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Ordinance 2023-4555 Voter Enacted Incentive for Replacing Transient Uses in R-PS4 District LDR Amendment ORDINANCE NO. 2023-4555 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE LAND DEVELOPMENT REGULATIONS OF THE CODE OF THE CITY OF MIAMI BEACH, BY AMENDING CHAPTER 142, "ZONING DISTRICTS AND REGULATIONS," ARTICLE II, "DISTRICT REGULATIONS," DIVISION 18, "PS PERFORMANCE STANDARD DISTRICT," AMENDING SECTION 142-696, "RESIDENTIAL PERFORMANCE STANDARD AREA REQUIREMENTS," BY AMENDING THE MAXIMUM ALLOWABLE FLOOR AREA RATIO ("FAR") FOR THE R-PS4 ZONING DISTRICT TO INCENTIVIZE THE REDEVELOPMENT OR CONVERSION OF HOTELS INTO RESIDENTIAL STRUCTURES, BY ALLOWING SUCH PROPERTIES TO RETAIN OR RECONSTRUCT NONCONFORMING FAR IF THE OWNER VOLUNTARILY PROFFERS A RESTRICTIVE COVENANT RUNNING WITH THE LAND THAT SHORT-TERM RENTALS SHALL NOT BE PERMITTED ON THE PROPERTY; AND PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE. WHEREAS, the City's South of Fifth residential neighborhood includes the High Density Residential Performance Standard High Density (R-PS4) zoning district; and WHEREAS, residents and neighborhood associations in the South of Fifth neighborhood wish to transition existing hotel uses to residential use to minimize the impacts of transient uses on neighborhood quality of life; and WHEREAS, the City Commission desires to incentivize the construction of residential condominiums to replace existing hotels within the South of Fifth Neighborhood; and WHEREAS, to incentivize residential development to replace existing hotels within the South of Fifth Neighborhood, it is necessary to amend the City's land development regulations for the R-PS4 zoning district by creating a 0.75 FAR incentive for the residential conversion or redevelopment of an existing hotel, if the property owner voluntarily agrees to first record a covenant prohibiting short-term rentals on the property; and WHEREAS, pursuant to Section 1.03(c) of the City Charter, "the floor area ratio [FAR] of any property . . . within the City of Miami Beach shall not be increased by zoning, transfer, or any other means from its current zoned floor area ratio as it exists on the date of adoption of this Charter Amendment [November 7, 2001], . . . unless any such increase in zoned floor area ratio for any such property shall first be approved by a vote of the electors of the City of Miami Beach"; and WHEREAS, because this Ordinance would permit the retention or reconstruction of non- conforming FAR, the approval of the City's voters is required under Charter Section 1.03(c); and WHEREAS, on November 8, 2022, and pursuant to Resolution No. 2022-32255, a majority of the City's voters approved the proposed FAR incentive; 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 City seeks to amend its land development regulations to implement the vote of the residents relating to FAR in the City's R-PS4 zoning district; and WHEREAS,the amendments set forth below are necessary to accomplish all of the above objectives and the vote of the electorate. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. Chapter 142, "Zoning Districts and Regulations," Article II, "District Regulations," Division 18, "Performance Standard District," of the Land Development Regulations of the Code of the City of Miami Beach is hereby amended as follows: CHAPTER 142 ZONING DISTRICTS AND REGULATIONS ARTICLE II. DISTRICT REGULATIONS * * * DIVISION 18. PERFORMANCE STANDARD DISTRICT * * * Sec. 142-696. Residential performance standard area requirements. a. The residential performance standard area requirements are as follows: Residential Subdistricts Performance R-PSI R-PS2 R-PS3 R-PS4 Standard Minimum lot 5,750 square 5,750 square 5,750 square 5,750 square area feet feet feet feet Minimum lot 50 feet 50 feet 50 feet 50 feet width Required open 0.60, See 0.65, See 0.70, See 0.70, See space ratio section 142-704 section 142-704 section 142-704 section 142-704 Maximum 45 feet 45 feet 50 feet Nonoceanfront— building height* Lots 50 feet Lots 50 feet Lots 50 feet 80 feet; wide or less-40 wide or less-40 wide or less-40 Oceanfront— feet feet feet 100 feet; Lots 50 feet wide or less-40 feet (Except as provided