For one small town, one big condo building means one big tax boost

Nautilus 220 waterfront condo could drive 50% tax windfall for tiny Lake Park, delivering on town’s Christmas wish.

For evidence of the impact high-rise residential towers can have on a city budget, look no further than Lake Park.

The town of about 9,000 north of Riviera Beach had the greatest percentage increase in property values in Palm Beach County as of Jan. 1, preliminary figures prepared by the Palm Beach County Property Appraiser’s Office reveal.

And the boost came primarily from one new high-rise, the 24-story, 330-unit Nautilus 220 twin tower condominiums on the Intracoastal Waterway just north of Silver Beach Road.

The preliminary estimates put the Nautilus building’s value at $400.9 million. At this year’s tax rate, that would add $2 million to town tax collections, a 50% boost over the $4.2 million in collections this year. 

“It’s a seismic shift in the tax base itself,” Lake Park Mayor Roger Michaud said. “We’re happy that it’s here and we look forward to seeing what we can do with this newfound revenue source.”

He and town commissioners had urged the developer to get its Certificate of Occupancy to mark the completion of construction before year-end so the town could take advantage of the tax boost this year. 

“That is what I’m asking Santa Claus this year,” Michaud said at an October meeting. “Because my wife won’t let me get me a new car or a new truck. … But a Certificate of Occupancy from Nautilus 220 is a win-win for everybody.”

This year, he has the same hope for AvalonBay’s 279-unit Avalon Northlake Promenade rising at the old Twin Cities Mall site within town limits. Its financial impact won’t be as great, he said, but “it is a merry Christmas — and more — with AvalonBay.”

What is the county’s most valuable city?

Overall, Lake Park’s value rose 38.5%, from $1.29 billion to $1.78 billion. That places Lake Park squarely in the center of property values countywide, ranking 23rd. 

Boca Raton, at $42.5 billion, and Palm Beach, at $37.5 billion, continue to have the highest valuations among the county’s 39 cities. Among north county cities, Palm Beach Gardens ranked fourth at $23.5 billion, Jupiter sixth at $19.5 billion and Riviera Beach ninth at $9.9 billion.

Also in the top 20, North Palm Beach, Juno Beach and Tequesta.

Countywide, the taxable value reached $365.7 billion, a 6.8% increase. Values have risen 75% since 2020, including three years with double-digit increases. Last year, the county valuations rose 7.7%.

The rise in property values has resulted in higher tax payments, even with most cities and counties reducing or at the very least maintaining their tax rates. The rising costs have fueled Gov. Ron DeSantis’ call to reduce or eliminate property taxes, particularly for residents with a homestead exemption.

He has called a special legislative session starting June 1 to consider increasing the homestead exemption from $50,000 to $250,000 and eventually to $500,000, which would spare owners of homes valued at those new levels from paying any property taxes.

That means those homeowners would make no property tax payments to support schools, police, fire, parks, libraries and the other services they count on local governments to provide, assuming the Legislature goes along and the measure can win support from 60% of voters in November. 

Tax roll growth tops $5 billion 

Countywide, new construction topped $5 billion for the third straight year. West Palm Beach, which is among the most active cities in attracting high-rise residential construction, had the greatest growth in new construction at $750 million.  

Smaller towns dominate among those having the greatest percentage rise in total valuation, with Lake Park topping the list at 38.5% followed by the growing community of Westlake, at 22%. Among big cities, only West Palm Beach cracked the top 10, at a 9.3% growth rate.

The valuations are preliminary because municipalities have a month to review them for accuracy and taxpayers have a chance to contest them before the end of the year.

The valuations are the first step in budgeting for local governments, as officials next must determine the tax rate. Tax bills are a combination of the tax rate multiplied by a percentage of the property’s value. The county and most cities depend on property taxes to pay for a large proportion of their spending. 

Two towns in Palm Beach County, Glen Ridge and Cloud Lake, both off Southern Boulevard near Palm Beach International Airport, have no property tax.

How they rank in value

1. Boca Raton, $42.5 billion
2. Palm Beach, $37.5 billion
3. West Palm Beach, $27.7 billion
4. Palm Beach Gardens, $23.5 billion
5. Delray Beach, $20.9 billion
6. Jupiter, $19.5 billion
7. Wellington, $13.8 billion
8. Boynton Beach, $11 billion
9. Riviera Beach, $9.9 billion
10. Royal Palm Beach, $5.3 billion
11. Highland Beach, $4.28 billion
12. North Palm Beach, $4.05 billion
13. Lake Worth Beach, $4 billion
14. Greenacres, $3.52 billion
15. Juno Beach, $2.76 billion
16. Manalapan, $2.53 billion
17. Palm Springs, $2.43 billion
18. Tequesta, $2.37 billion
19. Lantana, $2.2 billion
20. Gulf Stream, $2.04 billion
21. Westlake, $1.96 billion
22. Ocean Ridge, $1.95 billion
23. Lake Park, $1.78 billion
24. Palm Beach Shores, $1.03 billion
25. Atlantis, $812 million
26. Jupiter Inlet Colony, $731 million
27. Loxahatchee Groves, $729.9 million
28. Belle Glade, $721 million
29. South Palm Beach, $630 million
30. Hypoluxo, $608 million
31. Mangonia Park, $475.9 million
32. Lake Clarke Shores, $467 million
33. Village of Golf, $437 million
34. Haverhill, $205 million
35. Pahokee, $151 million
36. South Bay, $127 million
37. Briny Breezes, $116 million
38. Glen Ridge, $40.5 million
39. Cloud Lake, $17.8 million

How they rank in new construction 

1. West Palm Beach, $749.7 million
2. Palm Beach Gardens, $610.8 million
3. Boca Raton, $573 million
4. Lake Park, $419.3 million
5. Delray Beach, $305.9 million
6. Westlake, $262.5 million
7. Palm Beach, $179.9 million
8. Royal Palm Beach, $157.6 million
9. Jupiter, $131.2 million
10. Boynton Beach, $82.4 million
11. Wellington, $80.4 million
12. Palm Beach Shores, $69.7 million
13. Lake Worth Beach, $69.3 million
14. North Palm Beach, $34.5 million
15. Palm Springs, $31.9 million
16. Tequesta, $17.5 million
17. Riviera Beach, $16.5 million
18. Mangonia Park, $15.3 million
19. Lantana, $13.7 million
20. Juno Beach, $13.2 million
21. Loxahatchee Groves, $12.2 million
22. Highland Beach, $10.9 million
23. Belle Glade, $8.1 million
24. Greenacres, $8.1 million
25. Ocean Ridge, $6.5 million
26. Village of Golf, $6 million
27. Manalapan, $5.5 million
28. Haverhill, $5.4 million
29. Jupiter Inlet Colony, $3.9 million
30. Gulf Stream, $2.7 million
31. Hypoluxo, $2 million
32. Lake Clarke Shores, $985,337
33. Pahokee, $434,916
34. Glen Ridge, $90,980
35. Atlantis, $60,282
36. South Bay, $16,245
37. Cloud Lake, $10,256
38. South Palm Beach, $0
39. Briny Breezes, -$23,003