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City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
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| | | | | | | | | | Item 3
COMMITTEE MEMORANDUM | | | |
| | | | | | | | TO: Land Use and Sustainability Committee
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| FROM: Jimmy L. Morales, City Manager
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| DATE: September 22, 2020
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| | | | | | | | | TITLE: | AMENDMENT TO THE LAND DEVELOPMENT REGULATIONS OF THE CITY CODE PERTAINING TO A BUILDING HEIGHT INCREASE IN STRATEGIC COMMERCIAL AREAS TO INCENTIVIZE OFFICE USES.
ACTION REQUESTED:
Discuss the item and recommend that the City Commission refer the attached ordinance to the Planning Board.
ADMINISTRATION RECOMMENDATION:
Conclude the item and recommend that the City Commission refer the attached ordinance to the Planning Board. |
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| | | | | | | | HISTORY:
| On June 24, 2020, at the request of Mayor Dan Gelber, the subject item was referred to the Land Use and Sustainability Committee (C4C). At the time of referral, Commissioner David Richardson became a co-sponsor.
The Land Use and Sustainability Committee (LUSC) discussed the proposal on July 21, 2020 and continued the item to September 22, 2020, with the following general direction:
1. Provide additional information regarding existing office space inventory in the City, and where the best locations for office space would be.
2. Further study the areas proposed for office height incentives and look at other commercial areas.
3. Further study the minimum floor area benchmark for offices. |
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| | | | | | | | ANALYSIS:
| PLANNING ANALYSIS
The attached draft text, which has been updated since the July 21, 2020 LUSC meeting, was prepared by the representative of property owners on Terminal Island and in the Sunset Harbor area, who are seeking to develop mixed-use projects with an office component. The proposal includes height increases in strategic commercial areas to incentivize office uses.
The ordinance has been updated to set a minimum threshold of .45 FAR in order to qualify for increased height. A minimum lot size of 7,500 square feet is also proposed, to ensure that the higher height is for medium to large size office project, and so that the site is large enough to absorb the increase in height. Planning staff is in agreement with these thresholds and believes that they will ensure the increased height will be for a project that is primarily office.
A maximum height of between 60 and 75 feet has been proposed in all the applicable commercial districts. The following is a summary of the specific commercial areas of the City proposed for the increase in height:
1. Sunset Harbor Area CD-2 District: Increase from 50 feet to 75 feet.
2. Alton Road CD-2 District: Increase from 50 feet and 60 feet to 75 feet.
3. Sunset Harbor I-1 District: Increase from 40 feet to 75 feet.
4. Terminal Island I-1 District: Increase from 40 feet to 75 feet.
The proposed increase in height would allow for the expanded interior floor to ceiling space being sought by office users and office developers. From a practical standpoint, when parking and mixed-use pedestals are included, the current height limitations in the aforementioned areas limit the interior ceiling heights for all uses. Additionally, the areas of the City where this proposal is applicable are along and within transit corridors and have access to public parking facilities.
The proposal would apply to limited, strategic areas and would help diversify the City’s economy. The proposal is also consistent with the concept of transit-oriented development (TOD), which is ideal for the identified areas. This is an important point because the City’s long-term mobility plan places considerably more emphasis on transit. In turn, this will likely result in less of a need for onsite vehicular storage in the future, which would equate to a reduction in overall building height.
UPDATE (September 22, 2020 LUSC):
The first draft of the proposal included the C-PS2 corridor along Fifth Street. Based upon concerns regarding the potential impacts of increased height along 4th Street and 6th Street, this corridor has been removed. It was also suggested that other commercial areas of the City, including North Beach, the 41st Street corridor and the MXE area be considered.
Currently, the administration does not recommend including these areas within the proposed ordinance, as the primary area of study and focus is the transit corridors in South Beach and Sunset Harbor. If there is consensus to explore other areas of the City for incentive-based height increases for office use, it is suggested that those areas be looked at via a separate referral. Specifically, the following is noted:
• 41st Street: This corridor is zoned CD-3 and already has a maximum height limit of 75 feet. Given the close proximity of single-family districts to the immediate north and south, an increase in height above 75’ would need to be looked at carefully.
• Washington Avenue and MXE: Under a separate track, this area is being evaluated comprehensively. If incentives for office uses are determined to be beneficial, they should be looked at as part of the Ocean Drive/Collins Avenue/Washington Avenue initiative.
• North Beach: Currently the TCC district has a maximum height limit of 220’, and the area was up zoned to create the opportunity for a downtown development model, including office uses. The other commercial areas in North Beach are surrounded by lower scale, less intense districts. Increases in height to incentivize offices in these areas would need to be studied carefully as well.
The City’s real estate consultant, CBRE, has provided the following information regarding total office space in South Beach:
• Total Class A space - 937,526 SF with 9% vacancy
• Total Class B space – 892,885 SF with 11% vacancy
• South of Fifth Street - Approx. 400,000 SF of Class A & B space
• Lincoln Road (including adjacent side streets) – approx. 1.13 million SF of Class A & B space
Attached, for informational purposes, is a summary of leasing availability for various Class A office buildings in South Beach.
Regarding the mid and north areas of the City, the predominance of office uses, particularly within the 41st Street area, are leased by medical users and smaller local companies. Additionally, most of the offices in these areas are not as appealing as the South Beach stock, even when compared to the class B buildings in South Beach. A summary of leasing availability within the 41st Street corridor is attached, for informational purposes.
As it pertains to the migration of office tenants from the northeast (e.g. New York and Connecticut) and Chicago to the greater Miami area (212 to 305), the administration has discussed this with CBRE, who was able to provide some anecdotal data regarding leasing they have done in the larger office market area. In general, there appears to be a meaningful increase in interest from financial services and related firms, some of which are focused on the greater Miami market, and others in downtown West Palm Beach. Attached, for informational purposes, is a summary of office statistics prepared by CBRE for quarter 2 of 2020, in the greater Miami area.
Finally, the developers of proposed projects on Terminal Island and in Sunset Harbor have provided the attached sections and renderings for their respective projects. These attachments illustrate the interior space rationale and visual impact of the proposed height increase to 75 feet.
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| | | | | | | | CONCLUSION:
| | The Administration recommends that the Land Use and Sustainability Committee endorse the proposal and recommend that the City Commission refer the ordinance to the Planning Board. |
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| | | | | | | | Applicable Area
| | South Beach |
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| | | | | | | | | 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 | |
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