Item Coversheet

Ordinances - R5  I




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:September  16, 2020
 

2:20 p.m. First Reading Public Hearing

SUBJECT:SUNSET HARBOUR NEIGHBORHOOD IDENTITY OVERLAY DISTRICT – LDR AMENDMENTS
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 142 OF THE CITY CODE, ENTITLED “ZONING DISTRICTS AND REGULATIONS,” AT ARTICLE III, ENTITLED "OVERLAY DISTRICTS," TO ESTABLISH DIVISION 14, ENTITLED “SUNSET HARBOUR MIXED-USE NEIGHBORHOOD OVERLAY DISTRICT,” TO PROVIDE REGULATIONS ON FORMULA RESTAURANT AND FORMULA COMMERCIAL ESTABLISHMENTS; AND PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE.

RECOMMENDATION

The administration recommends that the City Commission approve the subject ordinance at first reading and set a second reading/public hearing for November 18, 2020.

BACKGROUND/HISTORY

On June 5, 2019, at the request of Commissioner Ricky Arriola, the City Commission referred the discussion item to the Land Use and Development Committee (Item C4 Q). The item was discussed at the September 18, 2019 LUDC meeting, and continued to the October 30, 2019 meeting with direction to include copies of existing formula establishment regulations for reference.

On October 30, 2019, the item was discussed and continued to the December 2, 2019 LUDC, with the following direction:

1. The City Attorney will draft an ordinance for review by the LUDC.

2. The Administration will place a C4 referral item on the December 11, 2019 City Commission agenda, as a place holder, in anticipation of a recommendation for referral to the Planning Board.

The December 2, 2019 LUDC meeting was cancelled, and the item was moved to the January 2020 agenda of the newly created Land Use and Sustainability Committee (LUSC). On December 11, 2019, the City Commission referred the proposed ordinance to the Planning Board (Item C4I).

On January 21, 2020 the LUSC deferred the item to the February 18, 2020 meeting. On February 18, 2020, the LUSC discussed the item and continued it to the March 17, 2020 meeting. The March 17, 2020 LUSC meeting was cancelled. On June 30, 2020 the LUSC recommended that the Planning Board transmit the proposal to the City Commission with a favorable recommendation.

ANALYSIS

PLANNING ANALYSIS
On October 28, 2019, a town hall meeting was held in Sunset Harbour to discuss the above proposal. The discussion, led by Commissioner Arriola, focused on (i) the current mix of restaurants and retailers that primarily serve residents in the Sunset Harbour neighborhood, and (ii) the appropriateness of adopting regulations on formula commercial establishments. Sixteen residents attended the meeting, and a consensus of the residents present expressed support for placing restrictions on formula commercial establishments in the neighborhood, in order to ensure that restaurants and retailers in Sunset Harbour continue to serve the needs of local residents.

The following is a summary of additional issues raised at the meeting:

• The need to achieve a balance between zoning restrictions vs incentives to businesses and property owners;

• The need for a diversity of uses;

• The high rents in the area; and

• The need to ensure a proper mix of retail and restaurant uses around a vision for the area.

The following additional suggestions were proposed:

• Consider hosting a focus group with restauranteurs;

• Consider additional activation of the area through special events; and

• Conduct a survey of residents on what they would like to see in their community;

In order to address the concerns raised at the town hall meeting, the proposed ordinance establishes the “Sunset Harbour Mixed-Use Neighborhood Overlay District.” The proposed overlay prohibits “formula commercial” and “formula retail” establishments within the its boundaries. These restrictions are similar to those along Ocean Drive within the Art Deco/MiMo Commercial Character Overlay District.

Formula Commercial Establishments are defined as

Formula commercial establishment means a commercial use, excluding office, restaurant and hotel use, that has ten (10) or more retail sales establishments in operation or with approved development orders in the United States of America; provided, however, for those businesses located in a building that is two (2) stories or less with frontage on Ocean Drive, formula commercial establishment means a commercial use, excluding office, restaurant and hotel, which has five (5) or more other establishments in operation or with approved development orders in Miami Beach. In addition to meeting or exceeding the numerical thresholds in the preceding sentence, the definition of formula commercial establishment also means an establishment that maintains two or more of the following features: a standardized (formula) array of merchandise; a standardized façade; a standardized decor or color scheme; uniform apparel; standardized signs, logos, trademarks or service marks. For the purpose of this definition, the following shall apply:

(1) Standardized (formula) array of merchandise means that 50 percent or more of in-stock merchandise is from a single distributor and bears uniform markings.

(2) Trademark means any word, name, symbol, or device, or any combination thereof, used by a person to identify and distinguish the goods of such person, including a unique product, from those manufactured or sold by others, and to indicate the source of the goods, even if the source is unknown. A trademark may be registered with the U.S. Patent and Trademark Office and/or the Florida Department of State. However, an unregistered trademark may also be protected under common law.

(3) Service mark means any word, name, symbol, or device, or any combination thereof, used by a person to identify and distinguish the services of such person, including a unique service, from the services of others, and to indicate the source of the services, even if that source is unknown. Titles, character names, and other distinctive features of radio or television programs may be registered as service marks notwithstanding that the person or the programs may advertise the goods of the sponsor. A service mark may be registered with the U.S. Patent and Trademark Office and/or the Florida Department of State. However, an unregistered service mark may also be protected under common law.

(4) Decor means the style of interior or exterior furnishings, which may include but is not limited to, style of furniture, wall coverings or permanent fixtures.

(5) Color scheme means the selection of colors used throughout, such as on the furnishings, permanent fixtures, and wall coverings, or as used on the facade.

(6) Facade means a face (usually the front) of a building, including awnings, that looks onto a street or an open space.

