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RDA MEMORANDUM NO 91-17 Miami Beach Redevelopment Agency 1700 Convention Center Drive Miami Beach, Florida 33139 REDEVELOPMENT AGENCY MEMORANDUM NO. 91-17 DECEMBER 18, 1991 To: Chairman and Members of the Board of the Redevelopment Agency From: Carla Bernabei Talarico Executive Director SUBJECT: SOUTH POINTE REDEVELOPMENT AREA. UPDATE At the December 4, 1991 City Commission meeting, members of the Commission requested that the Administration prepare a position paper on the issues and possible future options pertaining to a re-examination of the South Pointe Redevelopment area. This memorandum attempts to identify and summarize several of the perceptions of the redevelopment project, as outlined by the City Commission. The report also presents several options which can potentially be used to address these perceptions. Due to the complex planning and legal considerations involved in the South Pointe redevelopment project, the information requested by the City Commission is prefaced by an overview section which provides background information pertaining to: 1) the Redevelopment Statutes (Chapter 163, F.S.), tax increment financing, and other general information; 2) the South Shore Revitalization Strategy; 3) the Comprehensive Plan and Zoning Ordinance requirements; and 4) City actions to date in the Redevelopment Area. I. SOUTH POINTE OVERVIEW/BACKGROUND INFORMATION A. What is Redevelopment? Chapter 163.330 of the Florida State Statutes(F.S), (The Community Redevelopment Act of 1969), authorizes the creation of "Redevelopment Agencies", which in turn, are empowered to designate certain slum or blighted neighborhoods as "redevelopment areas" for the purpose of redeveloping them according to approved plans. A Redevelopment Agency is a legally separate entity from the governing body of a municipality. The Agency however, can be comprised of the members of the governing body, as is the case in the City of Miami Beach. A Redevelopment Agency can (either by itself or through the local government): ► Approve "Community Redevelopment Plans" for project areas; ► Deed publicly-owned lands to designated projects; ► Approve acquisition, demolition, removal and disposal of property; and, ► Utilize tax increment revenue streams to finance land acquisition,infrastructure and parking improvements The creation of a Community Redevelopment Area is contingent upon the finding of slum or blight in the target district. Tax Increment Financing (T.I.F) is that method of financing authorized by the Florida Statutes as a way of repaying indebtedness incurred by local redevelopment agencies. It permits cities and counties to issue revenue bonds that pledge the incremental tax increase in property values resulting from a community redevelopment pro ject(s). It provides that the assessed value of a redevelopment project area may be frozen upon establishment of the project.The frozen base continues to be available to all local taxing agencies throughout the duration of the redevelopment project. Any growth in the assessed value over the frozen base is reserved for the repayment of indebtedness incurred by the redevelopment agency in conjunction with redeveloping the aria. 1/ . c . 1 0 r.T • {;+off. • r •Ywr• ,'V - '�;' 1. f r Friri ;.A'Y a„::k B. South Shore Revitalization Strategy The South Shore Revitalization Strategy, adopted by the City Commission in 1984, was prepared by the firm of Freilich and Leitner. It is the officially adopted plan for the South Pointe Redevelopment Area, adopted by Ordinance 89-2403. The Plan includes detailed research and analysis upon which the overall goals and objectives were based. The four major goals of the Plan are: ► To reestablish the area as an economically viable and functionally diverse urban neighborhood/resort community; ► To involve minimum relocation and condemnation; ► To enhance the diversity of form and activity through the use of established planning and design principles; and ► To create a traffic system that adequately serves both through and local traffic needs of the area. The major goals are followed by more specific functional objectives which include a land use plan with the following characteristics: ► A peripheral waterfront linear park system; ► A resort area relating to the linear park; ► An urban neighborhood core; ► A central retail core serving both the resort development and the urban neighborhood area. The generalized land uses are as follows: ► Office - Fifth Street Corridor: a mixed use area with retail activities required on the ground floor and office and residential uses above the first floor. ► Residential -The area between 1st and 4th Streets from Alton Road to the ocean: low intensity residential development adjacent to the marina and Alton Road, transitioning to high rise development along the ocean. ► Retail core - The southern portion of South Pointe between Biscayne Street and 1st Street and between Jefferson Avenue and Ocean Drive: neighborhood and tourist-oriented commercial uses, with residential allowed above the first floor. ► Marina upland area - The area between 5th Street and Biscayne Street west of Alton Road: to accommodate central marina facilities to service the 400 slip marina, including a 300 slip dry storage area. Tourist and marina oriented