ART DECO/MIMO COMMERCIAL CHARACTER AND FORMULA COMMERCIAL OVERLAY DISTRICT:

AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 114 OF THE CITY CODE, ENTITLED “GENERAL PROVISIONS,” TO PROVIDE FOR DEFINITIONS FOR “CHECK CASHING STORE,” “CONVENIENCE STORE,” “FORMULA RESTAURANT,” “FORMULA COMMERCIAL ESTABLISHMENTS,” “MARIJUANA DISPENSARY,” “CANNABIS DISPENSARY,” “OCCULT SCIENCE ESTABLISHMENT,” “PHARMACY,” “SOUVENIR AND T-SHIRT SHOP,” “TATTOO STUDIO,” “MASSAGE THERAPY CENTER,” AND RELATED DEFINITIONS; AMENDING CHAPTER 142 OF THE CITY CODE, ENTITLED “ZONING DISTRICTS AND REGULATIONS,” AT ARTICLE III, ENTITLED "OVERLAY DISTRICTS," TO ESTABLISH DIVISION 12, ENTITLED “ART DECO / MIMO COMMERCIAL CHARACTER OVERLAY DISTRICT,” TO PROVIDE ADDITIONAL REGULATIONS FOR THE AFOREMENTIONED USES, INCLUDING DISTANCE SEPARATION REQUIREMENTS, LIMITATIONS ON NUMBER OF ESTABLISHMENTS, AND PROHIBITIONS UNDER CERTAIN CIRCUMSTANCES; PROVIDING FOR REPEALER; SEVERABILITY; CODIFICATION; AND AN EFFECTIVE DATE.

BACKGROUND
On September 14, 2016, at the request of Commissioner Ricky Arriola, the City Commission referred this item to the Land Use and Development Committee (Item C4 M). On September 27, 2016, at the request of Commissioner Ricky Arriola, the City Commission adopted a 10-point plan that recommends a prohibition on formula restaurants and limits on certain types of retail (Item R9B).

On September 21, 2016, the Land Use and Development Committee continued the item to the October 26, 2016 meeting. On October 26, 2016, the item was continued to a date certain of November 16, 2016, at the request of the sponsor. On November 16, 2016 the Land Use Committee discussed the item and recommended that the City Commission refer the attached ordinance to the Planning Board for consideration with the following modifications, which are included in the attached ordinance:

1. The area adjacent to Washington Avenue was removed from the South Beach overlay area;

2. The definition of Formula Restaurant was modified slightly and now consists of no more than five (5) establishments in operation or with approved development orders in Miami Beach, as opposed to the previous benchmark of two (2) establishments;

3. The following subsection was deleted from the definition of Formula Restaurant:
“or (ii) a restaurant where at least some food or beverage orders are communicated by a customer to an employee over a counter or similar projection and the food or beverage that is ordered is provided to the customer at or over the counter or similar projection.”

On December 14, 2016, the City Commission referred the attached ordinance to the Planning Board for consideration (Item C4 I).

PLANNING ANALYSIS
The commercial areas of Miami Beach’s historic districts are world renown for providing unique experiences to residents and visitors. These include over a century of evolving, highly significant styles of architecture (including Art Deco and Post-War Modern/MiMo) that are unique to the area, dining experiences and styles of food that are difficult to experience outside of South Florida. Additionally, the retail industry provides goods and services unique to the region. Collectively, this highly unique mixture of architecture, food & dining and specialized retail have fostered and maintained a brand unique to Miami Beach. In turn, this unique brand reintroduced a strong tourism industry in Miami Beach, which is the City’s primary economic engine.

However, in recent years, the character of these areas has been changing with an influx of businesses that are common to many suburban areas of the country. These businesses include chain (formula) restaurants, chain (formula) retail, check cashing stores, convenience stores, and pharmacy stores. These types of establishments have multiple locations throughout the country, as well as standardized identities, logos, color schemes, uniforms, and merchandise.

