A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, TO CONSIDER APPROVAL, FOLLOWING FIRST READING/PUBLIC HEARING, OF A DEVELOPMENT AGREEMENT AS AUTHORIZED UNDER SECTION 118-4 OF THE CITY CODE, AND SECTIONS 163.3220 - 163.3243, FLORIDA STATUTES, BETWEEN THE CITY AND TSAY INTERNATIONAL, INC. (THE “OWNER”), WHICH DEVELOPMENT AGREEMENT PROVIDES FOR THE OWNER’S VOLUNTARY CONSENT TO THE DESIGNATION OF THE PROPERTY AT 2301 NORMANDY DRIVE (THE “DEVELOPMENT SITE”) AS AN INDIVIDUAL HISTORIC SITE, PURSUANT TO CHAPTER 118, ARTICLE X, DIVISION 4 OF THE CITY CODE, SUBJECT TO AND CONTINGENT UPON THE CITY COMMISSION’S ENACTMENT OF CERTAIN AMENDMENTS TO THE CITY’S LAND DEVELOPMENT REGULATIONS AND COMPREHENSIVE PLAN, AT THE CITY COMMISSION’S SOLE DISCRETION; AND, FURTHER, SETTING THE SECOND AND FINAL READING OF THE DEVELOPMENT AGREEMENT FOR A TIME CERTAIN.

HISTORIC PRESERVATION BOARD ACTION
On May 9, 2017, the Historic Preservation Board (HPB) adopted a motion requesting that the Planning Department prepare a preliminary evaluation and recommendation report relative to the possible designation of the Property as a local historic site (“Preliminary Designation Report”). On October 10, 2017, the HPB reviewed the Preliminary Designation Report, and directed staff to prepare a formal Designation Report for the International Inn Historic Site.

Pursuant to Section 118-591 of the City Code, on October 12, 2017 the City Commission was advised of the action of the HPB via LTC 488-2017. No action was taken by the City Commission to modify the proposed designation; therefore, the request for designation moved forward as proposed by the Board.

On June 11, 2018, the HPB continued the proposed historic designation to a date certain of July 10, 2018, at the request of the Owner. On July 10, 2018, the HPB continued the proposed historic designation to a date certain of September 17, 2018. On September 17, 2018, the Planning Department presented the Formal Designation Report for the proposed International Inn Historic Site, and the HPB continued the matter to a date certain of January 8, 2019.

On January 8, 2019, the Planning Department presented supplemental information regarding the public interior of the proposed International Inn Historic Site, and the HPB continued the review of the Historic Designation Report to a date certain of March 11, 2019. On March 11, 2019, the HPB discussed the application and continued the matter to the June 10, 2019 meeting.

On June 10, 2019, the HPB recommended in favor of the proposed designation. This recommendation of the HPB in favor of historic site designation does not, on its own, result in the designation of the Property as an historic site. Subsequent to the recommendation of the HPB, an application for an Ordinance amendment designating the International Inn as an historic site will now be submitted to the Planning Board for review and a recommendation to the City Commission (the “Designation Ordinance”). Once the Planning Board transmits the Designation Ordinance to the City Commission, two readings and a public hearing are required before the Ordinance may be adopted. The designation of the Property as an historic site would only become final once the Designation Ordinance is adopted.

Please note that the proposed designation of the Property as an historic site is separate and apart from the City Code, Comprehensive Plan, and LDR amendments proposed in the attached Development Agreement, and may proceed on its own, separate track. However, as proposed by the Owner, the proposed City Code, Comprehensive Plan, and LDR amendments would be scheduled for Planning Board review and adoption by the City Commission prior to consideration of the designation by the Planning Board and City Commission.

PLANNING AND LEGAL ANALYSIS
As noted above, the HPB has recommended in favor of the designation of the Property as an historic site. The Owner has studied redevelopment options for the site, submitted the initial draft of the Development Agreement for review by the Administration and City Attorney.

