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Ordinance 2022-4512 R-PSI and R-PS2 Apartment Hotel Conversion Incentives - Comprehensive Plan Amendment ORDINANCE NO. 2022-4512 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CITY OF MIAMI BEACH 2040 COMPREHENSIVE PLAN RESILIENT LAND USE ELEMENT AT (1) TABLE RLU 1.1 TO PROVIDE THAT THE DENSITY AND INTENSITY LIMITS OF THE R-PS-1 AND R-PS-2 LAND USE CATEGORIES SHALL REFER TO POLICY LIMITS OF EACH RESPECTIVE CATEGORY; AT (2) POLICY RLU 1.1.22, ENTITLED "MEDIUM-LOW DENSITY RESIDENTIAL PERFORMANCE STANDARD (R-PS-1)" TO MODIFY DENSITY AND FLOOR AREA RATIO LIMITS OF THE R-PS-1 LAND USE CATEGORY TO INCENTIVIZE THE CONVERSION OF LEGALLY NONCONFORMING APARTMENT-HOTEL USES TO CONFORMING RESIDENTIAL USES; AND AT (3) POLICY RLU 1.1.23, ENTITLED "MEDIUM DENSITY RESIDENTIAL PERFORMANCE STANDARD (R-PS-2)"TO MODIFY DENSITY AND FLOOR AREA RATIO LIMITS OF THE R- PS-2 LAND USE CATEGORY TO INCENTIVIZE THE CONVERSION OF LEGALLY NONCONFORMING APARTMENT-HOTEL USES TO CONFORMING RESIDENTIAL USES, PURSUANT TO THE EXPEDITED STATE REVIEW PROCESS IN SECTION 163.3184(3), FLORIDA STATUTES;AND PROVIDING FOR INCLUSION IN THE COMPREHENSIVE PLAN, TRANSMITTAL, REPEALER, SEVERABILITY,AND AN EFFECTIVE DATE. 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 current R-PSI and R-PS2 land development regulations prohibit apartment-hotel uses; and WHEREAS, Comprehensive Plan Objective RLU 1.4, entitled "Inconsistent Uses," provides that "The City Land Development Regulations shall continue to provide for the discontinuation of nonconforming land and building uses which are incompatible or inconsistent with the Future Land Use Plan"; and WHEREAS, the City seeks to encourage and incentivize existing apartment hotel uses in the R-PSI and R-PS2 districts to convert to conforming, residential apartment uses; and WHEREAS,the amendments set forth below are necessary to accomplish all of the above objectives; and WHEREAS, pursuant to Chapter 163, Part II, Florida Statutes, the City of Miami Beach Commission has an adopted Comprehensive Plan; and WHEREAS, the City Commission has established procedures, codified in Chapter 118, Article III, of the City's Land Development Regulations, to amend, modify, add to, or change the Comprehensive Plan; and WHEREAS, the City's procedures reflect and comply with the procedures for adopting or amending local comprehensive plans as set forth in Chapter 163, Part II, Florida Statutes, including the process for adopting comprehensive plan amendments set forth in section 163.3184, Florida Statutes; and WHEREAS, the City of Miami Beach Planning Board, which serves as local planning agency, transmitted the text amendment to the City Commission with a favorable recommendation; and WHEREAS,the City Commission held a duly noticed public hearing, at which time it voted to transmit the text amendment for review by state, regional, and local agencies, as required by law; and WHEREAS, the City Commission hereby finds that the adoption of this text amendment is in the best interest and welfare of the residents of the City. NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA. SECTION 1. The 2040 Comprehensive Plan "Resilient Land Use Element" at Table RLU 1.1 is hereby amended as follows: RESILIENT LAND USE AND DEVELOPMENT ELEMENT GOAL RLU 1: LAND USE * * * Table RLU 1.1 The following table is a reference guide that depicts the policy number, and maximum densities and intensities,for each future land use map (FLUM) category. (*= Refer to policy for limits) Density Intensity FLUM Category Limits Limits Reference • (Units Per (Floor Area (Policy#) Acre) Ratio) Single Family Residential (RS) 7 uacreper * RLU 1.1.1 Townhouse Residential (TH) 30 units per 0.7 RLU 1.1.2 acre Fisher Island Low Density 25 units per , Planned Residential (RM-PRD) acre 1.6 RLU 1.1.3 m Allison Island Low Density a 25 units per Planned Residential Category 1.45 RLU 1.1.4 (RM-PRD-2) acre Low Density Multi