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2014-28757 Reso RESOLUTION NO. 2014-28757 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, CHANGING THE FEE IN LIEU OF PROVIDING PARKING FROM $35,000 TO $40,000, PER PARKING SPACE, AS PROVIDED BY AND IN ACCORDANCE WITH SECTION 130-132(d) OF THE CITY CODE; WITH SUCH CHANGE TO BE EFFECTIVE UPON THE DATE OF ADOPTION OF THIS RESOLUTION. WHEREAS, the City of Miami Beach Land Development Regulations (LDR) at Chapter 130, Article V, entitled "Fee in Lieu of Parking Program", provides a property owner or applicant with the opportunity to pay a fee in lieu of providing required on-site parking when developing a property with new construction; and WHEREAS, the Fee in Lieu of Parking Program (the "Fee") is currently established as $35,000, as reflected in Section 130-132(a), of the City Code; and, WHEREAS, the Fee was last revised in December of 2006; over eight years ago; and, WHEREAS, the amount of the fee may be changed in accordance with Section 130- 132(d) of the City Code; and WHEREAS, Section 130-132(d), requires that the Planning Director perform an annual evaluation of the "City's total average cost for land acquisition and construction of one parking space", and as further evaluated based upon the Consumer Price Index (CPI); and WHEREAS, an analysis was conducted and the Planning Director determined that the average cost of building a parking space within the City of Miami Beach based upon current land acquisition and construction costs, and CPI, is approximately $40,000, a space; and WHEREAS, Section 130-132(d) authorizes the City Commission to amend the Fee structure by resolution, if determined appropriate; and WHEREAS, the City Commission determines it is appropriate to adjust the fee based upon CPI, to ensure that the Fee is reflective of the actual cost to the City to provide a single space of parking. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and the City Commission hereby change the fee in lieu of providing parking from $35,000 to $40,000 per parking space, as provided by and in accordance with Section 130-132(d) of the City Code; with such change to be effective upon the date of adoption of this Resolution. PASSED AND ADOPTED this 7 day of Sed-*40014. ATTEST:_ ��1 B Rafa I Granado, 6ity Cl P*i Levine APPROVED AS TO T:\AGENDA\2014\September\2014 Huai P 6l66t"iatio -RES.do ,! FORM & LANGUAGE & FOR EXECUTION C3 er. l � City Attorney D ek)�� COMMISSION ITEM SUMMARY Condensed Title: Resolution approving the increase of the Fee in Lieu of providing parking (Fee)pursuant to Sec. 130-132(d)from $35,000 to$40,000 per space. Key Intended Outcome Supported: N/A Supporting Data (Surveys, Environmental Scan, etc.): Analysis part of Memorandum Issue: Consideration by City Commission to adopt a new fee based on results of analysis. Item Summa /Recommendation: Section 130-132 (d) of the Code of the City of Miami Beach requires that the amount determined to be the city's total average cost for land acquisition and construction of one parking space shall be evaluated yearly each May by the planning director based upon the Consumer Price Index(CPI). If determined appropriate, the city commission may amend the fee structure in this section by resolution. At present,the parking impact fee is$35,000 per required space. This fee was last revised in December of 2006. In compliance with the requirements of the City Code, the Planning Department has conducted an analysis of the cost of building parking, as required in Section 130-32 (d) and found the average Citywide cost of acquiring land and building a parking space in the City is $40,272. RECOMMENDATION The Administration recommends that the City