The Development Agreement contemplates certain amendments to the City Code (specifically, at Chapter 6, entitled “Alcoholic Beverages”), the Comprehensive Plan, and the Land Development Regulations. These proposed amendments are attached to the draft Development Agreement and require a separate referral to the Planning Board. The following is a brief summary of the requested amendments (the “Proposed Amendments”):

1. Allow for a hotel as a main permitted use with accessory uses, on properties within the RM-1 zoning district located north of Normandy Drive that have a lot area greater than 30,000 square feet and are designated as a local historic site. Currently, hotels are a prohibited use in the RM-1 zoning district.
2. Increase allowable building height from 55’-0” to 80’-0”.
3. Relax the maximum distance requirement for providing required parking off-site.
4. Create an exemption from distance separation requirements for establishments selling or offering alcoholic beverages for consumption on-premises.
5. Allow restaurants serving alcoholic beverages as an accessory use to a hotel.
6. Subject to conditional use approval, allow for a neighborhood impact establishment, ambient outdoor entertainment performances, and an outdoor bar counter (as accessory uses to a hotel).

Pursuant to the attached Development Agreement, if the Proposed Amendments are adopted, the Owner would agree to voluntarily consent to and support the designation of the International Inn as an individual local historic site. From a sequencing standpoint, as requested by the Owner, the Development Agreement provides that the Proposed Amendments would be presented to the City Commission for adoption prior to the adoption of the Designation Ordinance.

UPDATE
On September 11, 2019, the Administration advised the City Commission that, following discussions between the parties, the City and the Owner had agreed to the following terms:

1. Increase the radius to one (1) mile for any off-site parking provided outside City limits;
2. Shorten the term of the Development Agreement from 30 years to 20 years;
3. Confirm that the Property would be vested as to the land development regulations in effect as of the date of the Development Agreement (including the Proposed Amendments, if adopted);
4. Revise the proposed Comprehensive Plan amendment to conform to terms used in the City Code, relative to permitted uses.

On May 13, 2020, the Administration and the Owner presented the following update to the City Commission regarding applicable Code Compliance and Police Department activity at the Property since the September 11, 2019 City Commission meeting:

• All previous Code Compliance and Building Department violations have been closed. Currently there are no active City Code or Building violations.

• There were 4 calls for service reported by the Police Department during the period between October 26 and December 26, 2019.

Additionally, the Owner obtained a building permit for a new fence at the front of the property on February 19, 2020 (BC2012860), in order to improve the security of the property.

The Administration and the City Attorney’s office are pleased to advise the City Commission that, following additional discussions, there are currently no outstanding issues pertaining to the Proposed Amendments.  The only issue in the Development Agreement that remains outstanding is as to the Owner’s obligation to indemnify the City from a third-party challenge to (i) the designation of the Property as an individual local historic site, or (ii) the adoption of the Final Amendments. The Owner has requested, in the event of a third-party challenge, that the Development Agreement permit the Owner to abandon rights granted in the Agreement in order to resolve the dispute, in lieu of incurring costs and expenses to defend the City. Given that the designation of the Property and the adoption of the Final Amendments involve legislative amendments to the City Code, Land Development Regulations, and Comprehensive Plan, any “abandonment” of rights granted in the Agreement would require further legislative action by the City Commission. The City Attorney has instead suggested that the Owner draft alternative terms for the City’s review.

Since First Reading on September 11, 2019, the Owner has agreed to the following additional terms:

1. The lobby bar, and any other bar on the property, shall only be permitted as an accessory use to a restaurant.
2. Outdoor and open-air ambient entertainment shall be subject to conditional use approval from the Planning Board.
3. The hours for outdoor ambient entertainment shall be limited from 10:00 a.m. to 10:00 p.m, unless modified by the Planning Board through the conditional use process.
4. Conditional use approval shall be required for an accessory outdoor bar counter.

In conclusion, the Administration believes that proposed draft Development Agreement represents a balanced approach to ensure the long term economic and cultural viability of a desired historic asset. The International Inn represents an outstanding example of post-war modern architecture and is a gateway icon into North Beach. As such, it is recommended that the attached Development Agreement move forward.