Family units Residential 60 acre per 1.25* RLU 1.1.5 (RM-1) Medium Density Multi Family 100 units per 2.0 RLU 1.1.6 Residential (RM-2) acre 2 Density Intensity FLUM Category Limits Limits Reference (Units Per (Floor Area (Policy#) Acre) Ratio) High Density Multi Family 150 units per 2.25* RLU 1.1.7 Residential (RM-3) acre Medium-Low Density Residential 57 units per 1.25* RLU 1.1.22 Performance Standard (R-PS-1) acre* - Medium Density Residential 70 units per Performance Standard (R-PS-2) acre* 1.5_ RLU 1.1.23 Medium-High Density Residential 85 units per 1.75 RLU 1.1.24 Performance Standard (R-PS-3) acre SECTION 2.The 2040 Comprehensive Plan,"Resilient Land Use Element,"at Policy RLU 1.1.22, entitled "Medium-Low Density Residential Performance Standard (R-PS-1)," is hereby amended as follows: POLICY RLU 1.1.22 MEDIUM-LOW DENSITY RESIDENTIAL PERFORMANCE STANDARD (R-PS-1) Purpose:To provide development opportunities for and to enhance the desirability and quality of existing and/or new residential areas which accommodate a mix of different residential types developed in accordance with flexible design standards. Uses which maybe permitted:Single family detached dwellings, single family attached dwellings, townhouse dwellings, apartments, apartmen�, hr„ s and institutional uses. 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:57 dwelling units per acre:, except for the following: • Properties with a legally established non-conforming apartment hotel use that are converted to a conforming residential use shall have a density limit of 80 dwelling units per acre. Intensity Floor Area Ratio Limits: Intensity may be limited by such setback, 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 a floor area ratio of 1.25-, except for the following: • Properties with a legally established non-conforming apartment hotel use that are converted to a conforming residential use shall not exceed a floor area ratio of 1.5. 3 SECTION 3.The 2040 Comprehensive Plan,"Resilient Land Use Element,"at Policy RLU 1.1.23, entitled "Medium Density Residential Performance Standard (R-PS-2)," is hereby amended as follows: POLICY RLU 1.1.23 MEDIUM DENSITY RESIDENTIAL PERFORMANCE STANDARD (R-PS-2) Purpose:To provide development opportunities for and to enhance the desirability and quality of existing and/or new residential areas which accommodate a mix of different residential types developed in accordance with flexible design standards. Uses which may be permitted:Single family detached dwellings, single family attached dwellings, townhouse dwellings, apartments, apartment hotels and institutional uses. 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:70 dwelling units per acre:, except for the following: • Properties with a legally established non-conforming apartment hotel use that are converted to a conforming residential use shall have a density limit of 95 dwelling units per acre. Intensity Floor Area Ratio Limits: Intensity may be limited by such setback, 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 a floor area ratio of 1.50:, except for the following: • Properties with a legally established non-conforming apartment hotel use that are converted to a conforming residential use shall not exceed a floor area ratio of 1.75. SECTION 4. REPEALER. All ordinances or parts of ordinances and all section and parts of sections in conflict herewith are hereby repealed. SECTION 5. 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 re-numbered or re-lettered to accomplish such intention; and that the word "ordinance" may be changed to "section" or other appropriate word. 4 SECTION 6. SEVERABILITY. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 7. 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 8. 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 _ day of SI NI6P/ , 2022. Dan Gelber Mayor ATTEST: SEP 2 1 2022 Rafael E. Granado City Clerk APPROVED AS TO FORM AND LANGUAGE & FO XECUTION `1—ic —Z'L City Attorney Ok Date First Reading: May 4, 2022 ' , Second Reading: Septe ber 14, 2022 IP!ORark ORATED ry Verified By: '� Th as R. Mooney, ICP :,,�H"26.