Ordinance 2019-4303 DEVELOPMENT REGULATIONS FOR HOTELS ON LINCOLN ROAD
(Revised at Second Reading)
ORDINANCE NO. 2019-4303
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CODE OF THE
CITY OF MIAMI BEACH, FLORIDA, ,BY AMENDING CHAPTER 130,
ENTITLED "OFF-STREET PARKING," ARTICLE II,' "DISTRICTS;
REQUIREMENTS," SECTION 130-33, "OFF-STREET PARKING
REQUIREMENTS FOR PARKING DISTRICTS NOS.2, 3, 4, 5, 6,AND 7,"
TO AMEND THE OFF-STREET PARKING REQUIREMENTS FOR
HOTEL UNITS ON LINCOLN ROAD BETWEEN ALTON ROAD AND
WASHINGTON AVENUE; BY AMENDING CHAPTER 142, ENTITLED
"ZONING DISTRICTS AND REGULATIONS," ARTICLE II, ENTITLED
"DISTRICT REGULATIONS," DIVISION 6, "CD-3 COMMERCIAL, HIGH
INTENSITY DISTRICT," SECTION 142-337, "DEVELOPMENT
REGULATIONS AND AREA REQUIREMENTS," TO AMEND THE
MINIMUM HOTEL UNIT SIZE FOR NEW HOTEL UNITS AND THE
MAXIMUM BUILDING HEIGHT FOR HISTORIC BUILDINGS ON
LINCOLN ROAD; AND BY AMENDING CHAPTER 142, ENTITLED
"ZONING DISTRICTS AND REGULATIONS," ARTICLE IV,
"SUPPLEMENTARY DISTRICT REGULATIONS," DIVISION 5, "HEIGHT
REGULATIONS," TO PROVIDE ADDITIONAL REGULATIONS FOR
ROOFTOP ADDITIONS FOR HISTORIC BUILDINGS ON LINCOLN
ROAD; AND PROVIDING FOR REPEALER, SEVERABILITY,
CODIFICATION AND AN EFFECTIVE DATE.
WHEREAS, the City of Miami Beach desires to amend its land development regulations to
incentivize the development of hotel units on Lincoln Road; and
WHEREAS, changes in patterns and norms regarding the use of automobiles in urban areas,
such as Miami Beach, have reduced the need for off-street parking associated with hotels, particularly
in the Lincoln Road neighborhood;and
WHEREAS, the pedestrian-friendly and vibrant character of Lincoln Road promotes a guest
experience that could be complemented by new hotels, to encourage activation on the street;and
WHEREAS, the amendments set forth herein, including the height incentives, would promote
responsible hotel development on Lincoln Road,while preserving contributing buildings on Lincoln Road.
NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA.
SECTION 1. Chapter 130 of the City Code, entitled "Off-street parking," Article II, "Districts;
requirements," Section 130-33, "Off Street parking requirements for parking districts nos. 2, 3, 4, 5, 6
and 7,"is hereby amended as follows:
CHAPTER 130
OFF-STREET PARKING
ARTICLE II. - DISTRICTS; REQUIREMENTS
* * *
Sec. 130-33. - Off-street parking requirements for parking districts nos. 2, 3, 4, 5, 6, and 7.
* * *
(26) Hotel, suites hotel, motel, or motor lodge: One space per unit, except as follows:
Properties located within a local historic district or
National Register Historic District
New floor area for hotel rooms, associated with .5 spaces per unit, up to a
retaining, preserving and restoring a building or maximum of 100 units and 1
structure that is classified as "contributing" as of space per unit for all units in
March 13, 2013, as defined below excess of 100 units
New hotel units as part of additions to contributing No off-street parking requirement
buildings on Lincoln Road between Orcxcl
Pennsylvania Avenue and Lenox Avenue
Other(e.g., new construction or substantial 1 space per unit
demolition of contributing building)
* *
* * *
SECTION 2. Chapter 142 of the City Code, entitled"Zoning districts and regulations,"Article II,"District
regulations," Division 6, "CD-3 Commercial, high intensity district," Section 142-337, "Development
regulations and area requirements,"is hereby amended as follows:
CHAPTER 142
ZONING DISTRICTS AND REGULATIONS
* * *
ARTICLE II. - DISTRICT REGULATIONS
* * *
DIVISION 6. CD-3 COMMERCIAL, HIGH INTENSITY DISTRICT lj
* * *
Section 142-337. Development regulations and area requirements.
* * *
(c) The lot area, lot width, unit size and building height requirements for the CD-3 commercial,
high intensity district are as follows:
Minimum Minimum Minimum Average Maximum
Lot Area Lot Width Unit Size Unit Size Building
(Square Feet) (Feet) (Square Feet) (Square Feet) Height
(Feet)
Commercial—N/A 75 feet.
