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Ordinance 2023-4554 Voter Enacted Incentive for Replacing Transient Uses in R-PS4 District Comprehensive Plan Amendment ORDINANCE NO. 2023-4554 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CITY OF MIAMI BEACH YEAR 2040 COMPREHENSIVE PLAN, PURSUANT TO THE EXPEDITED STATE REVIEW PROCESS OF SECTION 163.3184(3), FLORIDA STATUTES, BY AMENDING THE "RESILIENT LAND USE & DEVELOPMENT ELEMENT," GOAL RLU 1, ENTITLED "LAND USE," OBJECTIVE RLU 1.1, ENTITLED "ESTABLISHMENT OF FUTURE LAND USE CATEGORIES," AT TABLE RLU 1.1 AND POLICY 1.1.25, ENTITLED "HIGH DENSITY RESIDENTIAL PERFORMANCE STANDARD (R-PS-4)," BY CREATING VOLUNTARY DEVELOPMENT INCENTIVES, INCLUDING AN INCREASE TO THE MAXIMUM ALLOWABLE FLOOR AREA RATIO("FAR"), NOT TO EXCEED 0.75 FAR, FOR THE REDEVELOPMENT OF HOTELS, IN THE R-PS-4 FUTURE LAND USE CATEGORY, INTO RESIDENTIAL USE, SUBJECT TO THE PROPERTY OWNER FIRST RECORDING A COVENANT PROHIBITING SHORT-TERM RENTALS ON THE PROPERTY; AND PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, TRANSMITTAL AND AN EFFECTIVE DATE. WHEREAS, the High Density Residential Performance Standard High Density (R-PS-4) future land use category is located within the South of Fifth neighborhood, which is primarily residential in character; and WHEREAS, the South of Fifth residential community wishes to transition existing hotel uses to residential uses to minimize impacts of transient uses on the community; and WHEREAS, to incentivize residential development to replace existing hotels within the South of Fifth Neighborhood, it is necessary to amend the City's Comprehensive Plan to permit the City Commission to create a 0.75 FAR incentive for the residential conversion or redevelopment of an existing hotel, on the condition that a property owner first record a covenant prohibiting short-term rentals on the property; and WHEREAS,the City has the authority to enact laws that 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 2040 Comprehensive Plan Resilient Land Use & Development Element are hereby adopted: RESILIENT LAND USE & DEVELOPMENT ELEMENT GOAL RLU 1: LAND USE OBJECTIVE RLU 1.1 ESTABLISHMENT OF FUTURE LAND USE CATEGORIES 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) FLUM Category Density Limits Intensity Limits Reference (Units Per Acre) (Floor Area (Policy#) Ratio) Single Family Residential (RS) 7 units per acre * RLU 1.1.1 Townhouse Residential (TH) 30 units per acre 0.7 RLU 1.1.2 Fisher Island Low Density Planned 25 units per acre 1.6 RLU 1.1.3 Residential (RM-PRD) Allison Island Low Density Planned 25 units per acre 1.45 RLU 1.1.4 Residential Category(RM-PRD-2) Low Density Multi Family 60 units per acre 1.25* RLU 1.1.5 Residential (RM-1) Medium Density Multi Family 100 units per 2.0 RLU 1.1.6 Residential (RM-2) acre. High Density Multi Family 150 units per 2.25* RLU 1.1.7 Residential (RM-3) acre Medium-Low Density Residential 57 units per acre 1.25 RLU 1.1.22 Performance Standard (R-PS-1) Medium Density Residential 70 units per acre 1.5 RLU 1.1.23 Performance Standard (R-PS-2) Medium-High Density Residential 85 units per acre 1.75 RLU 1.1.24 Performance Standard (R-PS-3) High Density Residential 102 units per 2.0* RLU 1.1.25 Performance Standard (R-PS-4) acre - Low Intensity Commercial (CD-1) 60 units per acre 1.0* RLU 1.1.8 Medium Intensity Commercial (CD- 100 units per 1.5* RLU 1.1.9 2) acre High Intensity Commercial (CD-3) 150 units per 2.0* RLU 1.1.10 acre Urban Light Industrial (I-1) N/A 1.0 RLU 1.1.21 * * * POLICY RLU 1.1.25 HIGH DENSITY RESIDENTIAL PERFORMANCE STANDARD (R-PS-4) 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, apartment hotels, 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: 102 dwelling units per acre. Intensity Floor Area Ratio Limits: 2.0 Notwithstanding the foregoing FAR limitations, for properties with a main use of hotel as of January 1, 2022 within the R-PS-4 land use category, the City Commission may .adopt Land Development Regulations to increase the maximum FAR to 2.75 as a voluntary development incentive,subject to the property owner's voluntary agreement to strictly comply with the following conditions: f The main use on the property shall be converted to residential and shall remain residential in perpetuity; hostel, hotel, apartment-hotel, and suite-hotel use shall be prohibited. 