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2016-4043 Ordinance ORDINANCE NO. 2016-4043 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," OF CHAPTER 142, ENTITLED "ZONING DISTRICTS AND REGULATIONS," BY AMENDING DIVISION 2, ENTITLED "ACCESSORY USES"; BY AMENDING ARTICLE IV, ENTITLED "SUPPLEMENTARY DISTRICT REGULATIONS," BY AMENDING DIVISION 3, ENTITLED "SUPPLEMENTARY USE REGULATIONS," BY AMENDING SECTION 142-1111, ENTITLED "SHORT-TERM RENTAL OF APARTMENT UNITS OR TOWNHOMES," BY CREATING A NEW SUBSECTION (D), WHICH ESTABLISHES ELIGIBILITY REQUIREMENTS FOR SHORT- TERM RENTAL OF APARTMENT AND TOWNHOME RESIDENTIAL UNITS IN NORTH BEACH; LIMITING THE ELIGIBILITY TO THOSE PROPERTIES FRONTING HARDING AVENUE FROM THE SOUTH SIDE OF 73RD STREET TO THE NORTHERN BOUNDARY OF THE CITY; BY ESTABLISHING CONDITIONS PRECEDENT BEFORE A PROPERTY OWNER IS LEGALLY AUTHORIZED TO ENGAGE IN SHORT-TERM RENTALS; AND REQUIRE THE PROPERTY TO BE FULLY RENOVATED AND RESTORED IN ACCORDANCE WITH THOSE DELINEATED STANDARDS SET FORTH IN SUBSECTION (d)(1), WHICH MUST BE ACCOMPLISHED PRIOR TO THE ISSUANCE OF THE BUSINESS TAX RECEIPT PERMITTING SHORT-TERM RENTALS; AND PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. WHEREAS, the rental of single-family and multi-family residential properties for periods of less than six months and one day are prohibited by the Land Development Regulations ("LDRs"); and WHEREAS, the City desires to amend existing regulations pertaining to the short-term rental of apartments and townhomes in RM-1 Zoning Districts; and WHEREAS, the amendment will regulate those properties located in North Beach, specialist fronting Haring Avenue from the south side of 73rd street to the Northern boundary of the city; and WHEREAS, the City has determined that there is a potential for harm should transient rentals are permitted without appropriate regulations to protect adverse eternal effects of such an intensive use; and WHEREAS, the condition, requirements and regulations set forth in this amendment are consistent with, and further the public health, safety and welfare of the City and its residences and visitors. NOW, THEREFORE, BE IT DULY ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS: SECTION 1. That Division 3, entitled "Supplementary Use Regulations," of Article IV, entitled "Supplementary District Regulations," of Chapter 142, entitled "Zoning Districts and Regulations," of the Code of the City of Miami Beach, Florida is hereby amended as follows: Chapter 142 ZONING DISTRICTS AND REGULATIONS ARTICLE IV. SUPPLEMENTARY DISTRICT REGULATIONS * * * DIVISION 3. SUPPLEMENTARY USE REGULATIONS * * * Sec. 142-1111. Short-term rental of apartment units or townhomes. (a) Limitations and prohibitions. (1) Unless a specific exemption applies below, the rental of apartment or townhome residential properties in districts zoned RM-1, RM-PRD, RM-PRD-2, RPS-1 and RPS-2, CD-1, RO, R0-3 or TH for periods of less than six months and one day. (2) Any advertising or-advertisement that promotes the occupancy or use of the residential property for the purpose of holding commercial parties, events, assemblies, gatherings, or the occupancy of a residence for less than six months and one day, as provided herein, or use of the residential premises in violation of this section. "Advertising" or "advertisement" shall mean any form of communication for marketing or used to encourage, persuade, or manipulate viewers, readers or listeners for the purpose of promoting occupancy of a residential property for the purpose of holding commercial parties, events, assemblies, gatherings, or the occupancy of a residence for less than six months and one day, as provided herein, upon the premises, as may be viewed through various media, including, but not limited to, newspaper, magazines, flyers, handbills television commercial, radio advertisement, outdoor advertising, direct mail, blogs, websites or text messages. (3) None of the districts identified below shall be utilized as a hotel. (b) Previously existing short-term rentals in specified districts. For a period of six months after June 19, 2010, owners of certain properties located in the following districts shall be eligible to apply for approval of a certificate of use permitting short-term rental of apartment and townhome residential units for these properties under the requirements and provisions set forth below. (1) Eligibility: Properties within the RM-1 and TH zoning districts in the Flamingo Park and Espanola Way Historic Districts. Those properties that can demonstrate a current and consistent history of short-term renting, and that such short-term rentals are the primary source of income derived from that unit or building, as defined by the requirements listed below: 2 (A) For apartment buildings of four or more units, or for four or more apartment units in one or