Resolution 2019-30665 RESOLUTION NO. 2019-30665
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE AND CITYWIDE PROJECTS COMMITTEE, AND APPROVING THE
DESIGN AND CONSTRUCTION OF A PROPOSED MIXED-USE PARKING
GARAGE AT THE CITY'S "P16" SURFACE PARKING LOT LOCATED AT 1262
COLLINS AVENUE, TO INCLUDE: (1) WORKFORCE HOUSING ON THE TOP
TWO (2) FLOORS, WITH A MINIMUM OF FIFTY (50) UNITS; (2)
APPROXIMATELY 4500 SQUARE FEET OF GROUND FLOOR RETAIL; AND A
PARKING GARAGE WITH UP TO 158 PARKING SPACES.
WHEREAS, workforce housing is affordable housing directed at individuals and their
families employed in the area's local workforce; and
WHEREAS, occupants of workforce housing expend no more than 30% of household
income on housing costs for utilities and rent/ mortgage for their residence; and
WHEREAS, in 2014, the Mayor and City Commission identified Ensuring Workforce
Housing for Key Industry Workers as one of the City's Key Intended Outcomes (KIO);
subsequently, the Administration has been working on exploring workforce housing options; and
WHEREAS, the construction of a parking garage at the City's P16 Surface Parking Lot,
located at 1262 Collins Avenue, was approved in the FY 2015-16 Capital Budget as part of the
City's initiative to expand municipal parking garages; and
WHEREAS, the current"P16" surface parking lot contains fifty three (53) parking spaces;
and
WHEREAS, at its April 2016 Commission meeting, the Mayor and City Commission
accepted the recommendation of the Finance and Citywide Projects Committee (FCWPC), and
directed the Administration to pursue new garage developments that included the incorporation
of workforce housing (via Resolution No. 2016-29355); and
WHEREAS, subsequently, in June 2016, the Mayor and City Commission adopted
Resolution No. 2016-29425, authorizing the City to enter into negotiations with Desman, Inc. for
Architectural and Engineering Design Criteria Professional Services for mixed use parking
garages; and
WHEREAS, Desman, Inc. was tasked in preparing the Design Criteria Package (DCP)
that will be provided to the Design Build contractor for design development and subsequent
construction of a new parking garage; and
WHEREAS, the proposed parking garage will be constructed at the southwest corner of
the intersection of 13th Street and Collins Avenue; and
WHEREAS, on numerous occasions,the Mayor and City Commission have discussed the
need to promote greater workforce/affordable housing, as highlighted at its Workforce/Affordable
Housing Workshop held on January 25, 2017; and
WHEREAS, in March 2017,the Mayor and City Commission adopted Resolution No. 2017-29758,
and accepted the recommendations made by the Land Use and Development Committee to
incentivize the private development of Workforce Housing, as follows:
A. Define Workforce Housing beneficiaries as those households earning up to 140% of Area
Median Income (AMI);
B. Assess the potential housing demand from the City' s workforce, and ensure that
appropriate units are developed;
C. Expedited review and permitting for construction and rehabilitation projects providing
Workforce Housing;
D. Encourage micro-housing and mixed-tenant projects on a case- by- case basis;
E. Utilize City-owned properties to develop Workforce Housing ( e.g., Barclay Apartments
and Collins Park artist workforce housing projects);
F. Establish a long-term deed restriction program to preserve affordability on City-assisted
developments;
G. Encourage mixed income/mixed use development through positive marketing efforts that
accentuate its benefits to the community;
H. Research the possibility of short-term tax abatements for eligible new projects; and
Promote these incentives to developers; and
WHEREAS, in May 2017, the Mayor and City Commission referred the proposed mixed
use P16 project (the "P16 Project") to the FCWPC, requesting that a financial analysis be
completed on options proposed by Desman, Inc.,to account for potential revenues from workforce
housing, retail and parking; and
WHEREAS, at the June 16, 2017 FCWPC meeting, the Office of Capital Improvement
Projects (CIP) staff presented three options to the Committee and the Committee recommended
proceeding with Option 3, which includes a 104,000 SF gross area building, with 5,000 SF of
ground floor retail, a net gain of 154 new parking spaces (207 total), and workforce housing on
the top floor; and
WHEREAS, the single floor (18,000 gross SF) of workforce housing provides
approximately 14,000 SF of living space, and 23 one-bedroom units, of 600 SF each. The building
would be seven stories, with a maximum height of 75 feet, and would require variances for the
height and setbacks; and
WHEREAS, in July 2017, the Mayor and City Commission accepted the FCWPC's
recommendation to proceed with the parking garage Option 3. As part of a separate Commission
agenda item, the Mayor and City Commission approved scheduling a public hearing to consider
the waiver of certain Land Development Regulations; and
WHEREAS, on September 13, 2017, the Mayor and City Commission approved a height
variance to 75 feet and reduced setbacks; and
WHEREAS, in October 2017, the Mayor and City Commission adopted Ordinance No.
