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Ordinance 2019-4287 TC-C DISTRICT CO-LIVING UNIT DENSITY CALCULATIONS LAND DEVELOPMENT REGULATIONS ORDINANCE NO. 2019-4287 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CODE OF THE CITY OF MIAMI BEACH, SUBPART B, ENTITLED "LAND DEVELOPMENT REGULATIONS," BY AMENDING CHAPTER 142, ENTITLED "ZONING DISTRICTS AND REGULATIONS," ARTICLE II, ENTITLED "DISTRICT REGULATIONS," DIVISION 21, ENTITLED "TOWN CENTER-CENTRAL CORE (TC-C) DISTRICT," TO MODIFY HOW THE MAXIMUM NUMBER OF CO-LIVING UNITS IS CALCULATED, MODIFY THE MAXIMUM NUMBER OF CO-LIVING UNITS, AND MODIFY HOW CO-LIVING UNITS AFFECT MAXIMUM DENSITY CALCULATIONS; AND PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE. WHEREAS, in September 2015, at the recommendation of the Mayor's Blue Ribbon Panel on North Beach and after an appropriate Request for Qualifications had been issued, the City Commission entered into an agreement with Dover, Kohl and Partners, Inc. to prepare a master plan for the North Beach district of the City; and WHEREAS, on October 19, 2016, and pursuant to City Resolution No. 2016-29608, the Mayor and City Commission adopted the North Beach Master Plan developed by Dover, Kohl and Partners Inc. after significant public input; and WHEREAS, the North Beach Master Plan identifies the Town Center area as being in need of redevelopment and revitalization; and WHEREAS, the North Beach Master Plan identifies Micro-Unit Housing as an option for encouraging attainable housing if regulated properly; and WHEREAS, the North Beach Master Plan recommended increasing the FAR to 3.5 for the Town Center zoning districts (TC-1, TC-2, and TC-3) within the Town Center district areas; and WHEREAS, City Charter Section 1.03(c), requires that any increase in zoned FAR for any property in the City must be approved by a majority vote of the electors of the City of Miami Beach; and WHEREAS, on November 7, 2017, and pursuant to Resolution No. 2016-29608, the following ballot question was submitted to the City's voters: FAR Increase For TC-1, TC-2 and TC-3 to 3.5 FAR— Floor area ratio (FAR) is the measure the City utilizes to regulate the overall size of a building. Should the City adopt an ordinance increasing FAR in the Town Center (TC) zoning districts (Collins and Dickens Avenues to Indian Creek Drive between 69 and 72 Streets) to 3.5 FAR from current FAR of 2.25 to 2.75 for the TC-1 district; from 2.0 for the TC-2 district; and from 1.25 for the TC-3 district; and WHEREAS, the ballot question was approved by 58.64 percent of the City's voters; and WHEREAS, on May 16, 2018, the City Commission adopted Comprehensive Plan Amendment "Miami Beach 18-1 ESR" as ordinance no. 2018-4189, providing for an FAR of 3.5, for properties with a PF, TC-1, TC-2, and TC-3 future land use designation that are located within the North Beach Town Center Revitalization Overlay; and WHEREAS, on May 16, 2018, the City Commission adopted Ordinance No. 2018-4190 which amended the Land Development Regulations to provide for an FAR of 3.5 for properties with a TC-1, TC-2, and TC-3 zoning designation for the properties located within the area described in the FAR increase ballot question approved on November 7, 2017; and WHEREAS, the City of Miami Beach seeks to adopt regulations to ensure that the FAR increase results in redevelopment that encourages alternative modes of transportation to single occupancy vehicles; including, but not limited to walking, bicycling, and public transportation; and WHEREAS, Objective 1 of the Housing Element of the Comprehensive Plan and subsequent policies encourage the creation and preservation of workforce and affordable housing throughout the City; and WHEREAS, the City finds that appropriately developed Micro-Units can provide additional flexibility and increase opportunities to provide housing that is rented at an attainable rate for the workforce; and WHEREAS, the City of Miami Beach has the authority to enact laws which promote the public health, safety, and general welfare 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 142, entitled "Zoning Districts and Regulations," Article II, entitled "District Regulations," Division 21, entitled "Town Center-Central Core (TC-C) District," is hereby amended as follows: CHAPTER 142 ZONING