Item Coversheet


City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov

 Item 15.
COMMITTEE MEMORANDUM

TO: Land Use and Sustainability Committee

FROM: Raul J. Aguila, Interim City Manager

DATE: January 20, 2021
TITLE:COMMERCIAL HEIGHT LIMITS FOR OFFICE USES – ALTON ROAD.

ACTION REQUESTED:
Discuss and continue the item to the February 17, 2021 LUSC meeting.

ADMINISTRATION RECOMMENDATION:
Discuss and continue the item to the February 17, 2021 LUSC meeting.

HISTORY:

On June 24, 2020, at the request of Mayor Dan Gelber, a discussion item pertaining to strategic increases in height for office uses 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.

On September 22, 2020 the LUSC discussed the item and moved it to the full City Commission, in accordance with the following:

1. A recommendation in favor of the proposal for a height increase applying to Terminal Island.

2. No recommendation on the areas fronting Alton Road from 5th Street to Collins Canal.

3. No recommendation on Sunset Harbor

The LUSC also recommended that the City Commission consider the following in its discussion on the matter:

1. Requiring visual images and massing studies for the larger areas affected by the proposal, and not just the specific properties seeking the change.

2. Potential quality of life and community/public benefits.

3. Consider a sunset provision for the proposal.

4. Requirements for neighborhood uses and activation at the first level of the building.

5. The inclusion of North Beach in the scope of the ordinance.

On October 14, 2020, the City Commission referred a draft ordinance that included height increases for office uses on Terminal Island and Alton Road to the Planning Board for review and recommendation. On November 17, 2020 the Planning Board held a public hearing and transmitted the ordinance pertaining to Alton Road and Terminal Island to the City Commission with a favorable recommendation by a vote of 6-0.

On December 9, 2020 the City Commission considered the proposed Ordinance at first reading (item R5O), and the Ordinance was approved for Terminal Island only. The Alton Road / CD-2 portion of the ordinance was bi-furcated and referred to the Land Use and Sustainability Committee (LUSC) for further discussion. The sponsors of the proposal are Mayor Dan Gelber and Commissioner David Richardson.

ANALYSIS:

PLANNING ANALYSIS
An increase in maximum building height from 50 feet and 60 feet to 75 feet has been proposed in the Alton Road CD-2 District. It is important to note that regarding the CD-2 areas on Alton Road, the west side of Alton Road, from 6th Street to Collins Canal, would be eligible for the proposed height increase. However, pursuant to the regulations in the Alton Road - Historic District Buffer Overlay in Chapter 142, Article 3, Division 9 of the LDR’s, only those properties located between 15th Street and 17th Street on the east side of Alton Road would be eligible for the proposed increase in height. This area on the east side of Alton Road abuts CD-1 and GU districts, as well as a large multifamily building to the immediate east.

The minimum threshold to qualify for increased height has been adjusted to ensure that an eligible project is primarily office use. However, non-office uses, for sidewalk activation would be permitted and residential uses would be permitted, as part of the current residential bonus allowance. Additionally, a minimum lot size of 7,500 square feet is proposed to ensure that the higher height is for medium to large size office projects, and so that the site is large enough to absorb the increase in height. Collectively these thresholds will help ensure the increased height will be for a project that is primarily office.

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 Alton Road corridor where this proposal is applicable is along and within a transit corridor and has access to public parking facilities.

The proposal would help diversify the City’s economy and is consistent with the concept of transit-oriented development (TOD), which is ideal for the identified area. 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.

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

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.

SUMMARY
The CD-2 / Alton Road area was separated at first reading on December 9, 2020, due to concerns expressed by area residents. The City Commission also requested that massing studies be provided, comparing what is permitted under the existing regulations (50’-60’) and what is proposed for office uses (up to 75’).

Due to time constraints, the administration was not able to put together adequate massing comparisons in time for the January 20, 2021 LUSC agenda. To properly review the massing comparisons, it is recommended that the item be continued to the February LUSC meeting.

It is important to point out that the actual increase in height proposed would be a maximum of fifteen (15’) in most instances, as commercial and mixed-use/office structures that include structured parking already have a maximum building height limit of 60 feet. The current parking regulations in the LDR’s require that parking for office and residential uses be provided on site.

The administration believes that a maximum height limit of 75 feet allows for maximum flexibility for first level activation and expanded floor-to-floor heights at all levels. Additionally, all new construction is subject to Design Review Board (DRB) approval, at which time issues of massing, view corridors and surrounding context will be addressed. If consensus cannot be reached on a maximum height of 75 feet, a lower number could be explored. In this regard a maximum building height of 65 feet or 70 feet would still allow for some increased floor-to-floor heights for office uses.

CONCLUSION:

The Administration recommends that the Land Use and Sustainability Committee discuss the draft ordinance and the recommendations herein. To properly review applicable massing comparisons, as well as consider potential options for a lower height increase, it is further recommended that the item be continued to the February 17, 2021 LUSC meeting.

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 

Departments

Planning
ATTACHMENTS:
DescriptionType
Revised DRAFT ORDMemo