below) Performance R-PS1 R-PS2 R-PS3 R-PS4 Standard Maximum floor 1.25 1.50 1.75 2.0 area ratio (Except as provided below) Minimum floor New New New New area per construction— construction— construction— construction— apartment unit 700 650 600 550 (square feet) Rehabilitated Rehabilitated Rehabilitated Rehabilitated buildings-400 buildings-400 buildings-400 buildings-400 Non-elderly and Non-elderly and Non-elderly and elderly low and elderly low and elderly low and moderate moderate moderate income income income housing-400 housing-400 housing-400 Workforce Workforce Workforce housing-400 housing-400 housing-400 Minimum New New New New average floor construction— construction— construction— construction— area per 900 900 850 800 apartment unit Rehabilitated Rehabilitated Rehabilitated Rehabilitated (square feet) buildings-550 buildings-550 buildings-550 buildings-550 Non-elderly and Non-elderly and Non-elderly and Non-elderly and elderly low and elderly low and elderly low and elderly low and moderate moderate moderate moderate income housing-400 income income housing-400 Workforce housing-400 housing-400 Workforce housing Workforce Workforce housing-400 400 housing-400 housing-400 Minimum floor N/A N/A 15% = 300-335 15% = 300-335 area per hotel square feet square feet unit(square 85% = 335+ 85% = 335+ feet) square feet square feet Minimum Pursuant to chapter 130 and section 142-705 requirement. parking Minimum off- Pursuant to chapter 130, article Ill. street loading Signs Pursuant to chapter 138. Suites hotel Pursuant to article IV, division 3 of this chapter. *Notwithstanding the foregoing provisions regarding maximum building height, in the Ocean Beach historic district, as defined in subsection 118-593(e)(2)f., the maximum building height for a lot located in the R-PS1, R-PS2, or R-PS3 zoning districts: (i) With a lot exceeding 50 feet, and (ii) Upon which there exists a contributing structure which has not received a certificate of appropriateness for demolition (or any such approval has expired), shall be 40 feet. 1. Notwithstanding the above height restrictions, existing structures within a local historic district are subject to section 142-1161. 2. In the R-PS4 zoning district, within the Ocean Beach historic district, when an existing contributing structure is nonconforming with respect to the height regulations in section 142-696, such structure may be repaired, renovated or rehabilitated regardless of the cost of such repair, renovation or rehabilitation, notwithstanding the provisions of chapter 118, article IX, "Nonconformances." 3. Reserved. 4. Notwithstanding the above height restrictions, in the R-PS4 zoning district, within the Ocean Beach historic district, for lots 100 feet or more in width, the maximum height shall be 35 feet for the first 60 feet of lot depth, 75 feet thereafter, subject to the line- of-sight analysis of section 142-697(d). However, for residential apartment buildings, on lots 100 feet or more in width, the historic preservation board, in accordance with certificate of appropriateness criteria, may allow an increase in the overall height not to exceed 60 feet for the first 60 feet of lot depth, and 100 feet thereafter, and on lots 50 feet wide or less may allow an increase in overall height not to exceed 35 feet for the first 60 feet of lot depth, 60 feet thereafter, provided all of the following conditions are satisfied: a. The property shall be an oceanfront lot; b. The property shall not contain a contributing building; c. The top level of the front portion of the new construction on lots 100 feet or more in width shall meet a line-of-sight, which for the purpose of this section, is defined as not being visible when viewed at eye-level (five feet six inches from grade)from the opposite side of the Ocean Drive right-of-way, and on lots 50 feet or less wide shall be subject to the line-of-sight analysis of section 142- 697(d); d. The proposed building shall be sited and massed in a manner that promotes and protects view corridors. At a minimum, a substantial separation of the tower portion of any structure shall be required; e. For lots greater than 50 feet in width, the front portion of the structure shall incorporate a separation in the center of the