Commission discuss the item further and provide appropriate policy direction. If there is general consensus on the issue, it is recommended that the City Commission: 1. Adopt the attached resolution to adjust the fee in lieu of providing parking defined in section 130-132(a)to $40,000 per parking space, as permitted by section 130-132 (d) of the city code. 2. Adopt a resolution recommending that a study of current off-street parking requirments in Chapter 130 of the City Code be performed;and that upon completion of the study that the recommendations be referred to the Land Use and Development Committee for consideration. Advisory Board Recommendation: N/A Financial Information: Source of Amount Account Funds: N/A 2 Total Financial Impact Summary: No additional City funds will be required for this effort. City Clerk's Office Legislative Tracking: Tom R. Mooney, Planning Director, Ext#6191 Sign-Offs: De artment irector Assistant CityManager City na er TRM JM JLM T\AGENDA\2014\SEPTEMBER\PARKINGIMPACFEEANNUA 9VAI UATION\SUMMARY\09172014 AGENDA ITEM R7E /01AMIBEACH DATE '?-/ MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members o the City ommission FROM: Jimmy L. Morales, City Manager c " DATE: September 17, 2014 SUBJECT: Annual Evaluation of Parking Impa t Fee Structure BACKGROUND Chapter 130, Article V of the Code of the City of Miami Beach establishes the "Fee in Lieu of Parking Program" where under certain circumstances new development or uses may pay an impact fee to the City if they are not able or do not wish to provide required parking on-site. Section 130-132 (d) of the Code of the City of Miami Beach requires that the amount determined to be the city's total average cost for land acquisition and construction of one parking space shall be evaluated yearly each May by the planning director based upon the Consumer Price Index (CPI). If determined appropriate, the city commission may amend the fee structure in this section by resolution. At present, the parking impact fee is $35,000 per required space. This fee was last revised in December of 2006. In compliance with the requirements of the City Code, the following is the Planning Department's analysis of the cost of building parking, as required in Section 130-32 (d). ANALYSIS Average Land Cost An analysis was performed that divided the City into 12 sub-areas. Recent sales and assessment data from the Miami-Dade Property Appraiser was utilized for each sub- area. Single-Family areas were excluded from the analysis. In most cases the value of vacant land was utilized for the analysis; where it was not available, a combined building and land value was utilized. The values range from $448 per square foot in the South Beach Entertainment sub-area to $97 per square foot in the North Shore sub-area. The average citywide land cost is $176 per square foot. [The attached table titled "2014 Miami Beach Average Property Value Analysis" details these results.] An analysis was then performed of the parking counts and lot sizes of various public parking garages that have been built within the City to determine the average square footage of land necessary to develop each parking space. It was determined that each space within a parking garage requires an average of 81 square feet of land. [See the attached "2014 Garage Construction Calculations" sheet for additional details.] This results in an average land cost per space ranging from $36,288 per space in the South Beach Entertainment sub-area to $7,857 per space in the North Shore sub-area. Commission Memorandum Annual Evaluation of Parking Impact Fee Structure September 17, 2014 Page 2 of 3 The average land costs per space are as follows: Average