New construction— Lots on the north side
e
550 of Lincoln Road,
Rehabilitated between Drcxcl
buildings-400 Pennsylvania Avenue
Non-elderly and and Lenox Avenue,
elderly low and Commercial— with a minimum lot
moderate income N/A area of 30,000 square
housing-400 New feet, and which contain
construction—
Workforce housing— a contributing building
400 800 and an attached
Hotel unit: Rehabilitated addition providing a
Commercial— Commercial—! 15%: 300-335 buildings-550 minimum of 100 hotel
None None 85/oo Non-elderly ,
. 335+ units, where the
Residential— Residential— For contributing hotel and elderly low addition is set back at
7,000 50 structures, located and moderate least 75 feet from the
within an individual income Lincoln Road property
historic site, a local housing-400 line, and has a street
historic district or a Workforce side setback of no less
national register housing-400 than 25 feet–75 feet.
district, which are Hotel units— Notwithstanding the
being renovated in N/A foregoing requirements
accordance with the for lots within the
Secretary of the architectural district, for
Interior Standards lots fronting on James
and Guidelines for Avenue, bounded by
the Rehabilitation of 17 th Street to the north
Historic Structures as and Lincoln Road to
II
amended, retaining the south, the historic
the existing room preservation board, in
configuration shall be accordance with the
permitted, provided certificate of
all rooms are a appropriateness
minimum of 200 criteria in chapter 118,
square feet. article X, shall have
Additionally, existing discretion to allow up
room configurations to 75 feet in height for
for the above those properties that
described hotel provide a minimum of
structures may be five stories of parking,
modified to address of which a minimum of
applicable life-safety 250 spaces must be
and accessibility unencumbered by any
regulations, provided use at the property and
the 200 square feet provided further that a
minimum unit size is minimum setback of 75
maintained, and feet shall be required
provided the from Collins and
maximum occupancy Washington Avenue for
per hotel room does any portion of a
not exceed 4 building above 50 feet
persons. For new in height.
hotel units within Lots within the
attached or detached architectural district: 50
additions to feet.
contributing buildings Lots fronting on 17th
on the north side of Street: 80 feet.
Lincoln Road, City Center Area
between Drcxc! (bounded by Drexel
Pennsylvania Avenue Avenue, 16th Street,
and Lenox Avenue, Collins Avenue and the
1s1
with at least 5% of south property line of
the total floor area those lots fronting on
dedicated to amenity the south side of
space, the minimum Lincoln Road): 100
unit size shall be 200 feet.
square feet. For new Notwithstanding the
hotel units within above, the design
attached or detached review board or historic
additions to preservation board, in
contributing buildings accordance with the
on the south side of applicable review
Lincoln Road, criteria, may allow up
between Drcxc4 to an additional five
Pennsylvania Avenue feet of height, as
and Lenox Avenue, measured from the
with at least 5% of base flood elevation
the total floor area plus maximum
dedicated to amenity freeboard, to the top of
space, the average the second floor slab.
unit size shall be 250 This provision shall not
square feet. apply to existing
historic districts or
existing overlay
districts (existing as of
7/26/2017), or
commercial buildings
immediately adjacent
to residential district
not separated by a
street. However, an
applicant may seek
approval from the
historic preservation
board or design review
board, as may be
applicable, to increase
height in accordance
with the foregoing
within any historic
district or overlay
district created after
7/26/2017
Notwithstanding the
foregoing requirement
for City Center Area,
the following additional
shall apply:
The height for lots
fronting on Lincoln
Road and 16th Street
between Drexel
Avenue and
Washington Avenue
are limited to 50 feet
for the first 50' of lot
depth.
The height for lots
fronting on Drexel
Avenue is limited to 50
feet for the first 25' of
lot depth (except as
provided in section
142-1161).
{
(d) Lincoln Road hotel incentives and public benefits program. In order for a hotel on Lincoln
Road to be constructed with a minimum unitsize of 200 square feet (as applicable to hotels on
the north side of Lincoln Road)or a minimum average unit size of 250 square foot(as applicable
to hotels on the south side of Lincoln Road), and in order to construct a hotel on Lincoln Road
that is taller than 50 feet, the portion of Lincoln Lane abutting the subject property, as well as
the remaining portion of Lincoln Lane from block-end to block-end, shall be fully improved
subject to the review and approval of the Public Works Department. Additionally, for a hotel to
be eligible for the unit size and height incentives set forth herein, participation in a public benefits
program, as further set forth below, shall be required:
(1) Provide ground-floor public benefit space. On-site, ground floor space within the
building in which the hotel is located shall be provided, with a minimum area of 500
square feet, for use by Miami Beach-based not-for-profit entities and/or artisans,
as workshops, or for display or demonstration purposes, either of which shall be
open to public view ("Public Benefit Space"). Any required land use board
approvals associated with a Public Benefit Space approved pursuant to this
paragraph shall be the responsibility of the non-profit entity or artisan, respectively.
