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Ordinance 2019-4303 DEVELOPMENT REGULATIONS FOR HOTELS ON LINCOLN ROAD (Revised at Second Reading) ORDINANCE NO. 2019-4303 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CODE OF THE CITY OF MIAMI BEACH, FLORIDA, ,BY AMENDING CHAPTER 130, ENTITLED "OFF-STREET PARKING," ARTICLE II,' "DISTRICTS; REQUIREMENTS," SECTION 130-33, "OFF-STREET PARKING REQUIREMENTS FOR PARKING DISTRICTS NOS.2, 3, 4, 5, 6,AND 7," TO AMEND THE OFF-STREET PARKING REQUIREMENTS FOR HOTEL UNITS ON LINCOLN ROAD BETWEEN ALTON ROAD AND WASHINGTON AVENUE; BY AMENDING CHAPTER 142, ENTITLED "ZONING DISTRICTS AND REGULATIONS," ARTICLE II, ENTITLED "DISTRICT REGULATIONS," DIVISION 6, "CD-3 COMMERCIAL, HIGH INTENSITY DISTRICT," SECTION 142-337, "DEVELOPMENT REGULATIONS AND AREA REQUIREMENTS," TO AMEND THE MINIMUM HOTEL UNIT SIZE FOR NEW HOTEL UNITS AND THE MAXIMUM BUILDING HEIGHT FOR HISTORIC BUILDINGS ON LINCOLN ROAD; AND BY AMENDING CHAPTER 142, ENTITLED "ZONING DISTRICTS AND REGULATIONS," ARTICLE IV, "SUPPLEMENTARY DISTRICT REGULATIONS," DIVISION 5, "HEIGHT REGULATIONS," TO PROVIDE ADDITIONAL REGULATIONS FOR ROOFTOP ADDITIONS FOR HISTORIC BUILDINGS ON LINCOLN ROAD; AND PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION AND AN EFFECTIVE DATE. WHEREAS, the City of Miami Beach desires to amend its land development regulations to incentivize the development of hotel units on Lincoln Road; and WHEREAS, changes in patterns and norms regarding the use of automobiles in urban areas, such as Miami Beach, have reduced the need for off-street parking associated with hotels, particularly in the Lincoln Road neighborhood;and WHEREAS, the pedestrian-friendly and vibrant character of Lincoln Road promotes a guest experience that could be complemented by new hotels, to encourage activation on the street;and WHEREAS, the amendments set forth herein, including the height incentives, would promote responsible hotel development on Lincoln Road,while preserving contributing buildings on Lincoln Road. NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA. SECTION 1. Chapter 130 of the City Code, entitled "Off-street parking," Article II, "Districts; requirements," Section 130-33, "Off Street parking requirements for parking districts nos. 2, 3, 4, 5, 6 and 7,"is hereby amended as follows: CHAPTER 130 OFF-STREET PARKING ARTICLE II. - DISTRICTS; REQUIREMENTS * * * Sec. 130-33. - Off-street parking requirements for parking districts nos. 2, 3, 4, 5, 6, and 7. * * * (26) Hotel, suites hotel, motel, or motor lodge: One space per unit, except as follows: Properties located within a local historic district or National Register Historic District New floor area for hotel rooms, associated with .5 spaces per unit, up to a retaining, preserving and restoring a building or maximum of 100 units and 1 structure that is classified as "contributing" as of space per unit for all units in March 13, 2013, as defined below excess of 100 units New hotel units as part of additions to contributing No off-street parking requirement buildings on Lincoln Road between Orcxcl Pennsylvania Avenue and Lenox Avenue Other(e.g., new construction or substantial 1 space per unit demolition of contributing building) * * * * * SECTION 2. Chapter 142 of the City Code, entitled"Zoning districts and regulations,"Article II,"District regulations," Division 6, "CD-3 Commercial, high intensity district," Section 142-337, "Development regulations and area requirements,"is hereby amended as follows: CHAPTER 142 ZONING DISTRICTS AND REGULATIONS * * * ARTICLE II. - DISTRICT REGULATIONS * * * DIVISION 6. CD-3 COMMERCIAL, HIGH INTENSITY DISTRICT lj * * * Section 142-337. Development regulations and area requirements. * * * (c) The lot area, lot width, unit size and building height requirements for the CD-3 commercial, high intensity district are as follows: Minimum Minimum Minimum Average Maximum Lot Area Lot Width Unit Size Unit Size Building (Square Feet) (Feet) (Square Feet) (Square Feet) Height (Feet) Commercial—N/A 75 feet. New construction— Lots on the north side e 550 of Lincoln Road, Rehabilitated between Drcxcl buildings-400 Pennsylvania Avenue Non-elderly and and Lenox Avenue, elderly low and Commercial— with a minimum lot moderate income N/A area of 30,000 square housing-400 New feet, and which contain construction— Workforce housing— a contributing building 400 800 and an attached Hotel unit: Rehabilitated addition providing a Commercial— Commercial—! 15%: 300-335 buildings-550 minimum of 100 hotel None None 85/oo Non-elderly , . 