- Planning Director T:Wgenda12022\8_September 2022\Planning\9-22 Ordinances final vesion - Word document\RPS Apartment Hotel Conversion Incentives-Second Reading ORD COMP PLAN ADOPTED FINAL.docx 5 Ordinances-R5 G MIAMIBEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: September 14, 2022 10:50 a.m. Second Reading Public Hearing SUBJECT: R-PSI AND R-PS2 APARTMENT HOTEL CONVERSION INCENTIVES - COMPREHENSIVE PLAN AMENDMENT AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CITY OF MIAMI BEACH 2040 COMPREHENSIVE PLAN RESILIENT LAND USE ELEMENT AT (1) TABLE RLU 1.1 TO PROVIDE THAT THE DENSITY AND INTENSITY LIMITS OF THE R-PS-1 AND R-PS-2 LAND USE CATEGORIES SHALL REFER TO POLICY LIMITS OF EACH RESPECTIVE CATEGORY; AT (2) POLICY RLU 1.2.22, ENTITLED "MEDIUM-LOW DENSITY RESIDENTIAL PERFORMANCE STANDARD(R-PS-1)" TO MODIFY DENSITYAND FLOOR AREA RATIO LIMITS OF THE R-PS-1 LAND USE CATEGORY TO INCENTIVIZE THE CONVERSION OF LEGALLY NONCONFORMING APARTMENT-HOTEL USES TO CONFORMING RESIDENTIAL USES; AND AT (3) POLICY RLU 1.2.23, ENTITLED "MEDIUM DENSITY RESIDENTIAL PERFORMANCE STANDARD (R-PS-2)" TO MODIFY DENSITYAND FLOOR AREA RATIO LIMITS OF THE R-PS-2 LAND USE CATEGORY TO INCENTIVIZE THE CONVERSION OF LEGALLY NONCONFORMING APARTMENT-HOTEL USES TO CONFORMING RESIDENTIAL USES; PURSUANT TO THE EXPEDITED STATE REVIEW PROCESS IN SECTION 163.3184 (3), FLORIDA STATUTES; 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. BACKGROUND/HISTORY On September 17, 2021, at the request of Commissioner Mark Samuelian, the City Commission referred a discussion item to the Land Use and Sustainability Committee (LUSC) pertaining to quality-of-life strategies for dealing with future and existing apartment hotels in the South of Fifth area(C4G). On October 19, 2021,. the LUSC discussed and continued the item to the December 2021. LUSC meeting with direction to the Administration to study potential strategic increases in FAR and height within the R-PSI and R-PS2 districts for the limited purpose of incentivizing the conversion of existing apartment hotels to residential use. Page 732 of 1700 The December 2021 LUSC meeting did not take place, and the item was automatically deferred to the first available meeting of 2022. On February 11, 2022, the LUSC discussed the proposal for strategic increases in FAR and height within the R-PS1 and R-PS2 districts and recommended that the draft Ordinance prepared by the Administration be moved to the City Commission for referral to the Planning Board. Additionally, the LUSC recommended the following: 1. The addition of an express prohibition on the short-term rental of any apartment units. 2.A 3-year sunset provision. On March 9, 2022, the City Commission referred an LDR Ordinance, inclusive of the recommendations of the LUSC,to the Planning Board (C4B). ANALYSIS PLANNING ANALYSIS The subject Ordinance amends the Resilient Land Use Element of the City's 2040 Comprehensive Plan as follows: Policy RLU 1.1.22 Medium-Low Density Residential Performance Standard (R-PS-1) • Apartment hotels are deleted as a permitted use; this is a non-substantive modification to harmonize the comprehensive plan with the LDRS. This change does not conflict with, nor supersede the LDR Amendment adopted in 2021 that prohibits apartment hotels in the R-PSI zoning district. • The maximum intensity (FAR) in the R-PSI district is 1.25. The proposed Ordinance allows properties with a legally established non-conforming apartment hotel use that are converted to conforming residential uses to utilize a maximum FAR of up to 1.5. • The current density limit in the R-PSI district is 57 dwelling units per acre. The proposed Ordinance allows properties with a legally established non-conforming apartment hotel use that are converted to conforming residential uses to utilize a maximum density of up to 80 dwelling