $13,000 to Commissioner Regalado’s committee), the total comes to $100,000.

What's at Stake

The stakes are high for the companies and land investors pushing to commercialize farmland. The ordinance allows these businesses to retain the tax benefits and regulatory exemptions of farming while converting a portion of their agricultural land into higher margin commercial enterprises. The Property Appraiser is responsible to ensure “agritourism” operators are operating legitimate agricultural businesses, not exploiting their tax status to evade compliance costs and taxes. These same businesses are also making direct campaign contributions to the candidate likely to become the next Miami-Dade County Property Appraiser.

What is the “Miami Redland Agritourism District”?

The approval of the Miami Redland Agritourism District has stirred significant controversy. The district, approved despite opposition from residents and the County’s Agricultural Practices Board, aims to expand amusement and commercial operations in the rural Redland area. The district allows property owners to convert up to 5% of their land to agritourism uses, a move critics argue could turn the farming hub into a commercial amusement zone.

WLRN reported in 2023 that the Redland area is one of the only swaths of land in the continental United States where truly tropical fruits can be grown at a commercially viable scale.

“The area is only about 50,000 acres, but it makes up a large portion of domestic production of dragonfruit, guavas, mamey, lychee and other fruits. The subtropical climate and rare swath of farmland south of Miami forms a pillar of Florida’s agricultural industry, the second largest segment of the state economy after tourism.

“You cannot grow what you can grow here anywhere else in the United States,” said Michael Wanek, president of the Redland Homes and Farm Association, a nonprofit.

Commissioner Kionne McGhee, who proposed the ordinance, frames it as a move to reduce government regulations and support farming and business. In a video recorded of McGhee speaking to supporters after passing the first vote, the commissioner cast the proposal as supporting the area by removing government regulations.

Opponents argue that the ordinance is more about rewarding speculators and business operators dodging health and safety rules rather than genuinely supporting agriculture, risking the transformation of quiet rural communities into round the clock entertainment areas.

What is the role of the Miami-Dade County Property Appraiser?

The Miami-Dade County Property Appraiser is responsible for identifying, appraising, and certifying all real and tangible personal property within the county for tax purposes. This office plays a crucial role in determining property taxes, which fund local government services.

The new ordinance expands the Property Appraiser's authority, allowing more properties to benefit from agricultural tax exemptions and potentially influencing local land use significantly.

The ordinance gives the Miami-Dade County Property Appraiser's office more influence in determining eligibility for various exemptions and regulatory requirements by defining "bona fide agricultural purposes." The Property Appraiser's classification of land as agricultural impacts the application of building code exemptions, floodplain review requirements, and eliminates liability for “agritourism” activities.