335+ units, where the Residential— Residential— For contributing hotel and elderly low addition is set back at 7,000 50 structures, located and moderate least 75 feet from the within an individual income Lincoln Road property historic site, a local housing-400 line, and has a street historic district or a Workforce side setback of no less national register housing-400 than 25 feet–75 feet. district, which are Hotel units— Notwithstanding the being renovated in N/A foregoing requirements accordance with the for lots within the Secretary of the architectural district, for Interior Standards lots fronting on James and Guidelines for Avenue, bounded by the Rehabilitation of 17 th Street to the north Historic Structures as and Lincoln Road to II amended, retaining the south, the historic the existing room preservation board, in configuration shall be accordance with the permitted, provided certificate of all rooms are a appropriateness minimum of 200 criteria in chapter 118, square feet. article X, shall have Additionally, existing discretion to allow up room configurations to 75 feet in height for for the above those properties that described hotel provide a minimum of structures may be five stories of parking, modified to address of which a minimum of applicable life-safety 250 spaces must be and accessibility unencumbered by any regulations, provided use at the property and the 200 square feet provided further that a minimum unit size is minimum setback of 75 maintained, and feet shall be required provided the from Collins and maximum occupancy Washington Avenue for per hotel room does any portion of a not exceed 4 building above 50 feet persons. For new in height. hotel units within Lots within the attached or detached architectural district: 50 additions to feet. contributing buildings Lots fronting on 17th on the north side of Street: 80 feet. Lincoln Road, City Center Area between Drcxc! (bounded by Drexel Pennsylvania Avenue Avenue, 16th Street, and Lenox Avenue, Collins Avenue and the 1s1 with at least 5% of south property line of the total floor area those lots fronting on dedicated to amenity the south side of space, the minimum Lincoln Road): 100 unit size shall be 200 feet. square feet. For new Notwithstanding the hotel units within above, the design attached or detached review board or historic additions to preservation board, in contributing buildings accordance with the on the south side of applicable review Lincoln Road, criteria, may allow up between Drcxc4 to an additional five Pennsylvania Avenue feet of height, as and Lenox Avenue, measured from the with at least 5% of base flood elevation the total floor area plus maximum dedicated to amenity freeboard, to the top of space, the average the second floor slab. unit size shall be 250 This provision shall not square feet. apply to existing historic districts or existing overlay districts (existing as of 7/26/2017), or commercial buildings immediately adjacent to residential district not separated by a street. However, an applicant may seek approval from the historic preservation board or design review board, as may be applicable, to increase height in accordance with the foregoing within any historic district or overlay district created after 7/26/2017 Notwithstanding the foregoing requirement for City Center Area, the following additional shall apply: The height for lots fronting on Lincoln Road and 16th Street between Drexel Avenue and Washington Avenue are limited to 50 feet for the first 50' of lot depth. The height for lots fronting on Drexel Avenue is limited to 50 feet for the first 25' of lot depth (except as provided in section 142-1161). { (d) Lincoln Road hotel incentives and public benefits program. In order for a hotel on Lincoln Road to be constructed with a minimum unitsize of 200 square feet (as applicable to hotels on the north side of Lincoln Road)or a minimum average unit size of 250 square foot(as applicable to hotels on the south side of Lincoln Road), and in order to construct a hotel on Lincoln Road that is taller than 50 feet, the portion of Lincoln Lane abutting the subject property, as well as the remaining portion of Lincoln Lane from block-end to block-end, shall be fully improved subject to the review and approval of the Public Works Department. Additionally, for a hotel to be eligible for the unit size and height incentives set forth herein, participation in a public benefits program, as further set forth below, shall be required: (1) Provide ground-floor public benefit space. On-site, ground floor space within the building in which the hotel is located shall be provided, with a minimum area of 500 square feet, for use by Miami Beach-based not-for-profit entities and/or artisans, as workshops, or for display or demonstration purposes, either of which shall be open to public view ("Public Benefit Space"). Any required land use board approvals associated with a Public Benefit Space approved pursuant to this paragraph shall be the responsibility of the non-profit entity or artisan, respectively. (2) Contribution to Art in Public Places fund. As an alternativo In addition to providing an on-site Public Benefit Space pursuant to subsection (d)(1), above, a hotel fgaav shall provide a contribution to the