more buildings under the same City of Miami Beach Resort Tax ("resort tax") account. In order to demonstrate current, consistent and predominant short- term renting, the property must comply with all of the following: (i) Have registered with the city for the payment of resort tax, or made resort tax payments as of January 1, 2016; and (ii) Have resort tax taxable room revenue equal to at least 50 percent of total room revenue over the last two-year period covered by such payments; and (iii) Have registered, with the State of Florida as a transient apartment or resort condominium pursuant to Chapter 509, Florida Statutes, as of March 10, 2010. For properties containing more than one apartment building, eligibility must apply to an individual building satisfying subsections (b)(1)(A)(i)—(iii) above. (B) For apartment and townhouse buildings of three or less units, or for three or less apartment units in one or more buildings under the same state license. In order to demonstrate current, consistent and predominant short-term renting, the property must: (i) Have been registered with the State of Florida as a resort dwelling or resort condominium pursuant to Chapter 509, Florida Statutes, as of March 10, 2010. (2) Time periods for the districts identified in subsection (b)(1) to apply for short-term rental approvals. (A) Owners demonstrating compliance with subsection (b)(1) above, shall apply for a certificate of use permitting short-term rental as detailed in subsection 142-1111(f), within a time period of six months from June 19, 2010, or be deemed ineligible to proceed through the process specified herein for legalization of short-term rentals. (B) Within three months of June 19, 2010, eligible owners shall apply to obtain all necessary approvals to comply with the Florida Building Code, Florida Fire Prevention Code and with all other applicable life safety standards. (C) Compliance with the applicable requirements of the Florida Building Code and Florida Fire Prevention Code shall be demonstrated by October 1, 2011, or rights to engage in short-term rental under this section shall be subject to restrictions and/or limitations as directed by the building official and/or fire marshal. This subsection shall not prevent these officials from undertaking enforcement action prior to such date. (D) Applications under this section may be accepted until 60 days after April 11, 2012, upon determination to the planning director that a government licensing error prevented timely filing of the application. (3) Eligibility within the Collins Waterfront Local Historic District. Owners of property located in the Collins Waterfront Local Historic District shall be eligible to apply for approval of a certificate of use permitting short-term rental of apartment and townhome residential units under the requirements and provisions set forth below: 3 (A) Only those properties located south of West 24th Terrace shall be eligible for short-term rentals. (B) Only buildings classified as "contributing" in the city's historic properties database shall be eligible for short-term rentals. The building and property shall be fully renovated and restored in accordance with the Secretary of the Interior Guidelines and Standards, as well as the certificate of appropriateness criteria in chapter 118, article X of these Land Development Regulations. (C) The property must have registered with the State of Florida as a transient or condominium pursuant to Chapter 509, Florida Statutes, as of the effective date of this ordinance. (D) The property must have registered with the city for the payment of resort tax and made resort tax payments as of as of the effective date of this ordinance. (E) Short-term rental use shall be based on a single use for the property. No building or property seeking to have short-term rentals will be permitted to have mixed residential uses. (F) Any property seeking to have short-term rental will need to demonstrate that there is on-site management, 24 hours per day, seven days a week. (G) The short-term rental use requires at least a seven-night reservation. (4) Time period to apply for short-term rental approvals for those properties located in the Collins Waterfront Architectural District. (A) Owners demonstrating compliance with subsection (b)(3), above, shall apply for a certificate of use permitting short-term rental as detailed in subsection 142-1111(e) within a time period of three months from the effective date of this ordinance, or be deemed ineligible to proceed through the process specified herein for legalization of short-term rentals. (B) Within three months of the effective date of this ordinance, eligible owners shall have obtained all the necessary approvals to comply with the Florida Building Code, Florida Fire Prevention Code and with all other applicable life safety standards. (C) Compliance