(2) Contribution to Art in Public Places fund. As an alternativo In addition to providing
an on-site Public Benefit Space pursuant to subsection (d)(1), above, a hotel fgaav
shall provide a contribution to the City's Art in Public Places fund, the amount of
which shall be equal to 4,5% 0.5% of the total of all construction costs associated
with the proposed hotel project, regardless of the number of permits associated
with the project or whether the applicant intends to construct the hotel in phases.
Full payment of the contribution shall be made prior to the issuance of a certificate
of occupancy.
(3) Final approval. Prior to the issuance of a final certificate of occupancy for the
property, a covenant executed by the property owner shall be submitted to the City,
in a form approved by the City Attorney and City Manager, which covenant shall,
at a minimum, identify the location of the Public Benefit Space, and require a hotel
owner and/or operator to maintain the Public Benefit Space for so long as the hotel
use on the subject property remains active e _ -_ '-- e •e ___ •_ •
unless a shorter term is approved by resolution of the City Commission. If an owncr
elects, instead, to provide a contribution to thc Art in Public Places fund, consistent
with subsection (4)(2), full payment shall be made prior to thc development
obtaining a final certificate of occupancy.
(4) There shall be a limit of 500 hotel units constructed between Pennsylvania Avenue
and Lenox Avenue. which utilize the unit size and/or height incentives set forth in
this subsection (d).
SECTION 3. Chapter 142, entitled"Zoning districts and regulations,"Article IV,"Supplementary district
regulations," Division 5, "Height regulations," Section 142-1161, "Height regulation exceptions," is
hereby amended as follows:
CHAPTER 142
ZONING DISTRICTS AND REGULATIONS
ARTICLE IV. – SUPPLEMENTARY DISTRICT REGULATIONS
* * *
DIVISION 5. – HEIGHT REGULATIONS
Section 142-1161. Height regulation exceptions.
* * *
(d) Rooftop additions.
(1) Restrictions. There shall be no rooftop additions to existing structures in the following
areas: oceanfront lots within the Miami Beach Architectural District in the RM-3 or CD-3 zoning
districts; non-oceanfront lots fronting Ocean Drive in the MXE zoning district. No variance from
this provision shall be granted.
(2) Additional regulations. Existing structures within an historic district shall only be
permitted to have habitable one-story rooftop additions (whether attached or detached), with a
maximum floor to ceiling height of 12 feet except as hereinafter provided. The above described
additions shall not be visible when viewed at eye level (5'-6" from grade) from the opposite
side of the adjacent right-of-way; for corner properties, said additions shall also not be visible
when viewed at eye level from the diagonal corner at the opposite side of the right-of-way and
from the opposite side of the side street right-of-way. Notwithstanding the foregoing, the line-
of-sight requirement may be modified as deemed appropriate by the historic preservation board
based upon the following criteria: (i) the addition enhances the architectural contextual balance
of the surrounding area; (ii) the addition is appropriate to the scale and architecture of the
existing building; (iii) the addition maintains the architectural character of the existing building
in an appropriate manner; and (iv) the addition minimizes the impact of existing mechanical
equipment or other rooftop elements.
(3) Lincoln Road hotel additions. Notwithstanding the foregoing, a multistory rooftop
addition, for hotel uses only, may be permitted for properties on Lincoln Road, located between
Drcxcl Pennsylvania Avenue and Lenox Avenue, in accordance with the following provisions:
a. For properties on the north side of Lincoln Road, a multistory rooftop addition shall be
set back at least 75 feet from Lincoln Road and at least 25 feet from any adjacent side
street. Additionally, the multistory addition may be cantilevered over a contributing
building.
b. For properties located on the south side of Lincoln Road, a multistory rooftop addition
shall be set back at least 65 feet from Lincoln Road.
c. The portion of Lincoln Lane abutting the subject property, as well as the remaining portion
of Lincoln Lane from block-end to block-end, shall be fully improved subject to the review
and approval of the Public Works Department.
d. Participation in the public benefits program, pursuant to section 142-337(d), shall be
required in order for a hotel project to avail itself of a multistory rooftop addition.
e. There shall be a limit of 500 hotel units for hotel projects including a multistory rooftop
addition that are constructed between Pennsylvania Avenue and Lenox Avenue.