The proliferation of such establishments limit, and in some cases eliminate, opportunities for the unique business that have traditionally been part of the fabric of the historic commercial districts. This has had a homogenizing effect of on the commercial areas, and has resulted in a decrease in the diversity of cultural, retail, and dining services unique to the Miami Beach brand.

Over the last four decades, the City’s historic districts have thrived on a careful balance of cultural, retail, and dining experiences that are not found elsewhere in the country. The increased level of homogeneity has detracted from the uniqueness of the City’s brand. Over the longer term, this could have a negative effect on the City’s economy, since visitors will encounter similar businesses to those that they see in their home cities, and less of the City’s brand.

Additionally, certain nuisance uses such as pawnshops, souvenir and t-shirt shops, tattoo studios, fortune tellers (occult science establishments), and package liquor stores have also affected the character of the City’s historic districts in a negative way, as they detract from the experience that tourists and residents are seeking. Medical marijuana dispensaries have recently been permitted in the State of Florida, and these may have a similar impact as the aforementioned uses.

Ocean Drive is of particular concern, due to its importance to the City’s tourism industry, as well as its unique architecture, sidewalk cafés, and beachfront location. Due to the location, exposure and successful branding, the homogenizing uses have become highly attractive for property owners; a number of such uses have already opened on Ocean Drive, with more seeking to open. In order to address this concern, the proposed Overlay District prohibits the previously described uses from opening on properties that front Ocean Drive within the district boundaries.

THE PROPOSAL
The proposed Ordinance would establish the “Art Deco – MiMo Commercial Character Overlay District.” The Overlay would generally cover areas of South Beach fronting Ocean Drive and Collins Avenue between 5th Street and 16th Street. Additionally, the areas of North Beach fronting Ocean Terrace, Collins Avenue, and Harding Avenue between 73rd Street and 75th Street are also included.

The following is a summary of the revised provisions included in the ordinance:

• Check Cashing Stores: Such establishments shall be prohibited on lots fronting Ocean Drive and in the Ocean Terrace/Harding Townsite Area. In the remaining areas of the Overlay District, there shall be no more than two such establishments. Such establishments shall be located no closer than 2,500 feet from any other such establishment.

• Convenience Stores: Such establishments shall be prohibited on lots fronting Ocean Drive, and in the Ocean Terrace/Harding Townsite Area, there shall be a limit of one (1) such establishment. In the remaining areas of the Overlay District there shall be no more than fivesuch establishments. Such establishments shall be located no closer than 2,500 feet from any other such establishment.

• Formula Commercial: Such establishments shall be prohibited on lots fronting Ocean Drive and Ocean Terrace.

• Formula Restaurants: Such establishments shall be prohibited on lots fronting Ocean Drive or Ocean Terrace.

• Marijuana dispensaries: Prohibited in all areas.

• Occult Science Establishments: Prohibited in the overlay district.

• Package liquor stores: Such establishments shall be prohibited on lots in the South Beach Art Deco Area with an underlying MXE zoning designation and in the Ocean Terrace/Harding Townsite Area. In the remaining areas of the Overlay District there shall be no more than three such establishments. Such establishments shall be located no closer than 2,500 feet from any other such establishment.

• Pawnshops: Prohibited in all areas.

• Pharmacy stores: Such uses shall be prohibited on lots fronting Ocean Drive. In the Ocean Terrace/Harding Townsite Area, there shall be a limit of one (1) such establishment. In the remaining areas of the Overlay District, there shall be no more than five (5) such establishments. Such establishments shall be located no closer than 2,500 feet from any other such establishment.

• Souvenir and t-shirt shops: Such establishments shall be prohibited on lots fronting Ocean Drive and in the Ocean Terrace/Harding Townsite Area. In the remaining areas of the Overlay District there shall be no more than five (5) such establishments. Such establishments shall be located no closer than 2,500 feet from any other such establishment.

