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HomeMy WebLinkAboutO-12295J-02-947 11/19/02 ORDINANCE No. 12295 AN EMERGENCY ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING DEVELOPMENT IMPACT FEES AND THE DOWNTOWN DEVELOPMENT SUPPLEMENTAL FEE AS PROVIDED IN CHAPTER 13, ARTICLES I AND II OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, BY ESTABLISHING A CONDITIONAL AND LIMITED EXEMPTION FOR SPECIFIED MARKET -RATE, MIDDLE INCOME HOUSING WITHIN THE DOWNTOWN CENTRAL BUSINESS DISTRICT, AND BY CLARIFYING THE EXEMPTION FOR HOUSING WITHIN AREAS SUPPORTED BY COMMUNITY DEVELOPMENT FUNDING; MORE PARTICULARLY BY AMENDING SECTIONS 13-2, 13-5, 13-6, 13-53, 13-55, AND 13-58; CONTAINING A REPEALER PROVISION AND A SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Chapter 13 of the Code of the City of Miami, as amended, provides for the imposition of Developmental Impact Fees; and WHEREAS, the 1989 Downtown Miami Master Plan (the "Plan"), adopted by Resolution No. 89-990, and incorporated here by reference, sets a goal for the City of Miami to "achieve a livable city center with a variety of urban housing for persons of all income levels"; and 12295 WHEREAS, that goal for a livable city center is. reaffirmed by the City Commission; and WHEREAS, the Plan and more recent studies further assert as a fundamental premise "that Miami cannot prosper as the metropolitan center of the region without substantial and diverse numbers of people living within downtown"; and WHEREAS, in describing the need for "Pioneering Development", the Plan finds that "there has been little. private initiative in 30 years" (now 40 years) "to develop anything other that luxury waterfront housing. Financial institutions are reluctant to finance middle income housing, in the absence of a track record of proven market absorption. Until a few downtown housing projects are successful, most potential high density residential sites will remain undeveloped," within the central business district; and WHEREAS, the above described findings are nonetheless legitimate today, and the need for "pioneering development" is even more critical, as evidenced by the continued lack of housing for middle income families, the stagnation of this sector as a viable part of the City's tax base, and the delay of the city center in becoming a 24-hour community and metropolitan center of the region; and WHEREAS, other objectives of the Plan support a variety of moderate to high density architectural housing design ,and the Page 2 of 11 integration neighborhood stores and professional offices on the ground floor of residential development, thereby encouraging non-residential uses within such projects, and similarly, to include residential use as a significant component of other office and retail mixed-use projects; and WHEREAS, the marketplace on its own has failed to attract development, either new construction or rehabilitation and adaptive re -use of existing structures, of any truly significant owner -occupied, market rate housing for middle income families within the downtown core, the central business district, despite the goals, objectives and strategies implemented from the Plan; and WHEREAS, it is necessary to provide an alternative measure to assure that the goal of the City is met to create a livable downtown with the concomitant increase in property tax revenues for the ultimate benefit of Miami residents; and WHEREAS, a suitable inducement to spur residential development in downtown is a financial incentive in the form of an exemption for a limited number of pioneering development projects from the imposition of the City's Development Impact Fee and the administrative portion Downtown Development Supplemental Fee as required under Chapter 13 of the City Code; and Page 3 of 11 12295 WHEREAS, such incentive would facilitate the financing of such pioneering projects, and allow for a performance track record to be established and pave the way for similar future projects; and WHEREAS, the strict limitation on the applicability of the proposed exemption to projects of a specific type, size, value, and location within a specified geographic area will not negatively impact the financial health of the City and its ability to provide municipal services to its residents and visitors; and WHEREAS, an additional clarification is required to specify the geographical area eligible for the existing exemption allowed for duplex and multiple -family residential development located within areas supported by community development block grant dollars; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Ordinance are adopted by reference and incorporated as if fully set forth in this Section. Page 4 of 11 12295 Section 2. Chapter 13/Article I./Sections 13-2, 13-5, and 13-6, of the Code of the City of Miami, Florida, as amended, are amended in the following particulars:l/ "Chapter 13 DEVELOPMENT IMPACT FEES ARTICLE I. IN GENERAL Sec. 13-2. Findings. S (b) The city commission hereby finds and declares that the impact fee imposed herein upon all new nonresidential and new residential development as further described below, in order to finance specified public facilities, the demand for which is uniquely created by such new development, is in the best interest of the city and its residents, is equitable, and does not impose an unfair burden on such development. Specifically exempted from such imposition and payment of impact fees are: * * * * * * * * * * * (3) All duplex and multiple family residential development located in the city's designated community development target areas or their equivalent as defined within the effective community development block grant program plan approved by the city and accepted by the U.S. Department of Housing and Urban Development, as may be amended; (4) All duplex and multiple family residential development, outside of the community development target areas or their equivalent 1� Words and/or figures stricken through shall be deleted. Underscored words and/or figures shall be added. The remaining provisions are now in effect and remain unchanged. Asterisks indicate omitted and unchanged material. Page 5 of 11 12295 1 as stipulated hereinabove, which is certified by the city department responsible for of develepa}ctd housing eenservatien as low and/or moderate income housing; * * * * * * * * * * * (8) As of the effective date of this ordinance, the first three residential projects