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Ordinance 2024-4642 2024-4642 REPEAL OF CD-2 CO-LIVING INCENTIVES AND REDUCE TC-C CO-LIVING CAP AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE MIAMI BEACH RESILIENCY CODE, BY AMENDING CHAPTER 7, ENTITLED "ZONING DISTRICT REGULATIONS," ARTICLE II, ENTITLED "DISTRICT REGULATIONS," AT SECTION 7.2.11, ENTITLED "CD-2 COMMERCIAL, MEDIUM INTENSITY DISTRICT," AT SUBSECTION 7.2.11.5, ENTITLED "WASHINGTON AVENUE(CD-2)," BY REPEALING CO-LIVING UNITS AS AN ALLOWABLE USE AND ELIMINATING ALL REFERENCES TO SUCH; AND BY AMENDING SECTION 7.2.14, ENTITLED"NORTH BEACH TOWN CENTER CORE DISTRICT (TC)," AT SUBSECTION 7.2.14.6, ENTITLED "TOWN CENTER-CENTRAL CORE (TC-C) DISTRICT," BY REDUCING THE MAXIMUM NUMBER OF CO-LIVING UNITS THAT MAY BE BUILT WITHIN THE DISTRICT; AND PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY,AND AN EFFECTIVE DATE. WHEREAS,the proliferation of co-living units may exacerbate housing affordability issues by reducing the availability of traditional rental housing options for families and individuals; and WHEREAS, repealing co-living unit regulations in the Washington Avenue corridor would enable the implementation of more equitable and comprehensive housing policies that prioritize the well-being and stability of all residents; and WHEREAS, the current trend towards co-living arrangements may undermine the sense of community and social cohesion within neighborhoods by fostering transient and temporary living situations rather than long-term residency and neighborhood investment; and WHEREAS, the amendments set forth below are necessary to accomplish all of the above objectives. NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA. SECTION 1. Chapter 7, entitled "Zoning District Regulations," Article II, entitled "District Regulations," Section 7.2.11, entitled "CD-2 Commercial, Medium Intensity District," at Subsection 7.2.11.5, entitled "Washington Avenue (CD-2)," is hereby amended as follows: CHAPTER 7 ZONING DISTRICTS AND REGULATIONS ARTICLE II: DISTRICT REGULATIONS 7.2.11 CD-2 COMMERCIAL, MEDIUM INTENSITY DISTRICT * * * 1 Page 1067 of 1750 7.2.11.5 WASHINGTON AVENUE (CD-2) b. Development Regulations (Washington Ave—CD-2) The following regulations shall apply to properties that front Washington Avenue between 6th Street and 15thStreet-and 16th Street, " ' (MAP EXHIBIT-3); in the event of a conflict within this division, the regulations below shall apply: * * c. Additional Regulations (Washington Ave—CD-2) 1. The maximum frontage for nightclubs and dance halls, located at the ground level shall not exceed 25 feet in width unless such a space has a certificate of use for nightclub or dance hall, or unless a valid license was issued after January 1, 2011, and before the date of adoption of the ordinance codified in this section for the use of such space as a nightclub or dance hall. 2. For new hotel construction or conversion to hotel use, the minimum hotel room unit size may be 175 square feet, provided that: A. A minimum of 20 percent(20%)of the gross floor area of the hotel consists of hotel amenity space that is physically connected to and directly accessed from the hotel. Hotel amenity space includes the following types of uses, whether indoor or outdoor, including roof decks: restaurants; bars; cafes; hotel business center; hotel retail; screening rooms; fitness center; spas; gyms; pools; pool decks; and other similar uses customarily associated with a hotel. Bars and restaurants shall count no more than 50 percent (50%)of the total hotel amenity space requirements. B. Windows shall be required in all hotel rooms and shall be of dimensions that allow adequate natural lighting, as determined by the historic preservation board. 0 , 2 Page 1068 of 1750 0 estaalishments-and-fennula-Festaufantsr as-defined-in micro-units. ,windows, developmentsite, nutritional planning. 3 Page 1069 of 1750 developmensite. , section. 6: 3. For lots that have a frontage that is greater than 100 feet, the following shall apply: A. Maximum building length. Unless otherwise approved by the historic preservation board at its sole discretion, no plane of a building, above the ground floor facade facing Washington Avenue, shall continue for greater than 100 feet without incorporating an offset of a minimum 5 feet in depth from the setback line. The total offset widths shall total no less than 20 percent(20%)of the entire building frontage. B. Physical separation between buildings. Unless otherwise approved by the historic preservation board at its sole discretion,a physical separation must be provided between buildings greater than 200 feet in length and at/or above 35 feet in height from the ground floor. Notwithstanding the foregoing, for building sites with a lot frontage in excess of 500 feet, no physical separation is required if: I. the length of the building at/or above 35 feet in height from the ground floor does not exceed 50 percent (50%)of the length of the frontage of the property; and II. the offsets required in section 7.2.11.5.c.4.A., above, are a minimum of 20 feet in depth from the setback line and the combined offset widths total no less than 30 percent (30%) of the entire building frontage. 