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BIE - Commercial Use of Single Family Homes (4/23/2025) City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov TO: Mayor Steven Meiner and Members of the City Commission FROM: Eric Carpenter, City Manager MEETING DATE: May 21, 2025 SUBJECT: BUSINESS IMPACT ESTIMATE COMMERCIAL USE OF SINGLE FAMILY HOMES – LDR AMENDMENT AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 7 OF THE MIAMI BEACH RESILIENCY CODE, ENTITLED "ZONING DISTRICTS AND REGULATIONS," BY AMENDING ARTICLE Il, ENTITLED "DISTRICT REGULATIONS," BY AMENDING SECTION 7.2.2, ENTITLED “RS-1, RS-2, RS-3, RS-4 SINGLE- FAMILY RESIDENTIAL DISTRICTS” BY AMENDING SUBSECTION 7.2.2.2, ENTITLED “USES (RS)” TO CLARIFY AND AMEND REGULATIONS ON THE COMMERCIAL USE OF SINGLE- FAMILY HOMES; AND, PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. Is a Business Impact Estimate Required? X Yes ☐ No (If no, please check one of the boxes below) If one or more boxes are checked below, this means the City of Miami Beach has determined that a Business Impact Estimate for the above-referenced Ordinance is not required by State law. ☐ The proposed Ordinance is required for compliance with Federal or State law or regulation; ☐ The proposed Ordinance relates to the issuance or refinancing of debt; ☐ The proposed Ordinance relates to the adoption of budgets or budget amendments, including revenue sources necessary to fund the budget; ☐ The proposed Ordinance is required to implement a contract or an agreement, including, but not limited to, any Federal, State, local, or private grant or other financial assistance accepted by the City; ☐ The proposed Ordinance is an emergency ordinance; ☐ The Ordinance relates to procurement; or ☐ The proposed Ordinance is enacted to implement the following: a. Private applications for comprehensive plan amendments and land development regulation amendments; b. Development orders, development permits, and development agreements; c. Sections 190.005 and 190.046, Florida Statutes, regarding community development districts; d. Section 553.73, Florida Statutes, relating to the Florida Building Code; or Docusign Envelope ID: D28687C7-4E1A-43F2-87BA-2627FD57D24C Business Impact Estimate Page 2 e. Section 633.202, Florida Statutes, relating to the Florida Fire Prevention Code. If none of the above exceptions apply, this Business Impact Estimate is hereby provided in accordance with Section 166.041(4), Florida Statutes. 1. Summary A summary of the proposed ordinance and its purpose is more fully set forth in the Commission Memorandum accompanying the Ordinance, as well as in the recitals to the ordinance itself, provided at First Reading and attached hereto. 2. An estimate of the direct economic impact of the proposed Ordinance on private, for- profit businesses in the City of Miami Beach, if any: (a) An estimate of direct compliance costs that businesses may reasonably incur; The proposed ordinance does not apply to existing, legally established businesses. (b) Any new charge or fee imposed by the proposed Ordinance or for which businesses will be financially responsible; The proposed ordinance does not apply to existing, legally established businesses. (c) An estimate of the City’s regulatory costs, including estimated revenues from any new charges or fees to cover such costs. The proposed ordinance would generate no more than nominal additional regulatory costs, which may be associated with administration activities by applicable City departments. 3. Good faith estimate of the number of businesses likely to be impacted by the proposed Ordinance: The proposed ordinance does not apply to existing, legally established businesses. 4. Additional comments: Docusign Envelope ID: D28687C7-4E1A-43F2-87BA-2627FD57D24C Ordinances - R5 S COMMISSION MEMORANDUM TO:Honorable Mayor and Members of the City Commission FROM:Eric Carpenter, City Manager DATE:April 23, 2025 10:35 a.m. First Reading Public Hearing TITLE:COMMERCIAL USE OF SINGLE-FAMILY HOMES AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 7 OF THE MIAMI BEACH RESILIENCY CODE, ENTITLED "ZONING DISTRICTS AND REGULATIONS," BY AMENDING ARTICLE Il, ENTITLED "DISTRICT REGULATIONS," BY AMENDING SECTION 7.2.2, ENTITLED “RS-1, RS-2, RS-3, RS-4 SINGLE-FAMILY RESIDENTIAL DISTRICTS” BY AMENDING SUBSECTION 7.2.2.2, ENTITLED “USES (RS)” TO CLARIFY AND AMEND REGULATIONS ON THE COMMERCIAL USE OF SINGLE-FAMILY HOMES; AND, PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. RECOMMENDATION The Administration recommends that the Mayor and City Commission (City Commission) approve the subject ordinance at First