retail uses are encouraged on the site. *Note:The Revitalization Strategy also included the potential for additional marina related development on the South Beach Elementary School site, but obviously this provision is no longer operative, with the construction and opening of the new South Pointe Elementary School. ► Hotel - use of the dog track site south of Biscayne Street for development of a resort hotel. An additional hotel site designated on the ocean between 1st and 2nd Streets. ► Parks and Open Space - the development of South Shore Park (South Pointe Park) with both active and passive recreational facilities, a restaurant, and an amphitheater. A pedestrian walkway links the beachfront parks, South Pointe Park, and the marina. The Plan also includes zoning and land use control guidelines which include standards for the use of eminent domain. The Plan states: The plan envisions the use of eminent domain in limited circumstances only. Appropriate uses of eminent domain include: ► To acquire small parcels necessary for public improvements. ► To complete lot assemblage in a block provided more than 50 percent of the block is in single ownership. ► To acquire properties that are a blighting influence on the redevelopment area. The zoning requirements were performance-based standards which were adopted in 1986. These provisions have been virtually unchanged since the time of their original adoption. C. Comprehensive Plan and Zoning Ordinance Requirements The City's Year 2000 Comprehensive Plan (Ordinance 89-2664) was adopted in September, 1989, in accordance with the Florida Growth Management and Land Development Regulation Act of 1985/86. The statute requires that each local government in Florida adopt a comprehensive plan which must then be approved by the State Department of Community Affairs. The City of Miami Beach was one of the few municipalities in Dade County whose Comprehensive Plan was found in compliance with State law upon initial review by the Department of Community Affairs. It was prepared in-house by the Planning and Zoning Department. The Comprehensive Plan serves as the overall guide to development in the City of Miami Beach. State law requires that all land development regulations (the zoning ordinance and other pertinent ordinances) be consistent with and implement the Comprehensive Plan. As the Plan relates to the South Pointe Redevelopment Area, land uses by generalized floor area ratio are specified on the future land use map. These classifications correspond to the various zoning categories for South Pointe. The Plan does not include specifics such as minimum lot sizes or frontage. The South Shore Revitalization Strategy is consistent with, but is not a part of, the Comprehensive Plan. It is written at a level of much greater neighborhood detail than is the Comprehensive Plan. One reason that the City decided not to incorporate the Revitalization Strategy into the Comprehensive Plan is that all Plan amendments must be approved by the State. The Plan can only be amended twice a year, and the process takes approximately 9 months. Zoning Ordinance 89-2665 implements the Comprehensive Plan and provides a performance standards district for the South Pointe Redevelopment Area. The PS- Performance Standards District consists of all land in the Redevelopment Area, as shown on the attached map. It includes five districts: a Residential Performance Standards District (R-PS), a Commercial Performance Standards District (C-PS); and a Residential Limited Mixed Use Performance Standards District (M-PS). Each of these districts is further subdivided based upon the type and density or intensity of permitted uses. The Performance Standards District also includes a GU-Government Use District and MR-Marine Recreational District. Two major features of the Zoning Ordinance which are frequently discussed are the requirements for a minimum lot frontage of 100 feet (generally two lots) and a minimum lot size of 10,000 square feet. Another significant feature of the Zoning Ordinance which affects current development/rehabilitation in South Pointe is a provision regulating non-conforming structures and uses that limits rehabilitation to 50% of the replacement value as determined by the Dade County Property Appraiser. If the rehabilitation costs exceed 50% of the assessed valuation of the structure or the replacement value, the rehabilitation will only be permitted if strict requirements pertaining to unit sizes (unless a variance is granted). In other areas of Miami Beach, the Zoning Ordinance permits rehabilitation of non-conforming structures without going through the variance process. H. CITY ACTIONS IN SOUTH POINTE TO DATE A. Infrastructure and Public Improvements As the first step towards the revitalization of the entire South Pointe area, the City of Miami Beach undertook a $9.8 million project for infrastructure improvement in May of 1985. Currently about 90% completed, it included the widening of Alton Road, Biscayne Street, Washington Avenue and Ocean Drive, along with upgrading street lights, and the construction of water mains and sewer lines were constructed. Still remaining to be completed is the addition of underground storage tanks and a pumping station. More improvements will be forthcoming in the future as other development activity