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HomeMy WebLinkAboutCRA-R-19-0004 Exhibit A 2018-11-14City of Miami OMNI CRA Assessment of Need For Extension of Time Frame for the District PMG Associates, Inc. 3880 NW 2 Court Deerfield Beach, Florida 33442 (954) 427-5010 SECTION 1 INTRODUCTION 1.1 HISTORY AND PURPOSE This document represents the analysis of the Assessment of Need for the extension of the time frame for the OMNI Community Redevelopment Area (CRA) in the City of Miami. This assessment is based on Miami -Dade County Board of County Commissioners Resolution #R- 611-15 which requires an assessment that demonstrates that slum and blight still exist within the designated Community Development Agency. This report is part of a formal request to extend timeframe of the OMNI CRA for an additional 15 years. The Finding of Necessity (FON) for the original OMNI CRA was completed in 1987 and the district has received several updates and expansions over the years. EXHIBIT 1-1 — OMNI CRA BOUNDARY MAP Source: Miami -Dade County The provisions of R-611-15 are not specifically a requirement of a Finding of Necessity FON) as expressed by Florida Statutes 163, Part III section 163.340 (7)(8). This section of the statutes defines the requirements to declare an area as exhibiting the conditions of slum and blight. The provisions of R-611-15 mirror the requirements of the State Statutes as referring to slum and blight. This resolution identifies the requirements of the Assessment of Need identical to those of section 163.340 (7)(8). 1 I Page This analysis will be conducted in the same manner as the FON for a CRA area. The OMNI CRA has made significant improvements over the years and will use the extension of time to further the progress in the CRA area. SUCCESSES OF THE OMNI CRA Dorsey Library Built in 1941, Dorsey Memorial Library was the first City -built library in Miami, and one of the only libraries to allow black patrons to sit and read. Although it had various uses for many years, it has sat empty since the 1980s due to a funding shortfall. Although it has been declared an historic structure, it has not been preserved or protected, and it has not fulfilled its mission as a free and public library. In 2016 the Omni CRA pledged $850k to leverage the City's commitment to rehabilitate this historic structure, and has met with the community to determine character of use, and the nature of what a 21s' century library serving the neighborhood from an historic building would entail. Citizen's Bank Building Omni CRA is under contract to purchase the historic Citizen's Bank building on 14th Street and Miami Avenue, to rehab and turn into an active and lively retail, dining or cultural venue. With paired Corinthian columns and arched entrances, this Neoclassical building is sited on a major intersection in the Omni CRA. The prominent Citizens Bank represents a fashionable architectural trend in 1920s South Florida of classically -inspired building designs. Constructed during the Land Boom years, this building is a reminder of a time when local architects were seeking to create a visual identity for the young city. The Miami Entertainment Complex ( MEC ) The recently completed Miami Entertainment Complex (MEC) features two fully operational sound stages of 15,000 square feet each with a 50-foot roof as well as about 15,000 square feet of offices, editing suites and even a school for when kids need to be on set. The MEC is now called VIACOM INTERNATIONAL STUDIOS, after its Operating Film and Television production firm. Viacom shoots much of its Latin American television at these studios and employs hundreds of workers when they are filming a show. They have also brought the community of local filmmakers and media creatives in for tours of the facility and technical workshops. 2 1 P a g e A review of the projects identified in the 2010 Redevelopment Plan update follows: Completed Projects • Baywalk o Woman's Club o Museum Park • Streets o NE 2nd Ave. o NE/NW 14th Street o NE 17th Street o NE 17th Terrace o Bayshore Drive o NE 2nd Ave 0 • Port Miami Tunnel (paying Debt Service) • Neighborhood Greenspace o Land Acquisition o Fire Station 92 Park o PAC North o PAC South o Margaret Pace Park o Museum Park ■ Environmental remediation ■ Construction of Park • Historic Preservation On -Going Projects • Zoning Strategies o Zoning Amendments o Workforce Housing Incentives o Parking Reductions • Historic Preservation o Miami City Cemetery o S&S Restaurant o Fire Station No. 2 Citizens Bank Completed Projects • Baywalk o Woman's Club o Museum Park 3 1 P a g e • Streets o NE 2nd Ave. o NE/NW 14th Street o NE 17th Street o NE 17th Terrace o Bayshore Drive o NE 2nd Ave 0 • Port Miami Tunnel (paying Debt Service) • Neighborhood Greenspace o Land Acquisition o Fire Station 92 Park o PAC North o PAC South o Margaret Pace Park o Museum Park ■ Environmental remediation ■ Construction of Park • Historic Preservation