structure, which is open to sky, and is at least ten feet in width and 25 feet in depth; the exact location of such separation shall be subject to the historic preservation board, in accordance with certificate of appropriateness criteria. Alternatively, the massing and architectural design of the front portion of the structure shall acknowledge the historic pattern of residential structures along Ocean Drive; g. [Reserved;] h. The maximum residential density is 60 units per acre; i. All required off-street parking for the building shall be provided on site; required parking may not be satisfied through parking impact fees; j. The owner restricts the property to permit only rentals that are no less than six months and one day per calendar year, through language in its condominium or cooperative documents, and by proffering a restrictive covenant, running with the land, or other similar instrument enforceable against the owner(s), acceptable to and approved as to form by the city attorney, which shall be executed and recorded prior to the issuance of a building permit, to ensure that the building remains solely as a residential apartment building for a minimum of 30 years, and that no uses under section 142-902(2)e. are permitted on the premises during that time period; • k. Accepting that the value in the increased height, and the incremental traffic burden and effect on aesthetics in the district are offset by the conveyance of an easement for an extension of the beachwalk east of their structures, the owner provides an easement, acceptable to and approved as to form by the city attorney, for a public beachwalk on the easterly portion of its property, as more specifically provided in the plans on file with the city's public works department. c. Voluntary FAR incentive for conversion from hotel to residential use. Notwithstanding the foregoing FAR limitations,for a property with a main use of hotel as of January 1, 2022,which, as built, exceeds an FAR of 2.0 and is located within the R-PS4 zoning district, the maximum FAR may be increased to 2.75 as a voluntary development incentive, subject to the property owner's voluntary agreement to strictly comply 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 (as set forth in section 118-395), 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 set forth in this subsection, 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. 4. Any existing contributing building shall be retained in a manner reviewed and approved by the Historic Preservation Board. 5. There shall be no variances from this subsection (c). SECTION 2. 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. The sections of this ordinance may be renumbered or re-lettered to accomplish such intention, and 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. EFFECTIVE DATE. This Ordinance shall take effect ten days following adoption.�i PASSED and ADOPTED this I? day of Mar , 2023. ATTEST: • Dan Gelber, Mayor : APPROVED AS TO ,I MAY 2 2 2023 FORM AND LANGUAGE Rafa E. Granado, City Clerk & FOR EXECUTION (\ -Y 5_Ict-23 City Attorney Date First Reading: March 27, 2 23 Second Readin ay 17, 20 ��M\.B,V8,, Verified by: s IIN P a Thomas R. Mooney, Al � y•, ;: Planning Director (Sponsored by Commissioner Alex J. Fernandez) T:\Agenda\2023\4-May 2023\Planning\R-PS4 Incentives for Replacing Transient Uses LDR Amendment-Second Reading ORD ADOPTED.docx Ordinances -R5 D MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: May 17, 2023 10:16 a.m. Second Reading Public Hearing SUBJECT:VOTER ENACTED INCENTIVE FOR REPLACING TRANSIENT USES IN R- PS4 DISTRICT- LDR AMENDMENT AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE LAND DEVELOPMENT REGULATIONS OF THE CODE OF THE CITY OF MIAMI BEACH, BY AMENDING CHAPTER 142, "ZONING DISTRICTS AND REGULATIONS," ARTICLE 11, "DISTRICT REGULATIONS," DIVISION 18, "PS PERFORMANCE STANDARD DISTRICT," AMENDING SECTION 142-696, "RESIDENTIAL PERFORMANCE STANDARD AREA REQUIREMENTS," BY AMENDING THE MAXIMUM ALLOWABLE FLOOR AREA RATIO ("FAR") FOR THE R-PS4 ZONING DISTRICT TO INCENTIVIZE THE REDEVELOPMENT OR CONVERSION OF HOTELS INTO RESIDENTIAL STRUCTURES, BY ALLOWING SUCH PROPERTIES TO RETAIN OR RECONSTRUCT NONCONFORMING FAR IF THE OWNER VOLUNTARILY PROFFERS A