continues in the South Beach area. B. Marina/SSDI The Miami Beach Marina,located south of the MacArthur Causeway off of Alton Road, features 388 wet slips, parking for 600 cars and ancillary retail space. This facility is one of the few deep draft marinas in the area with immediate Ocean access.The Marina is home to the on-the-water component of the Miami Beach International Boat Show each year. Future plans include a restaurant, ships store, and a dry stack storage facility. C. South Pointe Elementary School The City's Redevelopment Agency was instrumental in assisting the Dade County School Board in acquisition of the South Pointe Elementary School site, street vacations, and other actions necessary for the completion of the $6.7 million facility, which opened in September, 1991. The school accommodates approximately 550 children. D. South Pointe Park Completed in 1985, the $3.6 million, 17-acre park is located on Government Cut at the southern tip of Miami Beach. The park property runs from the Atlantic Ocean on the East almost to Biscayne Bay on the West. Park facilities include a food and beverage concession, Crawdaddy's Restaurant, an outdoor amphitheater, a bicycle path, two observation towers, an athletic field, parking and picnic areas, a Vita course and other recreational activities. The park is also the site of the City's Police Mounted Patrol horse stables. The amphitheater has played host to a wide variety of special events such as the weekly Friday Night Live outdoor concert series. E. South Pointe Towers The South Pointe Towers project,a$355 million complex is situated on the southernmost tip of Miami Beach and overlooks South Pointe Park, Government-Cut and Biscayne Bay. The development comprises 18 acres of ocean-front property scheduled for development under a plan calling for three high-rise condominium towers, a 500-room resort hotel, a beach club and related commercial space. The first phase of the project, consisting of a 25-story,208-unit condominium tower, was completed in November 1987 and 97% occupied by March 1989. The pending sale of the project has temporarily delayed additional development phases. F. Cobb Partners Development, Inc. The Miami Beach Redevelopment Agency and Cobb Partners Development, Inc.entered into an Agreement for the development of a parcel of land commonly known as the Old Police Station Site within the South Pointe Redevelopment Area. Plans for the $25 million project call for the development of 300 mediterranean-style residential units in- a secure, multi-story courtyard setting. Along with a mix of studios, one bedroom, two bedroom,and three bedroom models,the development will include approximately 37,627 square feet of retail/restaurant space, a swimming pool, an athletic club, a branch of the Dade County Public Library, and numerous other amenities. The project will be located on a 7.57 acre site encompassing 3 city blocks, including right of ways, and is bounded by Alton Road on the west, Washington Avenue on the east, 2nd Street on the north, and 1st Street on the south. The project is slated to begin construction sometime in early 1993 and when completed will provide an excellent alternative source of housing for the young professionals that work in nearby downtown Miami but prefer the pleasant surroundings and lifestyle of the beaches to make their homes. G. Penrod's A $2 million Polynesian-style restaurant and beach club on Ocean Drive and First Street, opened in December 1988. The 200-plus seat facility features nine bars and eating areas overlooking the beach, live entertainment, a raw bar, wide-screen televisions, beach volleyball courts and great variety of other activities and amenities. H. Crawdaddy's Restaurant Reminiscent of a Louisiana Bayou fishing camp, Crawdaddy's Restaurant is located in South Pointe Park overlooking Government Cut. The two-story,600-seat restaurant was created and is operated by Specialty Restaurants, Inc. Among the many features provided area raw bar, banquet facilities, a dance floor and two separate bars. I. Joe's Stone Crabs Internationally renowned Joe's Stone Crab, situated on Bisca.yne Street between the Ocean and Biscayne Bay, recently completed expansion of their dining, take-out, and parking facilities. J. Deco Plaza Centrally located on the Fifth Street corridor, Deco Plaza is a mixed use commercial/residential complex with 42,000 square feet in two 3-story buildings connected by an interior walkway. Using Federal Housing and Community Development Block Grant funds,the interior was completely renovated while the facade was restored to its original Art Deco motif. The total renovation entailed an estimated $1.5 million. K. Plan Update Activities Recognizing the need to update base data and possibly modify some implementation mechanisms to ensure the success of the adopted South Shore Revitalization Strategy, the City Administration began this process in the summer of 1991. A multidisciplinary team of staff from the Departments of Planning and Zoning (lead agency), Historic Preservation and Urban Design, Redevelopment Agency, Code Enforcement, Public Works, and Economic and Community Development are working on this effort. There are several important reasons for updating the Zoning Ordinance and other implementation mechanics. Since the Plan was prepared in 