4 Page 1070 of 1750 * * * SECTION 2. Chapter 7, entitled "Zoning District Regulations," Article II, entitled "District Regulations," Section 7.2.14, entitled "North Beach Town Center Core District (TC)," at Subsection 7.2.14.6, entitled "Town Center-Central Core (TC-C) District," is hereby amended as follows: CHAPTER 7 ZONING DISTRICTS AND REGULATIONS * * * ARTICLE II: DISTRICT REGULATIONS 7.2.14 NORTH BEACH TOWN CENTER CORE DISTRICT (TC-C) * * * • 7.2.14.6 Town Center-Central Core(TC-C) District * * * 2. Supplemental Use Regulations(TC-C) A. The following supplemental regulations shall apply to specific uses in the TC-C district: I. There shall be no variances regarding the regulations for permitted, prohibited, accessory, exception, special exception, and conditional uses in section 7.2.14.6.b.1; and the supplemental regulations of such uses in section 7.2.14.6.b.2. II. Use limitations. 1. The following limits shall apply for residential and hotel uses: i. Hotel rooms. There shall be a limit of 1,762 hotel units within the TC-C district. ii. Apartments. There shall be a limit of 500 apartment units built within the TC-C district over and above the maximum allowable density and intensity, prior to the adoption of the FAR increase approved on November 7, 2017. This limit shall not authorize exceeding the maximum density authorized within the adopted comprehensive plan. iii. Workforce and affordable housing and co-living units. There shall be a combined limit of 500 workforce housing, affordable housing, or co-living units built within the TC-C district over and above the maximum allowable density prior to the adoption of the FAR increase approved on November 7, 2017. However, a co-living unit that is less than 550 square feet shall count as half of a unit for the purposes of calculating the maximum number of units.This limit shall not 5 Page 1071 of 1750 authorize exceeding the maximum density authorized within the adopted comprehensive plan. iv. Co-living units. Notwithstanding the foregoing limitations, there shall be a limit of 558 529 co-living units built within the TC-C district. Additionally, co-living units shall only be permitted for projects that have obtained a building permit process number by October 1, 2023. 2. Units for the uses identified in sections 7.2.14.6.b.2.A.II.(1).i- iii above, shall be applied for and allocated on a first-come, first- served basis concurrent with the earlier of a completed application for land use board approval or completed application for building permit that includes the proposed number of units, and meets all applicable requirements of the land development regulations, as determined by the planning director. Any allocation of units pursuant to this subsection shall be subject to the following additional provisions: In the event that a land use board application is not approved by the applicable board, or in the event that an applicant with an approved land use board order fails to obtain a building permit before the board order expires, all units allocated pursuant to the filing of the completed land use board application shall be released to the pool and shall become available to new applicants. ii. Upon the issuance of a building permit for units approved pursuant to a land use board order, the allocation of such units shall remain reserved. If the building permit or building permit application expires or is abandoned, any units allocated pursuant to the building permit application shall be released to the pool; and shall become available to new applicants. Prior to reactivating an expired or abandoned building permit or building permit application, an applicant shall first be required to obtain written confirmation from the planning department that sufficient units remain available. iii. If the use for which credits are allocated pursuant to a land use board order or building permit changes to a use that does not require an allocation of units,the allocation of units shall be released and shall become available to new applicants. 3. Units for the uses identified in section 7.2.14.6.b.2.A.II.