with the applicable requirements of the Florida Building Code and Florida Fire Prevention Code, shall be demonstrated by the effective date of this ordinance, or rights to engage in short-term rental under this section shall be subject to restrictions and/or limitations as directed by the building official and/or fire marshal. This subsection shall not prevent the building or fire departments from undertaking enforcement action prior to such date. (5) In the event a building approved for short-term rentals in accordance with subsections (b)(3) and (4), above, is demolished or destroyed, for any reason, the future use of any new or future building on that property shall not be permitted to engage in short-term rentals, nor apply for short-term rental approval. (c) Regulations. For those properties eligible for short-term rental use as per (b) shall be permitted, provided that the following mandatory requirements are followed: (1) Approvals required: applications. Owners, lessees, or any person with interest in the property seeking to engage in short-term rental, must obtain a certificate of use permitting short-term rental under this section. The application for approval to engage in short-term rentals shall be on a form provided for that purpose, and contain the 4 contact information for the person identified in subsection (3) below, identify the minimum lease term for which short-term rental approval is being requested, and such other items of required information as the planning director may determine. The application shall be accompanied by the letter or documents described in subsection (9) below, if applicable. The application for a certificate of use permitting short-term rentals shall be accompanied by an application fee of$600.00. (2) Time period. All short-term rentals under this section must be pursuant to a binding written agreement, license or lease. Each such document shall contain, at a minimum: the beginning and ending dates of the lease term; and each lessee's contact information, as applicable. No unit may be rented more frequently than once every seven days. (3) Contact person. All rentals must be supervised by the owner, manager, or a local and licensed real estate broker or agent or other authorized agent licensed by the city, who must be available for contact on a 24-hour basis, seven days a week, and who must live on site or have a principal office or principal residence located within the districts identified in subsection (b). Each agreement, license, or lease, of scanned copy thereof, must be kept available throughout its lease term and for a period of one year thereafter, so that each such document and the information therein, is available to enforcement personnel. The name and phone number of a 24- hour contact shall be permanently posted on the exterior of the premises or structure or other accessible location, in a manner subject to the review and approval of the city manager or designee. (4) Entire unit. Only entire apartment units and townhomes, as defined in section 114-1, legally created pursuant to applicable law, may be rented under this section, not individual rooms or separate portions of apartment units or townhomes. (5) Rules and procedures. The city manager or designee may adopt administrative rules and procedures, including, but not limited to, application and permit fees, to assist in the uniform enforcement of this section. (6) Signs. No signs advertising the property for short-term rental are permitted on the exterior of the property or in the abutting right-of-way, or visible from the abutting public right-of-way. (7) Effect of violations on licensure. Approvals shall be issued for a one-year period, but shall not be issued or renewed, if violations on three or more separate days at the unit, or at another unit in any building owned by the same owner or managed by the same person or entity, of this section, issued to the short-term rental licensee were adjudicated either by failure to appeal from a notice of violation or a special master's determination of a violation, within the 12 months preceding the date of filing of the application. 