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Resolution 2025-33606 RESOLUTION NO. 2025-33606 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS MARCH 26, 2025, MEETING, AND DIRECTING THE ADMINISTRATION TO MAINTAIN THE CURRENT ONE-TIME FEE IN LIEU OF PARKING RATE OF $40,000.00 PER REQUIRED OFF-STREET PARKING SPACE. WHEREAS, Chapter 5, Article IV, of the Land Development Regulations of the City Code (LDRs) establishes the "Fee in Lieu of Parking Program,"which provides that under certain circumstances new development or uses may pay an impact fee to the City if they are not able to provide required off-street parking on-site; and WHEREAS, at present, the one-time fee in lieu of parking rate is $40,000.00 per required off-street parking space; and WHEREAS, pursuant to Section 5.4.2(d) of the LDRs, the Planning DepaRment analyzed the construction cost for a recently completed parking garage, taking into account changes in the Consumer Price Index (CPI), and determined that the total cost is approximately $55,000.00 per parking space; and WHEREAS, increasing the one-time fee in lieu of parking rate from $40,000.00 per parking space to $55,000.00 per parking space would increase the annual-recurring fee (annual fee in lieu), which is 2% of the one-time fee, from the current $800.00 per year for each required space, to approximately $1,100.00 per year for each required space; and WHEREAS, increasing the one-time fee in lieu of parking rate would primarily impact businesses that pay the annual fee in lieu, resulting in higher annual fees for participating businesses; and WHEREAS,the Administration recommends that the one-time fee in lieu of parking rate remain at $40,000.00 per off-street parking space which will, in turn, maintain the annual fee in lieu of parking at the current rate; and WHEREAS, on March 26, 2025, the Finance and Economic Resiliency Committee ("FERC') recommended that the City Commission accept the recommendation of the Administration to maintain the current one-time fee in lieu of parking rate of $40,000.00 per off-street parking space. 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 Finance and Economic Resiliency Committee, at its March 26, 2025, meeting, and direct the Administration to maintain the current one-time fee in lieu of parking rate of $40,000.00 per required off-street parking space. PASSED and ADOPTED this 23�d day of April 2025. ATTEST. � �� teven Meiner, Mayor t1PF 2 9 2025 Rafael E. ranado, City Clerk ..-�-„�,,, APPROVED AS TO ��e?!'�B'��y� FORM AND LANGUAGE =`r"� �'} & FOR EXECUTION { s �INCOAP 00.A1ED' ; y�,�i ;�in' / �+���H'�fi�' Y/�G7� City Attorney �'� Date T:Wgentlal2025\�4 April 23,2 W 5\Planning\PIF Recnmmentlalion-C]RESOAou Resolutions -C7 R MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of�he City Commission FROM�. Eric Carpenter, City Manager DATE' April 23, 2025 TITLE' A RESOWTION OF THE MAYOR AND CITV COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS MARCH 26, 2025, MEETING, AND DIRECTING THE ADMINISTRATION TO MAINTAIN THE CURRENT ONE-TIME FEE IN LIEU OF PARKING RATE OF $40,000.00 PER RE�UIRED OFF-STREET PARKING SPACE. RECOMMENDATION The Adminislration recommentls that lhe Mayor and City Commission (City Commission) adopt the attached resolution. BACKGROUND/HISTORY On December 11, 2024, at the request of Ihe City Manager, the Ciry Commission referred a discussion item (C4 B) regarding [he (ee in lieu o( parking rate to the Finance and Economic Resiliency Committee (FERC). On March 26, 2025, the FERC recommended that the City Commission accept the recommendalion of the Administration to mainlain the current one-[ime fee in lieu of parking rate. ANALV515 Chap�er 5, Article IV, of the Land Development Regulations of the City Code (LDRs)contains the "Fee in Lieu of Parking Progrem" where under certain circumstances new development or uses may pay an impact fee to the City if they are not able to provide required parking on-site. Specifically, Section 5.42 (d) of�he LDRs requires that "The amount determined to be the city's fofal aveiage cost/or land acquisition and construction o/one parking space shall be evaluated by the city commission based upon fhe Consumer Pnce Index (CPIJ. I/determined appropnate, the city commission may amentl(he /ee strucfure in this section by resoNtion." At present, the one-time fee in lieu o(parking rete is$40,000.00 per required parking space. This fee was last revised in September of 2014, when it was raised from $35,000.00 per space to lhe current amount of$40,000.00 per space. As required by Section 5.42(d) of the LDRs, the Planning Depahment has analyzed the cost o( construction