DISTRICTS AND REGULATIONS ARTICLE II. — DISTRICT REGULATIONS * * * DIVISION 21. -TOWN CENTER-CENTRAL CORE (TC-C) DISTRICT Sec. 142-741. - Main permitted uses, accessory uses, exception uses, special exception uses, conditional uses, and prohibited uses and supplemental use regulations. Land uses in the TC-C district shall be regulated as follows: * * * (b) The following supplemental regulations shall apply to specific uses in the TC-C district: (1) There shall be no variances regarding the regulations for permitted, prohibited, accessory, exception, special exception, and conditional uses in subsection 147- 741(a); and the supplemental regulations of such uses and subsection 147-741(b). (2) Use limitations. a. The following limits shall apply for residential and hotel uses: i. Hotel rooms. There shall be a limit of 2,000 hotel units within the TC-C district. ii. Apartments. There shall be a limit of 500 apartment units built within the TC-C district over and above the maximum allowable density and intensity, prior to the adoption of the FAR increase approved on November 7, 2017. This limit shall not authorize exceeding the maximum density authorized within the adopted comprehensive plan. iii. Workforce and affordable housing and co-living units. There shall be a combined limit of 500 workforce housing, affordable housing, or co-living units built within the TC-C district over and above the maximum allowable density prior to the adoption of the FAR increase approved on November 7, 2017. However, a co-living unit that is less than 550 square feet shall count as half of a unit for the purposes of calculating the maximum number of units. This limit shall not authorize exceeding the maximum density authorized within the adopted comprehensive plan. iv. Co-living units. Notwithstanding the foregoing limitations, there shall be a limit of 312 co-living units built within the TC-C district. * * * Sec. 142-743. -General development regulations. * * * (d) The maximum residential density: 150 units per acre. (1) The maximum residential density of may be increased by up to 80 percent beyond the maximum residential density if the development incorporates certified workforce or affordable housing units. The additional density may only be utilized for workforce or affordable housing units. (2) Co-livinq units that are less than 550 square feet shall count as half of a unit for the purposes of calculating the maximum allowable density. SECTION 2. Repealer. All ordinances or parts of ordinances and all section and parts of sections in conflict herewith 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. Effective Date. This Ordinance shall take effect ten days following adoption. PASSED AND ADOPTED this 3/ day of 71411 , 2019. ,,,,,, a ___ Dan G= Ger, Mayor ATTEST' rte'.,(,,`NB`&�,„4,, Rafa E. Granado, ity /I? rk f�P''' ••�ti!, - �` � � � - - • DASTOFORM INCORP ORATED AND LANGUAGE '• AND FOR EXECUTION I. 'sok" .CH 26 c orney • ate First Reading: May 8, 2019 1V\� Second Reading: July 31, 201^ Verified By: IL JA T'.mas R. Moo'e , AICP Planning Director T:1Agenda\2019\07 July\Planning\July 31 2019\Micro Unit Density Calculations in TC-C District-LDR Second Reading ORD.docx Ordinances - R5 E IAMI BEH . COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: July 31, 2019 11:25 p.m. Second Reading Public Hearing SUBJECT: TC-C DISTRICT CO-LIVING UNIT DENSITY CALCULATIONS LAND DEVELOPMENT REGULATIONS AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CODE OF THE CITY OF MIAMI BEACH, SUBPART B, ENTITLED "LAND DEVELOPMENT REGULATIONS," BY AMENDING CHAPTER 142, ENTITLED "ZONING DISTRICTS AND REGULATIONS," ARTICLE II, ENTITLED "DISTRICT REGULATIONS," DIVISION 21, ENTITLED "TOWN CENTER-CENTRAL CORE (TC-C) DISTRICT," TO MODIFY HOW THE MAXIMUM NUMBER OF CO-LIVING UNITS IS CALCULATED, MODIFY THE MAXIMUM NUMBER OF CO-LIVING UNITS, AND MODIFY HOW CO-LIVING UNITS AFFECT MAXIMUM DENSITY CALCULATIONS; AND PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY,AND AN EFFECTIVE DATE. RECOMMENDATION The administration recommends that the City Commission adopt the subject ordinance. ANALYSIS HISTORY On January 16, 2019 at the request of Commissioner John Elizabeth Aleman, the City Commission referred the discussion item to the Land Use and Development Committee (LUDC) (Item C4 AA). On