2) A new structure, consisting solely of main-use residential and allowable accessory uses, may be constructed, in accordance with all applicable development regulations with a maximum FAR of 2.75. Alternatively, the entire existing building may be converted to main-use residential and allowable accessory uses, including any repairs, alterations and modifications that may exceed the 50% rule in the Land Development Regulations, provided any alterations and modifications do not result in the building exceeding an FAR of 2.75. 2) A property shall only be eligible for the FAR incentive set forth in this section, not to exceed a total FAR of 2.75, if the property owner elects, at the owner's sole discretion, to voluntarily execute a restrictive covenant running with the land, in a form approved by the city attorney, affirming that, in perpetuity, none of the residential units on the property shall be leased or rented for a period of less than six months and one day. SECTION 2. CODIFICATION. It is the intention of the City Commission that this Ordinance be entered into the Comprehensive Plan of the City of Miami Beach, FL, 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," "article," or other appropriate word. SECTION 3. REPEALER. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. 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. 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 until 31 days after the state land planning agency notifies the City that the plan amendment package is complete following adoption, pursuant to Section 163.3184(3), Florida Statutes. PASSED and ADOPTED this 17 day of Part.. Dan Gelber, Mayor ATTEST: MAY 2 2 2023 ,\ .B 9 c Rafael E. Granado _ '', City Clerk . ' °' (.IHCOP ORATEDI s APPROVED AS TO FORM AND LANGUAGE \ H 26''�` & FOR EXECUTION DS City Attorney �k Date First Reading: March 27, 2023 Second Reading: .' ay 17, 2' 23 Verified by: Tho as R. Mooney, 7194 Planning Director T:\Agenda\2023\4-May 2023\Planning\R-PS4 Incentives for Replacing Transient Uses CP Amendment-Second Reading ORD.docx Ordinances - R5 C MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: May 17, 2023 10:15 a.m. Second Reading Public Hearing SUBJECT:VOTER ENACTED INCENTIVE FOR REPLACING TRANSIENT USES IN R- PS4 DISTRICT-COMPREHENSIVE PLAN AMENDMENT AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CITY OF MIAMI BEACH YEAR 2040 COMPREHENSIVE PLAN, PURSUANT TO THE EXPEDITED STATE REVIEW PROCESS OF SECTION 163.3184(3), FLORIDA STATUTES, BY AMENDING THE "RESILIENT LAND USE & DEVELOPMENT ELEMENT," GOAL RLU 1, ENTITLED "LAND USE," OBJECTIVE RLU 1.1, ENTITLED "ESTABLISHMENT OF FUTURE LAND USE CATEGORIES," AT TABLE RLU 1.1 AND POLICY 1.1.25, ENTITLED "HIGH DENSITY RESIDENTIAL PERFORMANCE STANDARD (R-PS-4)," BY CREATING VOLUNTARY DEVELOPMENT INCENTIVES, INCLUDING AN INCREASE TO THE MAXIMUM ALLOWABLE FLOOR AREA RATIO ("FAR"), NOT TO EXCEED 0.75 FAR, FOR THE REDEVELOPMENT OF HOTELS, IN THE R-PS-4 FUTURE LAND USE CATEGORY, INTO RESIDENTIAL USE, SUBJECT TO THE PROPERTY OWNER FIRST RECORDING A COVENANT PROHIBITING SHORT-TERM RENTALS ON THE PROPERTY; AND PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, TRANSMITTAL AND AN EFFECTIVE DATE. RECOMMENDATION The Administration recommends that the City Commission adopt the subject ordinance. BACKGROUND/HISTORY On July 20, 2022, at the request of Commissioner Alex Fernandez, the City Commission adopted Resolution 2022-32255, placing a ballot question regarding a floor area ratio (FAR) incentive to convert existing hotels into residential use in the R-PS4 district on the November 8, 2022, general election ballot (Item R7 U). On November 8, 2022, the ballot measure was