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Resolution 2024-32950 RESOLUTION NO. 2024-32950 l j A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE LAND USE AND SUSTAINABILITY COMMITTEE AT ITS FEBRUARY 26, 2024 MEETING AND AUTHORIZING THE CITY MANAGER TO RETAIN A SPECIALIZED CONSULTANT TO CONDUCT AN ECONOMIC ANALYSIS TO DETERMINE THE FINANCIAL IMPACT OF GRADUALLY DISCONTINUING EXISTING WATERCRAFT RENTAL ESTABLISHMENTS IN THE WD-1 DISTRICT SUBJECT TO AN AMORTIZATION SCHEDULE, AND CONDUCT A CAPACITY ANALYSIS FOR EXISTING, LEGALLY CONFORMING COMMERCIAL MARINAS. WHEREAS, the WD-1 Waterway District extends along the east side of the Indian Creek waterway, from approximately 23rd Street to 55th Street; and WHEREAS, under Section 7.2.21.1 of the Land Development Regulations of the City Code (LDRs) the purpose of the'WD-1 district is to "create a landscaped environment with uses that are of desirable character and in harmony with the waterway and the upland development": and WHEREAS, the rental of watercraft along the Indian Creek waterway, if not appropriately controlled, can be incompatible with surrounding residential properties (including properties on the west side of the waterway); and WHEREAS, the properties in the WD-1 district are not large enough, and do not provide necessary parking or other necessary facilities, to accommodate the rental of watercraft to the general public or the guests of upland hotels; and WHEREAS, the City is considering amending the LDRs to provide for the gradual discontinuance of existing watercraft rental establishments in the WD-1 district, subject to an amortization schedule, including an economic analysis of the impact of an amortization schedule on affected property owners; and • WHEREAS, on February 26, 2024, the Land Use and Sustainability Committee (LUSC) recommended that the City Manager be authorized to retain an outside consultant to conduct an economic analysis to determine the financial impact of the proposed amortization schedule on existing establishments, as well as a capacity analysis for existing, legally conforming commercial marinas; and WHEREAS, based on an economic analysis, an amortization schedule can be developed, which considers the value to the affected upland property owners of watercraft rental operations in the WD-1 district, vs. other permitted marine uses for these properties (including, for example, leasing slips for non-commercial or recreational purposes). NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission, hereby accept the recommendation of the Land Use and Sustainability Committee at its February 26, 2024 meeting and authorize the City Manager to retain a specialized consultant to conduct the • following: 1. An economic analysis to determine the financial impact of gradually discontinuing existing watercraft rental establishments in the WD-1 district subject to an amortization schedule. The analysis should include recommendations as to the appropriate methodology for the amortization schedule. 2. A capacity analysis for existing, legally conforming commercial marinas. PASSED and ADOPTED this 13th day of March 2 24. ATTEST: BAR 1 5 2024 7-RS1 Steven Meiner, Mayor Rafael E. Granado, City Clerk (Sponsored by Commissioner David Suarez) APPROVED AS TO FORM AND '"""q',,,,, LANGUAGE AND FOR EXECUTION t B,E City Attorney Date % UNCOBP� itATED) �� ,??` 1 ''16,,cFi 26 T:\Agenda\2024\3 March 2024\Planning\WD-1 Watercraft Rental Amortization Study-RESO.docx Resolutions -C7 I MIAMIBEACH COMMISSION.MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: March 13, 2024 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE LAND USE AND SUSTAINABILITY COMMITTEE AT ITS FEBRUARY 26, 2024 MEETING AND AUTHORIZING THE CITY MANAGER TO RETAIN. A SPECIALIZED CONSULTANT TO CONDUCT AN ECONOMIC ANALYSIS TO DETERMINE THE FINANCIAL IMPACT OF GRADUALLY DISCONTINUING EXISTING WATERCRAFT RENTAL ESTABLISHMENTS IN THE WD-1 DISTRICT SUBJECT TO AN AMORTIZATION SCHEDULE, AND CONDUCT A CAPACITY ANALYSIS FOR EXISTING, LEGALLY CONFORMING COMMERCIAL MARINAS. RECOMMENDATION The Administration recommends that the City Commission adopt the attached Resolution. BACKGROUND/HISTORY On December 13, 2023, at the request of Commissioner David Suarez, the City Commission referred the subject discussion item (C4 M) to the Land Use and Sustainability Committee (LUSC). On February 26, 2024, the LUSC discussed the item. The WD-1 Waterway District extends along the east side of the Indian Creek waterway, from approximately 23rd Street to 55th Street. Under Section 7.2.21.1 of the Land Development Regulations of the City Code (LDRs) the purpose of the WD-1 district is to "create a landscaped environment with uses that are of