1983 (adopted in 1984), major changes have occurred in Miami Beach. These include: changing demographics with a younger, more Hispanic population; changing market conditions, i.e. the success of the Art Deco district and the office market glut in downtown Miami, which may negatively impact the potential for an office district along 5th Street; the City's current financial condition; and several other factors. An officially adopted Plan, as may be amended from time to time, is necessary prior to the establishment of major changes in City policy or land uses. First, it is required by State law. In addition, a professionally prepared planning document serves as the rational basis upon which future decisions regarding the area are based. Courts would not tend to look favorably upon major changes made without professional planning analysis, in the event that litigation occurs. The first steps are to examine the existing conditions and develop a data base on land uses, historic structures, property values, building conditions, demographics, etc. This task is currently underway. Next, generalized goals and objectives will be drafted, along with preliminary analysis and recommendations. The public participation process is an integral part of the planning effort and will begin in the near future. III. SOUTH POINTE CONCERNS AND POTENTIAL OPTIONS FOR IMPROVEMENT The list below attempts to summarize some of the public perceptions identified with regard to the current redevelopment efforts in South Pointe. It also lists some very preliminary potential solutions to these problems. As was discussed in Section K above, the City Administration is currently working on an update of the South Shore Revitalization Strategy, and we are still at the data-gathering stage of our efforts. It should be understood that the options presented herein are by no means final or complete, and it is hoped that they will be viewed as such, since there is pending litigation regarding acquisition of property in South Pointe. It is with this major caveat that the potential options for change are set forth. Issue #1: Eminent Domain Several property owners and residents in South Pointe have raised the cloud of wholesale condemnation of property in the area as a problem. These fears are not consistent with the overall Plan guidelines for limited use of eminent domain as discussed in an earlier section of this report. Although one potential option to alleviate this concern would be to eliminate the threat of condemnation for any property which undergoes private redevelopment, we do not believe that this is the approach to take. Perhaps, with more detailed study, as is currently underway, specific areas of South Pointe could possibly be exempted from future condemnation, and other areas, in which there is an aggregation of lots, fewer condominiums or historic structures, etc. could possibly be designated on a prioritized basis for future condemnation. A time frame for the use of eminent domain could possibly also be established, beyond which the property owner would be assured that his or her property would no longer be considered for acquisition. It is important to note that the members of the City Commission, acting in their capacity as the Redevelopment Agency, are the persons who ultimately determine if and where the use of eminent domain should be used. Issue #2: Zoning Issues Regarding Rehabilitation/New Construction As was noted earlier in this report, the minimum lot sizes and widths have posed problems to developers who wish to construct and/or rehabilitate a building on 50 foot lots. One option which would resolve this problem would be to eliminate this requirement, although the City Administration still feels that parcel aggregation is desirable in certain areas of South Pointe. A product of a review of the South Pointe Revitalization Strategy would be to identify which of those areas should be targeted for large parcel redevelopment and new construction and those which may be suitable for rehabilitation/development on small lots. It is important to note that several projects have sought a variance to the lot width/lot size provision and all have been approved by the Zoning Board of Adjustment. Issue #3: Existing Litigation Miami Beach Redevelopment Agency v. Azcui et al - This case is a continued lawsuit to determine the ultimate amount to be pad for acquisition of the remaining 12 parcels in the Cobb Project (Blocks 78 and 80). Issue #4: Contractual Obligations At the present time, there are certain agreements which have been made which require action upon the City's part. Failure to comply with these contractual obligations might result in future litigation. These include: ► The Agency has an obligation to acquire Phase 2 of the Cobb project (Block 53). ► Under the marina settlement and the new and restated marina lease, the Redevelopment Agency and the City must provide 1,000 parking spaces. A maximum of 400 of these can be on-site. Issue #5: Historic Preservation At the present time, the Department of Historic Preservation and Urban Design is conducting site evaluations of all structures in South Pointe to determine their historic and/or architectural significance. There are several options available to promote the rehabilitation and adaptive reuse of historic structures in South