Reading and schedule a Second Reading public hearing for May 21, 2025. BACKGROUND/HISTORY On September 11, 2024, at the request of Commissioner Alex Fernandez, the Mayor and City Commission (City Commission) referred an item regarding the regulation of the use of generators, sound systems, audiovisual equipment and stages at private residences used as party houses (C4 R) to the Land Use and Sustainability Committee (LUSC), On February 20, 2025, the LUSC recommended that the City Commission refer the proposed ordinance, clarifying the City’s prohibition on commercial uses of single-family homes, to the Planning Board. On February 26, 2025, at the request of Commissioner Alex Fernandez, and Commissioners Laura Dominguez and Tanya K. Bhatt, the City Commission referred the proposed ordinance (C4 I) to the Planning Board. ANALYSIS Section 7.2.2.2(d) of the Land Development Regulations of the City Code (LDRs) contains regulations specific to prohibited uses in single family (RS) districts. The attached ordinance expands the current prohibitions on the commercial use of single-family homes. The following is a summary (underscore) of the proposed amendments to Section 7.2.2.2(d)(1)1.A.I, pertaining to donations associated with the commercial use of homes in single-family districts: All of the goods, property or services offered, or donations that are solicited or accepted, are donated to or for charitable, religious or political organizations or candidates for public office, that have received 501(c)(3) or other tax-exempt status under the U.S. Internal Revenue Code, as amended, or in accordance with applicable election laws; or All of the proceeds from any sales or donations are directly payable and paid to charitable, Docusign Envelope ID: D28687C7-4E1A-43F2-87BA-2627FD57D24C religious or political organizations or candidates for public office, that have received 501(c)(3) or other tax-exempt status under the U.S. Internal Revenue Code, as amended, or in accordance with applicable election laws. An organization or candidate may reimburse donors for goods or property donated; or Any advertising, marketing, or promotion of any party, event, assembly, or gathering in any print, film, social networking platform, or any other media occurs; or Any party, event, assembly, or gathering is sponsored, managed, or promoted by any entity other than a charitable, religious or political organization(s) or candidate(s) for public office, that has received 501(c)(3) or other tax-exempt status under the U.S. Internal Revenue Code, as amended, or in accordance with applicable election laws. PLANNING BOARD REVIEW On April 8, 2025, 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 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. SUMMARY The proposed ordinance prohibits sponsorship of events in a single-family home by a for-profit entity and prohibits the promotion of any party event via social media platforms. Also, the sponsor has requested that the City Commission waive the annual zoning cycle restriction for the subject amendment, pursuant to Section 2.3.2 of the LDRs, and schedule a Second Reading public hearing for May 21, 2025. FISCAL IMPACT STATEMENT No Fiscal Impact Does this Ordinance require a Business Impact Estimate? Yes (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/ Docusign Envelope ID: D28687C7-4E1A-43F2-87BA-2627FD57D24C FINANCIAL INFORMATION Not Applicable CONCLUSION The Administration recommends the following: 1. The City Commission approve the subject ordinance at First Reading. 2. Pursuant to Section 2.3.2 of the LDRs, the City Commission waive the annual zoning cycle restriction for the subject amendment and schedule a Second Reading public hearing for May 21, 2025. 3. 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, pursuant to City Code Section 2-17? Is this item related to a G.O. Bond 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 Planning Sponsor(s) Commissioner Alex Fernandez Co-sponsor(s) Commissioner Tanya K. Bhatt Commissioner Laura Dominguez Condensed Title 10:35 a.m. 1st Rdg PH, Commercial Use of Single-Family Homes. (AF/TB/LD) PL Previous Action (For City Clerk Use Only) Docusign Envelope ID: D28687C7-4E1A-43F2-87BA-2627FD57D24C Docusign Envelope ID: D28687C7-4E1A-43F2-87BA-2627FD57D24C Docusign Envelope ID: D28687C7-4E1A-43F2-87BA-2627FD57D24C Docusign Envelope ID: D28687C7-4E1A-43F2-87BA-2627FD57D24C Docusign Envelope ID: D28687C7-4E1A-43F2-87BA-2627FD57D24C Docusign Envelope ID: D28687C7-4E1A-43F2-87BA-2627FD57D24C Docusign Envelope ID: D28687C7-4E1A-43F2-87BA-2627FD57D24C Docusign Envelope ID: D28687C7-4E1A-43F2-87BA-2627FD57D24C