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HomeMy WebLinkAboutPZD-02 Letter of Intenta%el'I11an August 11, 2020 Francisco J. Garcia, Director Planning Department City of Miami 444 SW 2nd Avenue, 3rd Floor Miami, FL 33130 NOTICE E bschedeeb,apbkhei ng mlns sefoh n the City M pUmd, deion-mking bWywll at the pbc heing t.d, da., ofinal d.dm., -20-9082 Three Bri3/02/21 t98 Southeas Miami, FL Re: Letter of Intent re: Amendments to Miami Design District Retail Street Special Area Plan; Modifications to Regulating Plan and Development Agreement Dear Mr. Garcia: As you know, Akerman LLP represents Miami Design District Associates (Del.) LLC and its affiliated entities' (collectively, "Applicant') in the above -referenced modifications to the Design District Retail Street Special Area Plan ("DD SAP') and modifications to the Regulating Plan, Concept Book and Development Agreement between Applicant and the City ("Development Agreement"). A. Background on the Design District Around 60 years ago, Miami's Design District ("Design District" or the "District") became a center for the interior design and furnishings industry. Due to changing development trends out of the urban core and new suburban design centers, the Design District rapidly declined by the 1990s, and there were high crime rates and vacancies in the neighborhood. At that time, most businesses had left and the existing buildings were deteriorating. In this period Craig Robins, already a pioneering developer in South Beach, began acquiring abandoned and underutilized properties in the Design District, including a significant number of parcels now within the DD SAP. Mr. Robins sparked reinvigoration of the District by rehabilitating existing buildings, occupying them with new design and furniture tenants, and infusing the District with important publicly -accessible artwork from famous artists. In this way Mr. Robins began the transformation of the Design District into a world-renowned center for art and design. ' The affiliated entities of Applicant are the following: Norwegian Wood Acquisitions, LLC; Oak Plaza Associates (Del.) LLC; Jungle Plaza, LLC; 4200 Associates, LLC; Paradise Plaza Associates, LLC; Half -Circle Property (Del.) LLC; Lovely Rita Acquisitions, LLC; Uptown Girl Development, LLC; Sun King, LLC; Dacra Design 4141 LLC; MDDA Morning Dew, LLC; and Tiny Dancer Acquisitions, LLC. akerman.com 52263093;3 t�Y f1i'.9jj.T \1 NOTICE k eohminal needs; b � Ihedwed br a pabk h-1,g n accordance whh timellnee set forth in the City M ami Code. The appliesd, beci-n-rna Xing body will at the pubc hearing to n:nder e Ten years ago, Mr. Robins partnered with other developers to plan andr�e—dahen°r.linald.dm., PZ-20-9082 SAP. The idea was to continue previous revitalization efforts through formatioZ-20-90planned neighborhood that advocates creating through design, art, food, and 2/21 on this vision, the City Commission approved the original DD SAP in 2012. Along with SAP, the City Commission approved certain land use modifications for the District under the Miami Comprehensive Neighborhood Plan ("MCNP"), and a companion development agreement consistent with the requirements in Section 3.9 of the Miami 21 Code ("Miami 21"). The City Commission has approved several amendments to the DD SAP since its original approval in 2012, as the Design District vision became a reality. Today, initial phases of the DD SAP are fully constructed, providing a unique pedestrian -oriented urban retail street environment anchored by high -end fashion and art tenants. With the evolution of the retail experience in recent years, together with demand for increased residential housing options in Miami's rapidly revitalizing urban core, further modifications to the DD SAP are now necessary. B. Current Status of the DD SAP The DD SAP now spans portions of 15 city blocks containing most of the properties generally bounded on the east by Biscayne Boulevard, on the west by N. Miami Avenue, on the north by NE 42"d Street, and on the south by NE 38t" Street. Through redevelopment of the District, substantial investment has been made in public spaces, public infrastructure, public art, and new construction that focuses on the pedestrian -level experience with unique, Instagram-able facades. Notably, these projects were developed with less square footage than authorized under land use designations in the MCNP and zoning designations in Miami 21. Moreover, projects did not utilize allowable residential density in a retail -focused destination. Applicant deliberately chose to develop the Design District with substantially less FLR and height