(1).iv. above, shall be applied for and allocated on a first-come, first-served basis concurrent with a completed application for land use board approval that includes the proposed number of units, and meets all requirements of the land development regulations, as determined by the planning director. Any allocation of units pursuant to this subsection shall be subject to the following additional provisions: 6 Page 1072 of 1750 i. In the event that a land use board application is not approved by the applicable board, or in the event that an applicant with an approved land use board order fails to obtain a building permit before the board order expires. all units allocated pursuant to the filing of the completed land use board application shall be released to the pool and shall become available to new applicants. ii. Upon the issuance of a building permit for units approved pursuant to a land use board order, the allocation of such units shall remain reserved. In the event that the building permit expires or is abandoned, any units allocated pursuant to the building permit shall be released to the pool, and shall become available to new applicants. Prior to reactivating an expired or abandoned building permit or building permit application, an applicant shall first be required to obtain written confirmation from the planning department that sufficient units remain available. iii. If the use for which credits are allocated pursuant to a land use board order changes to a use that does not require an allocation of units. the allocation of units shall be released and shall become available to new applicants. 4. Any such units permitted the boundaries of the TC-C district, after November 7, 2017 shall be counted towards the maximum limit established herein. 5. Notwithstanding the use limitations in sections 7.2.14.6.b.2.A.1I.(1).i-iii. above, the planning director or designee may permit simultaneous increase and decreases in the above described uses, provided that the impacts of the changes will not exceed originally approved impacts, as measured by total weekday peak hour (of adjacent street traffic, one hour between 4:00 p.m. and 6:00 p.m.) vehicle trips, pursuant to the Institute of Transportation Engineers Trip Generation Manual, as may be amended from time to time. SECTION 3. REPEALER. All ordinances or parts of ordinances and all section and parts of sections in conflict herewith be and the same are hereby repealed. SECTION 4. CODIFICATION. It is the intention of the City Commission, 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 as amended;that the sections of this ordinance may be renumbered or relettered to accomplish such intention; and that the word "ordinance" may be changed to"section" or other appropriate word. 7 Page 1073 of 1750 SECTION 5. SEVERABILITY. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 6. EFFECTIVE DATE, This Ordinance shall take effect ten days following adoption. PASSED AND ADOPTED this a1( day of _Ally , 2024. Steven Meiner, Mayor ATTEST: Of JUL 3 D 2024 Rafael E. Granado, City Clerk APPROVED AS TO =�PM!....Eq'c,, FORM AND LANGUAGE & F ECUTION INCf. ��ORPP1,ORATED) ( •�r� /�z* JY� ... „� :;��," City Attorney kW__ Date First Reading: May 15, 2024 Second Reading: J 24, 2024 Verified by: Thomas R. Money, P Planning Director Sponsored by Commissioner Alex J. Fernandez Co-Sponsored by Commissioner Tanya K.Bhatt Co-Sponsored by Commissioner Joseph Magazine Co-Sponsored by Commissioner David Suarez T:V4genda12024\5 May 2024\PlanninglRepeal of Co-living Incentives-First Reading ORD.docx 8 Page 1074 of 1750 Ordinances -R5 T MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Interim City Manager Rickelle Williams DATE: July 24, 2024 5:02 p.m. Second Reading Public Hearing TITLE: REPEAL OF CD-2 CO-LIVING INCENTIVES & REDUCE TC-C CO-LIVING CAP AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE MIAMI BEACH RESILIENCY CODE, BY AMENDING CHAPTER 7, ENTITLED "ZONING DISTRICT REGULATIONS," ARTICLE II, ENTITLED "DISTRICT REGULATIONS," AT SECTION 7.2.11, ENTITLED "CD-2 COMMERCIAL, MEDIUM INTENSITY DISTRICT," AT SUBSECTION 7.2.11.5, ENTITLED "WASHINGTON AVENUE (CD-2)," BY REPEALING CO-LIVING UNITS AS AN ALLOWABLE USE AND ELIMINATING ALL REFERENCES TO SUCH; AND BY AMENDING SECTION 7.2.14, ENTITLED "NORTH BEACH TOWNCENTER CORE DISTRICT (TC)," AT SUBSECTION 7.2.14.6, ENTITLED "TOWN CENTER-CENTRAL CORE (TC-C) DISTRICT," BY REDUCING THE MAXIMUM NUMBER OF CO-LIVING UNITS THAT MAY BE BUILT WITHIN THE DISTRICT; AND PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE. RECOMMENDATION The Administration recommends that the City Commission approve the subject ordinance. BACKGROUND/HISTORY On December 13, 2023, at the request of Commissioner Alex Fernandez, the Mayor and City Commission referred a discussion item (C4 T)pertaining to co-living units to the Land Use and Sustainability Committee (LUSC) and the Planning Board. Commissioners Tanya K. Bhatt and Joseph Magazine are co-sponsors of the proposal. On February 5, 2024, the LUSC recommended that the Planning Board transmit the proposed ordinance to the City Commission with a favorable recommendation. ANALYSIS Co-living units, which were introduced,pursuant to the creation of the North Beach Town Center Central Core District(TC-C) in 2018, are defined as follows: Co-living shall mean a small multi-family residential dwelling unit that includes sanitary facilities and provides access to kitchen facilities; however, such facilities may be shared by multiple units. Additionally, co-living buildings shall contain amenities that are shared by all users. Currently, co-living units are only permitted along limited