2017-4149 in order to further facilitate the construction of workforce housing; and
WHEREAS, the ordinance amends the minimum and average unit size to 400 square feet
across all zoning districts within the City where multifamily residential units are allowed, reduces
the parking requirements in Chapter 130 of the City Code to one-half parking space per workforce
housing unit, and allows the new construction of workforce housing units on a site with an existing
building, without providing any additional parking; and
WHEREAS, a Design Criteria Package (DCP) has been completed for the P16 Project,
based on an option whereby the proposed structure would provide approximately 4,500 SF of
retail space at the ground level, 18,000 gross SF of workforce housing including twenty seven
(27) studio units on the top floor, and 202 gross parking spaces; and
WHEREAS, in order to ensure the viability and feasibility of incorporating workforce
housing into the P16 Project,the City contracted with the Concourse Group for consulting services
for Housing Public Private Partnerships (P3) to assist the City in identifying and creating
opportunities to partner with the private sector to develop workforce/affordable housing; and
WHEREAS, the Concourse Group developed and analyzed multiple development
feasibility models, and evaluated a broad range of building massing options and mixed income
levels to create a workforce housing development model that would attract a development partner;
and
WHEREAS, because the current parameters for the P16 Project were not feasible,
Concourse created an additional 6 alternative scenarios for the P16 Project; and
WHEREAS, the revised scenarios add additional square footage to each housing
scenario, but lowers the number of parking spaces and gives the project the financial feasibility
to stand on its own as a sustainable development that is financially attractive for a development
partner; and
WHEREAS, the 2018 report from The Concourse Group, The City of Miami Beach
Workforce Housing Initiative, suggests that by adding a second floor of workforce housing,
increasing the design to a minimum of fifty (50)workforce housing units, the P16 Project could be
financially attractive to a developer, and fifty (50) units should be designed to include a view for
all the units in a diverse housing mix of studios, one-bedroom and two-bedroom units, to
accommodate targeted workforce members; and
WHEREAS, currently, the parking and retail components of the project are funded, but
there is no available funding programmed in the Capital Budget to fund the housing component;
and
WHEREAS, at the FCWPC meeting on November 30, 2018, the Administration presented
the following two options to the Committee: 1) Proceed with the original option adopted by the
Commission; or 2) Expand beyond original parameters and eliminate one floor of parking to add
an additional floor of housing as a means of making the housing component attractive to a
potential developer, as recommended by the Concourse Group report; and
WHEREAS, the FCWPC accepted the Concourse Group option to add an additional level
of workforce housing, for a total of two (2) floors of workforce housing and the elimination of one
(1) floor of parking.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City Commission
herebyaccept the recommendation of the Finance and Citywide Projects Committee, and
approve the design and construction of a proposed mixed-use parking garage at Parking Lot P16,
located at 1262 Collins Avenue, to include: (1) workforce housing on the top two (2) floors, with a
minimum of fifty (50) units; (2) approximately 4500 square feet of ground floor retail; and (3) a
parking garage with up to 158 parking spaces.
PASSED and ADOPTED this t day of TQfte/ry , 2019.
.01.111111111
Dan Gelber, Mayor
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MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: January 16, 2019
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE FINANCE AND CITYWIDE PROJECTS COMMITTEE, AND
APPROVING THE DESIGN AND CONSTRUCTION OF A PROPOSED
MIXED-USE PARKING GARAGE AT PARKING LOT P16, LOCATED AT 1262
COLLINS AVENUE, TO INCLUDE HOUSING ON THE TOP TWO (2)
FLOORS (MINIMUM OF 50 UNITS), APPROXIMATELY 4500 S.F. GROUND
FLOOR RETAIL AND THE PARKING GARAGE (UP TO 158 SPACES),
BASED ON THE REPORT PREPARED BYTHE CONCOURSE GROUP.
RECOMMENDATION
The Administration recommends that the Mayor and City Commission approve the Resolution.