• Tattoo studios: Such uses shall be prohibited on lots fronting Ocean Drive and in the Ocean Terrace/Harding Townsite Area. In the remaining areas of the Overlay District there shall be no more than three (3) such establishments.

Additionally, the Overlay would prohibit variances of these regulations. It also establishes minimum submittal requirements to allow City staff to ensure compliance with these regulations.

PLANNING BOARD REVIEW
On January 24, 2017, the Planning Board transmitted the proposed Ordinance Amendment to the City Commission, with a favorable recommendation. The Planning Board also recommended that the City Commission consider the following modifications to the ordinance:

1) Prohibit Massage Parlors that operate at night within the overlay.

2) Modify the definition of Convenience store to remove hours of operation and the term “prepared foods”.

3) Increase the number of establishments required for formula restaurants from 100 to 400 establishments.

4) Modify the criteria for formula retail establishments to only prohibit establishments with five or more locations within Miami Beach.

For notice purposes, the attached draft of the ordinance for first reading includes the recommendation pertaining to massage parlors (massage therapy centers), as this required a change to the title, as well as the minor text changes affecting the definition of convenience stores. If the City Commission decides not to move forward with these particular recommendations, the ordinance can be modified for second reading by removing them.

SUMMARY / UPDATE

On March 1, 2017, the item was opened and continued to a date certain of March 22, 2017. On March 22, 2017, the Ordinance was opened and continued to a date certain of April 26, 2017. The Commission also requested the following be provided:

1. A distance separation for Tattoo Studios so that such establishments shall be located no closer than 2,500 feet from any other such establishment.

    

2. The preparation of a market / economic analysis study pertaining to the formula retail and restaurant portion of the legislation. Such study will take into account whether there are any threshold differences between Ocean Drive and Ocean Terrace. Based upon the results of the market / economic study, additional discussion and refinement of the number of formula retail establishments should be considered.

The distance separation requirement for Tattoo Studios has been incorporated into the revised draft of the ordinance.  On April 26, 2017, the subject ordinance was continued to a date certain of May 17, 2017. On May 17, 2017, the item was opened and continued to a date certain of June 7, 2017.  

On June 7, 2017, the subject Ordinance was approved at First Reading. The City hired Mr. Andy Dolkart to prepare an economic / market analysis; attached is the final report.  In summary, the consultant concluded the following:

• A review of many other formula restaurant ordinances indicates that the proposed ordinance would be the least burdensome, as most limit formula restaurants to 15 or fewer establishments.

• There are 40 eating and drinking establishments in the subject area.

  • Only three would qualify as a formula restaurant pursuant to the proposed ordinance due to the number of establishments they have throughout the country. Six establishments are chains but would not qualify as a formula establishment pursuant to the proposed ordinance.

• Few restaurants currently operating on Ocean Drive are chain-affiliated due to existing design and historic preservation requirements and guidelines, as well as other aesthetic limitations, including the Secretary of Interior Standards. 

• Chain restaurants generally choose to locate in single-user buildings or shopping centers that provide easy automobile access and self-serve parking.

• An analysis of 339 chain restaurants operating in the United States indicates the following:

  • 185 brands operate fast food restaurants and/or pizza shops and would likely not want locate on Ocean Drive due to their preference for being located in buildings with easy automobile access, self-serve parking, or drive-thrus. 

  • 164 brands fall into a variety of categories in terms of cuisine and ambiance.

    • 84 have less than 100 establishments and could be located on Ocean Drive.

    • 60 of these have more than 100 establishments and would have to make modifications pursuant to the ordinance to operate on Ocean Drive.

• The ordinance provides criteria for such establishments to make modifications that would allow them to locate in the affected area.

• The proposed ordinance will not make it impossible to fill vacant spaces and its adoption will not adversely impact the City of Miami Beach to any significant degree in terms of loss of jobs or fiscally in terms of loss of ad valorem tax revenue.        

Based upon the findings of the attached economic / market analysis, the Administration recommends that the Ordinance be adopted.