Land Cost per Parking Space North Beach Area $9,559 Middle Beach Area $13,473 South Beach Area $19,780 Citywide $14,256 The average citywide land cost for a parking space for a typical main use parking garage the City is approximately $14,256. Average Construction Cost The construction cost of two recently built public garages was utilized to determine the average construction cost per parking space. The CPI was then utilized to determine the equivalent in today's costs. The Sunset Harbor Garage, containing 435 spaces, was approved in 2010 at a cost of $10,194,312. The Pennsylvania Garage, containing 535 spaces, was also approved in 2010 at a cost of $13,500,000. This results in an average cost of $24,334 per space in 2010 dollars. [See the attached "2014 Garage Construction Calculations" sheet for additional details.] The CPI adjustments that could have been considered for construction costs through the years are as follows: Consumer CPI % Cost of Price Index Increase Construction/ CPI from 2010 Space 2010 1218.1 N/A $24,334.42 2011 224.9 3.14% $25,098.19 2012 229.6 5.29% $25,622.03 r2013 233.0 6.85% $26,002.13 Utilizing the required methodology in the City Code, the average construction cost for a parking space in a typical main use parking garage the City would be approximately $26,002 today. Summary The combined average land and construction cost for constructing a parking within the City of Miami Beach are as follows: Average Total Cost per Parking Space North Beach Area $35,560 Middle Beach Area $39,475 South Beach Area $451782 Citywide $405272 The average Citywide cost of acquiring land and building a parking space in the City is $40,272. A map is attached indicating the cost per area and sub-area of the City. At present, the parking requirements in the City are calibrated for suburban conditions. Commission Memorandum Annual Evaluation of Parking Impact Fee Structure September 17, 2014 Page 3 of 3 This often results in excessive off-street parking requirements, as well as higher costs to businesses and development in areas where the City wishes to encourage redevelopment. The Parking Department is performing a needs assessment of public parking within the City. In combination with the Parking Department's study, it would be beneficial to perform an analysis of the current Off-Street Parking Requirements in Chapter 130 of the City Code to determine if updates are necessary to be more consistent with the existing and future needs of the City. RECOMMENDATION The Administration recommends that the City Commission discuss the item further and provide appropriate policy direction. If there is general consensus on the issue, it is recommended that the City Commission: 1. Adopt the attached resolution to adjust the fee in lieu of providing parking defined in section 130-132 (a) to $40,000 per parking space, as permitted by section 130-132 (d) of the city code. 2. Adopt a resolution recommending that a study of current off-street parking requirments in Chapter 130 of the City Code be performed; and that upon completion of the study that the recommendations be referred to the Land Use and Development Committee for consideration. KltJ RM/MCR/RAM T:\AGENDA\2014\September\2014 Annual Parking Impact Fee Evaluation-MEM.docx Commission Memorandum Annual Evaluation of Parking Impact Fee Structure 2014 Miami Beach Parking Impact Fee Cost/Space Map Page 1 of 1 MIAMIBEACH Parking $33,ss9 . pact Fee Study $35,236 $33,940 Cost/S pace $39,205 $44,794 Citywide Average $34,102 , v Biscayne Bay :. A $39,529 $44,713 . $37,666 $37,990 Atlantic Ocean $62,290 $46,252 N w E 0 0.25 0.5 1 Mile Commission Memorandum Annual Evaluation of Parking Impact Fee Structure 2014 Miami