portions of Washington Avenue, and in the North Beach Town Center. Specifically, in South Beach,co-living is only permitted on the west side of Washington Avenue between 6th Street and 15th Street, and on both sides of Washington Avenue between 15th Street and 16th Street. In North Beach, co-living is only permitted in the TC-C district and is subject to a limit of 550 co-living units throughout the entire district. Page 1063 of 1750 The only co-living project previously approved on Washington Avenue was located at 1234-1260 Washington Avenue. Although a demolition permit was issued for the project, and demolition commenced, a full building permit was never issued.A previous application for co-living units on the east side of Washington Avenue (1500 block) never received approval and has been converted to an application for a hotel development with accessory uses. The following is a summary of co-living units in the North Beach TC-C district that have obtained a building permit process number as of October 1, 2023: Project Address Co-Living Units 7118-7114 Collins Avenue 168 7125-7145 Carlyle Avenue 121 6970 Collins Avenue 20 409 71 st Street 139 6973 Indian Creek Drive 81 Total Units Proposed 529 Units Previously Remaining 21 Co-living units in the TC-C district are only permitted for projects that have obtained a building permit process number by October 1, 2023. As such the 21 co-living units shown above as "previously remaining"can longer be utilized.Additionally, if any of the permits for the above noted projects become inactive or expire, the associated co-living units would expire and could not be re-activated. The proposed ordinance removes the ability for any co-living units on Washington Avenue, repealing all references to such use in the Washington Avenue corridor. This would likely have a negligible impact as the previously approved proposal, as noted above, does not appear to be moving forward. Regarding the TC-C district, no additional co-living units beyond the 529 units currently permitted would be allowed in the district.As proposed, the ordinance would reduce the number of co-living units from the current cap of 550 to 529. PLANNING BOARD REVIEW On April 25, 2024, the Planning Board held a public hearing and transmitted the proposed ordinance to the City Commission with a favorable recommendation (7-0). APPLICATION FEE WAIVER The subject amendment is proposed on a comprehensive, citywide basis, and not on behalf of a private applicant or third party. Pursuant to section 2.4.1.c of the Land Development Regulations of the City Code, amendments to the City Code require the payment of the applicable fees in section 2.2.3.5, 2.2.3.6, and appendix A to the City Code. These fees may be waived by a five- sevenths (5/7ths) vote of the City Commission, based upon one or more of the following circumstances: 1. The City Commission determines that the proposed amendment is necessary due to a change in federal or state law, or to implement best practices in urban planning, or based on circumstances unique to the proposed amendment. 2. Upon the written recommendation of the City Manager acknowledging a documented financial hardship of a property owner(s)or developer(s). 3. If requested, in writing, by a non-profit organization, neighborhood association,or homeowner's • Page 1064 of 1750 association for property owned by any such organization or association, so long as the request demonstrates that a public purpose is achieved by enacting the applicable amendment. The Administration recommends that the City Commission waive the applicable fees based on circumstances unique to the proposed amendment. BUSINESS IMPACT ESTIMATE In accordance with Section 166.041(4), Florida Statutes, the City of Miami Beach is required to assess whether a Business Impact Estimate is required for the subject ordinance. A Business Impact Estimate is not required for the subject ordinance as it implements an amendment to the Land Development Regulations. FISCAL IMPACT STATEMENT N/A Does this Ordinance require a Business Impact Estimate? No (FOR ORDINANCES ONLY) The Business Impact Estimate (BIE)was published on 7/5/2024. See BIE at: https://www.miamibeachfl.aov/city-hall/city-clerk/meeting-notices/ FINANCIAL INFORMATION CONCLUSION The Administration recommends the following: 1. The City Commission approve the subject ordinance. 2. In accordance with section 2.4.1.c.1 of the Land Development Regulations of the City Code, the City Commission waive the applicable fees based on circumstances unique to the proposed amendment. Applicable Area Citywide Is this a "Residents Right to Know" item, Is this item related to a G.O. Bond pursuant to City Code Section 2-17? Project? Yes No Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No If so, specify the name of lobbyist(s) and principal(s): Department Page 1065 of 1750 Planning Sponsor(s) Commissioner Alex Fernandez Co-sponsor(s) Commissioner Tanya K. 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