5 (8) Resort taxes. Owners are subject to resort taxes for rentals under this section, as required by city law. (9) Association rules. Where a condominium or other property owners' association has been created that includes the rental property, a letter from the association dated not more than 60 days before the filing of the application, stating the minimum rental period and the maximum number of rentals per year, as set forth under the association's governing documents, and confirming that short-term rentals as proposed by the owner's application under subsection (c)(1) above, are not prohibited by the association's governing documents, shall be submitted to the city as part of the application. (10) Variances. No variances may be granted from the requirements of this section. (d) Eligibility within North Beach. Properties that have buildings classified as "con rib in." in he No h Shore Na ional Re•ister His oric Dis ric and are zoned RM-1 in North' Beach may be eligible to apply for approval of a certificate of use permitting short-term rental of apartment and townhome residential units. Eligibility set forth herein, is limited to those properties fronting Harding Avenue, including buildings and properties located east of Harding Avenue and west of the alley, from the City Line on the north, to 73rd Street on the south, and may be eligible for short-term rentals, provided, the following conditions, requirements, and provisions are satisfied: (1) Short-term rentals, for those buildings classified as "contributing" in the North Shore National Register Historic District, must be fully renovated and restored in accordance with the Secretary of the Interior Guidelines and Standards, as well as the certificate of appropriateness criteria in chapter 118, article X of these Land Development Regulations, prior to the issuance of a Business Tax Receipt permitting short-term rentals at the Property. f/ Apartment buildings, townhomes or condominiums under the same City of Miami Beach Resort Tax ("resort tax") account must demonstrate current and consistent short- term renting, and the property must comply with all of the following: (A) Have registered with the city for the payment of resort tax, or made resort tax payments; and (B) Have registered, with the State of Florida as a transient apartment or resort condominium pursuant to Chapter 509, Florida Statutes. Property owners demonstrating compliance with subsection (d) above, must apply for a certificate of use permitting short-term rental, or be deemed ineligible to proceed through the process specified herein for legalization of short-term rentals. Eligible property owners must apply to obtain all necessary approvals to comply with the Florida Building Code, Florida Fire Prevention Code and with all other applicable life safety standards. Compliance with the applicable requirements of the Florida Building Code and Florida Fire Prevention Code must be demonstrated proper to the issuance of the certificate of use, or rights to engage in short-term rental under this subsection shall be 6 subject to restrictions and/or limitations as directed by the building official and/or fire marshal. This subsection shall not prevent these officials from undertaking enforcement action prior to such date. (fin The short-term rental use requires at least a seven-night reservation. (8 (7) In the event a building approved for short-term rentals in accordance with this subsection, is demolished or destroyed, for any reason, the future use of any new or future building on that property shall not be permitted to engage in short-term rentals, nor apply for short-term rental approval: 4K81 Regulations. For those properties eligible for short-term rental use as per (d) may be permitted to engage in short-term rentals, provided that the following mandatory requirements are followed: (A) Approvals required: applications. Property owners seeking to engage in short-term rental, must obtain a certificate of use permitting short-term rental under this section. The application for approval to engage in short-term rentals shall be on a form provided for that purpose, and contain the contact information for the person identified below, identify the minimum lease term for which short-term rental approval is being requested, and such other items of required information as the planning director may determine. The application shall be accompanied by the letter or documents described below, if applicable. a The application for a certificate of use permitting short-term rentals shall be accompanied by an application fee of$1,000.00. (C)Time period. All short-term rentals under this section must be pursuant to a binding written agreement, license or lease. Each such document shall contain, at a minimum: the beginning and ending dates of the lease term; and each lessee's contact information, as applicable. No unit may be rented more frequently than once every seven days. (D) Contact person. All rentals must be supervised by the owner, manager, or a local and licensed real estate broker or agent or other authorized agent licensed by the city, who must be available for contact on a 24-hour basis, seven days a week, and who must live on site or have a principal office or principal residence located within 500 feet of the property that is engaaed in short-term rental pursuant to subsection (d). Each agreement, license, or lease, of scanned copy thereof, must be kept available throughout its lease term and for a period of one year thereafter, so that each such document and the information therein, is available to enforcement personnel. The name and phone number of a 24- hour contact shall be permanently posted on the exterior of the premises or structure or other accessible location, in a manner subject to the review and approval of the city manager or designee. 