Resolution 2025-33605 RESOLUTION NO. 202533605
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
LAND USE AND SUSTAINABI�ITY COMMITTEE, AT ITS MARCH 11, 2025,
MEETING, AND DIRECTING THE ADMINISTRATION TO ENGAGE A
QUALIFIED PROFESSIONAL TO PREPARE A MARKET STUDY TO INFORM
THE DETAILS OF A FUTURE TRANSFER OF DEVELOPMENT RIGHTS (TDR)
PROGRAM.
WHEREAS, a Transfer of Development Rights (TDR) program is a mechanism whereby
property owners in a sending district can sell or transfer unused development rights, such as FAR
and/or density, to a receiving district where there is additional demand to develop; and
WHEREAS, the public benefits associated with a TDR program can consist of a wide
range of options such as improvements to public infrastructure, transit, housing, his�oric
preservation, or environmental and sustainability efforts; and
WHEREAS, for a TDR program to be successful, there will need to be sufficient interest
among both buyers and sellers of development rights, which is largely dependent on a strong
demand within receiving areas for additional development rights, as well as market conditions
that make selling development rights profitable within sending areas; and
WHEREAS, the most effective way to evaluate the market potential of a TDR program is
to conduct a formal study of market conditions, to examine property values and sale prices within
both sending and receiving areas to estimate the value of development rights; and
WHEREAS, on March 11, 2025 the Land Use and Sustainability Committee (LUSC)
recommended that the City Commission authorize the Administration to engage a qualified
professional to prepare a market study that can inform the details of a future TDR program.
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 ofthe Land Use and Sustainability Committee(LUSC),at its March 11, 2025,
meeting, and direct the Administration to engage a qualified professional, for a sum not to exceed
$75,000, to prepare a market study specific to the details of a future TDR program and present
the findings of the study to the LUSC for further discussion and consideration.
PASSED and ADOPTED this 23`° day of April 2025. �
ATTEST. �/J D �
% ["y APP 2 9 207.�i teven Meiner, Mayor
Rafael E. Granado, City Clerk APPROVED AS TO
FORM AND LANGUAGE
Sponsored by Commissioner Alex J. Femandez g, FOR EXECUTION
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Resolutions •C7 Q
MIAMI BEACH
COMMISSION MEMORANOUM
TO: Honoreble Mayor and Members of Ihe City Commission
FROM: Eric Carpenter, City Manager
DATE: April 23, 2025
TITLE: A RESOLUTION OF THE MAVOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE LAND
USE AND SUSTAINABILITV COMMITTEE, AT ITS MARCH 11, 2025, MEETING,
AND DIRECTING THE ADMINISTRATION TO ENGAGE A QUALIFIED
PROFESSIONAL TO PREPARE A MARKET STUDV TO INFORM THE DETAILS
OF A FUTURE TRANSFER OF DEVELOPMENT RIGHTS (TDR) PROGRAM.
RECOMMENDATION
The Administrelion recommends �hat the Mayor and City Commission (City Commission) adopt
the atlached resolution.
BACKGROUNDlHISTORY
On June 26, 2024, at the request o( Commissioner Alex Femandez, the Mayor and Cily
Commission (City Commission) referred a discussion item regartling a Transfer of Development
Righ[s (TDR) program (or Washington Avenue (C4 V) to Ihe Land Use and Suslainability
Committee (LUSC). On November 5, 2024, the LUSC discussed and continued the i[em to lhe
January i 6, 2025, meeting with diredion to develop a more detailed structure for a possible TDR
program, including po[ential sending and receiving areas and a sunset provision.
On January 16, 2025, the item was deteved to a future LUSC meeting, with no discussion. On
March 11, 2025, the LUSC discussed Ihe ilem and recommended that the City Commission
authorize the AdminisUation [o engage a qualifed professional to prepare a markel study ihat can
inform the details of a tuture Transfer of Development Rights (TDR)progrem.
ANALVSIS
A TOR program allows available intensity(Floor area ratio/FAR)and densiry(residential unils per
acre of land) to be moved wilhin a specifed area o(the ciry. More specifically, a program TDR is
a mechanism whereby pmperty owners in a sending district can sell or transter unused
development rights, such as FAR and/or density, to a receiving districl where there is additional
demand to develop.
