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BIE - Hotel Approval Process (with backup)MIAMI BEACH City of Miami Beach,1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov TO : FR O M : Mayor Steven Meiner and Members of the City Commission Eric Carpenter,City Manager ~,=oa..l='-C. M E E T IN G D A T E :February 3,2025 S U B JE C T:B U SIN E S S IM P A CT ESTIM A TE HO T ELA P P RO VA L P R OC ES S AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,AMENDING THE MIAMI BEACH RESILIENCY CODE,BY AMENDING CHAPTER 2, ENTITLED "ADMINISTRATION AND REVIEW PROCEDURES,"ARTICLE VII,ENTITLED "COMMISSION WARRANT,"TO CREATE SECTION 2.7.2,ENTITLED "HOTEL APPROVAL PROCEDURES"AND PROVIDING FOR CODIFICATION,REPEALER,SEVERABILITY,AND AN EFFECTIVE DATE. Is a Business Impact Estimate Required? ~Yes □No (If no,please check one of the boxes below) If one or more boxes are checked below,this means the City of Miami Beach has determined that a Business Impact Estimate for the above-referenced Ordinance is not required by State law. □The proposed Ordinance is required for compliance with Federal or State law or regulation;□The proposed Ordinance relates to the issuance or refinancing of debt;□The proposed Ordinance relates to the adoption of budgets or budget amendments,including revenue sources necessary to fund the budget;□The proposed Ordinance is required to implement a contract or an agreement, including,but not limited to,any Federal,State,local,or private grant or other financial assistance accepted by the City;□The proposed Ordinance is an emergency ordinance;□The Ordinance relates to procurement;or□The proposed Ordinance is enacted to implement the following: a.Private applications for comprehensive plan amendments and land development regulation amendments; b.Development orders,development permits,and development agreements; c.Sections 190.005 and 190.046,Florida Statutes,regarding community development districts; d.Section 553.73,Florida Statutes,relating to the Florida Building Code;or e.Section 633.202,Florida Statutes,relating to the Florida Fire Prevention Code. Business Impact Estimate Page2 If none of the above exceptions apply,this Business Impact Estimate is hereby provided in accordance with Section 166.041 (4),Florida Statutes. 1.Summary A summary of the proposed Ordinance and its purpose is more fully set forth in the Commission Memorandum accompanying the Ordinance,as well as in the recitals to the Ordinance itself,which are attached hereto. 2.An estimate of the direct economic impact of the proposed Ordinance on private,for- profit businesses in the City of Miami Beach,if any: (a)An estimate of direct compliance costs that businesses may reasonably incur; The proposed ordinance does not apply to existing,legally established businesses. (b)Any new charge or fee imposed by the proposed Ordinance or for which businesses will be financially responsible; The proposed ordinance does not apply to existing,legally established businesses. (c)An estimate of the City's regulatory costs,including estimated revenues from any new charges or fees to cover such costs. The proposed ordinance would generate no more than nominal additional regulatory costs,which may be associated with administration activities by applicable City departments. 3.Good faith estimate of the number of businesses likely to be impacted by the proposed Ordinance: The proposed ordinance does not apply to existing,legally established businesses. 14.Additional comments: Ordinances -RS {{item.number}} MIAMI BEACH COMMISSION MEMORANDUM TO:Honorable Mayor and Members of the City Commission FROM:Eric Carpenter,City Manager DATE: TITLE: December 11,2024 1 :35 p.m.First Reading Public Hearing HOTEL APPROVAL PROCESS AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA,AMENDING THE MIAMI BEACH RESILIENCY CODE, BY AMENDING CHAPTER 2,ENTITLED "ADMINISTRATION AND REVIEW PROCEDURES,"ARTICLE VII,ENTITLED "COMMISSION WARRANT,"TO CREATE SECTION 2.7.2,ENTITLED "HOTEL APPROVAL PROCEDURE,"TO REQUIRE THE APPROVAL OF A WARRANT BY THE CITY COMMISSION PRIOR TO THE REVIEW OF A LAND USE BOARD APPLICATION OR BUILDING PERMIT FOR A HOTEL,SUITE HOTEL,APARTMENT HOTEL,OR HOSTEL,SUBJECT TO EXCEPTIONS,AND ESTABLISH PROCEDURAL REQUIREMENTS AND REVIEW CRITERIA;AND PROVIDING FOR CODIFICATION,REPEALER,SEVERABILITY, AND AN EFFECTIVE DATE. RECOMMENDATION The Administration recommends that the Mayor and City Commission (City Commission)approve the subject ordinance at First Reading and schedule a Second Reading public hearing for February 2025. BACKGROUND/HISTORY On December 13,2023,at the request of Commissioner Joseph Magazine,the City Commission referred a discussion regarding the hotel approval process,pursuant to item R9 G,to the Land Use and Sustainability Committee (LUSC).Commissioners Tanya K.Bhatt,Alex Fernandez and Kristen Rosen Gonzalez were co-sponsors of the item. On March 5,2024,the LUSC combined and discussed the item with other hotel related items referred by the City Commission on December 13,2023 (C4 0 and C4 S)and continued the discussion pertaining to the regulation of future hotels to May 1,2024,with direction to the Administration to explore different options for City Commission approval of future hotels,where permitted.On May 1,2024,the LUSC deferred the discussion pertaining to the regulation of future hotels to the June 10,2024 meeting.On June 10,2024,the LUSC discussed and continued the item to the July 9,2024 LUSC meeting with direction to draft an ordinance in accordance with the following: 1.City Commission review should occur at the beginning of the approval process. 