(4) The placement and manner of attachment of all additions (including those which are
adjacent to existing structures) are subject to historic preservation board approval.
(5) No variance from this the provisions of subsection 142-1161(d) shall be granted.
SECTION 4. Repealer.
All ordinances or parts of ordinances and all sections and parts of sections in conflict herewith
be and the same are hereby repealed.
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 part of the Code of the City of
Miami Beach, Florida, as amended. The sections of this ordinance may be renumbered or relettered to
accomplish such intention, and the word "ordinance" may be changed to"section" or other appropriate
word.
SECTION 6. 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.
II
SECTION 7. Effective Date.
This Ordinance shall take effect the a' day of UC 6 6,0- , 2019.
PASSED AND ADOPTED this /G day of De/vbtr- , 2019.
Attest:
1
I„ iq Dan Gelber, Mayor
Rafa-I E. Granado, City Clerk
First Reading: September 11, 2019.
Second Reading: Qctober 1 , 2019
Verified by: /
Thomas R. Mooney, AICP, P •nning Director
T:\Agenda\2019\10 October 16\Planning\Lincoln Road Hotel Amendments-Second Reading ORD ADOPTED.docx
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Ordinances-R5 F
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: October 16, 2019
10:35 a.m. Second Reading Public Hearing
SUBJECT:DEVELOPMENT REGULATIONS FOR HOTELS ON LINCOLN ROAD
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING THE CODE OF THE CITY OF
MIAMI BEACH, FLORIDA, BYAMENDING CHAPTER 130, ENTITLED "OFF-
STREET PARKING," ARTICLE II, "DISTRICTS; REQUIREMENTS,"
SECTION 130-33, "OFF-STREET PARKING REQUIREMENTS FOR
PARKING DISTRICTS NOS. 2, 3, 4, 5, 6, AND 7," TO AMEND THE OFF-
STREET PARKING REQUIREMENTS FOR HOTEL UNITS ON LINCOLN
ROAD BETWEEN ALTON ROAD AND WASHINGTON AVENUE; BY
AMENDING CHAPTER 142, ENTITLED "ZONING DISTRICTS AND
REGULATIONS," ARTICLE II, ENTITLED "DISTRICT REGULATIONS,"
DIVISION 6, "CD-3 COMMERCIAL, HIGH INTENSITY DISTRICT,"
SECTION 142-337, "DEVELOPMENT REGULATIONS AND AREA
REQUIREMENTS," TO AMEND THE MINIMUM HOTEL UNIT SIZE FOR
NEW HOTEL UNITS AND THE MAXIMUM BUILDING HEIGHT FOR
HISTORIC BUILDINGS ON LINCOLN ROAD; AND BY AMENDING
CHAPTER 142, ENTITLED "ZONING DISTRICTS AND REGULATIONS,"
ARTICLE IV, "SUPPLEMENTARY DISTRICT REGULATIONS," DIVISION 5,
"HEIGHT REGULATIONS," TO PROVIDE ADDITIONAL REGULATIONS
FOR ROOFTOP ADDITIONS FOR HISTORIC BUILDINGS ON LINCOLN
ROAD; AND PROVIDING FOR REPEALER, SEVERABILITY,
CODIFICATION AND AN EFFECTIVE DATE.
RECOMMENDATION
The administration recommends that the City Commission adopt the subjcct ordinance.
BACKGROUND/HISTORY
March 13, 2019, at the request of Commissioner Ricky Arriola, the City Commission referred
the subject discussion item to the Land Use and Development Committee (Item C4 X). On
April 3, 2019 the Land Use and Development Committee discussed the item and continued it to
the May 22, 2019 meeting. The LUDC also directed staff to work with the item proposer and
modify the ordinance for review at the May 22nd meeting.
On May 22, 2019 the LUDC discussed the proposed ordinance and recommended that the
Page 1283 of 2557
City Commission refer the item to the planning board for review and consideration.
On June 5, 2019, the City Commission referred the proposed ordinance to the Planning Board
for review and recommendation(Item C4 V).
On July 9, 2019, the Historic Preservation Board (HPB) discussed the item and indicated
support of the concept. However, the board expressed concerns with the minimal public benefit
proposed and recommended a much larger area be required. Additionally, the HPB
recommended the exploration of how additional height would allow the more substantial
preservation of the contributing structures on Lincoln Road.
