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Ordinance 2023-4556 Washington Avenue Overlay—Co-Living Amendments ORDINANCE NO. 2023-4556 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 OF THE CITY CODE, ENTITLED "ZONING DISTRICTS AND REGULATIONS," ARTICLE II, ENTITLED "DISTRICT REGULATIONS," DIVISION 5, ENTITLED "CD-2 COMMERCIAL, MEDIUM INTENSITY DISTRICT," BY AMENDING SECTION 142-309, ENTITLED "WASHINGTON AVENUE DEVELOPMENT REGULATIONS AND AREA REQUIREMENTS," TO EXTEND THE TIME TO OBTAIN A BUILDING PERMIT FOR CO-LIVING OR MICRO RESIDENTIAL UNITS, ADOPT REGULATIONS FOR THE EAST SIDE OF WASHINGTON AVENUE WITHIN THE OVERLAY, AND ADOPT RELATED AMENDMENTS TO EXISTING REGULATIONS; AND PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE. WHEREAS, the City of Miami Beach (the "City") has the authority to enact laws which promote the public health, safety, and general welfare of its citizens; and WHEREAS, previously, pursuant to the input and recommendations of the Mayor's Washington Avenue Blue Ribbon Task Force, the City adopted development regulations specific to Washington Avenue; and WHEREAS, the City reviewed the condition of properties located along Washington Avenue, in light of concerns raised by local residents, property owners, and businesses; and WHEREAS, various constituents have expressed concerns regarding the deterioration of the area; and WHEREAS, residents, property owners, and businesses are concerned with the quality of life and condition of the streets within the portions of the Flamingo Park Historic District and the National Register Historic District along Washington Avenue; and WHEREAS, the City studied various mechanisms for improving the quality of life and quality of businesses within the area; and WHEREAS, the City subsequently adopted Ordinance 2019-4312, as amended, which immediately incentivized new business development, including two new hotels and a new co- living project with an office component; and WHEREAS, this has improved the quality of life and viability of new businesses within the Washington Avenue neighborhood; and WHEREAS, to allow additional time for projects to obtain building permits, the City Commission finds it in the best interest of the City to extend the deadline to obtain the benefits of these incentives for projects proposing co-living or micro residential units; and 1 WHEREAS, in addition to the adopted incentives for the west side of Washington Avenue, the City, with the input of residents, property owners, and businesses, has determined that co- living and micro residential units would also bring beneficial development to the east side of Washington Avenue within a subarea of the Overlay in accordance with a list of specific safeguards; and WHEREAS, the amendments set forth below extend the deadline for existing zoning incentives and create new incentives for the east side of Washington Avenue, which in turn, will continue to improve the quality of life of the greater Washington Avenue neighborhood. 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 5, "CD-2 Commercial, Medium Intensity District," is hereby amended as follows: CHAPTER 142 ZONING DISTRICTS AND REGULATIONS ARTICLE II. DISTRICT REGULATIONS * * * DIVISION 5. CD-2 COMMERCIAL, MEDIUM INTENSITY DISTRICT * * * Sec. 142-309. Washington Avenue development regulations and area requirements. The following regulations shall apply to properties that front Washington Avenue between 6th Street and 15th Street, referred to herein as "South Washington Avenue," and between 15th Street and 16th Street, referred to herein as "North Washington Avenue"; where there is in the event of a conflict within this division, the criteria regulations below shall apply: * * (5) Co-living or micro residential units are permitted as a voluntary development incentive in South Washington Avenue and North Washington Avenue (as defined in this section) subject to the following regulations: a. For co-living or micro residential units, the minimum unit size may be 275 square feet, provided that a minimum of 20 percent of the gross floor area consists of amenity space on the same unified development site.Amenity space includes the following types of uses: Common area kitchens; club rooms; business center; retail; screening rooms; fitness center; wellness center; spas; gyms; pools; pool decks; roof decks,restaurant, bar or cafe above the ground floor; and other similar uses whether operated by a condominium or cooperative association or another operator. Fitness centers, wellness centers, spas, and gyms located on the ground floor shall be open to the public. Restaurants, bars, or cafai on the ground floor shall net nee,nt toward the amenity spare requirements set forth herein. 