approved by 65.66% of the voters. On December 14, 2022, at the request of Commissioner Alex Fernandez, the City Commission referred the proposed ordinances to the Planning Board (Item C4 Y). ANALYSIS Page 381 of 945 The purpose of the attached legislation is to incentivize the redevelopment of hotels within the RPS-4 zoning district, such as the Marriott Stanton, located at 161 Ocean Drive, into residential properties.The replacement of a hotel with residential uses would reduce the impact of transient hotel uses in the South of Fifth neighborhood. The proposed Comprehensive Plan amendment, and corresponding LDR amendment, would allow existing hotel properties with a future land use designation of RPS-4 that voluntarily convert to a residential use to have a maximum intensity, or FAR, of 2.75, where currently the maximum intensity (FAR) under the comprehensive plan is 2.0. The main use of the building would be required to remain residential with allowable accessory uses in perpetuity. The RPS-4 land use designation includes those properties south of Fifth Street, east of Ocean Drive,,as well as the Continuum property (see attached zoning and future land use maps). The subject ordinance applies to properties with a main use of hotel as of January 1, 2022, subject to the property owner's strict compliance with the following conditions: 1. The main use on the property shall be converted to residential and shall remain residential in perpetuity; hostel, hotel, apartment-hotel, and suite-hotel use shall be prohibited. 2.A new structure, consisting solely of main use residential and allowable accessory uses, may be constructed, in accordance with all applicable development regulations, with a maximum FAR of 2.75.Alternatively, the entire existing building may be converted to main-use residential and allowable accessory uses, including any repairs, alterations and modifications that may exceed the 50% rule, provided any alterations and modifications do not result in the building exceeding an FAR of 2.75. 3.A property shall only be eligible for the FAR incentive of 2.75 if the property owner elects, at the owner's sole discretion, to voluntarily execute a restrictive covenant running with the land, in a form approved by the city attorney, affirming that, in perpetuity, none of the residential units on the property shall be leased or rented for a period of less than six months and one day. 4. There shall be no variances from these provisions. In addition to the Marriott Stanton, there are two other properties that have hotels in the R-PS4 district that could potentially take advantage of this FAR incentive, which are the Hilton Bentley Miami/South Beach located at 101 Ocean Drive and the Savoy Hotel & Beach Club located at 425 Ocean Drive (see attached aerial map).Additional information would be needed to verify that the current main use of these properties is for hotel use to determine their eligibility. To date, these properties have not expressed any interest in utilizing this incentive. Additionally, section 142-696 (h)of the LDRs limits the residential density within R-PS4 zoning district within the Ocean Beach Historic District to 60 units per acre if a property owner seeks to utilize an existing height incentive that is applicable on lots that are over 100 feet in width in the Ocean Beach Historic District.This incentive provides a height limit of 60 feet for the first 60 feet of lot depth and 100 feet thereafter. Without this incentive, the maximum building height is limited to 35 feet for the first 60 feet of lot depth and 75 feet thereafter.Any future proposal to convert a hotel to residential, and apply the intensity (FAR) incentives in the subject ordinance, would likely want to utilize the height incentives and, therefore, be subject to the 60 units per acre density limitation. In the case of the Marriott Stanton, the redevelopment of the site would transform the 226-room hotel to a residential structure of no more than 93 units, which equates Page 