for an off-street parking space. The mosl recently buiil garage by the City is the Collins Park Garage, which was consWcted in 2021 a[ a cosl of approximately $23,921,877.37 for 516 parking spaces. The construc[ion cost for this garage averages out to $46,36023 per parking space. Based on the Consumer Price Index (CPq, since the garage was cnmpleted, the cost per space would now be $54,567.33 (see table below). If this cos[ were applied, the one-time fee wouid increase by $14,567.33 per �equired space, from $40,000.00 per space to approximately $55,000.00 per space. aaa ix In Lieu W YeMn Fee qru � G+rw� Lentlruc�onCmt 'Soarm'.Cml/9um 'SYu�O �nN i03130]3 ID]3-]OZJ CPI�1u�tmenl% � )1PF 9.9VA CdlineParkGarawlGt]la�]603].a5lrttl � E]3�93101i3=516 Stfi]W.33 3031 ff9,651.80 55156].]] Addi[ionally, the annual-recurring fee (annual !ee in lieu), which is 2°/ o(the one-[ime lee, would increase from Ihe current 5800.00 per year, for each required space, to approximalely $1,100.00 per yeai for each required space. The current one-lime fee in lieu of parking ($40,000.00 per space) is prohibitively expensive and has resulted in many applirants seeking alternatives other than paying the fee for new construc6on. Since 2020, only one development project has utilized the one-time fee optioq for 2 reQuired parking spaces ($80,000.00). Increasing [he fee would primarily impact businesses lhat pay the annual recurring fee (annual fee in lieu), resulting in higherannual feesfor participating businesses.Thefollowing is a summary o(annual fee in lieu revenue collected from 2020 to 2025: FV2024 FY2023 FY2022 fV2021 FY2020 South Beach $392,464.53 $469,946.37 $162,976.70 $ 394,490.62 $ 270J10.52 Mid Beacn $9,677.00 $9,600D0 S 20,495.00) $ 18,138.35 $ 22,076.52 North Beach $1,600.00 $3,200.00 $ 3,200.00) $ 3,173.33 $ 3,200.00 Total $403,741.53 $482.746.37 $186,67170 $415,80230 $ 295,987.04 Pursuanl [o Section 5.4.4 0!the LDRs, lhe funds generated by the fee in lieu program are to be used for providing palking, transportation and mobility related improvements and programs in the vicinity ot[he north, middle and soulh disMcts,as applicable.of the subject property. Expenditures (rom these funds �equire city commission approval and may indude Ihe following: 1) Parking garages and relaled facilities. 2) Transit capital funding: a) Purchase of busesfor circulatorroutes. b) Bus sheflers. c) Transit infrestmcture. 3) Traff�c improvements�. a) TraKc signals. b) Signal timing operations. c) Lane motlifications. 4) Bicycle facilities: a) Bicyde lanes and paths. b) Bicycle racks and storage. 5) Intelligenttransportationsystems: a) Elecironic message boards. fi) Pedeshian improvements�. a) Crosswalks. b) Traffic signals. 7) Petleshian (acili[ies a) Beachwalk. b) Baywalk. 8) Other parking, transportation and mobilily related capital projects as may be specifcally approved by the city commission. 9) In addition, transi�operalional lunding for newly introduced transportation enhancemen[s and program expansions (limited to operational, non-adminisVative costs only, i.e., drivers, fuel, maintenance and insurence) may be included i(ezpressly approved by Ihe city commission. As noted above, Ihe funds generated by Ihe annual !ee in lieu program are significant However, increasing Ihe one-time fee, and a cortesponding increase in [he yeady fee, could impact smaller businesses. 845 In view o(the foregoing, the Administration recommends Ihat the one-time fee in lieu of parking rate, which is currently set at $40,000.00 per off-street parking space, remain the same. This would allow the rate of lhe annual tee in lieu of parking program, which is 2% of the one-time fee, to remain at the current$800.00 pe�required space. FISCAL IMPACT STATEMENT No Fiscal Impacl Dces this Ordinanee reauire a Business Imoact Estimate7 (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate(BIE)waa publiahed on: See BIE at: https:l/www.miamibeachfl.00v/city-hall/citv-clerk/meetinq-notices/ FINANCIAL INFORMATION Not Applicable CONCLUSION The Administretion recommends that the CiTy Commission adop[the atlached resolulion. Aoolicable Area Citywide Is this a "Residents Riaht to Know" item. Is this item related to a G.O. Bond pursuant to Citv Code Section 2-17? Proiect4 Yes No Was this Aaenda Item initialiv reuuestetl bv a lobbvist which, as deTined in Code Sec. 2d81. includes a orincioal enaaaed in lobbvino? No If so, speci(y the name of lobbyist(s) and principal(s): �eoartment Planning Soonsor(sl Co-snonsorfa) Condensed Title Accept Recommendation, Maintain Current One-Time Fee in Lieu of Parking Rate. PL 846 Previous Action IFor Citv Clerk Use Onlvl 847