March 6, 2019 the LUDC directed the administration to draft ordinances and recommended that the City Commission refer the ordinances to the Planning Board for review and recommendation. On April 10, 2019 the City Commission referred the item to the Planning Board (Item C4 T). PLANNING ANALYSIS On November 14, 2018, the City Commission adopted ordinance 2018-4224, establishing the Town Center—Central Core (TC-C) zoning district. Pursuant to the recommendations of the North Beach Master Plan, the ordinance allowed for a housing-type that is new to the City known as a co-living unit, which may also be known as a micro-unit. Under the land development regulations (LDR's), a co-living unit is a residential unit that is between 375 SF and 550 SF in size. The code requires that buildings with co-living units have a minimum of Page 349 of 1288 20 percent of the gross floor area for amenity space. The ordinance also allows for a total of 312 co- living units within the TC-C district, which represents approximately ten percent (10%) of the total allowable units in the TC-C district. Co-living and micro units are becoming increasingly common throughout urban cities in the United Sates. Due to their smaller sizes, it is expected that co-living units will have more attainable rents, while still providing a significant number of amenities for residents that allow for high levels of social interaction. They are shown to attract young professionals that are not looking for the expense and responsibilities of home ownership and retirees looking to downsize. Attracting such residents is desirable in order to encourage the economic development of the North Beach Town Center. Pursuant to the Miami Beach 2025 Comprehensive Plan, there is a limitation of 150 dwelling units per acre within the TC-C district. Atypical block north of 71st Street within the TC-C district contains approximately 75,250 SF or 1.73 Acres. At the density of 150 units per acre, a 1.73-acre site would allow for a maximum of 259 units. Since the TC-C district allows for a maximum floor area ratio (FAR) of 3.5, such site would allow for a maximum floor area of 263,375 SF. Under current regulations, a 375 SF co-living unit counts the same as a much larger conventional or luxury unit for density and planning purposes. A floor area analysis of a 75,250 SF site in the TC-C district indicates that 259 co-living units, at 375 SF for each unit,would require approximately 97,172 SF of floor area for the units alone, and 111,748 SF of floor area including an additional 15% of floor area for circulation and back of house purposes. This represents approximately 42% of available floor area, leaving 151,627 SF or 58% of the available floor area for commercial uses and amenities. By contrast, in a building containing conventional residential units, with an average unit size of 700 SF per unit, the residential uses would require approximately 79%of the available floor area. As such,the lower utilization of overall FAR for a co-living building would likely leave more floor area available for other uses than a building with conventional residential units. Due to the small size of co-living units, they will likely house fewer people than a conventional housing unit. For planning purposes, it is estimated that a conventional housing unit has 2.5 people per dwelling unit. A report from the Urban Land Institute(UL I)entitled The Macro Viewon Micro Units indicates that the ability to live alone is one of the primary reasons for people to move into a co-living unit. Because of the size of a co-living unit and the expectation of more attainable rents,itis more likely that they will be made up of single-person households. Because a co-living unit is roughly half the size of a conventional unit, it can be estimated that the planning impact of a co-living unit will be half (1/2)that of a conventional unit,or approximately 1.25 people per dwelling unit. If a co-living unit counted as half of a conventional unit, a 1.73-acre site could contain up to 518 co-living units. This would require approximately 194,344 SF for the units alone and 223,498 SF including an additional 15% of floor area for circulation and back of house purposes. This would also represent approximately 85%of the allowable floor area. Due to the requirement that 