than allowed, to create a destination focused on shopping and artistic experiences. The current modifications to the DD SAP would permit Applicant to transfer unutilized density and FLR away from already redeveloped, lower -scale destination locations (such as Palm Court and Paradise Plaza) to still -undeveloped parcels in the Design District. This will allow the DD SAP to incentivize new office, hotel, and residential development in the DD SAP, which is needed to continue the evolution of the Design District into a true live, work, play destination. Bringing in residential uses will attract working professionals and other residents. Additionally, it would provide transit oriented residential development close to a proposed TriRail Station and astride the FEC Corridor. It would also increase jobs in the immediate area, generate impact fees, tax revenue and economic development. C. Proposed Amendments to the DD SAP For the reasons set forth above, Applicant seeks to make certain modifications to the core operative documents of the DD SAP including the Development Agreement, Regulating 2 52263093;3 Plan and Concept Book ("SAP Documents"). Below is a summary of the propo to the DD SAP and the underlying SAP Documents (collectively, the "Proposed 1) t�Y f1i'.9jj.T \1 NOTICE This.0 brnMb [ needs to be achetluleb br a public hearing In...nda a timelines setforth inthe City& Mlzml Code. The ippli[aWe dais n-ma Xing body will reWewthe information A the public hearing to rentlen e e mendadon or a final d-ivon. PZ-20-9082 03/02/21 Updated DD SAP Entities and History: Various modifications to the un Documents reflect developer entity changes over the years via lkm— conveyances and other modifications. Additional "whereas" clauses were added to the Development Agreement to explain the history of the DD SAP and approved modifications in a centralized location. 2) Transfer of Density and Intensity within T6: Modifications to the SAP Documents that would permit parcels within the SAP Area having unutilized density or unutilized FLR and located within the T6 Urban Core transect zone ("76 Properties") to transfer such unutilized density or unutilized FLR to other T6 Properties within the DD SAP, provided however that each individual project on those T6 Properties must comply with the limits imposed by the Regulating Plan and the MCNP. In other words, density and intensity would be counted on an aggregate basis for all T6 Properties located within the SAP; such that the total aggregated density and intensity throughout the T6 Properties would not surpass the aggregated as -of -right maximum (i.e. base) density and intensity permitted in underlying T6 Properties. 3) Chapter 4 Alcohol Revisions: Section 12 of the Master Development Agreement regarding alcoholic beverage sales is amended to be consistent with the updated provisions of Chapter 4 of the City of Miami Code of Ordinances. 4) NE 38t" Street Requirements: Section 19 of the Development Agreement is amended to review the condition of the cross -block pedestrian connections between NE 38t" and 39t" Streets in the annual review, every five (5) years. There are no crosswalks that provide a safe route to any "cross -block pedestrian connections." The main North -South connections are along N.E. 2nd and N.E. 1st Avenues where pedestrian crossings are provided. Additionally, glazing requirements for NE 38t" Street are being modified in the Regulating Plan. This is because current glazing requirements on the north side of N.E. 38t" street are impractical because the south side of N.E. 38t" Street is dominated by 1-195 and surface parking, and thus cannot function as a street with viable pedestrian -level retail activity. Pedestrian activity from the District to Midtown naturally flows through N.E. 1st, N.E. 2nd and Miami Avenues. 5) Additional Uses: The Regulating Plan is amended to include Apartment -Hotel and Condo -Hotel as permitted uses under Article 4, Table 3; consistent with the recent City Planning Department interpretation. Auto -Related Commercial Establishments are also permitted by right when the business is under 55,000 square feet and no automobile services are performed. These uses are complimentary to other commercial uses in the neighborhood. Establishments over 55,000 square feet or with automobile services remain subject to approval by Warrant. 3 52263093;3 - `tom P •• NOTICE This submittal needs b be ech.