ANALYSIS
Workforce housing is affordable housing directed at individuals and their families employed in
the area's local workforce. Occupants of workforce housing expend no more than 30% of
household income on housing costs for utilities and rent/mortgage for their residence.
Workforce housing has many benefits to the community, such as:
• Reducing traffic (by eliminating cars carrying workers from other communities)
• Creating closer community ties (by those who live and work here)
• Encouraging residency by vital employees including teachers, emergency personnel, and
nurses, among others.
In 2014, the Mayor and City Commission identified Ensuring Workforce Housing for Key
Industry Workers as one of the City's Key Intended Outcomes (KI O); subsequently, the
Administration has been working on exploring workforce housing options.
The construction of a parking garage at the P16 Surface Parking Lot, located at 1262 Collins
Avenue, was approved in the FY 2015-16 Capital Budget as part of the City's initiative to
expand municipal parking garages.
At its April 2016 Commission meeting, the Mayor and City Commission accepted the
Page 488 of 1648
recommendation of the Finance and Citywide Projects Committee (FCWPC) directing the
Administration to pursue new garage developments that included the incorporation of workforce
housing (via Resolution No. 2016-29355).
Subsequently, in June 2016, the Mayor and City Commission adopted Resolution No. 2016-
29425 authorizing the City to enter into negotiations with Desman, Inc. for Architectural and
Engineering Design Criteria Professional Services for mixed use parking garages.
Desman, Inc. was tasked in preparing a Design Criteria Package (DCP) which shall be
provided to the Design Build Team for design development and subsequent construction of a
new parking garage. The proposed parking garage will be constructed on the property currently
occupied by surface parking lot P16 located at the southwest corner of the intersection of 13th
Street and Collins Avenue. The surface parking lot currently holds fifty three (53) parking
spaces.
The Mayor and Commission have been actively discussing the need to promote greater
workforce/affordable housing for the last couple of years as highlighted at its
Workforce/Affordable Housing Workshop held on January 25, 2017.
In March 2017, the City Commission adopted Resolution No. 2017-29758 which accepted the
recommendations made by the Land Use and Development Committee to incentivize the
private development of Workforce Housing:
A. Define Workforce Housing beneficiaries as those households earning up to 140% of Area
Median Income (AMI);
B.Assess the potential housing demand from the City' s workforce, and ensure that appropriate
units are developed;
C. Expedited review and permitting for construction and rehabilitation projects providing
Workforce Housing;
D. Encourage micro-housing and mixed-tenant projects on a case- by-case basis;
E. Utilize City-owned properties to develop Workforce Housing ( e.g., Barclay Apartments and
Collins Park artist workforce housing projects);
F. Establish a long-term deed restriction program to preserve affordability on City-assisted
developments;
G. Encourage mixed income/mixed use development through positive marketing efforts that
accentuate its benefits to the community;
H. Research the possibility of short-term tax abatements for eligible new projects; and
I. Promote these incentives to developers.
In May 2017, the Mayor and City Commission referred the proposed parking garage at P16
project to the FCWPC requesting that a financial analysis be completed on options proposed
by Desman, Inc., to account for potential revenues from workforce housing, retail and parking.
At the June 16, 2017 FCWPC meeting, the Office of Capital Improvement Projects (CI P) staff
presented three options to the Committee. The Committee recommended proceeding with
Option 3 which includes a 104,000 SF gross area building, with 5,000 SF of ground floor retail,
a net gain of 154 new parking spaces (207 total), and workforce housing on the top floor. The
Page 489 of 1648
single floor(18,000 gross SF) of workforce housing provides approximately 14,000 SF of living
space, and 23 one-bedroom units, of 600 SF each. The building will be seven stories, with a
maximum height of 75 feet and would require variances for the height and setbacks.
In July 2017, the Mayor and City Commission accepted the FCWPC's recommendation to
proceed with the parking garage Option 3. As part of a separate Commission agenda item, the
Mayor and City Commission approved scheduling a public hearing to consider the waiver of
Development Regulations. On September 13, 2017, the Mayor and City Commission approved
a height variance to 75 feet and reduced setbacks.
In October 2017, the Mayor and City Commission adopted Ordinance No. 2017-4149 in order
to further facilitate the construction of workforce housing. The ordinance amends the minimum
and average unit size to 400 square feet across all zoning districts within the City where
multifamily residential units are allowed. It also reduces the parking requirements in Chapter 130
of the City Code to one-half parking space per workforce housing unit. The ordinance also
allows the new construction of workforce housing units on a site with an existing building, without
providing any additional parking.