(7) Uniform apparel means standardized items of clothing including but not limited to standardized aprons, pants, shirts, smocks or dresses, hats, and pins (other than name tags) as well as standardized colors of clothing.

A formula restaurant is defined as

Formula restaurant means (i) a restaurant with 75 or more establishments in operation or with approved development orders in the United States or a restaurant with more than five (5) establishments in operation or with approved development orders in Miami Beach. With respect to the preceding sentence, in addition to the numerical thresholds the establishments maintain two (2) or more of the following features: a standardized (formula) array of merchandise; a standardized façade; a standardized decor or color scheme; uniform apparel for service providers, food, beverages or uniforms; standardized signs, logos, trademarks or service marks. For the purpose of this definition, the following shall apply:

(1) Standardized (formula) array of merchandise or food means that 50 percent or more of in-stock merchandise or food is from a single distributor and bears uniform markings.

(2) Trademark means any word, name, symbol, or device, or any combination thereof, used by a person to identify and distinguish the goods of such person, including a unique product, from those manufactured or sold by others, and to indicate the source of the goods, even if the source is unknown. A trademark may be registered with the U.S. Patent and Trademark Office and/or the Florida Department of State. However, an unregistered trademark may also be protected under common law.

(3) Service mark means any word, name, symbol, or device, or any combination thereof, used by a person to identify and distinguish the services of such person, including a unique service, from the services of others, and to indicate the source of the services, even if that source is unknown. Titles, character names, and other distinctive features of radio or television programs may be registered as service marks notwithstanding that the person or the programs may advertise the goods of the sponsor. A service mark may be registered with the U.S. Patent and Trademark Office and/or the Florida Department of State. However, an unregistered service mark may also be protected under common law.

(4) Decor means the style of interior or exterior furnishings, which may include but is not limited to, style of furniture, wall coverings or permanent fixtures.

(5) Color scheme means the selection of colors used throughout, such as on the furnishings, permanent fixtures, and wall coverings, or as used on the facade.

(6) Facade means a face (usually the front) of a building, including awnings, that looks onto a street or an open space.

(7) Uniform food, beverages or apparel/uniforms means standardized items of clothing including but not limited to standardized aprons, pants, shirts, smocks or dresses, hats, and pins (other than name tags) as well as standardized colors of clothing, food or beverages listed on the menus of such establishments or standardized uniforms worn by employees.

The regulations are intended to encourage unique businesses to open in the district. The ordinance is not intended to prohibit national chains from operating within the overlay; but rather it is intended to ensure that they provide unique retail, dining, and personal service experiences for the district. This is consistent with the business patterns that have taken place in the neighborhood since it began to transform from a primarily industrial area to more of a mixed-use area.

The proposed overlay divides Sunset Harbour into two areas:

1. The Perimeter Commercial Corridor, which includes the properties that front:
o Alton Road between Dade Boulevard and 20th Street and
o Dade Boulevard between Bay Road and Alton Road.

2. The Neighborhood Center, which includes the remainder of the neighborhood within the interior.

The overlay prohibits Formula Commercial Establishments and Formula Restaurants within the Neighborhood Center. There is a companion Comprehensive Plan amendment proposed to establish a vision and policy directives for the future growth of Sunset Harbour. One such directive is to “Foster the establishment of businesses and restaurants which create dining, retail, and personal service experiences that are unique within the nation.” The proposed LDR amendment is consistent with this vision.

The administration and the City Attorney’s office have retained a land use consultant to study the appropriateness of regulations on formula commercial establishments in Sunset Harbour. The results of the study are attached.

Prior to the Planning Board meeting on July 27, 2020, the ordinance was revised to provide for some additional flexibility in the Sunset Harbor area, as follows:

1. The definition for Formula commercial establishment within the overlay was amended:
a. Term shall apply to formula businesses that have 100 or more locations, and four or more of the “formula” features identified in the Code. Currently there is a limit of 10 establishments and two or more formula features.
b. Grocery stores of any size and fitness/health facilities smaller than 5,000 sf shall be excluded.

2. The definition for Formula restaurant within the overlay was amended:
a. The term shall apply to restaurants with 200 or more locations, and four or more of the “formula” features identified in the Code. Currently there is a limit of 75 establishments and two or more formula features.

The aforementioned changes are intended to provide property owners with additional flexibility in finding tenants. The change to four or more formula features would allow for chain business with 100 or more establishments to locate within the Sunset Harbour neighborhood; however, they would be required to have a more unique feel and identity than their typical establishment.

The above noted changes are included within the draft ordinance for first reading. Additionally, the ordinance establishes a procedure for the review of establishments which requires an affidavit for businesses to certify that they are not formula establishments.

In order to accommodate the 30-day review period required for the companion comprehensive plan amendment, second reading and adoption of the ordinance is recommended to be set for November 18, 2020.

PLANNING BOARD REVIEW
On January 28, 2020, the Planning Board continued the item to the February 25, 2020 meeting. On February 25, 2020, the Planning Board continued the item to the March 24, 2020 meeting. The March 24, 2020 meeting was cancelled, and the item was deferred to the May 19, 2020 meeting.

On May 19, 2020 the item was deferred to July 27, 2020. On July 27, 2020 the Planning Board held a public hearing and transmitted the ordinance to the City Commission with a favorable recommendation by a vote of 7-0.

CONCLUSION

The administration recommends that the City Commission approve the subject ordinance at first reading and set a second reading/public hearing for November 18, 2020.

Applicable Area

South Beach
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
Yes No 
Legislative Tracking
Planning
Sponsor
Commissioner Ricky Arriola

ATTACHMENTS:
Description
FA ORD - LDR
Consultant Study
Ad