ANALYSIS
PLANNING ANALYSIS
The original draft ordinance was prepared by the property owner of the Sterling Building located
at 927 Lincoln Road, and proposed the following modifications for properties located on the
north side of Lincoln Road between Pennsylvania Avenue and Lenox Avenue:
• Reductions in the off-street parking requirements;
•A reduction in the minimum hotel unit sizes from 335 sq ft to 200 sq ft;
• The allowance for a multistory rooftop addition;
•An increase in maximum permitted height from 50 feet to 75 feet.
The proposal to reduce the minimum unit size for new hotel units located within attached
additions to contributing buildings to a minimum of 200 square feet would be contingent upon
the project including at least 5% of the total floor area as amenity space. Currently,the minimum
unit size for new hotel units is between 300 and 335 square feet.
The subject ordinance amendment would also allow lots located between Pennsylvania Avenue
and Lenox Avenue on the north side of Lincoln Road to construct an attached addition to a
contributing building up to 75 feet in height, provided the property has a minimum lot area of
30,000 square feet and a minimum of 100 hotel units are being provided. In order to address
the potential scale and height issues associated with a future structure taller than 50 feet in
height, particularly as it may be perceived from Lincoln Road, the ordinance includes a minimum
setback of 75 feet from Lincoln Road and a minimum setback of 25 feet from a side street for
any portion of a building above 50 feet in height. This would ensure that any future addition to a
building above 50 feet in height would not overwhelm the Lincoln Road streetscape. The
administration is supportive of this limited increase in height and would note that there are
several taller buildings immediately to north of Lincoln Road between Lincoln Lane North and
17th Street,where the maximum building height is currently 80 feet.
In addition to the proposed height increase for attached additions, the ordinance would also
allow for multistory rooftop additions to be constructed above a contributing building. Currently, a
rooftop addition, whether attached or detached, to a contributing building is limited to one story.
This proposal would allow for multiple levels to be cantilevered over an existing contributing
building without the requirement that the building be demolished and reconstructed as a ground
up addition, encouraging the retention and restoration of contributing buildings.
Page 1284 of 2557
As to the total number of potential hotel units within the larger area, between Lenox and
Pennsylvania Avenues on the north side of Lincoln Road, the proposer's architect has studied
the area and estimates that if most of the buildings take advantage of the ordinance (which is not
likely),there could be as many as 500 more hotel units on the north side of Lincoln Road.
On May 22, 2019, the Land Use Committee endorsed the proposal, and recommended the
following modifications for properties on the south side of Lincoln Road, between Pennsylvania
and Lenox Avenues:
1. No parking for hotel uses.
2.A reduction in the minimum unit size to 250 square feet.
3.Allowance for multi-story roof top additions, but no increase in overall height above the current
50 feet.
Additionally, the LUDC recommended the following, which will be applicable to both the north
and south sides of Lincoln Road:
1. The inclusion of a public benefit component for arts and culture.
2. All applicable improvements required for Lincoln Lane shall take place from block end to
block end, and not just abutting a particular property proposing a hotel use.
PLANNING BOARD REVIEW
On July 23, 2019, the Planning Board held a public hearing and transmitted the ordinance to the
City Commission with a favorable recommendation by a vote of 4-0. Board member David
Weider expressed concerns and reservations and recommended that the City Commission
proceed with caution regarding any height increases along Lincoln Road, which should be fully
scrutinized by the historic preservation board.
The Planning Board also recommended the minimum on-site public benefit space at the ground
floor within the building in which the hotel is located contain a minimum area of 500 square feet.
This recommendation is included in the. draft ordinance.
SUMMARY
The ordinance provided for first reading on September 11, 2019 contained all the modified
development regulations for hotel uses along the north and south side of Lincoln Road, as
recommended by the Land Use Committee and the Planning Board. This includes the public
benefit fee for arts and culture, as well as required improvements to Lincoln Lane, from block
end to block end.
Regarding the public benefits program, in consultation with the Economic Development
Department, the draft ordinance presented at first reading contained the following options for
addressing the public benefit:
1. Provide on-site area for the benefit of the general public. Provide on-site, ground floor space
within the building in which the hotel is located with a minimum area of 500 square feet ("Public
Benefits Space"), for use by local not-for-profit entities and/or artisans, as workshops, for
Page 1285 of 2557
display or demonstrations that are available for public viewing. The property owner shall not be
required to submit land use board applications for the uses proposed in the Public Benefit
Space.Any such approvals shall be the responsibility of the not-for-profit or local artisan.
2. Contribution to public benefits fund. As an alternative to providing an on-site area under
subsection (a) above, an owner may provide a contribution to a public benefits fund benefiting
Lincoln Road or Art in Public Places, in the amount of 1.5% of the total of all construction cost
associated with the proposed hotel project regardless of the number of permits associated with
the project or whether it is a phased project.