Planned Projects • Miami Herald Properties o Infrastructure & Streetscapes • School Board Properties o New School Facilities o Workforce and Affordable Housing Development o Arsht Center Parking o Entertainment District Expansion • Design Guidelines o Media Entertainment District Noise Abatement Guidelines o PAC Area Guidelines o Biscayne Boulevard Design Guidelines o NE 2nd Ave Design Guidelines • 2 Way Streets o N. Miami Ave. o NE 17th Street o Trinity Cathedral o Miami Woman's Club o Dorsey Library 4 1 P a g e • Streetscapes o Improved Sidewalks o Lighting o Landscaping o Street Furniture • 17th Street FEC crossing • Water and Sewer Upgrades • Infrastructure CHARACTERISTICS OF THE DISTRICT The population of the OMNI CRA area is estimated at 8,509 in 2018. There are 4,416 dwelling units in the area. The entire City of Miami maintains a population of 467,872 within 205,175 dwelling units. Other facilities in the study area include: Parks • Museum Park • Omni Park • Dorsey Park • Biscayne Park • Margaret Pace Park Schools • Phyllis Wheatley Elementary Important Facilities • Philip and Patricia Frost Museum of Science • Perez Art Museum • Knight Concert Hall • Adrienne Arsht Center for the Performing Arts • Art Miami • Dorsey Memorial Library • City of Miami Cemetery 5 1 P a g e 1.2 METHODOLOGY The Assessment of Need as defined in R-611-15 will follow the provisions of State Statutes concerning the determination of slum and blight. Consistent with State Law, process examines the character of the area and measures statistics and other documentation to determine if the conditions of slum and blight have been met, as described in Florida Statutes 163. Part III section 163.340 (7)(8). This analysis will examine each of the criteria and determine if the OMNI CRA area meets these conditions. The analysis of the conditions that exist in the OMNI CRA area was conducted using data available from documented sources throughout the community. Agencies within the City of Miami and Miami -Dade County were contacted and data was supplied to examine the characteristics of the community. Additional research was conducted through field observations and photographic evidence to underscore the findings. Each of the criteria as established by State Law will be discussed separately and the data sources used for the analysis will be described in each section. 1.3 LEGAL REQUIREMENTS The requirements of the determination of slum and blight are established in Section 163.340 of the Florida Statutes and are described as follows: Slum Determination 163.340 (7) "Slum area" is defined as an area having physical or economic conditions conducive to disease, infant mortality, juvenile delinquency, poverty, or crime because there is a predominance of buildings or improvements, whether residential or nonresidential, which are impaired by reason of dilapidation, deterioration, age, or obsolescence, and exhibiting one or more of the following factors: (a) Inadequate provision for ventilation, light, air, sanitation, or open spaces; (b) High density of population, compared to the population density of adjacent areas within the county or municipality; and overcrowding, as indicated by government -maintained statistics or other studies and the requirements of the Florida Building Code; or (c) The existence of conditions that endanger life or property by fire or other causes. Blight Determination 163.340 (8) "Blighted Area" is defined as an area in which there are a substantial number of deteriorated, or deteriorating structures, in which conditions, as indicated by government -maintained statistics or other studies, are leading to economic distress or endanger life or property, and in which two or more of the following factors are present: 6 1 P a g e (a) Predominance of defective or inadequate street layout, parking facilities, roadways, bridges, or public transportation facilities; (b) Aggregate assessed values of real property in the area for ad valorem tax purposes have failed to show any appreciable increase over the 5 years prior to the finding of such conditions; (c) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (d) Unsanitary or unsafe conditions; (e) Deterioration of site or other improvements; (f) Inadequate and outdated building density patterns; (g) Falling lease rates per square foot of office, commercial, or industrial space compared to the remainder of the county or municipality; (h) Tax or special assessment delinquency exceeding the fair value of the land; (i) Residential and commercial vacancy rates higher in the area than in the remainder of the county or municipality; 0) Incidence of crime in the area higher than in the remainder of the county or municipality; (k) Fire and emergency medical service calls to the area proportionately higher than in the remainder of the county or municipality; (1) A greater number of violations of the Florida Building Code in the area than the number of violations recorded in the remainder of the county or municipality; (m) Diversity of ownership or defective or unusual conditions of title which prevent the free alienability of land within the deteriorated or hazardous area; or (n) Governmentally owned property with adverse environmental conditions caused by a public or private entity. 