City's Art in Public Places fund, the amount of which shall be equal to 4,5% 0.5% of the total of all construction costs associated with the proposed hotel project, regardless of the number of permits associated with the project or whether the applicant intends to construct the hotel in phases. Full payment of the contribution shall be made prior to the issuance of a certificate of occupancy. (3) Final approval. Prior to the issuance of a final certificate of occupancy for the property, a covenant executed by the property owner shall be submitted to the City, in a form approved by the City Attorney and City Manager, which covenant shall, at a minimum, identify the location of the Public Benefit Space, and require a hotel owner and/or operator to maintain the Public Benefit Space for so long as the hotel use on the subject property remains active e _ -_ '-- e •e ___ •_ • unless a shorter term is approved by resolution of the City Commission. If an owncr elects, instead, to provide a contribution to thc Art in Public Places fund, consistent with subsection (4)(2), full payment shall be made prior to thc development obtaining a final certificate of occupancy. (4) There shall be a limit of 500 hotel units constructed between Pennsylvania Avenue and Lenox Avenue. which utilize the unit size and/or height incentives set forth in this subsection (d). SECTION 3. Chapter 142, entitled"Zoning districts and regulations,"Article IV,"Supplementary district regulations," Division 5, "Height regulations," Section 142-1161, "Height regulation exceptions," is hereby amended as follows: CHAPTER 142 ZONING DISTRICTS AND REGULATIONS ARTICLE IV. – SUPPLEMENTARY DISTRICT REGULATIONS * * * DIVISION 5. – HEIGHT REGULATIONS Section 142-1161. Height regulation exceptions. * * * (d) Rooftop additions. (1) Restrictions. There shall be no rooftop additions to existing structures in the following areas: oceanfront lots within the Miami Beach Architectural District in the RM-3 or CD-3 zoning districts; non-oceanfront lots fronting Ocean Drive in the MXE zoning district. No variance from this provision shall be granted. (2) Additional regulations. Existing structures within an historic district shall only be permitted to have habitable one-story rooftop additions (whether attached or detached), with a maximum floor to ceiling height of 12 feet except as hereinafter provided. The above described additions shall not be visible when viewed at eye level (5'-6" from grade) from the opposite side of the adjacent right-of-way; for corner properties, said additions shall also not be visible when viewed at eye level from the diagonal corner at the opposite side of the right-of-way and from the opposite side of the side street right-of-way. Notwithstanding the foregoing, the line- of-sight requirement may be modified as deemed appropriate by the historic preservation board based upon the following criteria: (i) the addition enhances the architectural contextual balance of the surrounding area; (ii) the addition is appropriate to the scale and architecture of the existing building; (iii) the addition maintains the architectural character of the existing building in an appropriate manner; and (iv) the addition minimizes the impact of existing mechanical equipment or other rooftop elements. (3) Lincoln Road hotel additions. Notwithstanding the foregoing, a multistory rooftop addition, for hotel uses only, may be permitted for properties on Lincoln Road, located between Drcxcl Pennsylvania Avenue and Lenox Avenue, in accordance with the following provisions: a. For properties on the north side of Lincoln Road, a multistory rooftop addition shall be set back at least 75 feet from Lincoln Road and at least 25 feet from any adjacent side street. Additionally, the multistory addition may be cantilevered over a contributing building. b. For properties located on the south side of Lincoln Road, a multistory rooftop addition shall be set back at least 65 feet from Lincoln Road. c. The portion of Lincoln Lane abutting the subject property, as well as the remaining portion of Lincoln Lane from block-end to block-end, shall be fully improved subject to the review and approval of the Public Works Department. d. Participation in the public benefits program, pursuant to section 142-337(d), shall be required in order for a hotel project to avail itself of a multistory rooftop addition. e. There shall be a limit of 500 hotel units for hotel projects including a multistory rooftop addition that are constructed between Pennsylvania Avenue and Lenox Avenue. (4) The placement and manner of attachment of all additions (including those which are adjacent to existing structures) are subject to historic preservation board approval. (5) No variance from this the provisions of subsection 142-1161(d) shall be granted. SECTION 4. Repealer. All ordinances or parts of ordinances and all sections and parts of sections