3. Final approval. Prior to the issuance of a final Certificate of Occupancy for the property, the
Public Benefits Space shall be designated, and a covenant executed by the property owner
submitted to the City and approved by the City Manager or designee. If the owner decides to
provide a contribution consistent with paragraph (2) hereof as an alternative to providing the
Public Benefit Space, payment shall be made prior to the development obtaining a final
certificate of occupancy(CO).
The basis for the 1.5% contribution in option 2 is the present value of leased spaced on Lincoln
Road. As an example, for a hotel site that is 30,000 square feet, the total buildable project
would be 67,500 square feet (based upon a maximum FAR of 2.25). The average cost of
construction is $250 per square foot, or $16,875,000. Multiplied by 1.5%, the public benefit
would equate to $253,125.00, which is still not significant as compared to the present value of
$200 per square foot for leased space on Lincoln Road.
It is important to provide some context related to the minimum 500 SF of amenity space
proposed. In this regard, the value of such space can range from $2,000,000 to $3,000,000
(based on Lincoln Road current lease rates)to a developer. When compared to a one-time pay
of $253,125.00, choosing to provide 500 SF of amenity space is unlikely. When placed in
context, the $253,125.00 collected is enough to lease 500 SF of ground floor amenity space
inside of one of these hotels for a maximum of 20 months (1.6 years). As currently proposed,
the public benefit option proposed will likely result in the collection of the one-time fee, instead
of providing dedicated amenity space on site.
In addition to the public benefits, another potential option identified at first reading for the City
Commission to consider was a contribution to an off-site area for the public benefit, which would
be available to the general public. In this scenario, a developer would be able to provide an
alternate public benefit space valued at 1.0%of all construction costs of the project, inclusive of
the cost of maintenance, insurance, and utilities of the off-site location. The off-site location
would need to be approved by the City in substantive form. Since Lincoln Road real estate
values are high, a developer will most likely choose the contribution option, as an onsite unit may
be a challenge, especially for their lenders. By having an offsite alternative, it may provide an
incentive to invest the money into a less expensive area (i.e. North Beach). While the goal of the
legislation is to have this cultural amenity on Lincoln Road, having an alternate site would still
achieve the cultural amenity.
The administration recommended in favor of the proposed ordinance at first reading, inclusive
of the aforementioned public benefit options, as it is not expected to have any negative visual
impacts on the character of this portion of the Flamingo Park Local Historic District, nor Lincoln
Road. As hotel uses are already permitted on Lincoln Road, the proposed reduction in the
minimum unit size for hotels, as well as the removal of the minimum parking requirement, is not
Page 1286 of 2557
expected to have an adverse impact, particularly since Lincoln Road contains a significant
concentration of contributing structures where providing parking would be challenging.
Additionally, the parking impact fee, per required space, is $40,000.00. Further, the mixed-use
character of Lincoln Road promotes a guest experience which is consistent with smaller hotel
units and should encourage activation of the street.
Attached, per the request of the LUDC, is current parking utilization data for all the adjacent
Lincoln Road public garages. There has also been a demonstrative decrease in parking
demand throughout the City, and the typical hotel guest is more likely to take advantage of ride
share services in lieu of valet parking.Additionally, this area of the City is within walking distance
of the recently renovated convention center, shops, restaurants, and the beach.
UPDATE
The subject ordinance was approved at first reading on September 11, 2019, with the following
modifications:
1. Sec. 142-337 was amended to include `detached'additions.
2. The 500 block of Lincoln Road (aka the Drexel Avenue block, containing Rosinellas) was
included within the boundaries of the ordinance.
3. The contribution to the arts in public places fund is now required, but at a reduced rate.
4. The length of time required for the mandatory ground-floor public benefit space was changed
from a minimum of 10 years to as long as the hotel use on the subject property remains
active, unless a shorter term is approved by resolution of the City Commission.
The above noted modifications are included in the revised draft ordinance for second reading.
The City Commission also requested that the administration further study and come back with a
recommendation as to whether a cap on the total number of hotel rooms on Lincoln Road would
be appropriate. The City Commission made the same request as part of the referral to the
Planning Board on June 5, 2019. In this regard, as indicated previously at first reading, since
hotels are already a permitted use on Lincoln Road, it is difficult to quantify the basis for a cap.
