Item Coversheet


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

 Item 1
COMMITTEE MEMORANDUM

TO: Land Use and Sustainability Committee

FROM: Raul J. Aguila, Interim City Manager

DATE: March 24, 2021
TITLE:COMMERCIAL HEIGHT LIMITS FOR OFFICE USES – ALTON ROAD.

ACTION REQUESTED:
Discuss and conclude the item and provide a recommendation to the Planning Board and City Commission.

ADMINISTRATION RECOMMENDATION:
Recommend that the Planning Board transmit the revised Ordinance to the City Commission with a favorable recommendation. 

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.

On January 20, 2021 the LUSC discussed and continued the item to the February 17, 2021 meeting. On February 17, 2021 the LUSC discussed the revised Ordinance and continued the item to the March 24, 2021 LUSC with direction to the Administration to incorporate the modifications discussed at the meeting into a revised draft Ordinance.

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 (60’) and what is proposed for office uses (up to 75’).

Attached are three separate section diagrams, with corresponding massing illustrations, comparing the current height regulations along Alton Road with two different options for a potential height increase. The study lot chosen is located between 14th Street and 15th Street on the west side of Alton Road. The following is a summary of each option:

Option 1: Current Building Height Limit of 60 Feet
Under existing regulations, buildings with structured parking have a maximum building height limit of 60 feet on Alton Road. As noted in the attached section diagram, buildings with this maximum height have upper level internal ceiling height limits of 11 feet.

Option 2: Increase Building Height Limit to 65’
Option 2 contains the same interior dimensions as option 1 at the ground and parking deck levels. The interior ceiling heights can be increased to 13 feet for two levels, and 12 feet for a third level.

Option 3: Increase Building Height Limit to 75’
Option 3 contains the same interior dimensions as options 2 and 3 at the parking deck level and allows for a more expansive interior height at the ground level. Additionally, the upper levels, at all floors, can accommodate up to 15 feet of interior ceiling height at each level.

It is important to point out that the maximum increase in building height proposed would not exceed fifteen (15’) 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.

UPDATE
At the direction of the LUSC, the following modifications have been incorporated into a revised draft Ordinance:

1. The Alton Road Office Development Overlay has been developed, and includes parcels within the following revised boundaries (see attached map):

a. West side of Alton Road bounded by 8th Street and 11th Street;

b. West side of Alton Road bounded by 14th Street and 17th Street; and

c. East side of Alton Road bounded by 15th Street and 17th Street.

2. The following regulations shall apply to developments exceeding 60 feet in height within the Alton Road office development overlay:

a. Minimum office requirement. The development shall consist solely of office use above the ground level of the structure. Additionally, the property owner shall be required to record a covenant, affirming that all areas above the ground floor shall remain office for at least 30 years.

b. Ground level activation. The ground level of the building shall consist of active retail, restaurant, personal service or similar uses. Office uses, including, but not limited to, professional offices, banks, and financial services, shall not be permitted at the ground level. This shall not preclude a ground level lobby to access the upper floors.

c. Maximum Height. The maximum building height shall be 75 feet and all portions of the building above 60 feet in height shall be setback a minimum of 20 feet from the rear property line.

d. Height Exceptions. Separate height exception regulations are proposed, which are specific to the Alton Road Office Development Overlay, and include the following:
(NOTE: unless otherwise specified, the height exceptions shall not exceed ten feet above the main roof of the structure)

• Roof-top operational and mechanical equipment. This exception shall be limited to essential, non-habitable, building elements such as mechanical rooms/devices, air conditioning and cooling equipment, generators, electrical and plumbing equipment, as well as any required screening. The height of such elements shall not exceed 25 feet above the roof slab.
• Roof-top elevator towers, including code required vestibules, and stair towers, with the height of such structures not exceeding 25 feet above the roof slab. Projecting overhangs at the doorways to elevator vestibules and stair towers required by the Florida Building Code may be permitted, provided the projection does not exceed the minimum size dimensions required under the Building Code.
• Satellite dishes, antennas, sustainable roofing systems, solar panels and similar elements; such elements shall be set back a minimum of 15 feet from the roof parapets on street-facing facades.
• Decks located more than six inches above the top of the roof slab, and not exceeding three feet above the roof slab, may be permitted provided the deck area is no more than 50 percent of the enclosed floor area immediately one floor below.
• Rooftop areas that are accessible only to the owners or tenants of office or residential units may have trellis, pergolas or similar structures that have an open roof of cross rafters or latticework. Such structures shall not exceed a combined area of 20 percent of the enclosed floor area immediately one floor below and shall be setback a minimum of 15 feet from the roof parapets on street-facing facades.
• Parapets shall not exceed four feet in height above the main roof.
• Exterior speakers required to meet applicable requirements of the life safety or building code.

e. Outdoor uses and special events. Commercial uses of any kind, including, but not limited to restaurants, bars and entertainment, as well as special events, of any kind, shall be prohibited within any outdoor areas above the ground floor.

f. Outdoor mechanical equipment. Any outdoor mechanical equipment located above the ground floor including, but not limited to, air conditioning equipment, cooling towers, compressors and generators shall be fully screened with sound attenuating materials on all sides.

g. Sunset provision. The development regulations shall only apply to projects that have obtained a full building permit by December 31, 2026.

As noted in the attached map, the boundaries of the proposal have been modified and now have a northern terminus at 17th Street and a southern terminus at 8th Street. As it pertains to additional limits on boundaries, those properties on the west side of Alton Road, between 14th Court and 16th Street, are shorter than most of the other CD-2 lots within the overlay. Additionally, the RM-1 portions of the adjacent blocks facing West Avenue have the highest concentration of low-scale multifamily residential buildings. This is the only RM-1 section adjacent to CD-2 where the residential buildings are not broken up by parking lots or garages.

Regarding the number of potential properties that could utilize the office height incentives, the Administration has identified a total of 41 potential parcels within the revised boundaries. If parcels under unified ownership are considered there are 36 sites.

As indicated previously, of the three height options proposed herein, the Administration believes that option 3, with a maximum height limit of 75 feet, works best as it allows for maximum flexibility for first level activation and expanded floor-to-floor heights at all levels. Additionally, as noted in the corresponding massing studies, the difference in height is not significant. Moreover, actual development projects will consist of fully developed architectural plans, not massing studies, which will incorporate a significant level of architectural design, changes in building plane and movement in the overall mass of the building. All new construction is also subject to Design Review Board (DRB) approval, at which time issues of massing, view corridors and surrounding context will be fully addressed as part of a public hearing.

The Administration would also recommend that the LUSC consider removing the sunset provision (10 years as drafted) from the Ordinance. In this regard, the process of acquiring land and completing the permit process could limit potential investors if there is a defined end period. Also, the City Commission can look back on these provisions and amend the regulations if the office market declines or the number of projects anticipated does not move forward.


CONCLUSION:

The Administration recommends that the LUSC endorse option 3, as proposed herein, and recommend that the Planning Board transmit the revised Ordinance to the City Commission with a favorable recommendation.

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
Massing and Section ILLUSTRATIONSMemo
Boundaries and Subject Properties - MAPMemo
Draft ORDMemo