382 of 945 to a 58%decrease in the number of units provided on that site. As noted in the attached concurrency analysis, given the limited area covered by the proposal, the proposed increase in FAR is not expected to have a negative impact on transportation and mobility. In this regard,there is only a potential increase of 22 vehicle trips, due to the mixed-use nature of the area and existing access to public transportation and alternative transportation modes. The proposal does not modify the maximum residential density for the site; as such levels of service specific to residential population are not impacted. However, prior to the submittal of any building permits, a full concurrency review will be required to determine the actual impact and mitigation requirements of any proposed development. CITY CHARTER ANALYSIS The proposal to modify the maximum FAR is affected by Section 1.03(c) of the City Charter, which partially states the following: The floor area ratio of any property or street end within the City of Miami Beach shall not be increased by zoning, transfer, or any other means from its current zone floor area ratio as it exists on the date of adoption of this Charter Amendment (November 7, 2001), including any limitations on floor area ratios which are in effect by virtue of development agreements through • the full term of such agreements, unless such increase in zone floor area ratio for any such property shall first be approved by a vote of the electors of the City of Miami Beach. The proposed ordinance would increase the zoned FAR for the affected parcels. As a result, the following question was submitted to the electors of the City of Miami Beach: RPS4 District—South of Fifth Street FAR Incentive to Convert Existing Hotels into Residential Use City Charter requires voter approval before increasing a property's floor area ratio ("FAR') (City's method of regulating building size). The RPS4 district lies within the South of Fifth Neighborhood, which is predominantly residential. Shall City increase maximum FAR from 2.0 to 2.75 in RPS4 District as an incentive for the conversion of existing hotel properties into residential use, if the property owner records a covenant prohibiting short-term rentals on the property? On November 8, 2022, the ballot measure was approved by 65.66% of the voters. Therefore, the proposed ordinances can be considered for adoption by the City Commission. COMPREHENSIVE PLANNING REVIEW PROCESS The proposal requires an 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 days after it is adopted if there are no appeals. Page 383 of 945 PLANNING BOARD REVIEW On February 28, 2023, the Planning Board held a public hearing and transmitted the proposed ordinance to the City Commission with a favorable recommendation(7-0). UPDATE The subject ordinance was approved at First Reading on March 27, 2023 and transmitted to all applicable State and County regulatory agencies for review and comment. During the 30-day comment period, no concerns or objections were raised by any of the regulatory agencies. Also, after approval of the ordinance at First Reading, a non-substantive, minor adjustment was made to clarify that any corresponding increase in FAR will be made by amending the Land Development Regulations, as opposed to by ordinance. This clarification is included in the attached ordinance for adoption. SUPPORTING SURVEY DATA N/A FINANCIAL INFORMATION No fiscal impact is 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 Commissioner Alex Fernandez ATTACHMENTS: Description ❑ Zoning and FLUM MAPS ❑ Aerial MAP ❑ Concurrency Analysis ❑ Ordinance Page 384 of 945 Future Land Use . .?, ,....., - - 4 11.,1=5 ,-1=7.i. 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A NI NI MP It' I '' II I R-PS4 District . !,-r;; 14,, •;'-,-s,.. ,..laito* I -41.k'11141/4...,s.,i a -.: -4.1.. . .' '6 I' A R-PS4 Transient Uses Oilli-Kil- e-sn. 1:,--i..zfit. :..k.tir J.eographics.and the-.