7 1 P a g e SECTION 2 SLUM CONDITIONS 2.1 ANALYSIS OF SLUM CONDITIONS The conditions that define "Slum" as outlined in Florida State Statues 163340(7) in the potential CRA area are found in the following factors. In order for an area to qualify as having slum conditions, the area must have at least one of three factors. (a) Inadequate provision for ventilation, light, air, sanitation, or open spaces; The conditions of inadequate housing can be categorized through the determination of "Unsafe Structures" as determined by the Florida Building Code. Data collected from the City of Miami reveals that the OMNI CRA area has 11 "Unsafe Structures" designated within its borders. These citations cover the full range of conditions including inadequate ventilation, substandard housing and improper maintenance of the buildings. These 11 structures represent 1.38% of all structures in the district. City-wide, Miami has 1,328 cases of Unsafe Structures which represents .65% of the total number of structures in the City. The listing of Unsafe Structures is provided in Table 2-1 TABLE 2-1 LISTING OF UNSAFE STRUCTURES BY ADDRESS 124 NW 14 Street 1400 Biscayne Boulevard 1425 NE 2 Avenue 2115 N Miami Avenue 2127 N Miami Avenue 2141 N Miami Avenue 555 NE 15 Street 1440 NW 1 Avenue 1558 NW 1 Avenue 1614 NW 1 Court 270 NW 23 Street 8 1 P a g e Examples of Unsafe Structures Exhibit 2-1, 1558 NW I Avenue PW Exhibit 2-3, 1425 NE 2 Avenue Exhibit 2-5, 1440 NW 1 Avenue 61 Exhibit 2-2, 124 NW 14 Street Exhibit 2-4, 2141 N. Miami Avenue Exhibit 2-6, 1614 NW 1 Court (b) High density of population, compared to the population density of adjacent areas within the county or municipality; and overcrowding, as indicated by government - maintained statistics or other studies and the requirements of the Florida Building Code. Density patterns can be measured by the amount of developed acres of land or by the amount of population per square mile. The City of Miami covers approximately 35.87 square miles within its boundaries. Based on a population of 467,872, the density of persons per acre in the City of Miami is 20.38. For the OMNI CRA area, the population of 8,509 lives within approximately 503 acres for a density of 16.92 persons per acre. 9 1 P a g e (c) The existence of conditions that endanger life or property by fire or other causes. A review of the data from the City of Miami Fire Rescue Department reveals that in 2017, the Omni CRA area had a total of 2,117 calls for fire and emergency service. Based on the population of 8,509, this equates to 274.06 calls per one thousand population. For the entire service area of the City of Miami Fire Rescue during the same time, the population of 467,872 generated 100,583 calls for fire service, which is 214.98 calls per one thousand population. 2.2 RESULTS OF ANALYSIS The OMNI CRA area meets criteria (a) and (c) of section 163.340(7) of the State Statutes. 101Page SECTION 3 BLIGHT CONDITIONS 3.1 ANALYSIS OF BLIGHT CONDITIONS The requirements under State Statutes 163.340(8) for designation as "Blighted" note that the area must have a substantial number of deteriorated, or deteriorating structures, in which conditions, as indicated by government -maintained statistics or other studies, are leading to economic distress or endanger life or property. One method of illustrating "Blight" is through photographic evidence. Field observations were used to examine the area and photographs were taken of the conditions. Exhibits 3-1 through 3- 20 are a representative sample of the conditions in the area. Deteriorated Residential 1 Exhibit 3-1 Deteriorated Mixed Use Exhibit 3-2 Exhibit 3-3 11 I Page Deteriorated Commercial Exhibit 3-4 0�< Exhibit 3-6 Exhibit 3-5 - 121Page Deteriorated Fences Exhibit 3-7 Exhibit 3-9 Deteriorated Drainage Exhibit 3-11 Exhibit 3-8 Exhibit 3-10 Exhibit 3-12 131Page Deteriorated Roadways Exhibit 3-13 Exhibit 3-14 Exhit 3-15 3.2 Blight Criteria Analysis (Must meet 2 of the 14 items) Each of the 14 criteria will be examined in this section. (a) Predominance of defective or inadequate street layout, parking facilities, roadways, bridges, or public transportation facilities; For economic purposes, the street layout should enable customers to reach businesses easily and for trade among business to be conducted directly and efficiently. The most significant roadway is Dixie Highway which bisects the district. The diagonal nature of the road separates the commercial properties from the east and the west side of the Highway. 