7 (E) Entire unit. Apartment units and townhomes, as defined in section 114-1, legally created pursuant to applicable law, may be rented under this section, not individual rooms or separate portions of apartment units or townhomes. (F) A property owner of an apartment building, townhome or condominium must provide written notification to those long-term tenants (prospective or current tenants with leases of six (6) months and one (1) day or longer), providing affirmative notice that short-term rentals are expressly permitted throughout the building or at the premises. (G)Rules and procedures. The city manager or designee may adopt administrative rules and procedures, including, but not limited to, application and permit fees, to assist in the uniform enforcement of this section. (H) Signs. No signs advertising the property for short-term rental are permitted on the exterior of the property or in the abutting right-of-way, or visible from the abutting public right-of-way. DI Effect of violations on licensure. Approvals shall be issued for a one-year period, but shall not be issued or renewed, if violations on three or more separate days at the unit, or at another unit in any building owned by the same owner or managed by the same person or entity, of this section, issued to the short-term rental licensee were adjudicated either by failure to appeal from a notice of violation or a special master's determination of a violation, within the 12 months preceding the date of filing of the application. Resort taxes. Property owners are subject to resort taxes for rentals under this section, as required by city law. (K) Association rules. Where a condominium or other property owners' association has been created that includes the rental property, a letter from the association dated not more than 60 days before the filing of the application, stating the minimum rental period and the maximum number of rentals per year, as set forth under the association's governing documents, and confirming that short-term rentals as proposed by the owner's application under subsection (d) above, are not prohibited by the association's governing documents, shall be submitted to the city as part of the application. Q Variances. No variances will be granted from the requirements of this section. (d)Lei Enforcement. (1) Violations of Subsection 142-1111(a), shall be subject to the following fines. The special master shall not waive or reduce fines set forth herein. A. If the violation is the first violation: $20,000.00. B. If the violation is the second violation within the preceding 18 months: $40,000.00. 8 C. If the violation is the third violation within the preceding 18 months: $60,000.00. D. If the violation is the fourth violation within the preceding 18 months: $80,000.00. E. If the violation is the fifth or greater violation within the preceding 18 months: $100,000.00, and the suspension or revocation of the certificate of use. Fines for repeat violations by the same offender shall increase regardless of locations. The Director of the Code Compliance Department must remit a letter to the Miami- Dade Property Appraiser and the Miami-Dade Tax Collector, with a copy of the Special Master Order adjudicating the violation, that notifies these governmental agencies that the single-family residential property was used for the transient rental or occupancy at the premises. (2) In addition to or in lieu of the foregoing, the city may seek an injunction by a court of competent jurisdiction to enforce compliance with or to prohibit the violation of this section. (3) Any code compliance officer may issue notices for violations of this section, with enforcement of subsection 142-1111(a), and alternative enforcement of subsection 142-1111(b) and (c) as provided in chapter 30 of this Code. Violations shall be issued to the owner, manager, real estate broker or agent, or authorized agent, or any other individual or entity that participates in or facilitates the violation of this section. In the event the record owner of the property is not present when the violation occurred or notice of violation issued, a copy of the violation shall be served by certified mail on the owner at its mailing address in the property appraiser's records and a courtesy notice to the contact person identified in subsection (c)(3) above. (4) The advertising or advertisement for the transient rental, occupancy or short-term rental of the apartment or townhouse residential property for the purpose of allowing a rental for a period of less than six months and one day at the apartment or townhouse