On September 13, 2023, at the request of Commissioner Ricky Arriola, the City Commission referred a discussion item (C4 O) to the Land Use and Sustainability Committee (LUSC). The discussion pertained to extending the sunset period for the mobility fee incentive in the North Beach Town Center area due to exigent circumstances and to give Town Center and the North Beach Community Redevelopment Agency (CRA) district a better chance to develop.

On September 27, 2023, the LUSC discussed the item and recommended that the City Commission refer an ordinance amending the Land Development Regulations of the City Code (LDRs) to the Planning Board. Specifically, the LUSC recommended that an extra year be added to the existing fee reduction schedule starting from September 1, 2022.

The mobility fee ordinance was adopted by the City Commission in 2019 (Ord. No. 2019-4306) and replaced the previous traffic concurrency mitigation fee. The purpose of the mobility fee is to ensure that all development which increases the demand for public facilities in the city will be served by adequate public facilities in accordance with the levels of service which are established in the capital improvements element of the City’s Comprehensive Plan and the Municipal Mobility Plan. The mobility fee is calculated based on a formula that accounts for the types of uses and the number of trips generated by those uses less any vested uses on the property. 

Section 3.3.4 of the Land Development Regulations of the City Code (LDRs) provides for a North Beach mobility fee incentive area. The purpose of this incentive area is to encourage and expedite the revitalization of the area of the City north of 63rd Street through calculated reductions in the required mobility fee. Within the North Beach mobility fee incentive area, the following tiered fee reduction schedule is currently in effect:

• Up until August 31, 2022 a mobility fee reduction of 62.5 percent shall be provided.

• Between September 1, 2022, and August 31, 2023, a mobility fee reduction of 50 percent shall be provided.

• Between September 1, 2023, and August 31, 2024, a mobility fee reduction of 38 percent shall be provided.

• Between September 1, 2024, and August 31, 2025, a mobility fee reduction of 26 percent shall be provided.

• Beginning September 1, 2025 there shall be no mobility fee reduction.

Pursuant to the recommendation of the LUSC, the following revision to the fee reduction schedule is proposed:

• Up until August 31, 2022 2023 a mobility fee reduction of 62.5 percent shall be provided.

• Between September 1, 2022 2023, and August 31, 2023 2024, a mobility fee reduction of 50 percent shall be provided.

• Between September 1, 2023 2024, and August 31, 2024 2025, a mobility fee reduction of 38 percent shall be provided.

• Between September 1, 2024 2025, and August 31, 2025 2026, a mobility fee reduction of 26 percent shall be provided.

• Beginning September 1, 2025 2026 there shall be no mobility fee reduction.

There are a number of North Beach projects in various stages of development (planning, entitlement, permitting, construction, etc.). The potential fiscal impact of expanding the incentive by one (1) year through 2026 is dependent on the timing of development projects and associated mobility fee payments through the permit issuance process. If the proposed modified dates for the incentive tiers are adopted, projects benefitting from an incentive prior to the date of adoption of the new ordinance may be eligible for partial reimbursement if the ordinance is drafted as retroactive and the applicable projects are entitled to a greater mobility fee reduction than originally provided.

If the ordinance is drafted as prospective (not retroactive) it would only apply to mobility fee payments going forward after adoption of the ordinance. Information related to  projects receiving a mobility fee reduction incentive will be included in the staff report to the Planning Board, if referred, and an ordinance amending Section 3.3.4 of the LDRs will be drafted to effectuate the proposed change. Additionally, a new Commission sponsor will need to be identified, prior to consideration of the ordinance by the Planning Board.

The Administration recommends that the City Commission discuss the item and, if there is consensus, refer an ordinance to the Planning Board, subject to the identification of a new Commission sponsor.