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Ordinance 2020-4348 • TC-C District Co-Living Units- Land Development Regulations ORDINANCE NO. 2020-4348 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," SECTION 142-741, ENTITLED "MAIN PERMITTED USES, ACCESSORY USES, CONDITIONAL USES, PROHIBITED USES, AND SUPPLEMENTAL USE REGULATIONS," TO MODIFY THE MAXIMUM NUMBER OF CO-LIVING UNITS, MODIFY PROVISIONS RELATING TO THE RESERVATION OF CO- LIVING UNITS, AND CLARIFY EXISTING PROVISIONS; 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 pursuant to a Request for Qualifications, 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., following 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 neighborhood; 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 Commission intends to ensure that the FAR increase approved by the voters in 2017 results in redevelopment that encourages alternative modes of transportation over the use of single occupancy vehicles; including, but not limited to, walking, bicycling, and public transportation; and WHEREAS, Objective HE 1.1 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 Commission hereby finds that appropriately developed co-living and 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, since the Town Center— Central Core (TC-C) zoning regulations were first created in 2018,the City has received several development applications containing co-living units within the TC-C district; and WHEREAS, on July 29, 2020, and prior to the adoption of this Ordinance, the City Commission expressed a desire to (i).allow currently approved co-living development to be implemented, and (ii)study the operation and neighborhood impacts of co-living projects, prior to considering any additional increase to the number of co-living units permitted; 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, , uses,conditional uses,and prohibited uses,and supplemental use regulations. Land uses in th'e 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, exdeptienspedial—exeeption7 and conditional uses in subsection 147- 741(a); and the supplemental regulations of such uses in 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 X91.8591,762 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 3-1-2 463 550 co-living units built within the TC-C district. Additionally. co- living units shall only be permitted for projects that have obtained a building permit process number by October 1, 2023. b. Units for the uses identified in subsections(b)(2)a.i- i iii above shall be applied for and allocated on a first-come, first serve basis concurrent with an the earlier of a completed application for land use board approval or completed application for building permit that includes the proposed number of units, and meets all applicable requirements of the land development regulations, as determined by the planning director, . • ._ _ • . _ - _ •- . Any allocation of units pursuant to this subsection shall be subject to the following additional provisions: applicants. In the event that a land use board application is not approved by the applicable board, or in the event that an applicant with an approved land use board order fails to obtain a building permit before the board order expires, all units allocated pursuant to the filing of the completed land use board application shall be released to the pool and shall become available to new applicants. ii. - - :-- • - • - - -- -• - - •e - - applicants. Upon the issuance of a building permit for units approved pursuant to a land use board order,the allocation of such units shall remain reserved. If the building permit or building permit application expires or is abandoned, any units allocated pursuant to the building permit application shall be released to the pool;and shall become available to new applicants. Prior to reactivating an expired or abandoned building permit or building permit application, an applicant shall first be required to obtain written confirmation from the planning department that sufficient units remain available. iii. If said the use for which credits are allocated pursuant to a land use board order or building permit changes to a use that does not require an allocation of units,the allocation of units shall be released and shall become available to new applicants. c. Units for the uses identified in subsection (b)(2)a.iv above shall be applied for and allocated on a first-come, first serve basis concurrent with a completed application for land use board approval that includes the proposed number of units, and meets all requirements of the land development regulations, as determined by the planning director. Any allocation of units pursuant to this subsection shall be subject to the following additional provisions: In the event that a land use board application is not approved by the applicable board, or in the event that an applicant with an approved land use board order fails to obtain a building permit before the board order expires, all units allocated pursuant to the filing of the completed land use board application shall be released to the pool and shall become available to new applicants. ii. Upon the issuance of a building permit for units approved pursuant to a land use board order, the allocation of such units shall remain reserved. In the event that the building permit expires or is abandoned, any units allocated pursuant to the building permit shall be released to the pool, and shall become available to new applicants. Prior to reactivating an expired or abandoned building permit or building permit application, an applicant shall first be required to obtain written confirmation from the planning department that sufficient units remain available. If the use for which credits are allocated pursuant to