Pointe. They include designating historic sites, designating one or more small local historic districts, and offering certain zoning and financial incentives for rehabilitation of historic structures. In the.latter case, for example, the City's Community Development Block Grant funds could be used to provide low interest loans for rehabilitation. . With regard to zoning incentives, the Zoning Ordinance could possibly be amended to permit rehabilitation of historic structures in the same manner as in other areas of Miami Beach. Also, the reduction of minimum lot sizes, frontages for either certain historic buildings or areas in which there is a concentration of such buildings could possibly be written into the Zoning Ordinance. There is a potential down-side to historic designation, which cannot be discounted, i.e., it could possibly be an impediment to demolition of structures and new construction. It is important, therefore, that careful attention be given to which sites are so designated. Issue #6: Tax Increment Financing There has been some public opposition to the continued use of tax increment financing in the Redevelopment Area. It should be pointed out that there are outstanding bonds for improvements which must be paid from tax increment proceeds, and the use of tax increment financing is an excellent tool for funding additional improvements in the area, some of which are contractually required. At this point, the City Administration does not recommend the discontinuance of tax increment financing. Issue #7: Lack of Development on Private Property Several comments have been made that very little redevelopment has occurred on private property in the South Pointe area - that the majority of improvements have occurred on publicly owned property. Since approximately half of the Redevelopment Area is or has been in public ownership, this is not particularly surprising. We believe that the use of some of the -' J . incentives for rehabilitation and new construction could spur the development of smaller scale private development projects in South Pointe. Issue #8: Problems with Clubs, etc. along 5th Street Several complaints have been made about the noise, crime, trash, etc. resulting from several clubs which have opened in the vicinity of South Pointe Elementary School. The Police Department is addressing some of these problems at the present time. A reevaluation of the appropriateness of this area surrounding the school for nighttime entertainment should be undertaken. Issue # 9: Parking Another issue is provision of adequate parking in the Redevelopment Area, as it is in other portions of the City, most notably the historic district. Various solutions could be proposed to alleviate this potential problem,including the sale of bonds to acquire and construct additional parking facilities in the vicinity of the Elementary School and the Marina, as required contractually. Also, various techniques such as shared parking, use of the parking impact fee and/or special assessment district could possibly be used to finance additional facilities. Issue #10: Types of Development Certain areas may require additional study in response to changes in market conditions and local priorities. It is possible that the 5th Street Corridor, as discussed earlier, may no longer be appropriately designated as an office area. Reasonable alternatives could include a mixed use of residential with commercial on the ground level or it may be marketable for only retail/commercial activities. Another area of concern is southern Ocean Drive. Under the present plan, the area is zoned RPS-4, residential high density. It may be more appropriately designated to allow for a continuation of the highly successful Mixed Use Entertainment District to the north, perhaps with some modifications to ensure a less noisy atmosphere. Issue #11: Citizen Participation Citizen Participation has been an important part of any planning efforts relating to the South Pointe Redevelopment Area. The South Pointe Advisory Board to the Redevelopment Agency has not been active since November, 1989. It was constituted as a permanent City Board comprised of ten members who are either South Pointe residents, property owners, own place of business or have substantial investments in the area. Citizen participation in the redevelopment process could be improved by City Commission action to re-activate and appoint members to this Board. ADMINISTRATION RECOMMENDATION The Administration recommends that the City Commission schedule a workshop/orientation on the Redevelopment issues in the near future. 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Ntor 0 N..... zp 0- aim2PRIP. itift fade 43. it* laniiiii . dd a 4,, legja \1:311111111/1 . . cif)a........, i si ,,?D1 gr.n, iii.1.- cc ... ....--, \. 0 rP k 2 • 't 0 0 \ �� �'''' , '�► ....sea ,, , _ -„._ ,,,,, , . -, 1/4-...1, ' • .,, .„ _,„,_:: et Legend: R-PS1 Residential Medium Low Density R-PS2 Residential Medium Density R-PS3 Residential Medium-High Density R-PS4 Residential High Density RMPS-1 Residential Mixed Use C-PS1 Commercial Limited Mixed Use C-PS2 Commercial General Mixed Use C-PS3 Commercial Intensive Mixed Use C-PS4 Commercial Intensive Phased Bayside GU Government Use MR Marine Recreational Prepared by the Planning and Zoning Department December, 1991 _ '7