in conflict herewith be and the same are hereby repealed. SECTION 5. Codification. It is the intention of the Mayor and City Commission of the City of Miami Beach, 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, Florida, as amended. The sections of this ordinance may be renumbered or relettered to accomplish such intention, and the word "ordinance" may be changed to"section" or other appropriate word. SECTION 6. Severability. If any section, sentence, clause or phrase of this ordinance is held to be invalid or unconstitutional by any court of competent jurisdiction,then said holding shall in no way affect the validity of the remaining portions of this ordinance. II SECTION 7. Effective Date. This Ordinance shall take effect the a' day of UC 6 6,0- , 2019. PASSED AND ADOPTED this /G day of De/vbtr- , 2019. Attest: 1 I„ iq Dan Gelber, Mayor Rafa-I E. Granado, City Clerk First Reading: September 11, 2019. Second Reading: Qctober 1 , 2019 Verified by: / Thomas R. Mooney, AICP, P •nning Director T:\Agenda\2019\10 October 16\Planning\Lincoln Road Hotel Amendments-Second Reading ORD ADOPTED.docx '",-71 : . \� APP r . D AS TO GUAGE • I = )w r XENCUTION • • A .5 ity Attorney Date r 4 Ordinances-R5 F MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: October 16, 2019 10:35 a.m. Second Reading Public Hearing SUBJECT:DEVELOPMENT REGULATIONS FOR HOTELS ON LINCOLN ROAD AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CODE OF THE CITY OF MIAMI BEACH, FLORIDA, BYAMENDING CHAPTER 130, ENTITLED "OFF- STREET PARKING," ARTICLE II, "DISTRICTS; REQUIREMENTS," SECTION 130-33, "OFF-STREET PARKING REQUIREMENTS FOR PARKING DISTRICTS NOS. 2, 3, 4, 5, 6, AND 7," TO AMEND THE OFF- STREET PARKING REQUIREMENTS FOR HOTEL UNITS ON LINCOLN ROAD BETWEEN ALTON ROAD AND WASHINGTON AVENUE; BY AMENDING CHAPTER 142, ENTITLED "ZONING DISTRICTS AND REGULATIONS," ARTICLE II, ENTITLED "DISTRICT REGULATIONS," DIVISION 6, "CD-3 COMMERCIAL, HIGH INTENSITY DISTRICT," SECTION 142-337, "DEVELOPMENT REGULATIONS AND AREA REQUIREMENTS," TO AMEND THE MINIMUM HOTEL UNIT SIZE FOR NEW HOTEL UNITS AND THE MAXIMUM BUILDING HEIGHT FOR HISTORIC BUILDINGS ON LINCOLN ROAD; AND BY AMENDING CHAPTER 142, ENTITLED "ZONING DISTRICTS AND REGULATIONS," ARTICLE IV, "SUPPLEMENTARY DISTRICT REGULATIONS," DIVISION 5, "HEIGHT REGULATIONS," TO PROVIDE ADDITIONAL REGULATIONS FOR ROOFTOP ADDITIONS FOR HISTORIC BUILDINGS ON LINCOLN ROAD; AND PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION AND AN EFFECTIVE DATE. RECOMMENDATION The administration recommends that the City Commission adopt the subjcct ordinance. BACKGROUND/HISTORY March 13, 2019, at the request of Commissioner Ricky Arriola, the City Commission referred the subject discussion item to the Land Use and Development Committee (Item C4 X). On April 3, 2019 the Land Use and Development Committee discussed the item and continued it to the May 22, 2019 meeting. The LUDC also directed staff to work with the item proposer and modify the ordinance for review at the May 22nd meeting. On May 22, 2019 the LUDC discussed the proposed ordinance and recommended that the Page 1283 of 2557 City Commission refer the item to the planning board for review and consideration. On June 5, 2019, the City Commission referred the proposed ordinance to the Planning Board for review and recommendation(Item C4 V). On July 9, 2019, the Historic Preservation Board (HPB) discussed the item and indicated support of the concept. However, the board expressed concerns with the minimal public benefit proposed and recommended a much larger area be required. Additionally, the HPB recommended the exploration of how additional height would allow the more substantial preservation of the contributing structures on Lincoln Road. ANALYSIS PLANNING ANALYSIS The original draft ordinance was prepared by the property owner of the Sterling Building located at 927 Lincoln Road, and proposed the following modifications for properties located on the north side of Lincoln Road between Pennsylvania Avenue and Lenox Avenue: • Reductions in the off-street parking requirements; •A reduction in the minimum hotel unit sizes from 335 sq ft to 200 sq ft; • The allowance for a multistory rooftop addition; •An increase in maximum permitted height from 50 feet to 75 feet. The proposal to reduce the minimum unit size for new hotel units located within attached additions to contributing buildings to a minimum of 200 square feet would be contingent upon the project including at least 5% of the total floor area as amenity space. Currently,the minimum unit size for new hotel units is between 300 and 335 square feet. The subject ordinance amendment would also allow lots located between Pennsylvania Avenue and Lenox Avenue on the north side of Lincoln Road to construct an attached addition to a contributing building up to 75 feet in height, provided the property has a minimum lot area of 30,000 square feet