&o dbra pubkc hearing In eccortlana wkh tlmellnes set forth in the City M Miami Cw,e appli®Lie bsi-n-making bWy Wil reWewthe inbrmetlon at the pubkc heering t. n:ntler e 6) Gateway Site: The Regulating Plan is amended to create a Gateway pmmendatlonp fmaltleid,, 82 0-90 Gateway Site North (i.e. Tuttle North located at 299 NE 38t" Street; f PZ-2Z-20-90 011-0330) and Gateway Site South (i.e. Tuttle South located at 37 2/21 Boulevard; folio: 01-3219-045-0010). Tuttle South will be eligible for a Bonus of thirty-six (36) stories, due to the public benefits provided throughout the district to date and Tuttle South will also provide additional public benefits as described in Section 3.14.3 of the Regulating Plan. The additional flexibility in height will allow Applicant to construct an architectural work of art at the gateway of the DD. This fits within the DD SAP vision while providing appropriate transitions to surrounding areas. Immediately to the West of the Tuttle South site is the two lane North Federal Highway and the FEC railroad corridor. Tuttle South is bounded by 1-195 immediately to the south, with abutting properties zoned T6-24. And immediately to the east of the Tuttle Properties is Biscayne Boulevard —one of Miami's most heavily -trafficked streets. Given the context of Tuttle South, the proposed height is reasonable in scale, and provides appropriate transitions. Moreover, Tuttle South is near one of the proposed TriRail Stations along the FEC Corridor. Compared to the currently vacant Tuttle South property, the height increase will allow more flexibility in residential development, which better achieves goals of the MCNP and Miami 21. 7) Outdoor Dining and Art Installations: The Regulating Plan is amended to clarify that outdoor dining areas in Plazas, Courtyards, and Pedestrian Passages are permitted by Right, and outdoor dining fronting Thoroughfares is permitted by SAP Permit. Moreover, artwork and exhibits (including but not limited to art, structures, tents, shipping containers, or other creative installations) are permitted by SAP Permit. Additional definitions have been updated along with minor clean-up edits to the underlying SAP Documents as indicated in the enclosed documents for the DD SAP application. D. Statement Regarding Public Benefits The Applicant is not proposing to use any bonus density or FLR in the Design District.2 Rather, the DD SAP modifications would permit Applicant to transfer unutilized "as -of -right" FLR and density between parcels with an underlying zoning designation of T6 Urban Core. Moving forward, it is vital to the Design District to intersperse a mix of uses —including residential and office components —to continue to thrive as a true live, work, play community. The ability to transfer unutilized as -of -right FLR and density between T6 Urban Core parcels will facilitate development of these types of projects. Therefore, Applicant is proposing to change the DD SAP to allow the transfer of unutilized FLR and density so long as the total aggregate FLR and density remain under maximum as -of -right amounts for all T6 Urban Core parcels in the DD SAP. This would occur in lieu of the "bonus" FLR (and density) permitted under Miami 21. Similarly, with respect to height limitations, the maximum measured height is not changing, but 2 Note the applicant may utilize Bonus Height for Tuttle South pursuant to Section 3.14.2 of the Regulating Plan. 4 52263093;3 rather the concept of benefit height is being replaced with the term "maximu than the Bonus Height proposed for Tuttle South). NOTICE This submittal needst be schetluied br a public hes.lny In asorda wah timelines setforth in the City& .—I Cade. The applicable bsision-m,I,, body ell "Oew a inlormatlon at the public hearing to rend ere mended., or a final deciaon. e PZ-20-9082 , Even though it has been unnecessary to obtain "bonus" development capa 03/02/21 the Applicant has nevertheless provided significant public benefits to the City and its r to implement the vison for the DD SAP, as described in Section 3.14.1 of the Regulating Plan. See below list of public benefits completed since the 2012 approval of the DD SAP. These public improvements are not required by the City's Code of Ordinances, by Miami 21 or by the Miami -Dade County Code, and that the District could have been legally developed and constructed without completing any of them. See below: Public Benefit Developer Costs Total Benefit Public Right of Way Investments Paving, Utilities, Drainage $ 6,296,731 Landscaping $ 12,883,112 Pavers $ 2,065,328 Site Amenities $ 906,729 Street Lighting $ 1,863,832 Subtotal $ 24,015,732 Less Public Funding $ (4,250,000) Less Standard Right of Way Work $(6,000,000) Total Public Right of Way Investment $13,765,732 $ 24,015,732 Public Art Investments $6,908,000 $6,908,000 