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2003-25337 ResoRESOLUTION NO. 2003-25337 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA ADOPTING A CONCURRENCY MANAGEMENT PROGRAM AND POLICY EXEMPTING SMALL BUSINESSES OPERATING WITHIN EXISTING STRUCTURES FROM TRANSPORTATION CONCURRENCY MITIGATION FEES IF SUCH BUSINESSES GENERATE LESS THAN 100 TRIPS PER DAY, ASSESSING FEES ON A DIMINISHING SLIDING SCALE FOR SUCH BUSINESSES GENERATING BETWEEN 100 AND 150 TRIPS PER DAY, PROVIDING CREDIT FOR BUSINESSES GENERATING MORE THAN 150 TRIPS PER DAY UNDER CERTAIN CIRCUMSTANCES, AND PROVIDING THAT SAID PROGRAM AND POLICY BE EFFECTIVE AS OF JANUARY 1, 2003. WHEREAS, certain challenges are faced by small commercial businesses attempting to open in the City within existing structures, including the cost of complying with the City's concurrency requirements for traffic circulation and roadway level of service (LOS); and WHEREAS, the City is authorized, via the passage of the attached Ordinance and the review and approval of the Department of Community Affairs, to adopt by resolution programs and policies allowing for transportation concurrency exemptions, a sliding scale, and/or credits for small businesses operating within existing structures; and WHEREAS, such programs and policies may be adopted by the City, provided that the level of funding for the Miami Beach Municipal Mobility Plan (MMP) mitigation project is not reduced or diminished by the adoption of said programs or policies and the City-adopted LOS "D" in the Miami Beach Transportation Concurrency Management Areas (TCMA's) is maintained and not degraded; and WHEREAS, in order to address the above stated concerns of small commercial businesses, the following program and policy should be adopted by the City Commission: Small businesses operating within existing structures that generate less than 100 trips per day shall be exempt from the Transportation Concurrency Mitigation Fees only. The Florida Statutes do not allow for exemptions as to potable water, sewer, solid waste, drainage, and parks/recreation concurrency requirements. Transportation Concurrency Mitigation Fees for small businesses operating within existing structures that generate between 100 and 150 trips per day, will be assessed on a diminishing sliding scale. The fee will be calculated by multiplying the sliding scale percentage against the difference of the last legal use and the total trips generated from that land use. There will be no fee waiver for businesses generating more than 150 trips per day. 3. Businesses operating within existing structures generating more than 150 trips per day will only receive credit for the last legal use of the property; and WHEREAS, the adoption of the above stated program and policy (a) will not reduce or diminish the level of funding for the MMP mitigation project and (b) will have a minor impact on the existing roadway LOS in that the City-adopted LOS "D" for the TCMA's will be maintained and not degraded; and WHEREAS, the Administration and the Ad Hoc Citizens Concurrency Advisory Committee has recommended that the City consider adopting policies and programs which would allow small businesses, whose trip generation and site demand have been determined to be minor in nature, either to be exempted from concurrency, or to satisfy transportation concurrency requirements through mitigation fee payment based on a diminishing sliding scale; and WHEREAS, the program and policy stated herein should be effective as of January 1, 2003. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the above stated concurrency management program and policy exempting small businesses operating within existing structures that generate leSs than 100 trips per day from Transportation Concurrency Mitigation Fees, assessing fees on a diminishing sliding scale for small businesses generating between 100 and 150 trips per day, and providing credit, under certain circumstances, for businesses generating more than 150 trips per day, shall be effective as of January 1,2003. PASSED AND ADOPTED this 10th day of September ,2003. ATTEST: CITY CLERK F:\WORK~$TIRA\HENRY~Reso for Exemption.doc APPROVED AS TO FORM & LANGUAC~ & FOR EXECUTION CITY OF MIAMI BEACH ~1~ COMMISSION ITEM SUMMARY Condensed Title: A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida Adopting A Concurrency Management Program And Policy Exempting Small Businesses Operating Within Existing Structures From Transportation Concurrency Mitigation Fees If Such Businesses Generate Less Than 100 Trips Per Day, Assessing Fees On A Diminishing Sliding Scale For Such Businesses Generating Between 100 And 150 Trips Per Day, Providing Credit For Businesses Generating More Than 150 Trips Per Day Under Certain Circumstances, And Providing That Said Program And Policy Be Effective As Of January 1, 2003. Issue: Shall the City adopt the Resolution to allow for a small business exemption from transportation concurrency requirements? Item Summary/Recommendation: As requested by the Land Use and Development Committee, the Administration and the Concurrency Ad Hoc Committee recommend that the City Commission consider adopting policies and programs which would allow small businesses (in existing structures), whose trip generation and site demand have been determined to be minor in nature, either to be exempted from