and a minimum of 100 hotel units are being provided. In order to address the potential scale and height issues associated with a future structure taller than 50 feet in height, particularly as it may be perceived from Lincoln Road, the ordinance includes a minimum setback of 75 feet from Lincoln Road and a minimum setback of 25 feet from a side street for any portion of a building above 50 feet in height. This would ensure that any future addition to a building above 50 feet in height would not overwhelm the Lincoln Road streetscape. The administration is supportive of this limited increase in height and would note that there are several taller buildings immediately to north of Lincoln Road between Lincoln Lane North and 17th Street,where the maximum building height is currently 80 feet. In addition to the proposed height increase for attached additions, the ordinance would also allow for multistory rooftop additions to be constructed above a contributing building. Currently, a rooftop addition, whether attached or detached, to a contributing building is limited to one story. This proposal would allow for multiple levels to be cantilevered over an existing contributing building without the requirement that the building be demolished and reconstructed as a ground up addition, encouraging the retention and restoration of contributing buildings. Page 1284 of 2557 As to the total number of potential hotel units within the larger area, between Lenox and Pennsylvania Avenues on the north side of Lincoln Road, the proposer's architect has studied the area and estimates that if most of the buildings take advantage of the ordinance (which is not likely),there could be as many as 500 more hotel units on the north side of Lincoln Road. On May 22, 2019, the Land Use Committee endorsed the proposal, and recommended the following modifications for properties on the south side of Lincoln Road, between Pennsylvania and Lenox Avenues: 1. No parking for hotel uses. 2.A reduction in the minimum unit size to 250 square feet. 3.Allowance for multi-story roof top additions, but no increase in overall height above the current 50 feet. Additionally, the LUDC recommended the following, which will be applicable to both the north and south sides of Lincoln Road: 1. The inclusion of a public benefit component for arts and culture. 2. All applicable improvements required for Lincoln Lane shall take place from block end to block end, and not just abutting a particular property proposing a hotel use. PLANNING BOARD REVIEW On July 23, 2019, the Planning Board held a public hearing and transmitted the ordinance to the City Commission with a favorable recommendation by a vote of 4-0. Board member David Weider expressed concerns and reservations and recommended that the City Commission proceed with caution regarding any height increases along Lincoln Road, which should be fully scrutinized by the historic preservation board. The Planning Board also recommended the minimum on-site public benefit space at the ground floor within the building in which the hotel is located contain a minimum area of 500 square feet. This recommendation is included in the. draft ordinance. SUMMARY The ordinance provided for first reading on September 11, 2019 contained all the modified development regulations for hotel uses along the north and south side of Lincoln Road, as recommended by the Land Use Committee and the Planning Board. This includes the public benefit fee for arts and culture, as well as required improvements to Lincoln Lane, from block end to block end. Regarding the public benefits program, in consultation with the Economic Development Department, the draft ordinance presented at first reading contained the following options for addressing the public benefit: 1. Provide on-site area for the benefit of the general public. Provide on-site, ground floor space within the building in which the hotel is located with a minimum area of 500 square feet ("Public Benefits Space"), for use by local not-for-profit entities and/or artisans, as workshops, for Page 1285 of 2557 display or demonstrations that are available for public viewing. The property owner shall not be required to submit land use board applications for the uses proposed in the Public Benefit Space.Any such approvals shall be the responsibility of the not-for-profit or local artisan. 2. Contribution to public benefits fund. As an alternative to providing an on-site area under subsection (a) above, an owner may provide a contribution to a public benefits fund benefiting Lincoln Road or Art in Public Places, in the amount of 1.5% of the total of all construction cost associated with the proposed hotel project regardless of the number of permits associated with the project or whether it is a phased project. 