Artistic Garage Facades $8,744,475 $8,744,475 Contribution towards ICA3 $23,600,000 $75,000,0004 Ongoing Maintenance Costs5 $4,900,000 $4,900,000 PUBLIC BENEFITS PROVIDED IN DD SAP $57,918,207 $119,568,207 Applicant has already installed much of the infrastructure needed to support future development for the remainder of the District. Nevertheless, an additional $2-5 million in public infrastructure and $1-3 million in public art spending are estimated in conjunction with future DD SAP projects, inclusive of the Gateway Site. The already constructed privately -funded right-of-way, art improvements in the District, ongoing maintenance costs and contribution towards ICA, amount to almost $58 s Donation of the underlying lots for the Institute of Contemporary Art, Miami ("ICA"). a This amount has been raised to fund ICA for 10 years. s This is an estimate of the net present value of maintenance costs over 20 years. 52263093;3 ' `t1 RtLT� NOTICE million in public benefits,' plus the total benefit to the City (including the actu mi, o�`al°ea°' I`he W.ft in the tlancewhhti melinessetforth in the hM Mlaml C—Th. appLutke becislon-mahing bWywlll reWewifle intnnn tl nat the pabk hearing t. rentlere of ICA) amount to over $119 million in public benefits. Together wipm�e^°°nnra°nzltleciW°^ improvements —the public benefits will result in a total value of over $122 millio PZ-20-9082 03/02/21 All public benefits described above are unique to the Design District and coulaNQU replicated by developers of other projects. These investments have and will continue to provide real and immediate benefits to the public, whereas payments into the City's Public Benefits Trust Fund for bonus height and FLR only produce speculative benefits that may take years to come to fruition. In the next phase of the Design District, it is vital to evolve this retail - focused neighborhood into a true mixed -use, pedestrian -oriented community. As such, the Applicant is proposing to transfer unutilized as -of -right FLR and density within the T6 Urban Core parcels of the DD SAP; this process is separate and apart from the Public Benefits Program set forth in Section 3.14 of Miami 21 and Section 3.14 of the Regulating Plan (i.e. Bonus Height for Tuttle South). Applicant is not requesting any increase in density or FLR over the as -of -right maximums, in aggregate, but only the ability to shift that capacity to future redevelopment sites, while maintaining the per project restrictions imposed by the Regulating Plan and MCNP. F. Conclusion In conclusion, as no residential structures have been constructed in the Design District, and as much of the DD SAP has been substantially implemented with understated elegance, it is now time for the Design District to evolve by bringing in residential, hotel and office components to complement existing retail and cultural amenities. As the Design District did not utilize a large percentage of the FLR available to it, Applicant seeks to shift the density and FLR to those properties that have not already been redeveloped to facilitate further revitalization. The proposed changes to the DD SAP will continue to facilitate large numbers of temporary and permanent jobs. In addition, redeveloping the Design District in conformance with the DD SAP will produce tremendous recurring fiscal benefits for the City through significant increases in ad valorem tax revenues, parking surcharge revenues, and sales tax remittances. Most importantly, continued redevelopment in the DD SAP with residential housing in this shopping and arts destination will further reinforce Miami's growing standing internationally as an important urban center for commerce, culture, and for living in a diverse community. For the foregoing reasons, we respectfully request the City's approval of the proposed amendments to the DD SAP and Development Agreement. 6 This amount does not reflect the additional benefit provided by the Applicant for the four (4) publicly accessible parking garages, privately financed by the Applicant. In addition, operational costs are currently subsidized by the Applicant to maintain inexpensive public parking in the District. 6 52263093;3 SInC�r2 Neisen 0. Kasdin Enclosures cc: Craig Robins, Miami Design District Associates, LLC Alex Schapiro, Development Manager, Miami Design District Associates, LLC NOTICE This submittal neetls b be sch.&W dbna pubic h—ing In —nbanm whh tlrnellnss set forth in the City M M., Cotle. The appli®Lie decision --Xing bWywill reWew the inbnna .n at the public hearing to n:ntler e rec.—,lotion or a final tleciaon. PZ-20-9082 \\ 03/02/21 52263093;3