Item Coversheet

Ordinances - R5  I




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Alina T. Hudak, City Manager 
DATE:December  8, 2021
 

10:50 a.m. First Reading Public Hearing

SUBJECT:

RETAIL FULFILLMENT CENTERS

AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CODE OF THE CITY OF MIAMI BEACH, SUBPART B, ENTITLED “LAND DEVELOPMENT REGULATIONS,” BY AMENDING CHAPTER 114 OF THE CITY CODE, ENTITLED “GENERAL PROVISIONS,” AT SECTION 114-1, “DEFINITIONS,” TO AMEND THE DEFINITION OF CONVENIENCE STORE AND CREATE A DEFINITION FOR “RETAIL FULFILLMENT CENTER”; AMENDING CHAPTER 142, ENTITLED “ZONING DISTRICTS AND REGULATIONS,” ARTICLE I, ENTITLED “GENERAL TO ALL ZONING DISTRICTS,” BY CREATING SECTION 142-4, ENTITLED “NEIGHBORHOOD AND RETAIL FULFILLMENT CENTERS,” TO CREATE CITYWIDE REGULATIONS FOR NEIGHBORHOOD AND RETAIL FULFILLMENT CENTERS; AND PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE.


RECOMMENDATION

The Administration recommends that the City Commission approve the subject Ordinance at First Reading and schedule a Second Reading / Public Hearing for January 2022.

BACKGROUND/HISTORY

On September 17, 2021, at the request of Commissioner Steven Meiner, the City Commission referred the proposed Ordinance to the Planning Board (item C4 X).

ANALYSIS

PLANNING ANALYSIS
Due to the growth of online retailing, the face of brick-and-mortar retail is also changing, and the potential exists to impact neighborhoods if localized online retailers are not properly regulated. One such type of emerging use is a retail fulfillment center, which is a relatively small establishment that is similar to convenience stores.

Retail fulfillment centers rely primarily on quickly delivering goods that are sold online. The rapid purchase and delivery time for the sale of goods to a larger service area could, potentially, impact traffic throughout the day, as opposed to a more traditional walk-in convenience or grocery store. However, that would need to be compared to the traffic generated by the number of single trips made by customers to such establishments. Additionally, because the potential exists to sell more goods than a convenience store of a similar size, there may be increased demands for loading than would otherwise be expected.

The City’s current Land Development Regulations (LDR’s) are more specific to traditional retail establishments. Because the LDRs do not define “retail fulfillment centers,” establishments similar in nature to retail fulfillment centers have been treated as convenience stores, provided that an appropriate amount of in person sales and storefront visibility are provided. Convenience stores are generally allowed in most commercial districts, except certain overlays where they are either prohibited or limited in number.

In order to allow for appropriate regulations, the proposed amendment creates the following definition for retail fulfillment center:

Retail fulfillment center shall mean a retail establishment, not licensed as an adult bookstore or adult entertainment establishment, where goods are primarily sold online and delivered off premises. Such goods shall not include the sale of any type of alcoholic beverage, nor the sale of cannabis (or marijuana), cannabis derivative products, or cannabis delivery devices, nor the sale of any type of tobacco product, vaping, vapor-generating electronic device, or smoking device. Such establishment must also have an active storefront, along all sidewalk facing portions of the building, that is open to the general public at least eight hours per day. The active storefront must have a minimum depth of 15 feet and a minimum area of 700 square feet. Retail fulfillment centers shall be limited to no more than 7,000 square feet. Goods sold by a retail fulfillment center may include goods similar to those that are sold in a convenience store, except for those products identified in this paragraph.

The proposed amendment also adds a clarification to the definition for “convenience stores” to ensure that publicly accessible sales areas are at least 70% of the floor area of the store.

Since such uses are relatively new, there is not significant research available that adequately describes the impact of these types of establishments. So that these impacts can be properly analyzed, the proposed ordinance prohibits retail fulfillment centers in all zoning districts. However, the proposed language also provides that the use may be specifically authorized in certain underlying zoning districts, either as a main permitted use or a conditional use. As no locations for retail fulfillment centers have been identified in the subject Ordinance, in order to allow for this use in specific zoning districts in the future separate amendments to the LDR’s would be required, once such districts are identified.

PLANNING BOARD REVIEW
On October 26, 2021, the Planning Board held a public hearing and transmitted the Ordinance to the City Commission with a favorable recommendation by a vote of 6-0. The Planning Board also recommended that the definitions for retail fulfillment center and convenience stores be modified slightly; these revisions are noted herein and have been incorporated into the Ordinance for first reading.

Additionally, the Planning Board recommended that the City Commission refer a separate Ordinance to amend the current definition of neighborhood fulfillment center as follows:

Neighborhood fulfillment center shall mean a retail establishment where clients collect goods that are sold off-site, such as with an internet retailer. Additionally, the establishment provides a hub where goods can be collected and delivered to clients' homes or places of business off premises by delivery persons that do not use cars, vans, or trucks. Such facilities are limited to 35,000 square feet.


The Administration has no objection to this recommendation.

APPLICATION FEE WAIVER
The subject amendment was referred on a comprehensive, citywide basis, and not on behalf of a private applicant or third party. Pursuant to section 118-162(c) of the Land Development Regulations of the City Code, amendments to the City Code require the payment of the applicable fees in section 118-7 and Appendix A. These fees may be waived by a five-sevenths (5/7ths) vote of the City Commission, based upon one or more of the following circumstances:

1. The City Manager determines, in writing, that the proposed amendment is necessary due to a change in federal or state law, and/or to implement best practices in urban planning;

2. Upon written recommendation of the city manager acknowledging a documented financial hardship of a property owner(s) or developer(s); and/or

3. If requested, in writing, by a non-profit organization, neighborhood association, or homeowner's association for property owned by any such organization or association, so long as the request demonstrates that a public purpose is achieved by enacting the applicable amendment.

The City Manager has determined that the proposed amendment is necessary to implement best practices in urban planning.

SUMMARY
The Administration is supportive of the proposed Ordinance as it creates a much-needed definition for retail fulfillment centers and clarifies the distinction from convenience stores. Additionally, if properly regulated, a retail fulfillment center could be an appropriate use within certain areas of the City. In this regard, at some point in the future the City Commission may wish to consider looking at potential locations of retail fulfillment centers within appropriate areas of the City.

SUPPORTING SURVEY DATA

Improve Residents Quality of Life

CONCLUSION

The Administration recommends the following:

1. In accordance with section 118-162(c) of the City Code, the City Commission waive the applicable application fees based upon the legislation implementing best practices in urban planning.

2. The City Commission approve the subject Ordinance at First Reading and set a Second Reading/Public Hearing for January 2022.

Applicable Area

Citywide
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 Steven Meiner

ATTACHMENTS:
Description
Ordinance
Ad