concurrency, or to satisfy transportation concurrency requirements through mitigation fee payment, based on a diminishing sliding scale. Such exemption requires amendment to the City Code which was approved on First Reading and is scheduled for Second Reading on September 10, 2003. After approval of the Amended Ordinance, a companion resolution is required to adopt policies that would implement the exemption from the Transportation Concurrency Mitigation Fees for certain commercial businesses. The Administration recommends approval. Advisory Board Recommendation: Land Use and Development Committee met on April 21,2003 and The Planning Board met on July 29, 2003 and both made a motion to accept the proposal for a small business exemption, effective as January 1, 2003, for those businesses that qualify as small businesses. Financial Information: rands: 4 Finance Dept. ~t~i $20,432.58 Estimate of mitigation fees collected from small businesses City Clerk's Office Legislative Tracking: I Henry Johnson AGENDA ITEM ~ '~1~' To: From: Subject: COMMISSION MEMORANDUM Mayor David Dermer and Date: September 10, 2003 Members of the City Commission Jorge M. Gonza~ City Manager A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA ADOPTING A CONCURRENCY MANAGEMENT PROGRAM AND POLICY EXEMPTING SMALL BUSINESSES OPERATING WITHIN EXISTING STRUCTURES FROM TRANSPORTATION CONCURRENCY MITIGATION FEES IF SUCH BUSINESSES GENERATE LESS THAN 100 TRIPS PER DAY, ASSESSING FEES ON A DIMINISHING SLIDING SCALE FOR SUCH BUSINESSES GENERATING BETWEEN 100 AND 150 TRIPS PER DAY, PROVIDING CREDIT FOR BUSINESSES GENERATING MORE THAN 150 TRIPS PER DAY UNDER CERTAIN CIRCUMSTANCES, AND PROVIDING THAT SAID PROGRAM AND POLICY BE EFFECTIVE AS OF JANUARY 1, 2003. ADMINISTRATION RECOMMENDATION Adopt the Resolution ANALYSIS Based on challenges faced by small businesses attempting to open in the City, within existing buildings and structures, along with the cost of complying with the City's concurrency requirements for traffic circulation and roadway level of service (LOS), the Administration and the Ad Hoc Citizens Concurrency Advisory Committee recommend the following: That the City consider adopting policies and programs which would allow small businesses, whose trip generation and site demand have been determined to be minor in nature, either to be exempted from concurrency, or to satisfy transportation concurrency requirements through mitigation fee payment based on a diminishing sliding scale. The recommended policy would provide a complete transportation concurrency fee exemption for small businesses operating within existing structures generating less than 100 vehicle trips per day. Small businesses operating within existing structures that generate between 100 and 150 vehicle trips per day would be eligible for an exemption that reduces proportionately from 100% to 0%. Businesses that generate more than 150 vehicle trips per day will receive credit for the last use. In developing specific exemption program elements, it was determined that the shift of concurrency mitigation fees from small businesses to larger development projects is not permitted by the Florida Department of Community Affairs (DCA). In addition, issues involving changes to adopted concurrency management systems and/or levels of service require review and approval by DCA. September 10, 2003 Commission Memorandum Proposed Exemptions to Small Businesses Page 2 After review and approval by DCA, the Administration has determined that the adoption of a small business exemption program would be compatible with state law; should not be detrimental to the ongoing implementation of the Miami Beach Municipal Mobility Plan (MMP), provided that the level of MMP mitigation project funding is not reduced or diminished by the adoption of said programs or policies; and the City-adopted LOS "D" for the Miami Beach Transportation Concurrency Management Areas (TCMAs) is maintained and not degraded. On April 21, 2003, the Land Use and Development Committee made a motion to accept the proposal for a small business exemption retroactive to January 1, 2003, for those businesses that qualify as small businesses. Such businesses will be reevaluated to determine if they are eligible for a full or partial refund of the transportation mitigation portion of the fee. In a typical year, there is an average of 72 applicants. To date, in calendar year 2003, 15 of the 79 applicants would qualify for the small business exemption. The reduction in concurrency mitigation fees collected from these 15 businesses would be $20,432.58 of the $1,574,765.40 collected during calendar year 2003. The reduction in these fees will be replaced by other sources secured by the City. On July 29, 2003, the Planning Board made a motion to accept the proposal for a small business exemption retroactive to January 1, 2003, for those businesses that qualify as small businesses. After the approval of the enabling Ordinance that is also on the September 10, 2003 meeting agenda, a companion Resolution is required to adopt the program and policy that would implement the exemption, diminishing sliding scale, and credit relative to the Transportation Concurrency Mitigation Fees for commercial businesses. RECOMMENDATION After approval of the Ordinance, approve the companion Resolution. F:\WORK~TRA\HENRY~Small Business Resolution.doc