Beach Average Property Value Analysis Page 1 of 2 �eSS SF I Land Value I Adj Land Value I Buildin Value I $/SF Adj$/SF Zone Sale Date Prev.Sale$ Sale$/SF 260JeffemonAv 14,0001$ 1,449,0001$ 2,420,0001$ 971,000 1$ 104 $ 173 RM-1 830 Lenox Av 30,001$ Z453,410 $ 4100 000 1,646,590 $ 82 $ 136 RM-i 921 Alton Rd 20,000 $ 2,400,000 $ 2,500,000 $ - $ 120 $ 125 CD-2 1 2005 $ 2,500,000 $ 125 959 West Av 58,663 $ 8,799,450 $ 8,799,450 $ 11,600,550 $ 150 $ 150 RM-2 824Alton 18,000 $ 2,160,000 $ 2,160,000 $ - $ 120 $ 120 CD-2 659 West Av 7,000 $ 11050,000 $ 1,050,000 $ $ 150 $ 150 RM-2 701 West Av 7,000 $ 1,050,000 $ 1,050,000 $ $ 150 $ 150 RM-2 703 West Av 7,000 $ 1,050,000 $ 1,050,000 $ $ 150 $ 150 RM-2 711 West Av 7,000 $ 1,050,000 $ 1,050,000 $ $ 150 $ 150 RM-2 721 West Av 3,150 $ 472,500 $ 472,500 $ - $ 150 $ 150 RM-2 723 West Av 3,850 $ 577,500 $ 577,500 $ $ 150 $ 150 RM-2 727 West Av 7,000 $ 1,050,000 $ 1,050,000 $ $ 150 $ 150 RM-2 737 West Av 7,000 $ 1,225,000 $ 1,225,000 $ $ 175 $ 175 RM-2 Sub Total 49,000 $ 7,525,000 $ 7,525,000 $ 1$ 154 $ 154 1 RM-2 1 2012 1$ 8,000,000 1$ 163 1475 Col I ins Av 12,400 $ 5,270,000 $ 7,390,000 $ $ 425 $ 596 MXE 2013 $ 7,390,000 $ 596 1262 Col I ins Av 14,000 $ 5,292,000 $ 5,292,000 $ $ 378 $ 378 GU 1201 Col I ins Av 12,600 $ 5,355,000 $ 5,355,000 $ $ 425 $ 425 MXE 1155 Col I ins Av 12,600 $ 5,087,250 $ 5,087,250 $ $ 404 $ 404 WE 2005 $ 3,000,000 $ 238 251 Washington Av 6,500 $ 1,300,000 $ 1,300,000 $ - $ 200 $ 200 RPS-3 241 Washington Av 6,500 $ 1,300,000 $ 1,300,000 $ $ 200 $ 200 RPS-3 Sub Total 13,000 $ 2,600,000 $ 2,600,000 $ $ 200 $ 200 RPS-3 $ 3,950,000 $ 304 7381St 12,800 $ 2,240,000 $ 4,750,000 $ $ 175 $ 371 CPS-1 2011 $ 4,750,000 $ 371 1CollinsAv 9,913 $ 2,973,900 $ 2,973,900 $ $ 300 $ 300 CPS-1 1 Collins Av 6,250 $ 1,875,000 $ 1,875,000 $ $ 300 $ 300 CPS-1 18 Ocean Dr 6,250 $ 1,875,000 $ 1,875,000 $ $ 300 $ 300 CPS-1 1 Collins Av 6,250 $ 1,875,000 $ 1,875,000 $ $ 300 $ 300 CPS-1 1 Collins Av 5,750 $ 1,725,000 $ 1,725,000 $ $ 300 $ 300 CPS-1 1 Collins Av 5,750 $ 1,725,000 $ 1,725,000 $ $ 300 $ 300 CPS-1 1 Collins Av 5,750 $ 1,725,000 $ 1,725,000 $ - $ 300 $ 300 CPS-1 91 Collins Av 6,500 $ 1,137,500 $ 1,137,500 $ 51,630 $ 175 $ 175 CPS-1 1 Collins Av 7,000 $ 1,225,000 $ 1,225,000 $ - $ 175 $ 175 CPS-1 1 Collins Av 7,000 $ 1,225,000 $ 1,225,000 $ $ 175 $ 175 CPS-1 1 Collins Av 7,000 $ 1,225,000 $ 1,225,000 $ $ 175 $ 175 CPS-1 135 Biscayne St 14,689 $ 2,570,575 $ 2,570,575 $ $ 175 $ 175 CPS-1 Sub Total 88,102 $ 21,156,975 $ 21,156,975 $ 51,630 $ 240 $ 240 CPS-1 2004 $ 9,900,000 $ 112 F1681 1 Lenox Av 16,000 $ 2,800,000 $ 3,400,000 $ - $ 175 $ 213 CD-3 2007 $ 3400000 $ 213 1 Drexel Av 45,360 $ 13,608,000 $ 13,608,000 $ 3,292,000 $ 300 $ 300 CD-3 West Av 7,500 $ 975,000 $ 975,000 $ - $ 130 $ 130 CD-2 1683 West Av 15,000 $ 1,950,000 $ 1,950,000 $ $ 130 $ 130 CD-2 Sub Total 2,500 $ 2,925,000 $ 7,900000 $ $ 130 $ 351 CD-2 2013 $ 7,900,000 $ 351 123117 St 25,540 $ 2,809,400 $ 2,809,400 $ $ 110 $ 110 CD-2 125117 St 9,030 $ 993,300 $ 993,300 $ $ 110 $ 110 CD-2 126117 St 4,780 $ 131,450 $ 131,450 $ $ 28 $ 28 CD-2 Sub Total 39,350 $ 3,934 150 $ 5,025,000 $ $ 100 $ 128 CD-2 2013 $ 5,025,000 $ 128 1738 Bay Rd 3,750 $ 487,500 $ 487,500 $ $ 130 $ 130 CD-2 1759 Purdy Av 3,750 $ 487,500 $ 487,500 $ - $ 130 $ 130 CD-2 1747 Purdy Av 3,750 $ 487,500 $ 487,500 $ - $ 130 S 130 CD-2 Sub Total 11,250 $ 1,462,500 $ 3,400,000 $ - $ 130 $ 302 CD-2 2013 $ 3,400,000 $ 302 1.67 22830 St 15,000 $ 2,250,000 $ 2,250,000 $ $ 150 $ 150 RM-2 4360 Collins Av 21,500 $ 4,300,000 $ 4,300,000 $ $ 200 $ 200 RM-2 4380 Collins Av 13,137 $ 2,432,840 $ 2,432,840 $ $ 185 $ 185 RM-2 4364 Collins Av 1,900 $ 380,000 $ 380,000 $ $ 200 $ 200 RM-2 4370 Collins Av 