units per acre. This proposed density increase is to accommodate the increase in allowable intensity for properties that convert from apartment hotel use to residential use. Policy RLU 1.1.23- Medium Density Residential Performance Standard (R-PS-2) • Apartment hotels are deleted as a permitted use; this is a non-substantive modification to harmonize the comprehensive plan with the LDRS. This change does not conflict with, nor supersede the LDR Amendment adopted in 2021 that prohibits apartment hotels in the R-PS1 zoning district. • The maximum intensity (FAR) in the R-PS1 district is 1.50. The proposed Ordinance allows properties with a legally established non-conforming apartment hotel use that are converted to conforming residential uses to utilize a maximum FAR of up to 1.75. • The current density limit in the R-PSI district is 70 dwelling units per acre. The proposed Ordinance allows properties with a legally established non-conforming apartment hotel use that Page 733 of 1700 are converted to conforming residential uses to utilize a maximum density of up to 95 dwelling units per acre. This proposed density increase is to accommodate the increase in allowable intensity for properties that convert from apartment hotel use to residential use. The subject Ordinance is a companion to a separate LDR Ordinance that amends Section 142- 694 of the Land Development Regulations (LDR's) of the City Code to create incentive provisions for the conversion of existing apartment hotels located in the R-PS1 or R-PS2 district, which are legal non-conforming, to convert to a conforming residential use. The proposed increases in density and intensity would only apply to those properties that have a legally established apartment hotel as the main permitted use, and which convert the entire property to a conforming residential use. As noted in the attached Density and Intensity Impact Analysis, the proposed FAR and density increases could result in an additional 32 units beyond what is permitted today. This could result in an additional 26 peak hour vehicle trips taking place, assuming no trip reductions are provided for public transportation and alternative modes of transportation, which are common for this neighborhood. Given the limited scope of these amendments, the potential impacts are de minimis. The modest and context sensitive increases in allowable FAR proposed for these limited number of properties is not expected to have a negative impact, as the maximum FAR permitted in these districts is already restricted. Since most of the apartment hotel uses in the area are in smaller, older buildings, a slight increase in allowable FAR may incentivize a re- conversion back to residential use. Lastly, pursuant to Section 1.03(c) of the City Charter, final adoption of the Ordinance, if approved at First Reading, requires voter approval for the proposed increase in FAR. COMPREHENSIVE PLANNING REVIEW PROCESS This referral includes a text amendment to the Comprehensive Plan. Under Section 163.3184(2), Florida Statutes, this amendment shall follow the expedited state review process for adoption of comprehensive plan amendments.This process requires a public hearing by the local planning agency (Planning Board), a public transmittal hearing before the City Commission, after which the amendment must be transmitted to several state agencies for a 30- day review period, and a final adoption public hearing before the City Commission. The amendment is effective 31 gays after it is adopted if there are no appeals. PLANNING BOARD REVIEW The Planning Board held a public hearing on April 26, 2022 and transmitted the Ordinance to the City Commission with a favorable recommendation(7-0). UPDATE On May 4, 2022, the City Commission approved the subject Ordinance at First Reading and scheduled Second Reading /Adoption for September 14, 2022, subject to voter approval of the proposed FAR increase. The Comprehensive Plan Amendment was transmitted to all