2.City Commission approval would apply to non-oceanfront and non-waterfront hotel projects, with option 2 in the LUSC memo used as a framework. 3.Commission review criteria should include impacts on residential uses. On July 9,2024,the item was deferred to a future date.On September 5,2024,the LUSC recommended that the proposed draft ordinance be referred to the Planning Board.On October 30,2024,at the request of Commissioner Joseph Magazine,the Mayor and City Commission referred the subject ordinance to the Planning Board (item C4 J). ANALYSIS Currently,any new hotel development consisting of ground up construction or additions to existing structures,requires the review and approval of the Design Review Board (DRB)or Historic Preservation Board (HPB).In those instances where a separate conditional use permit (CUP) may be required,Planning Board approval is also needed. The attached draft ordinance establishes a City Commission warrant process for future hotel approvals.The following is a summary of the proposal: •Approval from the City Commission would be required prior to the review of any Land Use Board application or the approval of any building permit for a hotel project.Hotel developments located on oceanfront properties are exempt and would not require a City Commission Warrant. •The warrant for hotel use,if applicable,would be granted by resolution of the City Commission,and an affirmative vote of five-sevenths of all members of the City Commission would be required. •The procedure for granting a warrant for a hotel would require a public hearing that must be noticed in accordance with the notice requirements of the applicable land use board. •Review criteria for the City Commission to consider in reviewing warrant applications for hotel uses has been established. •An applicability provision is included,which provides an exception for properties fronting Washington Avenue that have an active land use board application with a hearing file number and where a notice to proceed to public hearing has been issued by the City prior to July 1, 2024. The Administration has no objection to the proposal,as it is largely ministerial.However,the proposed warrant process would add another layer of review,as part of the overall development review process. PLANNING BOARD REVIEW On November 26,2024,the Planning Board is scheduled to hold a public hearing and transmit the proposed ordinance to the City Commission.The Administration will advise the City Commission on the recommendation of the Planning Board at the Commission meeting. FISCAL IMPACT STATEMENT No Fiscal Impact Does this Ordinance require a Business Impact Estimate?Yes (FOR ORDINANCES ONLY) If applicable,the Business Impact Estimate (BIE)was published on: See BIE at:https ://www .miamibeachfl.gov/city-hall/city-clerk/meeting-notices/ FINANCIAL INFORMATION Not Applicable CONCLUSION The Administration recommends that the City Commission approve the subject ordinance at First Reading and schedule a Second Reading public hearing for February 2025. Applicable Area Citywide Is this a "Residents Right to Know"item, pursuant to City Code Section 2-17? Yes Is this item related to a G.O.Bond Project? No Was this Agenda Item initially requested by a lobbyist which,as defined in Code Sec._2-481, includes a principal engaged in lobbying?No If so,specify the name of lobbyist(s)and principal(s): Department Planning Sponsor(s) Commissioner Joseph Magazine Cg-sponsor(s) Condensed Title 1:35 p.m.1st Rdg PH,Hotel Approval Process.(Magazine)PL 5/7 Hotel Approval Process ORDINANCE NO._ AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA,AMENDING THE MIAMI BEACH RESILIENCY CODE,BY AMENDING CHAPTER 2,ENTITLED "ADMINISTRATION AND REVIEW PROCEDURES,"ARTICLE VII, ENTITLED "COMMISSION WARRANT,"TO CREATE SECTION 2.7.2, ENTITLED "HOTEL APPROVAL PROCEDURE,"TO REQUIRE THE APPROVAL OF A WARRANT BY THE CITY COMMISSION PRIOR TO THE REVIEW OF A LAND USE BOARD APPLICATION OR BUILDING PERMIT FOR A HOTEL,SUITE HOTEL,APARTMENT HOTEL,OR HOSTEL, SUBJECT TO EXCEPTIONS,AND ESTABLISH PROCEDURAL REQUIREMENTS AND REVIEW CRITERIA;AND PROVIDING FOR CODIFICATION,REPEALER,SEVERABILITY,AND AN EFFECTIVE DATE. WHEREAS,hotels are permitted in a number of zoning districts throughout the City;and WHEREAS,if not appropriately regulated,hotel development has the potential to adversely impact the availability of existing affordable and workforce housing,city infrastructure, and the quality of life of nearby residents;and WHEREAS,the City of Miami Beach ("City")recognizes that more thorough review of new hotel projects is necessary to mitigate these potential adverse impacts;and WHEREAS,on September 5,2024,the Land Use and Sustainability Committee discussed this proposal and issued a favorable recommendation;and WHEREAS,the City has the authority to enact laws which promote the public health, safety,general welfare,and morals of its citizens;and WHEREAS,the amendments set forth below are necessary to accomplish all of the above objectives. NOW THEREFORE,BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA. SECTION 1.Chapter 2,entitled "Administration and Review Procedures,"Article VII,entitled Commission Warrant",is hereby amended as follows: CHAPTER 2.ADMINISTRATION AND REVIEW