desirable character and in harmony with the waterway and the upland development." Pursuant to Section 7.2.21.5(d) of the LDRs, the rental of watercraft is only permitted if it is "associated with an upland hotel with a minimum of 350 units." On February 27, 2024, a companion LDR amendment was transmitted by the Planning Board, with a favorable recommendation, which would (1) clarify how an existing watercraft rental business must establish that it is associated with an upland hotel and (2) prohibit any new watercraft rental establishments in the WD-1 district moving forward. This amendment is scheduled to be considered by the Mayor and City Commission at First Reading on March 13, 2024. Page 269 of 1070 • ANALYSIS The rental of watercraft along,the Indian Creek waterway, if not appropriately controlled, can be incompatible with surrounding residential properties (including properties on the west side of the waterway).Additionally, the properties included in the WD-1 district are not large enough, and do not provide necessary parking or other necessary facilities, to accommodate the rental of watercraft to the general public(i.e. not to guests of upland hotels). The proposal herein involves amending the LDRs to provide for the gradual discontinuance of existing watercraft rental establishments in the WD-1 district, subject to an amortization schedule. Given that any such ordinance would likely be subject to legal challenge, the amortization schedule would need to be structured carefully to mitigate the City's exposure to legal claims and possible damages. To that end, an economic analysis of the impact on affected property owners would be required, including the value of leasing slips to watercraft rental companies in contrast with leasing slips for non-commercial/recreational purposes. Pursuant to the recommendation of the LUSC on February 26, 2024, the attached resolution authorizes the City Manager to retain a consultant to conduct an economic analysis, as well as a capacity analysis for existing, legally conforming commercial marinas. The purpose of the analysis is to determine the financial impact of the proposed regulation on existing establishments. Based on this analysis, an amortization schedule can be developed, which considers the value to the affected upland property owners of watercraft rental operations in the WD-1 district, as compared to other permitted marine uses for these properties (including, for example, leasing slips for non-commercial or recreational purposes). It should also be noted that depending on the cost of the analysis, a budget amendment may be required. On February 26, 2024, the LUSC discussed the proposed amortization of watercraft rental uses and recommended the following: 1. The City Commission authorize the City Manager to retain an outside consultant to conduct an economic analysis pertaining to amortizing existing watercraft rental uses in the W D-1 district. 2. A capacity analysis be conducted to determine the ability of existing, legally established marinas,to absorb the existing uses in the WD-1 district. LOBBYIST DISCLOSURE In accordance with Resolution No. 2023-32857, adopted by the City Commission on December 13, 2023, the following information has been provided by the primary item sponsor as it relates to the subject resolution: 1. Was the Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No 2. If so, specify name of lobbyist(s)and principal(s): N/A SUPPORTING SURVEY DATA Not Applicable Page 270 of 1070 FINANCIAL INFORMATION The cost of the economic analysis has not yet been determined. Funding for the proposed study has not been identified, allocated or budgeted. Should the Mayor and City Commission move forward with the proposed resolution and authorize engagement with a consultant to conduct the study, a budget amendment may be required, or funding may be prioritized through the Fiscal Year 2025 budget process. CONCLUSION The Administration recommends that the City Commission adopt the attached Resolution authorizing the City Manager to retain a consultant to conduct an economic analysis to determine the financial impact of an amortization schedule on existing establishments in the WD-1 district and conduct a capacity analysis for existing, legally conforming commercial marinas. Funding for the proposed study has not been identified, allocated or budgeted. It is recommended that funding be prioritized through the Fiscal Year 2025 budget process. Applicable Area Middle Beach Is this a "Residents Right Does this item utilize G.O. to Know" item, pursuant to Bond Funds? City Code Section 2-14? Yes No Legislative Tracking Planning Sponsor Commissioner David Suarez ATTACHMENTS: Description ❑ Resolution Page 271 of 1070