The Economic Development Department has provided the attached analysis regarding how
new hotel rooms (supply), demand trends, economic/public benefits, market mix, etc. on Lincoln
Road would impact the convention center hotel. This analysis concludes that additional hotel
rooms and accessory uses on Lincoln Road would not have a negative impact on the recently
approved convention center headquarter hotel, proposed for 17th Street and Convention Center
Drive, nor the larger hotel market in the vicinity of Lincoln Road. Accordingly, the
administration does not recommend that a cap be placed on the number of hotel units
permitted on Lincoln Road.
Finally, in order to address a request by the owners of Rosinellas in the 500 block of Lincoln
Road, the City Commission referred a discussion item to the September 18, 2019 Land Use
and Development Committee (LUDC) meeting. The LUDC discussed the inclusion of the
Drexel Avenue block within the scope of the proposed ordinance and continued the item to the
October 30, 2019 LUDC meeting.Additionally,the LUDC recommended the following:
1. The City Commission remove the 500 block (Drexel Avenue block) from consideration at
Page 1287 of 2557
second reading adoption ado tion on October 16, 2019, so that the entire block can be studied
separately and holistically in terms of setbacks and public benefit contributions
2. The City Commission study the potential of including room block requirements as part of the
ordinance.
The 500 block (Drexel block) was not part of the study area proposed for the new hotel
regulations.Additionally, the reduced depth of the lots on the north side of this block will make it
challenging to meet the setback and public benefit components of the draft ordinance. As such,
the administration also recommends that the Drexel Avenue block be removed from the current
version of the ordinance and continue to travel under the referral pending at the LUDC.
CONCLUSION
The administration recommends that the City Commission adopt the subject ordinance, with the
removal of the 500 block, between Drexel and Pennsylvania Avenues.
Applicable Area
South Beach
Is this a Resident Right to Does this item utilize G.O.
Know item? Bond Funds?
Yes No
Legislative Tracking
Planning •
Sponsor
Vice-Mayor Ricky Arriola
ATTACHMENTS:
Description
❑ LR Parking Utilization
❑ EDD Hotel Analysis
❑ Ordinance
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City of Miami Beach Parking Utilization Trend
ATTEND -TOYEAR
FY164715 FY1bFY15 FYI 7-FY16 FY17-FY16
FY18 Flours FY18-FY17 FY18-FY17
Zone 0 Homo FY15 Hours FY16 Hours Duff %Diff FY17 Hours Dill %Diff Diff %Diff
South G5 17th Sheet 3,493,953 3,507,862 13,909 0% 2,990,887 (516,976) •15% 2,841,277 (149,610) •5%
South G9 Pennsylvania Avenue 641,428 642,162 734 0% 513,499 (128,663) .20% 422,564 (90,935) -18%
TOTAL GARAGES HOURS 4,135,381 4,150,024 14,643 0% 3,504,385 (645,639) -16% 3,263,841 (240,544) -7%
ATTENDED GARAGE HOURS CUMULATIVE
Zone • Nome FY15 Hours FY18 Hours FYI$-FY15 FY18•F7 s
Diff %Diff
South 05 17th Street 3,493,953 2,841,277 (652,676) .19%
South G9 Pennsylvania Avenue 641,428 422,564 (218,864) -34%
TOTAL GARAGES HOURS 4,135,381 3,263,841 (871,540) -21%
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F:\PING\SMAN\Charles\Parkins Utilization\FY18 Parking Utilization Trend.>Jtxage 1289 of 2557
Miami Beach Convention Center Hotel Analysis
Purpose
The proposed amendment to incentive hotel units would likely result in between 500 to 1000 new hotel
units on Lincoln Road. The Economic Development Department (EDD) was tasked with evaluating the
following:
1. The demand for additional hotels units on Lincoln Road,between Lenox and Pennsylvania Avenue,
in relation to the expected future demand of the Miami Beach Convention Center(MBCC).
2. To determine if there is enough demand to absorb these units and if the land use modifications
would impact the HQ Hotel demand.
In order to address these points, the EDD reviewed the "Potential Need for a Miami Beach Convention
Center Headquarter Hotel (HQ Hotel)Analysis" produced by CS&L on May 12, 2017 (the CS&L Report).
The conclusions in this analysis are based on the data provided in the CS&L Report.
Analysis
The Miami Beach Convention Center (MBCC) has the smallest square feet (SF) amongst the 15 regions
included in the Report with 703,200 SF of convention space. Assuming a 700-unit HQ Hotel there would
be 5,602 hotel units within .5 miles of MBCC,which is the 2nd lowest number of hotels amongst the 15
regions in the Report (see table below). Staff calculated the total convention SF per hotel unit and
determined MBCC would have 126 SF of convention space for every hotel unit within .5 miles of the
convention center as compared to the largest in Los Angeles of 1,122 SF(LA has 7,109,500 SF convention
space/ 6,336 hotel units). The greater the SF per hotel unit shows more space of convention SF per unit.
