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Ordinance 2019-4286TC -C DISTRICT CO -LIVING UNIT DENSITY CALCULATIONS COMPREHENSIVE PLAN AMENDMENT ORDINANCE NO. 2019-4286 AN ORDINANCE AMENDING THE CITY OF MIAMI BEACH YEAR 2025 COMPREHENSIVE PLAN, BY AMENDING CHAPTER 1, ENTITLED "FUTURE LAND USE ELEMENT"; OBJECTIVE 1, ENTITLED "LAND DEVELOPMENT REGULATIONS," AT POLICY 1.2, "TOWN CENTER — CENTRAL CORE CATEGORY (TC -C)," TO MODIFY HOW CO -LIVING UNITS AFFECT MAXIMUM DENSITY CALCULATIONS; AND AMENDING CHAPTER 3, ENTITLED "HOUSING ELEMENT," OBJECTIVE 1, ENTITLED "CREATION AND/OR PRESERVATION OF AFFORDABLE HOUSING" TO PROVIDE FOR THE DEVELOPMENT OF CO -LIVING UNITS IN ORDER TO ENCOURAGE THE DEVELOPMENT OF HOUSING AT AN ATTAINABLE RATE; AND PROVIDING FOR INCLUSION IN THE COMPREHENSIVE PLAN, TRANSMITTAL, 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 ballot question approved on November 7, 2017; and WHEREAS, the City of Miami Beach seeks to adopt regulations to ensure that the FAR increase approved by the City's voters results in redevelopment that encourages alternative modes of transportation, other than single occupancy vehicles, which modes include, without limitation, 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. The following amendments to the City's 2025 Comprehensive Plan Future Land Use Element are hereby adopted: CHAPTER 1 FUTURE LAND USE ELEMENT OBJECTIVE 1: LAND DEVELOPMENT REGULATIONS Policy 1.2 The land development regulations which implement this Comprehensive Plan shall, at a minimum, be based on and be consistent with s. 163.3202, F.S., and shall further be based on the following standards for land use category, land use intensity and land use: Town Center — Central Core Category (TC -C) Purpose: To encourage and enhance the high-intensity commercial employment center function of the North Beach Town Center's Central Core area; support the Town Center's role as the hub of community -wide importance for business, office, retail, governmental services, culture and entertainment; promote development of a compact, pedestrian and transit oriented, mixed-use area; provide opportunities for live -work lifestyles; and create a place that represents a unique, attractive and memorable destination for residents and visitors. Uses which may be Permitted: Various types of commercial uses including, business and professional offices, retail sales and service establishments, eating and drinking establishments, outdoor cafes, artisanal retail, neighborhood fulfillment centers; residential uses, including co - living units; and hotels. Other uses which may be permitted are accessory uses specifically authorized in this land use category, as described in the Land Development Regulations, which are required to be subordinate to the main use; and conditional uses specifically authorized in this land use category, as described in the Land Development Regulations, which are required to go through a public hearing process as prescribed in the Land Development Regulations of the Code of the City of Miami Beach. Density Limits: 150 dwelling units per acre; co -living units that are less than 550 square feet shall count as half of a unit for the purposes of calculating the maximum density. Intensity Limits: a floor area ratio of 3.5. Intensity may be further limited by such set back, height, floor area ratio and/or other restrictions as the City Commission acting in a legislative capacity determines can effectuate the purpose of this land use category and otherwise implement complementary public policy. However, in no case shall the intensity exceed the floor area ratio identified above. SECTION 2. The following amendments to the City's 2025 Comprehensive Plan Housing Element are hereby adopted: CHAPTER 3 HOUSING ELEMENT OBJECTIVE 1: CREATION AND/OR PRESERVATION OF AFFORDABLE HOUSING * * * Policy 1.10 , The City shall provide for the development of Co -Living Units that are less than 550 square feet in order to encourage the development of housing that is attainable by the workforce, subject to the restriction in the Land Development Regulations. SECTION 2. REPEALER. All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 3. SEVERABILITY. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 4. CODIFICATION. It is the intention of the City Commission that this Ordinance be entered into the Comprehensive Plan, and it is hereby ordained that the sections of this Ordinance may be renumbered or re - lettered to accomplish such intention; and that the word "ordinance" may be changed to "section" or other appropriate word. The Exhibits to this Ordinance shall not be codified, but shall be kept on file with this Ordinance in the City Clerk's Office. SECTION 5. TRANSMITTAL. The Planning Director is hereby directed to transmit this ordinance to the appropriate state, regional and county agencies as required by applicable law. SECTION 6. EFFECTIVE DATE. This ordinance shall take effect 31 days after the state land planning agency notifies the City that the plan amendment package is complete pursuant to Section 163.3184(3), Florida Statutes. PASSED AND ADOPTED this ,3/ day of lit/ , 2019. ranado, City Clerk an Gelb- `, Mayor First Reading: May 8, 2019 Second Reading: July 17, 019 Verified By: Thomas R. Mooney, ICP Planning Director APPROVED AS TO FORM AND LANGUAGE AND FOR EXECUTION City Attorney Date 0‘(-- T:\Agenda\2019\05 May\Planning\Micro Unit Density Calculations in TC -C District - COMP PLAN - First Reading ORD.docx MIAMI BEACH Ordinances - R5 D COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: July 31, 2019 11:20 a.m. Second Reading Public Hearing SUBJECT: TC -C DISTRICT CO -LIVING UNIT DENSITY CALCULATIONS COMPREHENSIVE PLAN AMENDMENT AN ORDINANCE AMENDING THE CITY OF MIAMI BEACH YEAR 2025 COMPREHENSIVE PLAN, BY AMENDING CHAPTER 1, ENTITLED "FUTURE LAND USE ELEMENT"; OBJECTIVE 1, ENTITLED "LAND DEVELOPMENT REGULATIONS," AT POLICY 1.2, "TOWN CENTER - CENTRAL CORE CATEGORY (TC -C)," TO MODIFY HOW CO -LIVING UNITS AFFECT MAXIMUM DENSITY CALCULATIONS; AND AMENDING CHAPTER 3, ENTITLED "HOUSING ELEMENT," OBJECTIVE 1, ENTITLED "CREATION AND/OR PRESERVATION OF AFFORDABLE HOUSING" TO PROVIDE FOR THE DEVELOPMENT OF CO -LIVING UNITS IN ORDER TO ENCOURAGE THE DEVELOPMENT OF HOUSING AT AN ATTAINABLE RATE; AND PROVIDING FOR INCLUSION IN THE COMPREHENSIVE PLAN, TRANSMITTAL, 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. Page 341 of 1288 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 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 1/3 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. SUMMARY Due to the lower population impact and lower floor area utilization rates associated with co -living units, the attached ordinance contains the following amendment to the comprehensive plan for the TC -C district: Page 342 of 1288 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 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, these modifications will likely result in the development of only one (1) major co -living building. 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. UPDATE The City Commission approved the subject ordinance, and corresponding LDR amendment, at first 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. 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. CONCLUSION The administration recommends that the City Commission adopt the subject ordinance. Legislative Tracking Planning Sponsor Commissioner John Elizabeth Aleman ATTACHMENTS: Description D Form Approved - ORD Page 343 of 1288