RESTRICTIVE COVENANT RUNNING WITH THE LAND THAT SHORT-TERM RENTALS SHALL NOT BE PERMITTED ON THE PROPERTY; 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 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 The purpose of the attached legislation is to incentivize the redevelopment of hotels within the Page 393 of 945 RPS-4 zoning district, such as the Mamott 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 LDR amendment, and companion Comprehensive Plan amendment, would allow existing hotel properties in the RPS-4 district that voluntarily convert to a residential use to have a maximum FAR of 2.75, where currently the maximum FAR is 2.0. The main use of the building would be required to remain residential with allowable accessory uses in perpetuity. The RPS-4 district 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 proposed 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 FAR incentives in the subject ordinances, 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 Mamott Stanton, the redevelopment of the site would transform the 226-room hotel to a residential structure of no more than 93 units, which equates to a 58%decrease in the number of units provided on that site. Page 394 of 945 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 ordinance 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. PLANNING BOARD REVIEW Page 395 of 945 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 On March 27, 2023,the subject ordinance was approved at First Reading. 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 D Aerial MAP ❑ Concurrency Analysis ❑ Ordinance Page 396 of 945 Future Land Use _ _. , ......, -- _-------1.. „....114 . -,,,c_ I 4'7.11- .. • '••: 7---:',:'`t; ` **WV.i._•1 - „Iv-- . . -2 ma. ',_ '1 r .,...• - .1 ''''-'-- -- ' _ .- #fit !. --z-z--.-- . $...4..4 . 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Nit.N......‘,„.i ' -_ -. r A R-PS4 Transient Uses .->oiff. _ )-,- - • eographics.and the GI (,/.1,- p ...4 ...rk,k.qi. 71]-10 i'• f i r.t Location: 0 125 250 500 Feet w+E R-PS4 District with Transient Uses I 1 i 1 i 1 i I i S Page 399 of 945 PLANNING DEPARTMENT Comprehensive Plan and Zoning Amendtnent ConctirencyAnalysis Date Prepared: 2/14/2023 Contumacy Manaiement Area: South Beach Name of Protect: R-PS4 Tratsknt Use Conversion Incentives Square Feet In the Amendment: 221,399 Address of Ste: Three R-PS4 Transient Use Pardes on Ocean Drive Acreage In the Amendment: SAS Proposed FLUM Designation eC /,.., S D Li Qe .7iiui;:ii:p:/ Designation: fit?`e tt 4F D¢�`r� -S� C-PS1 with Fist Street Overlay 518 93,369 Maxim:En Maximum Peak tour Trips Density FAR Generated 404 A 469 A A 873 Residential Units/Acre 102 2.70 Demand 295 0 1295 Units=EMI MM.SF *PeakH aths..hlwlned WW1 atsts Ednpnmt Genwon Manual Weekday DMPakWat 1.en Note:Estimate assumes Floor Area for Residential Units at 850 SF per Unit at Max DensIW,15%of FAR for back of house uses,and remaining floor area for retail Existing FLUM Designation Al �efi�� a o� � 8 o�r� \�` �� Designation: moo``e �e`e es \ g` 4V} ,<O [-PSI 1,140 Madman 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 Units MEMO AMEN SF weak Hue Mpg amlred MN nEnn Men Tnp CenrloD,Manual weekday PM Pee HCurfan>s Nate:Estimate assumes Floor Area for 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% Mixed use(lnternal) 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 Parts Facility Type Concurrent Existing Demand: 85,500 Gallons Per Day New Demand: 18,330 Gallons Recreation and Open Space Acreage YES Concurrency to be determined at Building Pemrit AppRotlan Swimming Pool YES Sanitary Sewer Transmission Capacity Golf Cease YES Proposed Demand: 181,303 Gallons Per Day Basketball Court NO Existing Demand: 79,800 Gallons Per Day Tennis Coat NO New Demand: 101,500 Gallons Multiple-Use Coats YES Concurrency to be determined at Bid Wing 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 Concrrency to he determined at Building Permit Application Activity Building for Multiple Uses YES Storm Sewer capacity Required Mitigation to be determined at Building Permit Application Required LOS:Ore-lwflve-year storm event Cananency to be determined at Building Permit 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 400 of 945