ANALYSIS

The property at 411-419 Michigan Avenue property is located within the C-PS2 zoning district and within the boundaries of the Ocean Beach Local Historic District. The unified corner site contains an abandoned construction site on the lots fronting 5th Street and two contributing buildings on the lot fronting Michigan Avenue. The attached draft ordinance was prepared by the representative of the owner of the property, who is seeking to develop a Class A office development on the subject site.

The proposal includes a height increase for properties on the south side of 5th Street between Michigan Avenue and Lenox Avenue in order to incentivize office uses. While this area currently permits a maximum height of 75’-0” for hotel and residential development, office buildings are limited to a maximum height of 50’-0”.

The proposed increase in height for office use buildings 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.

The Administration believes that the subject ordinance is good policy and will be an incentive that will help to diversify the City’s economy. The proposal is also consistent with the concept of transit-oriented development (TOD), which is ideal for the 5th Street commercial corridor. To this end, the Administration would recommend that the Committee discuss the possibility of expanding the boundaries of the proposed height increase for office uses to include all properties fronting on the south side of 5th Street from Lenox Avenue to Washington Avenue. Such an expansion could also be discussed as part of the new resiliency code, which is currently in the draft phase.