2 These amenities may be combined with the amenities for hotel units on the same unified development site, provided that residents and hotel guests have access to such amenities. b. Within the same unified development cite, office uses are provided with a minimum of 10,000 square feet shall be provided. b. Each unit shall be fully furnished and shall have an individual bathroom. c. All one-bedroom co-living units shall have a washer and dryer machine located within the unit, and co-living units with two or more bedrooms shall, at a minimum, install a washer and dryer in the common area of the unit. d. Each co-living unit may contain a maximum of six bedrooms. , the western lot line of the unified development site must front on a street with an RM 1 or RO zoning designation. g e. A maximum of 50 percent of the floor area within the unified development site may consists of co-living or micro units. # f. The owner must obta' ' '- - -- - - '--- •- - - = March 1, 2023 September 1, 2027. f. Formula commercial establishments and formula restaurants, as defined in section 114-1, are prohibited on a unified development site with co-living or micro units. } g, The owner/operator shall submit a covenant running with the land, in a form acceptable to the city attorney, agreeing that any owner/operator of co-living or micro units within the unified development site shall be obligated to clean and maintain (or arrange to have cleaned and maintained) each unit. k. h. The owner/operator shall submit a covenant running with the land, in a form acceptable to the city attorney, agreeing that any owner/operator of co-living or micro units within the unified development site shall be required to perform background screening investigations of all tenants of co-living or micro units. h i_Any owner/operator of co-living or micro units must provide onsite security guards 24 hours a day, seven days a week. +A:L All exterior windows in any hotel, co-living, or micro units on the unified development site shall contain double-pane glass and/or laminated windows. 117 k. Ground floor uses fronting on Washington Avenue shall be limited to retail, restaurant, bar, or gym/fitness center. Residential uses fronting Washington Avenue shall be prohibited on the ground floor, except for the lobby and any required vertical circulation. 3 e I. Each co-living unit must include a dining, kitchen, and living area, unless a dining, kitchen, and living area is provided on the same floor. q:m. A wellness center shall be provided within a unified development site containing co- living or micro units, which wellness center shall have both self-service and personal training offerings such as strength training, yoga, stretching, recovery, mindfulness, cardiovascular equipment, and nutritional planning. No variances shall be permitted from the provisions of this subsection (5). (6) In addition to the foregoing, the following additional regulations shall apply to co-living or micro residential units in South Washington Avenue: a. Within the same unified development site, office uses with a minimum of 10,000 square feet shall be provided. b. Co-living units may only be located on the west side of Washington Avenue. In addition, the western lot line of the unified development site must front on a street with an RM-1 or RO zoning designation. c. A rooftop seating area, pool, and garden shall be provided within the unified development site. d. A building permit for co-living or micro residential units in South Washington Avenue must be obtained within one (1) year from the effective date of this section. No variances shall be permitted from the provisions of this subsection (6). • (7) In addition to the foregoing, for development projects in North Washington Avenue containing co-living or micro residential units, the following additional regulations shall apply: a. Hotel, suite hotel, apartment hotel and/or hostels shall be prohibited. b. Retail use shall not be permitted as required amenity space. c. The inclusion of co-living or micro residential units in North Washington Avenue is a voluntary development incentive that shall only be permitted 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 and agreeing to the following restrictions on the subiect development site, in perpetuity: 1. A minimum of 20 percent of the total number of co-living or micro residential units shall be set aside for workforce housing, as defined in Chapter 58, Article VI of this Code. 2. The minimum rental period for any co-living or micro residential unit on the development site shall be no less than six months and one day. 4 d. For development protects that comply with the foregoing regulations, a maximum of 80 percent of the floor area within the unified development site may consist of co-living or micro units. e. A building permit for co-living or micro residential units in North Washington Avenue must be obtained within three (3) years from the effective date of this section. No variances shall be permitted from the provisions of this subsection (7). (68) For lots that have a frontage that is greater than 100 feet, the following shall apply: a. Maximum building length. Unless otherwise approved by the historic preservation board at its sole discretion, no -plane of a building, above the ground floor façade facing Washington Avenue, shall continue for greater than 100 feet without incorporating an offset of a minimum five feet in depth from the setback line. The total offset widths shall total no less than 20 percent of the entire building frontage. b. Physical separation between buildings. Unless otherwise approved by the historic preservation board at its sole discretion, a physical separation must be provided between buildings greater than 200 feet in length and at/or above 35 feet in height from the ground floor. Notwithstanding the foregoing, for building sites with a lot frontage in excess of 500 feet, no physical separation is required if: (i) the length of the building at/or above 35 feet in height from the ground floor does not exceed 50 percent of the length of the frontage of the property; and (ii) the offsets required in subsection (a), above, are a minimum of 20 feet in depth from the setback line and the combined offset widths total no less than 30 percent of the entire building frontage. 