applicable review agencies; to date there have been no objections or substantive comments from the review agencies. Page 734 of 1700 Additionally, the City Commission adopted Resolution No. 2022-32168 to place a ballot question pertaining to the proposed FAR increase on the City's August 23, 2022 ballot. Pursuant to Resolution No. 2022-32168, the following ballot question was submitted to the City's voters: RPSI District/RPS2 District- FAR Incentive to Convert Remaining Apartment Hotel Uses to Residential Use City Charter requires voter approval before increasing a properly's floor area ratio ("FAR") (City's method of regulating building size). In certain residential zoning districts south of 5th Street, apartment-hotels are now prohibited, but previously approved properties may continue such uses. Shall the City increase FAR from 1.25 to 1.50 in the RPSI District, and from 1.50 to 1.75 in the RPS2 District, to provide an incentive for converting these remaining apartment hotel uses to residential use? On August 23, 2022, the ballot question was approved by 71.26 percent of the City's voters. Therefore, contingent upon the certification of the election results,the subject Ordinance can be adopted by the City Commission. SUPPORTING SURVEY DATA Enhance Residents Quality of Life FINANCIAL INFORMATION No Fiscal Impact Expected CONCLUSION The Administration recommends that the City Commission adopt the subject Ordinance. Applicable Area South 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 Vice-Mayor Alex Fernandez ATTACHMENTS: Description Page 735 of 1700 o Density and Intensity Analysis o Ordinance Page 736 of 1700 RPS1 and RPS2-DENSITY AND INTENSITY IMPACT ANALYSIS The proposed Comprehensive Plan and LDR amendments would affect the following parcels that have legally non-conforming apartment-hotels in the R-PS1 and R-PS2 zoning districts: Affected Parcels # Addresses Zoning Lot Size Lot Sim (SF) (AC) 1 226 Jefferson Avenue R-PS1 7,000 0.16 2 333&343 Jefferson Avenue R-PS2 14,000 0.32 3 310 Meridian Avenue R-PS2 7,000 0.16 4 727&735 2nd Street R-PS2 1,827 0.04 5 350 Euclid Avenue R-PS2 7,000 0.16 6 334,338,&344 Euclid Avenue R-PS2 14,000 0.32 7 350 Washington Avenue R-PS2 4,725 0.11 Total 55,552 1.28 Under existing FAR and density limits, the affected parcels have the following impacts if the legally non- conforming apartment-hotels are maintained: Current Lim_its Trip Current Max Current Max Current Max Generation Current Existing Density Units Peak Hour Potential # Addresses FAR Floor Area (Dweirg (Dwelling Rate(Al Peak Hour Units/AC) Units) Suites Trips Hotel) 1 226 Jefferson Avenue 1.25 8,750 57 9 0.55 5 2 333&343 Jefferson Avenue 1.50 21,000 70 22 0.55 12 3 310 Meridian Avenue 1.50 10,500 70 11 0.55 6 4 727&735 2nd Street 1.50 2,741 70 3 0.55 2 5 350 Euclid Avenue 1.50 10,500 70 11 0.55 6 6 334,338,&344 Euclid Avenue 1.50 21,000 70 22 0.55 12 7 350 Washington Avenue 1.50 7,088 70 8 0.55 4 Total 81,578 87 48 If all legally non-conforming apartment-hotel uses are converted to residential uses with increased FAR and density as proposed, the following impacts could be expected: Proposed Limits Proposed Proposed GeneTrip Proposed Proposed Max Density Max Units D.., Poienlld � • Addresses Proposed - Mart Fkroc . . Peak Hour FAR (Dwelling (Dwelling Peak Hour Areaa Um.IAC) ) N Trips 1 226 Jefferson Avenue 1.50 10,500 80 13 0.62 8 2 333&343 Jefferson Avenue 1.75 24,500 95 31 0.62 19 3 310 Meridian Avenue 1.75 12,250 95 15 0.62 9 4 727&735 2nd Street 1.75 3,197 95 4 0.62 2 5 350 Euclid Avenue 1.75 12,250 95 15 0.62 9 6 334,338,&344 Euclid Avenue 1.75 24,500 95 31 0.62 19 7 350 Washington Avenue 1.75 8,269 95 10 0.62 6 Total 95,466 119 74 The following is a summary of the collective impact that the proposed amendments could have within the R-PS1 and R-PS2 districts: Potential Impacts Potential Floor Area Increase(SF) 13,888 Potential Units Increase(Units) 32 Potential Peak Hour Traffic Increase(Trips) 26 Page 737 of 1700