141Page EXHIBIT 3-16 TYPICAL GRID PATTERN IN DISTRICT Source: Google Maps Public Transit is provided through thirteen Miami -Dade Transit System fixed routes that serve the area. In addition, the MetoMover system runs through the district with three stations located within the boundaries (b) Aggregate assessed values of real property in the area for ad valorem tax purposes have failed to show any appreciable increase over the 5 years prior to the finding of such conditions; Data from the Miami -Dade County Property Appraiser's Office was obtained to examine the change in Taxable Value for the properties located in the OMNI CRA area and compare them to the entire City's experience. TABLE 3-1 CHANGE IN TAXABLE VALUES - POTENTIAL CRA AREA AND CITY OF MIAMI Source: Miami -Dade County, City of Miami 151Page (c) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; Most of the streets in the district are in a grid pattern that form square or rectangular blocks. The exception is US 1 which runs diagonally through the area generating odd shaped parcels. However, this situation is not extremely prevalent and does not pose a significant problem.. (d) Unsanitary or unsafe conditions; The City of Miami Building Code Division has determined that 11 buildings in the potential area are "Unsafe Structures" and have cited these properties for the condition of the buildings. Table 2-1 lists the properties designated as Unsafe Structures. (e) Deterioration of site or other improvements; Listed in Table 3-2 are the necessary improvements to the infrastructure within the potential area boundaries. These improvements total approximately $12.6 million. TABLE 3-2 INFRASTRUCTURE IMPROVEMENT NEEDS (estimates) Item Install Sidewalk LF Road 17052.9 Quantity 9474 Unit SY Cost 75 Total $ 710,537 Install Curb and Gutter 16454.6 16454.6 LF 35 $ 575,911 Replace Driveway Turnouts 11796 SY 75 $ 884,665 Asphalt Overlay 39675.2 88167.1 SY 50 $ 4,408,353 Drainage Structures 24 EA 5000 $ 120,000 Drainage Pie 3500 4000 LF 150 $ 600,000 Road Rebuild 4200 9333.3 SY 100 $ 933,333 Side Street Parking 4600 10222.2 SY 75 $ 766,667 Striping 45000 90000 LF 5 $ 450,000 Street Lights 14 EA 15000 $ 210,000 Design and Contingency 30% $ 2,897,840 TOTAL IMPROVEMENTS $ 12,557,307 Source: Florida Technical Consultants 161Page (f) Inadequate and outdated building density patterns; Density patterns can be measured by the amount of developed acres of land or by the amount of population per square mile. The City of Miami covers approximately 35.87 square miles within its boundaries. Based on a population of 467,872, the density of persons per acre in the City of Miami is 20.38. For the OMNI CRA, the population of 8,509 lives within approximately 503 acres for a density of 16.92 persons per acre. (g) Falling lease rates per square foot of office, commercial, or industrial space compared to the remainder of the county or municipality; Lease rates have not been declining and are generally on a par with other similar areas of the City of Miami. Three data sources were used to determine the lease rates and the real estate activity in the area. These sources are: • Trulia.com • MLS • Loop.net Additionally, the information was verified through field investigation. (h) Tax or special assessment delinquency exceeding the fair value of the land; The Miami -Dade Tax Collectors Office is the source of the Tax Delinquency figures for all of Miami -Dade County including the potential area. Data representing the tax delinquencies for the past year were acquired and analyzed for this study. One of the questions regarding the designation of blight is if the area has property with tax delinquencies that exceed the fair value of the properties within the boundary. The analysis indicates that there are only a few delinquent tax files in the area. (i) Residential and commercial vacancy rates higher in the area than in the remainder of the county or municipality; Overall, there are relatively few vacancies in the potential area and these rates are not more extensive than through the remainder of Miami -Dade County. Three data sources were used to determine the vacancy rates and the Real Estate activity in the area. These sources are: • Trulia.com • MLS • Loop.net Additionally, the information was verified through field investigation. 171Page 6) Incidence of crime in the area higher than in the remainder of the county or municipality; Crime data was obtained from the City of Miami Police Department who maintains statistics for municipal boundary. Data from Part 1 and Part 2 crimes that encompass the OMNI CRA area as well as the entire City were obtained to determine the incidence of crime. For the past year, the total number of Emergency and Priority calls for the potential CRA area was derived from the posted statistics. To better compare these numbers, they were divided by the population to arrive at a per capital figure of calls per one thousand population. Table 3-3 provides the analysis. TABLE 3-3 POLICE CALLS PER CAPITA Source: City of Miami Police Department (k) Fire and emergency medical