Resolution 2024-32950 RESOLUTION NO. 2024-32950
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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
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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.
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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