Miami Beach represents the median in the set with San Francisco being the lowest with 46 SF of
convention space for every hotel unit within .5 miles. Staff removed the two largest and the smallest
regions of SF per hotel showing a range of 67 SF to 192 SF of convention space per hotel unit.
Attached Hotel units HQ Hotel+
Region I.; SF T Hotel uni .5 Miles..- .5 Mild- SF/Hoti,1
1 i<os Angcica 7, 5009 1.008 5,238 6,336 1,122
2 C icago3-x.6 2,458 3,161 5,619 ;63
3 Boston 706,800 793 2,882 3,675 192
4 Atlanta 1,651,100 1,070 9,303 10,373 159
5 Dallas 891,800 1,016 4,627 5,643 158
6 Orlando 2,537,200 5,788 10,729 16,517 154
7 Miami Beach 703,200 700 4,902 5,602 126
8 Las Vegas 2,883,200 2,604 20,556 23,160 124
9 New Orleans 1,295,400 2,405 8,398 10,803 120
10 Houston 1,002,700 2,203 6,279 8,482 118
11 Washington 903,000 1,175 8,321 9,496 95
12 Anaheim 1,138,100 2,604 10,676 13,280 86
13 San Diego 816,100 2,552 7,881 10,433 78
14 San Antonio 758,700 2,516 8,863 11,379 67
15 'co -8917490 2,458 17,132 '�90 46
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Once the smallest and largest were removed from the set, San Antonio represented the lowest SF of
convention space per hotel units within a .5-mile radius(67 SF of convention space per hotel unit). If the
City were to match the lowest SF per unit, it would equate to an additional 4,900 hotel units within .5
miles. This is strictly a calculation and does not take into consideration the market condition differences
of the regions.
Based on the CS&L Report, a majority of MBCC's previous events have been consumer shows and low
impact events,which appear to be driven by the lack of a HQ Hotel.The CS&L Report concludes that higher
impact events tend to have an attached hotel;as such, it is reasonable to conclude that the lack of an HQ
Hotel limits MBCC from demanding higher impact events.
The CS&L Report also provides a summary of surveys taken by event planners. Those surveys show that
majority of events prefer convention centers with an attached hotel,and 86%preferring hotel counts of
1200 rooms. The survey also noted that 60%would not mind if 400 rooms were on the beach, while the
other 400 where attached to the convention center.There are approximately 4,800 hotel rooms on the
beach within.5 miles of the MBCC. The survey also shows that if there were an HQ Hotel and free trolley
services were available for up to 3 blocks away that 70%would still not book rooms in those detached
hotel units
Conclusions from CS&L Report:
• If approximately 4,900 hotel units were built over and above the existing 5,600 units within .5
miles of MBCC, the SF of convention space per hotel unit would still be in line with the highest
number of hotel units in the region per SF of convention space.
• Additional hotel uses on Lincoln Road will not negatively impact the HQ hotel, particularly for
higher impact events, as these events prefer attached HQ hotels rather than hotel units offsite.
The 700 units proposed in the HQ hotel do not appear to be sufficient to drive a large impact
event to the City;as such there does not appear to be a risk of driving guests away from the HQ.
• Based on the survey of event planners, 75%were either less likely or not likely to book an event
at the MBCC without a HQ hotel; this shows that event planner events are more likely to be
booked at the HQ Hotel rather than offsite.
Conclusions from the Economic Development Department:
• Studies show that 50%of Miami Beach guests visit Lincoln Road and allowing hotel units will drive
more traffic to the ground floor retail uses without interference with the HQ Hotel.
• South Beach visitors tend to be driven by entertainment and experience; hence, adding more
hotels would require those types of uses. There are currently redevelopment projects converting
existing non-hotel uses to hotel uses in other areas of the South Beach.
• As more guests visit, there must be enough entertainment, food and beverage options; hence
accessory uses at the ground floor and roof tops would provide additional opportunities to serve
these visitors.
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• The CS&L Report showed Miami having the 7th highest hotel occupancy in the country in 2016
(8th in 2018);this illustrates that visitors continue to be attracted to the greater Miami region.
• The higher hotel average daily rates (ADR's) tend to be beachfront. Lincoln Road, while not
beachfront,does have high real estate values.This, in turn,would require the ADR's to be on the
higher end to allow developers to make a profit, thus likely resulting in more luxury type hotel
development on Lincoln Road. However,the hotel rates offered by the future hotels on Lincoln
Road would have to be competitive to the oceanfront hotels to be marketable.
Page 1292 of 2557