a land use board order changes to a use that does not require an allocation of units, the allocation of units shall be released and shall become available to new applicants. d. Any such units permitted the boundaries of the TC-C district, after November 7, 2017 shall be counted towards the maximum limit established herein. d- e. Notwithstanding the use limitations in subsection a.i-iii above, the planning director or designee may permit simultaneous increase and decreases in the above described uses, provided that the impacts of the changes will not exceed originally approved impacts, as measured by total weekday peak hour (of adjacent street traffic, one hour between 4:00 p.m. and 6:00 p.m.) vehicle trips, pursuant to the Institute of Transportation Engineers Trip Generation Manual, as may be amended from time to time. * * 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 079 day of Jul , 2020. ATTEST: 2-2 -11 Dan Gelber, Mayor 1 d t • cae APPROVED AS TO FORM AND -.'-fael- ran-do, ity Clerk LANGUAGE AND FOR EXECUTION C..... a.....k, 0 .(____ Jzo First Reading: June 24, 2020 City Attorney tr \Date Second Reading: July 29, •,S20 I ,v Verified By: IL' 4 L ►,♦, o as R. Moon-y, /CP Planning Director T:1Agenda12020107 July 29\PIanning\NB TCC-Co-Living Regulations- SECOND Reading ORD ADOPTED.docx ' Al,..,•-•: ' .IIiCORPhORAATED,'• %,-7_,.. `,F, `�� . f_= Ordinances -R5 E MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: July 29, 2020 9:30 a.m. Second Reading Public Hearing SUBJECT:TC-C DISTRICT CO-LIVING UNITS - 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," SECTION 142-741, ENTITLED "MAIN PERMITTED USES, ACCESSORY USES, CONDITIONAL USES, PROHIBITED USES, AND SUPPLEMENTAL USE REGULATIONS," TO MODIFY THE MAXIMUM NUMBER OF CO-LIVING UNITS, MODIFY PROVISIONS RELATING TO THE RESERVATION OF CO-LIVING UNITS, AND CLARIFY EXISTING PROVISIONS; AND PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY,AND AN EFFECTIVE DATE. RECOMMENDATION The administration recommends that the City Commission adopt the subject ordinance. BACKGROUND/HISTORY On November 14, 2018, the City Commission adopted Ordinance No. 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. At the time of adoption, the ordinance established a cap 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. Pursuant to the land development regulations (LDRs), a co-living unit is a residential unit that is between 375 SF and 550 SF in size. The LDRs require that buildings with co-living units have a minimum of 20 percent of the gross floor area for amenity space. On July 31, 2019, the City Commission adopted Ordinance No. 2019-4287, which amended the way density is calculated for co-living units in the TC-C district. The City Commission also required that a review and update on implementation of this ordinance be provided within 6 Page 464 of 2461 months of adoption. Pursuant to Ordinance No. 2019-4287, one (1) co-living unit now counts as one-half (1/2) of a conventional unit for the purposes of calculating the maximum allowable density and population impact. Due to the lower population impact and lower floor area utilization rates associated with co-living units, the Administration also proposed, at First Reading, an increase to the maximum number of co-living units within the TC-C district, from the current limit of 312 units. The Commission did not increase the current cap of 312 co-living units. On February 12, 2020, the 6-month review required by Ordinance No. 2019-4287 was presented to the City Commission, along with a draft ordinance to amend the maximum number of co-living units and reservation requirements (item R9 H). The City Commission referred to the proposed ordinance to the Planning Board, with an amendment that the increase in co-living units be limited to accommodate an additional 140 units. The referral also included a request for an advisory opinion from the Planning Board as to the maximum number of co-living units in the TC-C district, as well as other locations in the City where co-living units should be permitted. Commissioner Ricky Arriola is the sponsor of the subject ordinance amendment. ANALYSIS PLANNING BOARD REVIEW The March 24, 2020 and April 21, 2020 Planning Board meetings were canceled, and the item was moved to the May 19, 2020 Planning Board agenda. On May 19, 2020,the Planning Board held a public hearing and transmitted the ordinance to the City Commission with a favorable recommendation by a vote of 7-0,with no changes. Pertaining to the advisory opinions sought by the City Commission regarding co-living units, the Planning Board recommended the following: 1. Provide a recommendation to the City Commission regarding a maximum number of co-living units to be permitted in the North Beach TC-C district: The Planning Board recommended an increase in the cap on co-living units, but that such an increase be offset by reductions in the caps of other types of units in the TC-C district, such as residential and hotel, in order to re-allocate these units, without increasing the overall quantity. The Planning Board also recommended that the City continue to evaluate the traffic impact of those units in the TC-C district where the occupants have private vehicles. 2. Provide a recommendation to the City Commission on whether to permit co-living units in other areas of the City: The Planning Board recommended that co-living units be expanded to other areas of the City, after careful study and evaluation of which areas would be the most appropriate, and with cap limits. PLANNING ANALYSIS 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 Page 465 of 2461 looking for the expense and responsibilities of home ownership, as well as retirees looking to downsize. Attracting such residents is desirable in order to encourage the economic development of the North Beach Town Center. 