PROCEDURES i *¥ ARTICLE VII.Commission Warrant k *# 2.7.2 HOTEL APPROVAL PROCEDURE. In zoning districts or overlay districts where hotels.suite hotels.apartment hotels.or hostels are permitted,and in accordance with all applicable regulations set forth in such zoning district or overlay district.the City Commission shall first be required to approve a warrant for a hotel,suite hotel,apartment hotel.or hostel use,subject to the following requirements. a.Applicability.Approval of a warrant from the City Commission shall be required prior to the review of any Land Use Board application or the approval of any building permit for a hotel. suite hotel.apartment hotel or hostel (hereinafter."hotel")that includes new construction and/or the conversion to transient hotel use of existing floor area that is associated with non-transient use. b.Exemptions.Notwithstanding Section 7.7.2(a),in a zoning district or overlay district where hotel use is permitted,review under this section shall not be required if the hotel is proposed to be located on an oceanfront property. c.Voting requirement,notice,and procedure.The warrant may be approved by resolution of the City Commission.and an affirmative vote of five-sevenths of all members of the City Commission shall be required in order to approve the resolution.The City Commission shall be required to hold a quasi-judicial public hearing.subject to the requirements in Section 2.2.4 of the Resiliency Code.and Chapter 2 Article VIII of the City Code.The public hearing by the City Commission shall be (i)held prior to the acceptance of an application_to the Planning Board,Design_Review Board or Historic Preservation Board, as applicable.and {ii)noticed in accordance with the notice requirements for land development applications before the Planning Board,Design Reyiewy Board,or _Historic Preservation Board. d.Review criteria.In reviewing an application for a warrant.the City Commission's decision shall be based upon the following review criteria except as otherwise provided: 1.Whether the proposed hotel use is consistent and compatible with the comprehensive plan and any applicable neighborhood or redevelopment plans. 2.Whether the hotel will negatively affect the availability of existing affordable and work force housing.These criteria shall be considered for tracking purposes and to inform future policy discussions of the City Commission but may not serve as a basis for the approval or denial of a warrant application. 3.Whether the proximity of the proposed hotel to residential uses will create adverse impacts (including noise,traffic.queuing,and deliveries)and how such impacts will be mitigated. 4.Whether adequate off-street parking and loading spaces will be provided. 5.The impact of the employees of the hotel development on the demand in the city for housing,public transit,childcare and other social services,taking into consideration the impact of the part-time or seasonal nature of work at the hotel and the hotel employees'classifications. 6.The impact of the hotel on existing infrastructure based on its operational plan including the number of employees,number of guests,and proposed accessory uses. 7.Whether the applicant will take measures to employ residents of neighborhoods adjoining the hotel development project in order to minimize increased demand for regional transportation and to reduce demand for vehicle trips and vehicle miles traveled. 8.Whether the applicant will take measures to encourage hotel workers and guests to use public transportation,micromobility,and other non-automotive means of transportation. 9.Whether the hotel development will support small businesses in the immediate vicinity and whether the applicant will adopt any measures to increase demand for local goods and services. e.Appeal.A decision to approve or deny a warrant by the City Commission shall be final, and there shall be no further review thereof except by resort to a court of competent jurisdiction by petition for writ of certiorari. SECTION 2.REPEALER. All ordinances or parts of ordinances and all section and parts of sections in conflict herewith be and the same are hereby repealed. SECTION 3.CODIFICATION. It is the intention of the City Commission,and it is hereby ordained that the provisions of this ordinance shall become and be made part of the Code of the City of Miami Beach as amended;that the sections of this ordinance may be renumbered or relettered to accomplish such intention;and that the word "ordinance"may be changed to "section"or other appropriate word. SECTION 4.SEVERABILITY. If any section,subsection,clause or provision of this Ordinance is held invalid,the remainder shall not be affected by such invalidity. SECTION 5.APPLICABILITY, This Ordinance shall not apply to properties fronting Washington Avenue that have an active land use board application with a hearing file number and where a notice to proceed to public hearing has been issued by the City prior to July 1,2024. SECTION 6.EFFECTIVE DATE, This Ordinance shall take effect ten days following adoption. PASSED AND ADOPTED this day of2025. Steven Meiner,Mayor ATTEST: Rafael E.Granado,City Clerk APPROVED AS TO FORM AND LANGUAGE AND FOR EXECUTION City Attorney First Reading:December 11,2024 Second Reading:February 3,2025 \/erifjed Df. Thomas R.Mooney,AICP Planning Director T:Agenda\2024\11 December 2024\Planning\Hotel Approval Process -First Reading ORD.docx )3/2o 4 Date