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. 5 SECTION 5. EFFECTIVE DATE. This Ordinance shall take effect ten days following adoption. PASSED AND ADOPTED this 17 day of4 , 2023. ATTEST: Dan Gelber, Mayor MAY 2 2 2023 APPROVED AS TO • ' FORM AND LANGUAGE Rafael E Granado, City Clerk & FOR EXECUTION 9,-23 City Attorney Date First Reading: Febr,..ry 22, 202, Second Reading: M. , 2023 _.M,,B, , Verified By: 0. INCORP ORATED s Thomas R. M•oney, Ate' '�?' , •`co; Planning Director ••26 __, T:Wgenda\202314-May 2023\Planning\Washington Avenue Overlay Co-Living Amendment-Second Reading ORD ADOPTED.docx 6 Ordinances -R5 E MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Aline T. Hudak, City Manager DATE: May 17, 2023 10:20 a.m. Second Reading Public Hearing SUBJECT:WASHINGTON AVENUE OVERLAY-CO-LIVING AMENDMENTS 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 OF THE CITY CODE, ENTITLED "ZONING DISTRICTS AND REGULATIONS," ARTICLE II, ENTITLED "DISTRICT REGULATIONS," DIVISION 5, ENTITLED "CD-2 COMMERCIAL, MEDIUM INTENSITY DISTRICT," BYAMENDING SECTION 142-309, ENTITLED "WASHINGTON AVENUE DEVELOPMENT REGULATIONS AND AREA REQUIREMENTS," TO EXTEND THE TIME TO OBTAIN A BUILDING PERMIT FOR CO-LIVING OR MICRO RESIDENTIAL UNITS, ADOPT REGULATIONS FOR THE EAST SIDE OF WASHINGTON AVENUE WITHIN THE OVERLAY, AND ADOPT RELATED AMENDMENTS TO EXISTING REGULATIONS; 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 September 14, 2022, at the request of Commissioner Ricky Arriola, the City Commission referred a discussion item (C4 Z) to the Land Use and Sustainability Committee (the "LUSC") pertaining to co-living regulations within the Washington Avenue Overlay. On September 28, 2022, the LUSC recommended that an ordinance be referred to the Planning Board, with the following modifications: 1. A prohibition of Apartment Hotel, Hotel, Suite Hotel, and Hostels within developments that propose co-living and/or micro residential units. 2. An agreement, via covenant, to mandate that the minimum rental period of all co-living, micro and/or residential apartment units shall be no less than three (3)months and one (1)day. 3. A minimum of 20 percent of all units shall be set aside for workforce housing, as defined in Chapter 58 of the City Code. Page 407 of 945 On October 26, 2022, the City Commission referred the proposed ordinance (C4 A), inclusive of the recommendations of the LUSC as noted above, to the Planning Board for review and recommendation. On October 16, 2019, and July 29, 2020, the City adopted Ordinance No. 2019-4312 and Ordinance No. 2020-4346, respectively,which established and refined the current provisions for co-living and micro residential units on Washington Avenue. The Ordinances incentivized a new co-living project with an office component in the 1200 block of Washington Avenue, which is in the process of obtaining a building permit. However, these Ordinances limited the co-living component to the west side of Washington Avenue and included a sunset provision for co-living and micro-unit residential projects. For reference, in this area, co-living and micro units are residential units where the minimum size may be 275 square feet, provided that a minimum of 20 percent of the gross floor area of the building consists of amenity space. ANALYSIS The proposed ordinance would amend Section 142-309 of the Land Development Regulations (LDRs)of the City Code (Washington Avenue Overlay), to modify the regulations related to co- living and micro-unit development. The proposed Ordinance creates a "South Washington Avenue" area, between 6th Street and 15th Street, and a "North Washington Avenue" area, between 15th Street and 16th Street, for the purposes of creating distinct co-living regulations for each area. The "South Washington Avenue" area is where the existing co-living regulations apply. Portions of the current Washington Avenue co-living regulations that are only applicable in this area were moved to a new subsection (6), including the requirement that co-living units only be located on the west side of Washington Avenue, and on a site that fronts on a street with an RM-1 or RO zoning designation. The proposed changes primarily affect the "North Washington Avenue" area. Building co-living units was previously not possible in this area and the proposed regulations provide that co-living units would be permitted on both sides of Washington Avenue. The Ordinance also provides the following restrictions for developments that contain co-living units: 1) Hotels, suite hotel, apartment hotel and/or hostels shall be prohibited. 