3. Final approval. Prior to the issuance of a final Certificate of Occupancy for the property, the Public Benefits Space shall be designated, and a covenant executed by the property owner submitted to the City and approved by the City Manager or designee. If the owner decides to provide a contribution consistent with paragraph (2) hereof as an alternative to providing the Public Benefit Space, payment shall be made prior to the development obtaining a final certificate of occupancy(CO). The basis for the 1.5% contribution in option 2 is the present value of leased spaced on Lincoln Road. As an example, for a hotel site that is 30,000 square feet, the total buildable project would be 67,500 square feet (based upon a maximum FAR of 2.25). The average cost of construction is $250 per square foot, or $16,875,000. Multiplied by 1.5%, the public benefit would equate to $253,125.00, which is still not significant as compared to the present value of $200 per square foot for leased space on Lincoln Road. It is important to provide some context related to the minimum 500 SF of amenity space proposed. In this regard, the value of such space can range from $2,000,000 to $3,000,000 (based on Lincoln Road current lease rates)to a developer. When compared to a one-time pay of $253,125.00, choosing to provide 500 SF of amenity space is unlikely. When placed in context, the $253,125.00 collected is enough to lease 500 SF of ground floor amenity space inside of one of these hotels for a maximum of 20 months (1.6 years). As currently proposed, the public benefit option proposed will likely result in the collection of the one-time fee, instead of providing dedicated amenity space on site. In addition to the public benefits, another potential option identified at first reading for the City Commission to consider was a contribution to an off-site area for the public benefit, which would be available to the general public. In this scenario, a developer would be able to provide an alternate public benefit space valued at 1.0%of all construction costs of the project, inclusive of the cost of maintenance, insurance, and utilities of the off-site location. The off-site location would need to be approved by the City in substantive form. Since Lincoln Road real estate values are high, a developer will most likely choose the contribution option, as an onsite unit may be a challenge, especially for their lenders. By having an offsite alternative, it may provide an incentive to invest the money into a less expensive area (i.e. North Beach). While the goal of the legislation is to have this cultural amenity on Lincoln Road, having an alternate site would still achieve the cultural amenity. The administration recommended in favor of the proposed ordinance at first reading, inclusive of the aforementioned public benefit options, as it is not expected to have any negative visual impacts on the character of this portion of the Flamingo Park Local Historic District, nor Lincoln Road. As hotel uses are already permitted on Lincoln Road, the proposed reduction in the minimum unit size for hotels, as well as the removal of the minimum parking requirement, is not Page 1286 of 2557 expected to have an adverse impact, particularly since Lincoln Road contains a significant concentration of contributing structures where providing parking would be challenging. Additionally, the parking impact fee, per required space, is $40,000.00. Further, the mixed-use character of Lincoln Road promotes a guest experience which is consistent with smaller hotel units and should encourage activation of the street. Attached, per the request of the LUDC, is current parking utilization data for all the adjacent Lincoln Road public garages. There has also been a demonstrative decrease in parking demand throughout the City, and the typical hotel guest is more likely to take advantage of ride share services in lieu of valet parking.Additionally, this area of the City is within walking distance of the recently renovated convention center, shops, restaurants, and the beach. UPDATE The subject ordinance was approved at first reading on September 11, 2019, with the following modifications: 1. Sec. 142-337 was amended to include `detached'additions. 2. The 500 block of Lincoln Road (aka the Drexel Avenue block, containing Rosinellas) was included within the boundaries of the ordinance. 