residential premises is direct evidence that there is a violation of Subsection 142- 1111(a), which is admissible in any proceeding to enforce Subsection 142-1111(a). The advertising or advertisement evidence raises a rebuttable presumption that the residential property named in the Notice of Violation or any other report or as identified in the advertising or advertisement is direct evidence that the residential property was used in violation of Section 142-1111(a). (5) Enhanced penalties. The following enhanced penalties must be imposed, in addition to any mandatory fines set forth in Subsection 142-1111(d) above, for violations of Subsection 142-1111(a): (1) Enhanced Penalties for Subsection 142-1111(a): (a) The transient rental or occupancy must be immediately terminated, upon confirmation that a violation has occurred, by the Miami Beach Police Department and the code Compliance Department. (b) If the offense is a second offense within the preceding eighteen (18) month period of time, and the total square footage of all building(s), accessory building(s), dwelling(s) or structure(s) exceed 5,000 total square feet, then the Special Master must impose an additional fine of$25,000.00. 9 (c) A certified copy of an order imposing the civil fines and penalties must be recorded in the public records, and thereafter shall constitute a lien upon any other real or personal property owned by the violator and it may be enforced in the same manner as a court judgment by the sheriffs of this state, including levy against the personal property, but shall not be deemed to be a court judgment except for enforcement purposes. The certified copy of an order must be immediately recorded in the public records, and the City may foreclose or otherwise execute upon the lien. 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, sentence, clause or phrase of this ordinance is held to be invalid or unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect the validity of the remaining portions of this ordinance. SECTION 5. 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 a 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 6. EFFECTIVE DATE. This Ordinance shall take effect ten days following adoption. PASSED AND ADOPTED this;' ' 41 c ,L -✓ , 2016.B •i IL NS, •• OR ATTEST: INCORP ORA Eu.• 9 T ♦i 9� �., APPROVED AS TO •1� FORM &LANGUAGE /� r1 1�1'j-�' . &FOR EXECUTION RAFAEL E. GRANAD , CI CLERK Underline denotes additions 1I � I/ r0// )// S#+kethrough denotes deletions City Attorney ik Date Double underline denotes additions after First Reading denotes deletions after First Reading (Sponsored by Vice-Mayor Michael Grieco and Co-Sponsored by Commissioners John Elizabeth Aleman and Ricky Arriola) 10 Ordinances - R5 G MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: October 19, 2016 10:30 a.m. Second Reading Public Hearing SUBJECT: SHORT-TERM RENTALS ON HARDING AVENUE NORTH BEACH: 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," OF CHAPTER 142, ENTITLED "ZONING DISTRICTS AND REGULATIONS," BY AMENDING DIVISION 2, ENTITLED "ACCESSORY USES"; BY AMENDING ARTICLE IV, ENTITLED "SUPPLEMENTARY DISTRICT REGULATIONS," BY AMENDING DIVISION 3, ENTITLED "SUPPLEMENTARY USE REGULATIONS," BY AMENDING SECTION 142-1111, ENTITLED "SHORT-TERM RENTAL OF APARTMENT UNITS OR TOWNHOMES," BY CREATING A NEW SUBSECTION (D), WHICH ESTABLISHES ELIGIBILITY REQUIREMENTS FOR SHORT-TERM RENTAL OF APARTMENT AND TOWNHOME RESIDENTIAL UNITS IN NORTH BEACH; LIMITING THE ELIGIBILITY TO THOSE PROPERTIES FRONTING HARDING AVENUE FROM THE SOUTH SIDE OF 73RD STREET TO THE NORTHERN BOUNDARY OF THE CITY; BY ESTABLISHING CONDITIONS PRECEDENT BEFORE A PROPERTY OWNER IS LEGALLY AUTHORIZED TO ENGAGE IN SHORT-TERM RENTALS; AND REQUIRE THE PROPERTY TO BE FULLY RENOVATED AND RESTORED IN ACCORDANCE WITH THOSE DELINEATED STANDARDS SET FORTH IN SUBSECTION (D)(1), WHICH MUST BE ACCOMPLISHED PRIOR TO THE ISSUANCE OF THE BUSINESS TAX RECEIPT PERMITTING SHORT-TERM RENTALS; AND PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION,AND AN EFFECTIVE DATE. RECOMMENDATION The Administration recommends that the City Commission adopt the Ordinance. ANALYSIS On January 13, 2016, at the request of Commissioner Michael Grieco, the City Commission referred this request to the Land Use and Development Committee (Item C4H). The item was discussed at the February 17, 2016 Land Use Committee meeting, at which time the Committee directed the Administration to re-draft and modify the proposed ordinance for the March 30, 2016 meeting. On March 30, 2016, the Land Use Committee recommended that the City Commission refer the Page 770 of 1614 draft ordinance to the Planning Board with the following modifications: a. Only properties with a 'contributing' structure shall be eligible; b. There may be a mix of short and long term rental units within a building, provided that