* ,-(-1.P.. 4.. T ,... ..i.attircynot j _,--r.,... ‘,\, • - N Location: 0 125 250 500 Feet W+E R-PS4 District with Transient Uses IIIIIIIII s Page 386 of 945 Aerial ='L - t �_17 A ' •.' r•dr •tom-t--r - . i ., .._ i zit- .-,....- . .t.,..2,;#.„, ? ... ., . . 0. --R:14IrP".'T 2:tr:i . ."2"1 . '741;45:11.1111..A1111"F : 41:',111111t1C7 4r*.- 4'0 . ill ....1- 01*- -• '". 'i _....... .,,..„ , ,_ -.,-,- "-.±.... ..."-"‘u"' „; Ail I, s,..rx _ f�M•-,�'�3^:�' , i4 ...-- Y y�, r'. i : r am! �. QVd: r • el it`.- ,° r ,- 1 .-; ;�Ir �}�., • . Savoy /111.....1. . i'i --.d ,- r , , j.. ►'' �l: ,� + -m�oat I •-.,.... / 0, — ai,4 zra , iiir-_*_.T • Al ' '`..... : _. *, ; ' AP 4,_;1•4. '..4_,/ ' '•-•••.;..1;..' °+ r ' ' °!rt �1 Marriott Stanton itti la. 11 AIR+ f'T ,• !' 'le �.44,•r ; 11. \ 'Y t..i'( 1 t%C :; 1V1 Y '�I .�;;� Hilton Bentley ‘-* Ai 1_,ip; 1.414,1.t pi,„j r !Kg Sr' 1 76.ia 77 .. :1,"5_: . .. * if ''', --*- - N 4 .. • 11 r ;• f a r v • {� • � M 71 � r ■ R-PS4 District + ' rA R-PS4 Transient Uses -i'- - .L,i -, -1.,;r;:i-, eographics,and ttie_ JS se- r `, -: x Location: 0 125 250 500 Feet w ` R-PS4 District with Transient Uses i 1 1 1 1 1 1 1 1 Page 387 of 945 PLANNING DEPARTMENT Comprehensive Plan end Zoning Amendrned COncurrenryMalysis Date Prepared: 2/14/2023 Cancunency Management Area: South Beach Name of ProOct: R-P54 Transient Use Catversien Incentives Square Feet in the Amendment: 221.399 Address of Site: Three R-P54 Transient Use Parties on Ocean Drive Acreage in the Amendment: LOB Proposed FLUM Designation Designation: ?dg.cr? F dli /Cf /Xis Q4511o,a� C.PS1 with Fist Street Overlay 51B 93,3E9 Maximus Maximum Peak Hour Trips Density FAR Generated' 404 A 469 A . A 873 Residential Units/Aare 102 �}22..7,00 Demand 295 0 295 UnIts lYlrra{fa SF •PeWfbur Tripshltuntedwe,m 9N Edson Tr*Gessoes Manua Weekday PM Peak nandtton Nate:Estimate assumes Floor Area for Residential Units at 850 SF per Unit at Max Density,15%of FAR for back of house tees,and remaining floor area for retail Existing FLUM Designation I': /ri's . fie., A4F, mDesignation: el 4-e�e�e'�` Cee if; C [-PSI. 1,140 Maximus Maximum Peak Hour Trips Density FAR Generated' N/A 844 N/A N/A N/A 844 Residential Units/Acre 102 2 Demand 0 570 570 tints MM. MOON SF •pee e,elnps Caltu Islets wail nE 9tk Wan TnpGemtron Manual We4day PM Peak Hour fsacra Nate:Estimate assumes Floor Area far Hotel Units at 330 SF per Room at Max FAR and 15%of FAR for back of house uses Vehicle Transportation Impact New Trips Generated Trip Allowances Transit 15% Net New Trips Generated: 22 Trips 29 Trips Pass-by 0% Mlxedase(Internal} 10% Total 25% Parks and Recreation Concurrency Potable Water Transmission Capacity Net New Residential Demand: 725.0 People Proposed Demand: 103,830 Gallons Per Day Parks Farley Type Concurrent Existing Demand: 85,500 Gallons Per Day New Demand: 18,330 Gallons Recreation and Open Space Acreage YES Conwurency to be determined at Bolding Permit Application Swimming Pool YES Sanitary Sewer Transmission Capacity Golf Cause YES Proposed Demand: 181,300 Gallons Per Day Basketball Court NO Existing Demand: 79,800 Gallons Per Day Tennis Cout NO New Demand: 101,500 Gallons Multiple-Use Courts YES Conasrrencyto be determined at Building Permit Application Designated Reid Area YES Solid Waste Collection Capacity Tot Lots YES Proposed Demand: 1,651 Tons Per Year Vita Course YES Existing Demand: 727 Tons Per Year Boat Ramp YES New Demand: 924 Gallons Outdoor Amphitheater YES tcnwreencyto be determined at Building Permit Application ActMty Building for Multiple uses YES Storm Sewer capacity Required Mitigation to be determined at Building Permit Application Required LOS:One-indtve.year none event Cananencyto be deterndned at Bulidbrg Penh Application Note: This represents a comparative analysis of concurrency with maximum development potential of the site between the existing and proposed Future Land Use designations. Actual concurrency demands,required mitigation,and required capacity reservation will be determined at the time of Building Permit Application. Page 388 of 945