3. The contribution to the arts in public places fund is now required, but at a reduced rate. 4. The length of time required for the mandatory ground-floor public benefit space was changed from a minimum of 10 years to as long as the hotel use on the subject property remains active, unless a shorter term is approved by resolution of the City Commission. The above noted modifications are included in the revised draft ordinance for second reading. The City Commission also requested that the administration further study and come back with a recommendation as to whether a cap on the total number of hotel rooms on Lincoln Road would be appropriate. The City Commission made the same request as part of the referral to the Planning Board on June 5, 2019. In this regard, as indicated previously at first reading, since hotels are already a permitted use on Lincoln Road, it is difficult to quantify the basis for a cap. The Economic Development Department has provided the attached analysis regarding how new hotel rooms (supply), demand trends, economic/public benefits, market mix, etc. on Lincoln Road would impact the convention center hotel. This analysis concludes that additional hotel rooms and accessory uses on Lincoln Road would not have a negative impact on the recently approved convention center headquarter hotel, proposed for 17th Street and Convention Center Drive, nor the larger hotel market in the vicinity of Lincoln Road. Accordingly, the administration does not recommend that a cap be placed on the number of hotel units permitted on Lincoln Road. Finally, in order to address a request by the owners of Rosinellas in the 500 block of Lincoln Road, the City Commission referred a discussion item to the September 18, 2019 Land Use and Development Committee (LUDC) meeting. The LUDC discussed the inclusion of the Drexel Avenue block within the scope of the proposed ordinance and continued the item to the October 30, 2019 LUDC meeting.Additionally,the LUDC recommended the following: 1. The City Commission remove the 500 block (Drexel Avenue block) from consideration at Page 1287 of 2557 second reading adoption ado tion on October 16, 2019, so that the entire block can be studied separately and holistically in terms of setbacks and public benefit contributions 2. The City Commission study the potential of including room block requirements as part of the ordinance. The 500 block (Drexel block) was not part of the study area proposed for the new hotel regulations.Additionally, the reduced depth of the lots on the north side of this block will make it challenging to meet the setback and public benefit components of the draft ordinance. As such, the administration also recommends that the Drexel Avenue block be removed from the current version of the ordinance and continue to travel under the referral pending at the LUDC. CONCLUSION The administration recommends that the City Commission adopt the subject ordinance, with the removal of the 500 block, between Drexel and Pennsylvania Avenues. Applicable Area South Beach Is this a Resident Right to Does this item utilize G.O. Know item? Bond Funds? Yes No Legislative Tracking Planning • Sponsor Vice-Mayor Ricky Arriola ATTACHMENTS: Description ❑ LR Parking Utilization ❑ EDD Hotel Analysis ❑ Ordinance Page 1288 of 2557 • • • • City of Miami Beach Parking Utilization Trend ATTEND -TOYEAR FY164715 FY1bFY15 FYI 7-FY16 FY17-FY16 FY18 Flours FY18-FY17 FY18-FY17 Zone 0 Homo FY15 Hours FY16 Hours Duff %Diff FY17 Hours Dill %Diff Diff %Diff South G5 17th Sheet 3,493,953 3,507,862 13,909 0% 2,990,887 (516,976) •15% 2,841,277 (149,610) •5% South G9 Pennsylvania Avenue 641,428 642,162 734 0% 513,499 (128,663) .20% 422,564 (90,935) -18% TOTAL GARAGES HOURS 4,135,381 4,150,024 14,643 0% 3,504,385 (645,639) -16% 3,263,841 (240,544) -7% ATTENDED GARAGE HOURS CUMULATIVE Zone • Nome FY15 Hours FY18 Hours FYI$-FY15 FY18•F7 s Diff %Diff South 05 17th Street 3,493,953 2,841,277 (652,676) .19% South G9 Pennsylvania Avenue 641,428 422,564 (218,864) -34% TOTAL GARAGES HOURS 4,135,381 3,263,841 (871,540) -21% 1 • F:\PING\SMAN\Charles\Parkins Utilization\FY18 Parking Utilization Trend.>Jtxage 1289 of 2557 Miami Beach Convention Center Hotel Analysis Purpose The proposed amendment to incentive hotel units would likely result in between 500 to 1000 new hotel units on Lincoln Road. The Economic Development Department (EDD) was tasked with evaluating the following: 1. The demand for additional hotels units on Lincoln Road,between Lenox and Pennsylvania Avenue, in relation to the expected future demand of the Miami Beach Convention Center(MBCC). 2. To determine if there is enough demand to absorb these units and if the land use modifications would impact the HQ Hotel demand. In order to address these points, the EDD reviewed the "Potential Need for a Miami Beach Convention Center Headquarter Hotel (HQ Hotel)Analysis" produced by CS&L on May 12, 2017 (the CS&L Report). The conclusions in this analysis are based on the data provided in the CS&L Report. Analysis The Miami Beach Convention Center (MBCC) has the smallest square feet (SF) amongst the 15 regions included in the Report with 703,200 SF of convention space. Assuming a 700-unit HQ Hotel there would be 5,602 hotel units within .5 miles of MBCC,which is the 2nd lowest number of hotels amongst the 15 regions in the Report (see table below). Staff calculated the total convention SF per hotel unit and determined MBCC would have 126 SF of convention space for every hotel unit within .5 miles of the convention center as compared to the largest in Los Angeles of 1,122 SF(LA has 7,109,500 SF convention space/ 6,336 hotel units). The greater the SF per hotel unit shows more space of convention SF per unit. Miami Beach represents the median in the set with San Francisco being the lowest with 46 SF of convention space for every hotel unit within .5 miles. Staff removed the two largest and the smallest regions of SF per hotel showing a range of 67 SF to 192 SF of convention space per hotel unit. Attached Hotel units HQ Hotel+ Region I.; SF T Hotel uni .5 Miles..