Although Ihe sale or hansfer of development rights is typically a private transactioq such
programs usually require that a specifc public beneft be provided to transfer the development
nghts. The public benefrts can consist of a wide range of options such as improvements to public
infras[ructure, transit, housing, historic preservation, or environmental and sustainahili[y eROAs.
The LUSC tliscussed a potential TDR program specific to Washington Avenue, which could be
used [o incentivize [he long-lerm resiliency of his[onc buildings, as well as non-transient
residential uses, while at !he same [ime encouraging new resilient development [hat achieves
other goals.
838
The proposed TDR program could be predicated on the following:
1. A binding agreement to retain, preserve, restore, and enhance the resiliency of the existing
structure on the proposed sending site; and
2. A binding agreement that lhe receiving site would meet specifed development benchmarks
related to use, height, distribution of volume, and a cap on the total amount o(development
nghts that could be received.
As an additional sateguard, approval 6y the Historic Preservation Board (HPB)could be required
Ihrough a Certificate of Eligibility process for property owners to avail themselves of Ihe abiliry to
sell unused Floor area thal may be located within a local historic district.Through this process, the
HPB would be expected [o place conditions to ensure Ihat [he building is restored in an
appropriate and timely fashion, is well maintained in perpetuity, and is made resilienL Prior to
allowing for the Iransfer o(unused development rights to take place, City staH could ensure that
the applicant has complied with all conditions oi the Certificate of Eligibility through a Certifcate
of Transfer process.
As part of a TDR proposal, receiving distncts would be established that contain zoning and land
use cnteria that eligible properties would have [o comply with. The regulations would include
ou[side limits on how much FAR can be received by an individual pmperty,as well as height limits,
and potential resMctions on uses. Additionally, requirements !or providing o[her public benef�s
could be inwrporated, such as requiring worMorce or affordable housing, development of
infrastructure, or resiliency enhancemen[s. However, it is important Ihat such requi�ements do not
limit the economic viabiliry of development if it is to be successPol.
For a TDR proqram to be successful, there will need to be suffcient interest among both buye�s
and sellers o/ development rights. This will be largely dependent on a sUong demand within
receiving areas for additional development nghts, as well as market conditions that make selling
development nghts proftable within sending areas.
The most eHec[ive way lo evaluate the market potential of a TDR program is to conduct a formal
study of markel conditions. This type o( sWdy would examine property values and sale prices
within both sending and receiving areas lo estimate the value o/development rights. Such a study
would need lo be peAormed by an experienced, qualified professionaL Assuming there is
suffcienl market potential for a TDR progrem to be successful, a more detailed progrem can be
developed.
The cost of the market study, based on the areas identifed in the LUSC memorandum, is not
expected to exceed $75,000, and will likely be considerably less. The Planning Department has
identifed funds in the current fscal year budget that can fund Ihe study.
FISCAL IMPACT STATEMENT
The wst of the market study is not expected [o exceed $75,000. The Planning Departmenl has
available funds lo cover ihe cost o!the study.
Does lhis Ordinance reauire a Business Imoact Estimate7
(FOR ORDINANCES ONLY)
If applicable,the Business Impacl Estimate (BIE)was published on:
See BIE at https://www.miamibeachfl oovlc�tv-hall/citvclerk/mee[inu- oCces/
FINANCIAL INFORMATION
Not Applica6le
839
CONCLUSION
The Administration recommends that the Ciry Commission adopt the attached resoWtion.
Aoolicable Area
South Beach
Is this a "Residents Riaht to Know" item Is this item related to a G.O. Bond
pursuant to CiN Code Seclion 2-17� Proiect?
Yes No
Was this Aaenda Item initiallv reauested bv a lobbvist which as deTined in Code Sec 2-481
includes a orincioai enaaaed in lobbvina� No
If so, speciy the name of lobbyist(s) and principal(s):
Deoartment
Planning
SponsOf(51
Commissioner Alex Fernandez
Co-soonsor(sl
Condensed Title
Authorize Adm to Engage Professional, Prepare Market Study for FuWre TDR Pmgram.
(Fernandez) PL
Previous Ac[ion (For Citv Clerk Use Onlvl
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