ANALYSIS
The attached Ordinance amends City Code Section 6-3, entitled “Hours of sale/violations,” to modify the hours for the sale and on-premises consumption of alcoholic beverages in the MXE district south of 16th Street. As to the subject area, the Ordinance changes the termination time for the sale and on-premises consumption from 5:00 a.m. to 2:00 a.m. each night.
Section 562.14, Florida Statutes, expressly permits the City to establish hours of sale for alcoholic beverages by ordinance. Florida courts have consistently held that alcoholic beverage establishments are not entitled to “grandfather” status as to hours of sale for alcoholic beverages. Accordingly, the City has the authority to adopt legislation that “rolls back” the closing time for alcohol sales at existing alcoholic beverage establishments.
Attached is a list of establishments that are located in the MXE district and permitted to serve alcoholic beverages for on-premises consumption until 5:00 a.m. The list includes 44 existing establishments, located primarily on Collins Avenue and Ocean Drive. If the attached Ordinance is adopted by the City Commission, these establishments would be required to comply with the new 2:00 a.m. termination time.
The City’s legal position is that there are no “vested rights” with regard to an operator’s entitlement to hours of sale for alcoholic beverages. Notwithstanding the City’s position, which our Legal Department is confident is defensible, the City has been placed on notice that the attached Ordinance, if adopted, may be subject to challenge by certain alcoholic beverage establishments located within the district. These establishments allege that certain development approvals (including, but not limited to, conditional use permits) may entitle them to certain rights relating to their business operations.
The original intent of the MXE district regulations was to foster the renovation, restoration and preservation of the historic buildings in the district. Café, entertainment, restaurant, and retail uses were required to be accessory to hotel or residential uses. The widening of the sidewalk provided an opportunity for sidewalk seating to engage and interact with seating on private property and become a mechanism for people-watching and experiencing the architecture of the district, as well as the natural environment across the street in Lummus Park.
Over the past decade, the MXE district has experienced increasing challenges associated with alcoholic beverage and entertainment uses, all of which were intended to be subordinate to the main use of residential or hotel properties in the district. The sale and consumption of alcoholic beverages late at night or early in the morning has disturbed neighboring residents, caused undesirable noise, and placed significant demands on the City’s Police, Fire, and Code Compliance Departments.
To rediscover the beauty and intent of the National Register Architectural District, and re-focus the urban planning priorities for the broader area, a “rollback” of the permitted hours for the sale of alcohol for on-premises consumption is a significant first step.
It is important to note that the proposed 2:00 a.m. rollback for on-premises consumption within the MXE district is part of a multi-pronged approach. This includes updating applicable regulations; incentivizing a renaissance of the original plan for Ocean Drive; year-round programming; increased enforcement; and creating ways to balance vehicular and pedestrian mobility.
UPDATE
The subject Ordinance was approved at First Reading on April 21, 2021. Additionally, the Commission requested that a timeframe for implementation of the Ordinance be considered prior to Second Reading (i.e. as a “pilot” program). It is anticipated that the details of such a pilot program, including the duration of the program, will be provided via supplemental agenda or discussed at the May 12, 2021 City Commission meeting.