- .5 Mild- SF/Hoti,1 1 i<os Angcica 7, 5009 1.008 5,238 6,336 1,122 2 C icago3-x.6 2,458 3,161 5,619 ;63 3 Boston 706,800 793 2,882 3,675 192 4 Atlanta 1,651,100 1,070 9,303 10,373 159 5 Dallas 891,800 1,016 4,627 5,643 158 6 Orlando 2,537,200 5,788 10,729 16,517 154 7 Miami Beach 703,200 700 4,902 5,602 126 8 Las Vegas 2,883,200 2,604 20,556 23,160 124 9 New Orleans 1,295,400 2,405 8,398 10,803 120 10 Houston 1,002,700 2,203 6,279 8,482 118 11 Washington 903,000 1,175 8,321 9,496 95 12 Anaheim 1,138,100 2,604 10,676 13,280 86 13 San Diego 816,100 2,552 7,881 10,433 78 14 San Antonio 758,700 2,516 8,863 11,379 67 15 'co -8917490 2,458 17,132 '�90 46 Page 1290 of 2557 Once the smallest and largest were removed from the set, San Antonio represented the lowest SF of convention space per hotel units within a .5-mile radius(67 SF of convention space per hotel unit). If the City were to match the lowest SF per unit, it would equate to an additional 4,900 hotel units within .5 miles. This is strictly a calculation and does not take into consideration the market condition differences of the regions. Based on the CS&L Report, a majority of MBCC's previous events have been consumer shows and low impact events,which appear to be driven by the lack of a HQ Hotel.The CS&L Report concludes that higher impact events tend to have an attached hotel;as such, it is reasonable to conclude that the lack of an HQ Hotel limits MBCC from demanding higher impact events. The CS&L Report also provides a summary of surveys taken by event planners. Those surveys show that majority of events prefer convention centers with an attached hotel,and 86%preferring hotel counts of 1200 rooms. The survey also noted that 60%would not mind if 400 rooms were on the beach, while the other 400 where attached to the convention center.There are approximately 4,800 hotel rooms on the beach within.5 miles of the MBCC. The survey also shows that if there were an HQ Hotel and free trolley services were available for up to 3 blocks away that 70%would still not book rooms in those detached hotel units Conclusions from CS&L Report: • If approximately 4,900 hotel units were built over and above the existing 5,600 units within .5 miles of MBCC, the SF of convention space per hotel unit would still be in line with the highest number of hotel units in the region per SF of convention space. • Additional hotel uses on Lincoln Road will not negatively impact the HQ hotel, particularly for higher impact events, as these events prefer attached HQ hotels rather than hotel units offsite. The 700 units proposed in the HQ hotel do not appear to be sufficient to drive a large impact event to the City;as such there does not appear to be a risk of driving guests away from the HQ. • Based on the survey of event planners, 75%were either less likely or not likely to book an event at the MBCC without a HQ hotel; this shows that event planner events are more likely to be booked at the HQ Hotel rather than offsite. Conclusions from the Economic Development Department: • Studies show that 50%of Miami Beach guests visit Lincoln Road and allowing hotel units will drive more traffic to the ground floor retail uses without interference with the HQ Hotel. • South Beach visitors tend to be driven by entertainment and experience; hence, adding more hotels would require those types of uses. There are currently redevelopment projects converting existing non-hotel uses to hotel uses in other areas of the South Beach. • As more guests visit, there must be enough entertainment, food and beverage options; hence accessory uses at the ground floor and roof tops would provide additional opportunities to serve these visitors. Page 1291 of 2557 • The CS&L Report showed Miami having the 7th highest hotel occupancy in the country in 2016 (8th in 2018);this illustrates that visitors continue to be attracted to the greater Miami region. • The higher hotel average daily rates (ADR's) tend to be beachfront. Lincoln Road, while not beachfront,does have high real estate values.This, in turn,would require the ADR's to be on the higher end to allow developers to make a profit, thus likely resulting in more luxury type hotel development on Lincoln Road. However,the hotel rates offered by the future hotels on Lincoln Road would have to be competitive to the oceanfront hotels to be marketable. 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