20% of the gross floor area be used for amenities, it is unlikely that a block will contain more than 490 co-living units, which would consume approximately 80% of the available floor area. 51,631 SF or 20%of the available floor area would be available for amenities,including some commercial uses. PLANNING BOARD REVIEW On April 30, 2019, the Planning Board held a public hearing and transmitted the ordinance to the City Commission with a favorable recommendation, by a vote of 5-0. SUMMARY/UPDATE The City Commission approved the subject ordinance, and corresponding comprehensive plan amendment, at first Page 350 of 1288 reading on May 8, 2019. Due to the minimum 30 day review period by all applicable review agencies for the comprehensive plan amendment, second reading/adoption of this ordinance was set for July 17, 2019. On July 17, 2019,the item was opened and continued to July 31,2019. Due to the lower population impact and lower floor area utilization rates associated with co-living units,the ordinance proposed at first reading contained the following recommended amendments to the LD R's for the TC-C district: 1)Count a co-living unit as one-half(1/2)of a conventional unit for the purposes of calculating the maximum allowable density and population impact;and 2)Double the limit of co-living units within the TC-C district from a total of 312 units to 624 units. At first reading the City Commission approved the amendment to count co-living as 1/2 of a conventional unit, but did not increase the current cap of 312 co-living units.The modification of the density will increase the feasibility of co- living developments; however,not increasing the cap limits the number of projects that can develop such units. Having more flexibility regarding the number of co-living units may improve the feasibility of many developments. As indicated previously, the proposed amendment is not expected to result in a greater population impact than if those units were developed as conventional residential units. Since a single block will not be able to accommodate more than 518 co-living units,the administration recommended increasing the overall cap to 624 units within the TC- C district,as the modification would likely result in the development of only one(1)major co-living building. Since first reading approval of the ordinance, the following three development applications have been submitted to be reviewed by the Design Review Board(DRB): 1.7145 Carlyle Avenue project: 125 co-living units out of 283 units. 2.6970 Collins Avenue project: 11 co-living units out of 21 units. 3.6988 Abbott Avenue Project:0 co-living units out of 125 units. Total: 136 co-living units. Additionally,pending the approval of a requested alley vacation,the developer of the parcel located on 71st and 72nd Streets, between Abbott and Byron Avenues,plans to submit a development project to the DRB before the end of the year that could contain up to 40 co-living units.This would bring the total number of proposed co-living units within the TC-C district to 176 Units. In light of the forward movement in general, and of co-living in particular, unit applications within the area, the administration would again strongly recommend an increase in the overall cap of co-living units within the TC-C district. While an increase to 624 units is recommended, a lesser increase would also be beneficial, in order to accommodate a potential future increase in co-living units. Finally, all of the applicable review agencies have either endorsed, or issued letters of no objection, regarding the corresponding comprehensive plan amendment to count a co-living unit as one-half(1/2)of a conventional unit for the purposes of calculating the maximum allowable density and population impact. Additionally, some of the review agency comments were favorable toward the concept of co-living, particularly as a way of diversifying housing types in Miami Beach. Page 351 of 1288 CONCLUSION The administration recommends that the City Commission adopt the subject ordinance, inclusive of an increase in the limit of co-living units within the TC-C district from the current total of 312 units to 500 units. Legislative Tracking Planning Sponsor Commissioner John Elizabeth Aleman ATTACHMENTS: Description o Form Approved ORD • Page 352 of 1288