long- term lease tenants are notified when short-term rental units are occurring in a building; c. To allow for up to a three-year renovation period for the structure; d. To permit management of the property from within the district; e. To allow for an open application window for short term rentals. On April 13, 2016, the City Commission referred the item to the Planning Board (Item C4K) in accordance with the following: • Modify the minimum building renovation requirement to take place prior to the issuance of a CO or BTR. • Provide mail notice to residents of Harding Avenue. • Notify the administration at Biscayne Elementary School. The RM-1 zoning district prohibits transient uses (rentals for periods of less than six months and one day) such as hotels and short-term rentals. Limited exceptions to this rule exist within the Flamingo Park, Espanola Way, and Collins Park Local Historic Districts, which allow for short- term rentals under certain circumstances. Additionally, the RM-1 district allows for hotel uses in the area affected by the proposed ordinance, as follows: Sec. 142-152. - Main permitted uses. The main permitted uses in the RM-1 residential multifamily, low density district are single-family detached dwelling; townhomes; apartments; hotels, for properties fronting Harding Avenue or Collins Avenue, from the City Line on the north, to 73rd Street on the south; and bed and breakfast inn (pursuant to article V, division 7 of this chapter). The North Shore National Register District is an area of North Beach that is listed in the National Register of Historic Places, and includes the area of Harding Avenue noted above. As the area is not a locally designated historic district, incentives are used to encourage the restoration of contributing structures within the National Register District. In areas and situations where short- term rentals are permitted, it is required that buildings be renovated and restored. In order to encourage the rehabilitation of contributing structures in one of the most significant portions of the North Shore National Register District, the proposed ordinance would allow for the short term rental of apartment units, under specific regulations and requirements. Since the affected area already permits hotels, the proposed modification is not expected to create detrimental impacts. PLANNING BOARD REVIEW On May 28, 2016, the Planning Board continued the item to the June 28, 2016 meeting. On June 28, 2016, the Planning Board (by a 5-0 vote) transmitted the proposed ordinance amendment to the City Commission with a favorable recommendation. The Planning Board also recommended that subsection (d)(6) be stricken, as it overlaps with subsection (d)(9)D in terms of onsite management. UPDATE/SUMMARY On July 13, 2016, the City Commission approved the attached Ordinance at First Reading and Page 771 of 1614 set a Second Reading Public Hearing for September 14, 2016. The Commission also approved the following amendments, which have been included in the draft Ordinance for Second Reading: 1 . Eligibility within North Beach. Properties that have buildings classified as "contributing" in the North Shore National Register Historic District, and are zoned RM-1 in North Beach may be eligible to apply for approval of a certificate of use permitting short-term rental of apartment and townhome residential units. Eligibility set forth herein, is limited to those properties fronting Harding Avenue, from the City Line on the north, to 73rd Street on the south, and may be eligible for short-term rentals, provided, the following conditions, requirements, and provisions are satisfied: 2. Include a Property Manager for the corridor. The proposed legislation has been updated to address the aforementioned amendments. On September 14, 2016, the item was opened and continued to a date certain of October 19, 2016. The Commission requested that 'eligible' properties include buildings located to the east of Harding Avenue and to the west of the alley, to address buildings that originally had frontage on Harding Avenue. This change has been incorporated into the revised draft of the Ordinance for Second Reading. CONCLUSION The Administration recommends that the City Commission adopt the Ordinance. FINANCIAL INFORMATION In accordance with Charter Section 5.02, which requires that the "City of Miami Beach shall consider the long term economic impact (at least 5 years) of proposed legislative actions," this shall confirm that the City Administration City Administration evaluated the long term economic impact (at least 5 years) of this proposed legislative action. The proposed Ordinance is not expected to have a negative fiscal impact upon the City. • Legislative Tracking Planning Sponsor Vice-Mayor Michael Grieco & Co-Sponsored by Commissioners John Elizabeth Aleman & Ricky Arriola Page 772 of 1614