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 (ULI) entitled The Macro View on 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 rent, it is 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. The following development applications have been approved by the Design Review Board (DRB)or have submitted a building permit application with co-living units: 1.7145 Carlyle Avenue: 121 co-living units. 2. 6970 Collins Avenue:20 co-living units. 3. 7114 Collins Avenue: 168 co-living units. Total: 309 co-living units. When Ordinance 2019-4287 was presented to the City Commission in July of 2019, the developer of the parcel located at 7140 Abbott Avenue expressed an intent to submit a development application to the DRB, before the end of the year, for a project containing co- living units.The proposed configuration of this project was contingent upon the approval by the City Commission of a requested alley vacation. Although the developer began the formal DRB application process as quickly as possible, 309 of the co-living units available within the pool of 312 units (for the TC-C district)were unexpectedly reserved, prior to the developer meeting the technical requirement in City Code Section 142-741 to reserve the units (i.e. before, the developer was determined to have filed a completed DRB application). The developer of 7140 Abbott Avenue is now proposing to construct 141 co-living units. If the cap were increased by 141 units to accommodate this proposal, the total number of proposed co-living units within the TC-C district would increase from the current 312 units to 453 units. Considering the general interest in, and forward movement of, applications including co-living units within the area, the Administration has consistently recommended an increase in the overall cap of co-living units within the TC-C district. The modification of the density calculation in July of 2019 has increased the feasibility of co-living developments. However, without an additional increase to the maximum number of co-living units in the district,the number of projects that can develop these units is limited. Greater flexibility relating to the number of co-living units would improve the likelihood of bringing a co-living development to fruition.As the City Commission has expressed some concerns with the possible proliferation of co-living units, the proposed ordinance provides for a modest increase from 312 units to 453 units. In addition to the proposed increase in the cap for co-living units, the method of reserving co- living units within the cap is proposed to be modified for purposes of clarity and equity. Currently, Page 466 of 2461 a reservation for these units can be made on a first-come, first serve basis, by either making an application for a (i) land use board approval, (ii) building permit, (iii) certificate of occupancy, or (iv) business tax receipt. Since the allocation of co-living units is administered pursuant to the LDRs (i.e. by the Planning Department), the Administration recommends that the land use board application process be the sole method of reservation for co-living units. These proposed revisions are contained within the attached draft ordinance. SUMMARY/UPDATE As previously noted in the February 12, 2020 Commission Memo, the administration recommended that the cap on co-living units be increased to 550 units, in order to provide flexibility for current and future projects to move forward with a co-living component. The Planning Board, while not recommending a specific number, did recommend an increase in the cap on co-living units, provided such increase is offset by a reduction in the cap of other types of units in the TC-C district. The City Commission approved the subject ordinance at first reading on June 24, 2020, subject to the co-living cap being increased from 312 units to 453 units. Additionally the Commission offset the 141 co-living unit increase by decreasing the cap on hotel units from 2000 to 1,859. This modification has been incorporated into the attached ordinance for second reading. As indicated in the June 24, 2020 Commission memo, the administration has evaluated the current caps on all types of allowable units within the TC-C district under Sec. 142-741(b)(2) of the TC-C regulations, including residential, hotel, affordable housing and workforce housing. In this regard, a reduction in the number of allowable hotel units from the current cap of 2000 units to 1,762 units, would offset an increase in the cap of co-living units from the current limit of 312 units to 550 units. The administration continues to believe that such a re-allocation of units, as discussed by the Planning Board, would be a neutral offset of the increase in co-living units. Additionally, the re- allocation of units would come from allowable transient units. As such, it is recommended that the City Commission increase the allowable cap of co-living units in the TC-C district to 550 units. CONCLUSION The administration recommends that the City Commission adopt the subject ordinance and include the following modification to Sec. 142-741(b)(2): (2) Use limitations. a. The following limits shall apply for residential and hotel uses: i. Hotel rooms. There shall be a limit of MOO1,762 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. Page 467 of 2461 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 342 550 co- living units built within the TC-C district. Applicable Area North Beach Is this a"Residents Right Does this item utilize G.O. to Know" item, pursuant to Bond Funds? City Code Section 2-14? Yes No Legislative Tracking Planning Sponsor Commissioner Ricky Arriola ATTACHMENTS: Description o Form Approved ORD -2nd Read Page 468 of 2461