2) The property owner shall submit a covenant running with the land, in a form acceptable to the City Attorney, agreeing to the following: a.A minimum of 20 percent of the total number of co-living or micro residential units shall be set aside for workforce housing, as defined in Chapter 58,Article VI of the City Code. b. The minimum rental of any co-living or micro residential unit shall be for a period of no less than three (3)months and one (1)day. 3) The percentage of maximum floor area for co-living or micro units within a development has been increased from 50 percent to 85 percent. Page 408 of 945 4) No variances are permitted from this section. The amendment also provides that exterior windows for co-living, or micro units may now contain laminated windows, in addition to the existing option for double-pane glass. The proposed Ordinance would slightly expand the area where co-living units can be built in the City. Co-living is a housing type that is becoming more common throughout many of the country's urban areas and is considered more attainable due to the smaller square footages permitted for each unit. Given the local and regional housing affordability issues impacting the City, co-living units are an option that can assist the City in addressing this challenge by increasing and diversifying the housing stock and inventory. Since the proposed Ordinance contains income limits for 20 percent of the units built in the "North Washington Avenue" area, these units are expected to assist in providing housing that is attainable to the City's workforce. The Administration is highly supportive of the proposed amendment and recommends that the Ordinance be approved. PLANNING BOARD REVIEW The Planning Board held a public hearing on December 20, 2022 and transmitted the Ordinance to the City Commission with a favorable recommendation by a vote of 5-2. UPDATE The subject ordinance was approved at First Reading on February 22, 2023, with no changes. On March 27, 2023, the ordinance was considered for adoption at Second Reading and continued to the April 28, 2023 Commission Meeting. On April 28, 2023, the City Commission discussed the proposal at Second Reading and continued the item to the May 17, 2023 Commission meeting. After the April 28, 2023 City Commission meeting,the item sponsor requested that the ordinance be revised as follows: 1. Restaurants, bars and cafes have been removed as allowable amenity space. 2. Retail uses will only be permitted as allowable amenity space within the South Washington Avenue area. 3.A building permit for co-living units in North Washington Avenue must be obtained within three (3)years from the effective date of the ordinance. 4.A building permit for co-living units in South Washington Avenue must be obtained within one (1)year from the effective date of the ordinance. These modifications have been incorporated into an updated version of the ordinance for Second Reading. SUPPORTING SURVEY DATA The Mayor and City Commission identified the need for workforce and affordable housing as a key objective in the City's 2019 Strategic Plan Through the Lens of Resilience to "support affordable, compatible workforce housing through public and private partners for key industries, Page 409 of 945 including the use of development incentives." The City's 2040 Comprehensive Plan prioritizes workforce housing, with the express goal "to encourage redevelopment that provides workforce and affordable housing"within the City." FINANCIAL INFORMATION No fiscal impact is anticipated. 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 Strategic Connection Mobility-Support affordable, compatible workforce housing. Legislative Tracking Planning Sponsor Vice-Mayor Ricky Arriola ATTACHMENTS: Description D Ordinance ❑ Ad Page 410 of 945 776E REIGHB095 ' SUNDAY MAT T 7071 CITY OF MIAMI BEACH CITY OFMIMIEACH NOTICE OF PUBLIC HEARING May u Meeting Notices- 20es WASHINGTON AVENUE OVERLAY I MONDAY.May 15 I Ne s.n do,o0 N••••• ORDINANCE AMENDING THE WASHINGTON 1UESDAY.Moo 16 AVENUE DEVELOPMENT REGULATIONS AND AREA '0ea REQUIREMENTS TO EXTEND THE TIME TO OBTAIN A BUILDING PERMIT FOR CO-LIVING OR MICRO. moo`,Mf- ""'n"n Car'"""F` beavotaNddelbody RESIDENTIAL UNITS AND TO ADOPT REGULATIONS '"" W' ' `x10:o"M""'•`w'r""w"' FOR THE EAST SIDE OF WASHINGTON AVENUE aawa,<...•G.en "" M,ea""' WITHIN THE OVERLAY53 """" "" a MAY 17,2023 Meet,G. N. .1•44^,Ie�.0 1.5.E:..• .: ,a�rM CITY COMMISSION MEETING sop., " w.ay r fpnuf1a✓Imws NOTICE IS HEREBY GIVEN Ina1 on eery U.2013.at 10:20 a.m.,or as soon mauls*,M re mutter ca LeT`••••.•"'m .er r m npe.Jnla•r" be Mare..1A1 Mayor and City CommON tiers al:M City al Mum,Beach ski hid a Second RMOmAIPue4 WEDNESDAY.May 17 Hhp.p on the proposed Ordnance Asa are GU Comm.eva0Ana:PA•n.., m -a 7yASNiNOTON AVENUE OVER.AT•COi WI u WING AMFVIMFNTN I "'°'^Name' Ac .s'i0 a,NT.IMn.f""a AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA.AMENDING TIE CODE OF ORE CITY OF WAMI BEACH.SUBPART B.ENTITLES'LAND •ma CwKar.•Cam'Orr.Yd.. DEVELOPMENT REGULATIONS.'9V AMENDING CHAPTER 142 OF THE CITY CODE.ENTITLED •s. cores da,^M`e017 ,M, ,o laMe ur reas 'ZONING DISTRICTS AND REGULATIONS,'ARTICLE I'ENTITLED'DSTR,CT REGULATIONS' endues Arcs. 1ra0 r•mm�0 Stan DM510N 5 ENTITLED-004 COMMERCIAL MEDIUM INTENSITY DISTRICT;ST AMENDNG Weal*,'ors anlw muss to MM.' 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