9,200 $ 1,840,000 $ 1,840,000 $ $ 200 $ 200 RM-2 Sub Total 45,737 $ 8,952,840 $ 13,000,000 $ $ 196 $ 284 RM-2 2005 $13,000,000 $ 284 6064 Collins Av 10,000 $ 1,200,000 $ 1,200,000 $ $ 120 $ 120 RM-2 6080CollinsAv 10,000 $ 1,200,000 $ 1,200,000 $ - $ 120 $ 120 RM-2 Sub Total 20,000 $ 21400,000 $ 3,500,000 $ - $ 120 $ 175 RM-3 2013 $ 3,5W,000 $ 175 4049Royal Palm Av 1 22,500 1$ 2,250,000 1$ Z250,000 1$ - 1001$ 100 GU $ Commission Memorandum Annual Evaluation of Parking Impact Fee Structure 2014 Miami Beach Average Property Value Analysis Page 2 of 2 Address SF Land Value Adj Land Value Building Value $/SF Adj$/SF Zone Sale Date Prev.Sale$ Sale$/SF 6372 Collins Av 7,123 $ 854,760 $ 854,760 $ $ 120 $ 120 RM-2 6382 Collins Av 7,140 $ 856,800 $ 856,800 $ $ 120 $ 120 RM-2 Sub Total 14,263 $ 1,711,560 $ 2,100,000 $ $ 120 $ 147 RM-2 2012 $ 2,100,000 $ 147 6396 Collins 7,320 $ 878,400 $ 878,400 $ $ 120 $ 120 RM-2 6529 Indian Creek Dr 10,083 $ 1,109,130 $ 1,400,000 $ $ 110 $ 139 CD-2 2008 $ 1,400,000 $ 139 6526 Collins Av 8,880 $ 1,065,600 $ 1,065,600 $ $ 120 $ 120 CD-2 6630 Indian Creek Dr 40,350 $ 5,245,500 $ 5,245,500 $ $ 130 $ 130 RM-2 6620 Indian Creek Dr 13,400 $ 1,742,000 $ 1,742,000 $ $ 130 $ 130 RM-2 6610 Indian Creek Dr 25,300 $ 3,289,000 $ 3,289,000 $ - $ 130 $ 130 RM-2 Sub Total 79,050 $ 10,276,500 $ 10,276,500 $ $ 130 $ 130 RM-2 2012 $ 9,154,000 $ 116 68W Indian Creek Dr 30,150 $ 3,915,500 $ 3,915,500 $ $ 130 $ 130 RM-2 6790 Indian Creek Dr 16,125 $ 2,096,250 $ 2,096,250 $ $ 130 $ 130 RM-2 Sub Total 46,275 $ 6,011,750 $ 250,000 $ $ 130 $ 243 1 RM-2 2014 $11,250,000 $ 243 North Resorts 166 871 $ 22,051940 940 $ - 127 $ 163 7131 Harding Av 6,250 $ 656,250 $ 656,250 $ $ 105 $ 105 TC-1 7141 Harding Av 6,250 $ 656,250 $ 656,250 $ $ 105 $ 105 TC-1 7151 Harding Av 6,250 $ 656,250 $ 656,250 $ $ 105 $ 105 TC-1 Sub Total 18,750 $ 1,968,750 $ 2,200,000 $ $ 105 $ 117 TC-1 2012 $ 2,200,000 $ 117 6972 Harding Av 6,250 $ 656,250 $ 656,250 $ $ 105 $ 105 1 TC-1 Town Center 25 000 625 000 $ 856 250 $ - 105 S 174 7425 Harding Av 7,500 $ 750,000 $ 750,000 $ $ 100 $ 100 CD-2 7417 Harding Av 7,500 $ 750,000 $ 750,000 $ $ 100 $ 100 CD-2 7409 Harding Av 7,500 $ 750,000 $ 750,000 $ $ 100 $ 100 CD-2 7401 Harding Av 7,500 $ 750,000 $ 750,000 $ $ 100 $ 100 CD-2 Sub Total 30,000 $ 3,000,000 $ 3,000,000 $ $ 100 $ 100 CD-2 7645 Carlyle 5,650 1$ 339,000 $ 449,000 $ $ 60 j497 RM-1 2005 $ 449,000 $ 79 North Shore 650 000 3,449,000 $ - 94 1144 Marseille Dr 13,250 $ 596,250 $ 1,295,000 $ $ 45 $ RM-1 2014 $ 1,295,000 $ 98 Le end South Beach Mid Beach North Beach Commission Memorandum Annual Evaluation of Parking Impact Fee Structure 2014 Garage Construction Calculations Page 1 of 1 Ex. 1) Sunset Harbor Garage Total Cost #of Spaces Cost/Space $ 10,194,311.60 1 435 $ 23,435.20 Consumer Price Index (CPI) CPI % Increase Cost of from 2010 Construction/Space 2010 218.1 N/A $ 23,435.20 2011 224.9 3.14% $ 24,170.75 2012 229.6 5.29% $ 24,675.23 2013 233.0 6.85% $ 25,041.28 Ex.2) Pennsylvania Garage Total Cost #of Spaces Cost/Space $ 13,500,000.00 1 535 $ 25,233.64 Consumer Price Index (CPI) CPI % Increase Cost of from 2010 Construction/Space 2010 218.1 N/A $ 25,233.64 2011 224.9 3.14% $ 26,025.64 2012 229.6 5.29% $ 26,568.83 2013 233.0 6.85% $ 26,962.98 Average Average Cost(2010) $ 24,334.42 Consumer Price Index (CPI) CPI % Increase Cost of from 2010 Construction/Space 2010 218.1 N/A $ 24,334.42 2011 224.9 3.14% $ 25,098.19 2012 229.6 5.29% $ 25,622.03 2013 233.01 6.85% $ 269002.13 Lot SF/Space Garage Lot Size (SF) #of Spaces Lot Area/Space (SF) Sunset Harbor 40,217 435 92 City Hall 55,575 655 85 13-Collins 28,000 286 98 7-Collins 42,000 646 65 Pennsylvania 40,824 535 76 Total 206,616 2,557 81