service calls to the area proportionately higher than in the remainder of the county or municipality; A review of the data from the City of Miami Fire Rescue Department reveals that in 2017, the OMNI CRA area had a total of 2,117 calls for fire and emergency service. Based on the population of 8,509, this equates to 274.06 calls per one thousand population. For the entire service area of the City of Miami Fire Rescue during the same time, the population of 467,872 generated 100,583 calls for fire service, which is 214.98 calls per one thousand population. (1) A greater number of violations of the Florida Building Code in the area than the number of violations recorded in the remainder of the county or municipality; The City of Miami Code Enforcement Division is responsible for overseeing the monitoring and enforcement of the Building Codes and other regulations regarding the use of property. Data for the past year was obtained and reviewed to assess the number of Code violations within the OMNI CRA boundary and the total for the City of Miami. Table 3-4 lists the figures and analysis for the Code violations in the area. TABLE 3-4 CODE VIOLATION Area Violations Parcels Percentage of Parcels OMNI CRA Area• 1 Source: City of Miami Code Enforcement 181Page (m) Diversity of ownership or defective or unusual conditions of title which prevent the free alienability of land within the deteriorated or hazardous area, Currently there are 26 Vacant Parcels in the OMNI CRA area. Most of these properties are designated for Single Family Residential use. The ownership of these parcels is diverse and does not provide an apparent opportunity to assemble properties. (n) Governmentally owned property with adverse environmental conditions caused by a public or private entity, The entire area is within the City of Miami Brownfield area as defined by Miami -Dade County. However, there are no specific sites described as environmental hazards in the area. 3.3 RESULTS OF ANALYSIS The OMNI CRA area meets the following criteria of section 163.340(8) of the State Statutes. • Deteriorated Structures • Section b, Taxable Value lagging behind the City results • Section d, Unsanitary or unsafe conditions • Section e, Deterioration of site or other improvements • Section j, Incidence of crime in the area higher • Section k, Fire and emergency medical service calls to the area proportionately higher • Section 1, A greater number of violations of the Florida Building Code • Section m, Diversity of ownership or defective/unusual conditions of title 191Page SECTION 4 SUMMARY AND RECOMMENDATIONS 4.1 SUMMARY Sections 2 and 3 of this report identify the criteria for designation as "slum" and "blight" based on Florida Statutes. Each of the criteria was examined individually to assess the conditions and determine if the requirements under State law has been satisfied. Tables 5-1 and 5-2 the criteria for slum and blight found in the potential area. TABLE 4-1 SLUM CRITERIA TABLE 4-2 BLIGHT CRITERIA Criteria Description ed Strictures iW" Meets criteria a Predominance of defective or inadequate street layout Does not meet criteria (b) Assessed values of real property in the area have failed to Meets criteria show any appreciable increase c Faulty lot layout Does not meet criteria d Unsanitary or unsafe conditions Meets criteria e Deterioration of site or other improvements Meets criteria Inadequate and outdated building density patterns Does not meet criteria (g) Falling lease rates per square foot of office, commercial, or Does not meet criteria industrials ace (h) Tax or special assessment delinquency exceeding the fair Does not meet criteria value of the land (i) Residential and commercial vacancy rates higher in the area Does not meet criteria than in the remainder of the City Incidence of crime in the area higher Meets criteria (k) Fire and emergency medical service calls to the area Meets criteria proportionately higher 1 A greater number of violations of the Florida Building Code Meets criteria (m) Diversity of ownership or defective/unusual conditions of Meets criteria title (n) Governmentally owned property with adverse environmental Does not meet criteria conditions 201Page This summary notes that the potential area meets two of the three of the "Slum" criteria and 7 of the 14 specific "Blight" criteria. In addition, the potential area has a substantial number of deteriorated structures as evidenced by Exhibits 2-1 through 2-6, and 3-1 through 3-15. 4.2 RECOMMENDATIONS The OMNI CRA area meets the criteria established under Resolution R-611-15 that the area continues to meet the standards of slum and blight under Chapter 163.340 (7))8) of the Florida Statutes". The area meets two of the three of the criteria to be designated as slum (one is required), and seven of the criteria to be designated as "blight" (only two are required). The area also meets the "blight" requirement of existence of deteriorated structures. 211Page