In order to ensure the viability and feasibility of incorporating workforce housing into the project,
the City contracted with the Concourse Group for consulting services for Housing Public Private
Partnerships (P3) to assist the City in identifying and creating opportunities to partner with the
private sector to develop workforce/affordable housing. The Consultant serves as the City's
primary advisor/Consultant throughout each project to achieve project goals.
The Concourse Group developed and analyzed multiple developmentfeasibility models as well
as evaluated a broad range of building massing options and mixed income levels to create a
workforce housing development model that would attract a development partner. Of the eight
development scenarios considered, only two of them meet the parameters originally approved
by the City Commission. However, neither of these scenarios would meet the financial
performance criteria and return necessary to attract a development partner. Because the current
parameters were not feasible, Concourse created an additional 6 alternative scenarios for the
site. The revised scenarios add additional square footage to each housing scenario but lower
the number of parking spaces. These actions give the project the financial feasibility to stand on
its own as a sustainable development that is financially attractive for a development partner.
The 2018 report from The Concourse Group, The City of Miami Beach Workforce Housing
Initiative, suggests that by adding a second floor of workforce housing, increasing the design to
a minimum of fifty (50) units, the project could be financially attractive to a development entity.
The fifty(50) units should be designed to include a view for all the units in a diverse housing mix
of studios, one-bedroom and two-bedroom units, to accommodate targeted workforce
members.
A Design Criteria Package (DCP) has been completed, based on an option whereby the
proposed structure would provide approximately 4,500 SF of retail space at the ground level,
18,000 gross SF of workforce housing including twenty seven (27) studio units on the top floor,
and 202 gross parking spaces.
Page 490 of 1648
A comparison of the schematic design from the DCP and the schematic design suggested by
the report from The Concourse Group is provided below:
ORIGINAL OPTION
Parking garage with seven (7) floors (up to 75'-0" in height), 202 spaces (net gain of 149
spaces), with 4,500 SF ground floor retail, and 27 units (14,000 SF net) of workforce housing
on the top floor:
• Total Project Cost for Parking and Ground floor retail: $11,241,800
• Total Project Cost for Workforce Housing Units: $ 7,200,000
• Revenue from Parking Spaces (202): Approximately$2,390 per space, or$482,780 annually.
• Revenue from Ground Floor Retail: 4,500 SF at$62 per SF, or$279,000 annually.
• Revenue from Workforce Housing Units: 14,000 SF at$2.80 per SF, or$470,400 annually.
CONCOURSE GROUP OPTION
Parking garage with seven (7) floors (up to 75'-0" in height), 158 spaces (net gain of 105
spaces), with 4,500 SF ground floor retail, and 50 units (28,000 SF net) of workforce housing
on the two (2)top floors:
• Total Project Cost for Parking and Ground floor retail: $ 9,002,200
• Total.Project Cost for Workforce Housing Units: $14,400,000
• Revenue from Parking Spaces (158): Approximately$2,390 per space, or$377,620 annually.
• Revenue from Ground Floor Retail: 4,500 SF at$62 per SF, or$279,000 annually.
• Revenue from Workforce Housing Units: 28,000 SF at$2.80 per SF, or$940,800 annually.
The above estimated parking revenue information was provided by the Parking Department; the
Tourism Culture and Economic Development Department provided the anticipated retail data;
and the projected rent for housing data and Workforce Housing Analysis was prepared by The
Concourse Group for the Office of Housing and Community Services.
Currently, the parking and retail components of the project are funded. There is no available
funding programmed in the Capital Budget to fund the housing component.
At the FCW PC meeting on November 30, 2018, the Administration presented the following two
options to the Committee: 1) Proceed with the original option adopted by the Commission; or 2)
Expand beyond original parameters and eliminate one floor of parking to add an additional floor
of housing as a means of making the housing component attractive to a potential developer, as
recommended by the Concourse Group report.
FCWPC accepted the Concourse Group option to add an additional level of workforce housing,
for a total of two (2)floors of workforce housing and the elimination of one (1)floor of parking.
CONCLUSION
The Administration is requesting acceptance of the recommendation from the FCWPC, to
proceed with the Concourse Group option to include workforce housing on the top two (2)floors
(minimum of 50 units), approximately 4,500 SF ground floor retail and the parking garage (up to
158 spaces).
Legislative Tracking
Page 491 of 1648
Capital Improvement Projects
ATTACHMENTS:
Description
o Resolution
Page 492 of 1648