that include 201 or more units of multiple family, owner -occupied housing valued for purchase by middle-income families located within the downtown central business, district, for which a building permit for construction, not merely for demolition or foundation work, is issued by the city no later than December 31, 2005. For the purposes of this section, at least 800 of the units in such development shall be priced for purchase at a value not less than 121% and not more than 290% of the median value of owner -occupied dwelling units in Miami as listed in the 2000 U.S. Census. Eligible projects are not precluded from containing other uses such as office or retail; however, the exemption shall apply only to the residential portion of such projects. In the case of projects to be constructed in phases, the exemption shall apply only to the portion(s) of the project for which the specified building permit is issued prior to December 31, 2005. Sec. 13-5. Definitions. * * * * * * * * * * * Central business district: properties having the zoning, classification of "CBD" (Central business district) as of the effective date of this Ordinance. * * * * * * * * * * * Page 6 of 11 owner -occupied: Dwelling units for individual sale by a developer and intended for occupancy by an owner, as opposed to rental residential development. * * * * * * * * * * * Sec. 13-6. Applicability of impact fee. This chapter shall be uniformly applicable to all new development, exclusive of single-family, city - owned or -operated facilities and certain other development as specifically defined herein. Specifically exempted from such imposition and payment of said impact fees are: * * * * * * * * * * * (3) All duplex and multiple family residential development located in the city's designated community development target areas or their equivalent as defined within the current community development block grant program plan approved by the city and accepted by the U.S. Department of Housing and Urban Development. (4) All duplex and multiple family residential development, outside of the community development target areas or their equivalent as stipulated hereinabove, which is certified by the 'city department responsible for efdevelepment a housing eenservatien as low and/or moderate income housing; * * * * * * * * * * * (8) As of the effective date of this ordinance, the first three residential development projects that include 201 or more units of multiple family, owner -occupied housing valued for purchase by middle-income families located within the downtown central business district, for which a building permit for construction, not merely for demolition or foundation work, is issued by the city no later than December 31, 2005. Page 7 of 11 i2295 For the purposes of this section, at least 800 of the units in such development shall be priced for purchase at a value not less than 121% and not more than 290% of the median value of owner -occupied dwelling units in Miami as listed in the 2000 U.S. Census. Eligible projects are not precluded from containing other uses such as office or retail; however, the exemption shall apply only to the residential portion of such projects. In the case of projects to be constructed in phases, the exemption shall apply only to the portion(s) of the project for which the specified building permit is issued prior to December 31, 2005. Section 3. Chapter 13/Article II. entitled "DOWNTOWN DEVELOPMENT SUPPLEMENTAL FEES" is amended in the following particulars:/ "Chapter 13 DEVELOPMENT IMPACT FEES ARTICLE II. DOWNTOWN DEVELOPMENT SUPPLEMENTAL FEES Sec. 13-53. Definitions. Ibid. Central business district shall be as defined in Section 13-5. Owner -occupied shall be as defined in Section 13-5. Page 8 of 11 12295 Sec. 1.3-55. Imposition of fee. Except as may be provided Section 13-58, no building permits or major use special permits shall be issued for any new development as defined herein unless the applicant therefore has paid the downtown development supplemental fee imposed by and calculated pursuant to this article. Sec. 13-58. Procedure for calculation of downtown development supplemental fee. (1) Determine whether the development is exempt by virtue of the conditions specified herein. (a) Any net new development or new development that is exempt from the imposition and payment of development impact fees pursuant to Sec. 13-2(b)(8) shall additionally be exempt from the imposition and payment of the proportionate share of. the downtown development supplemental fee attributable only to the DRI/master plan recovery and administration. Said exemption shall not extend to the imposition and payment of the proportionate shares for transportation mitigation and air quality. Section 4. All ordinances or parts of ordinances insofar as they are inconsistent or in conflict with the provisions of this Ordinance are repealed. Section 5. If any section, part of section, paragraph, clause, phrase or word of this Ordinance is declared invalid, Page 9 of 11 12295 the remaining provisions of this Ordinance shall not be affected. Section 6. This Ordinance is declared to be an emergency measure on the grounds that of urgent public need for the preservation of peace, health, safety, and property of the City of Miami, and upon the further grounds of the necessity to make the required and necessary payments of its debts, purchases of goods and supplies, and to generally carry on the functions and duties of municipal affairs. Section 7. The requirement of reading this Ordinance on two separate days is dispensed with by an affirmative vote of not less that four-fifths of the members of the Commission. Section 8. This Ordinance shall become effective immediately upon its adoption and signature of the Mayor.3/ 3/ If the Mayor does not sign this Ordinance, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Ordinance, it shall become effective immediately upon override of the veto by the City Commission. Page 10 of 11 12295 PASSED AND ADOPTED BY TITLE ONLY this 19th day of November , 2002. ATTEST: 9 PRISCILLA A. THOMPSON CITY CLERK APPROVED,4e "'06 FOAND CORRECTNESS LLO ATTORNEY W1343:DJ:BSS Page 11 of 11 M4UEL A. DIAZ, MAY jdooO 12295 • 0 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: Honorable Mayor and Members of the City Commission DATE: NOV - 8 2002 FILE SUBJECT: Emergency Ordinance — Impact Fee Exemptions REFERENCES: ENCLOSURES: RECOMMENDATION It is respectfully recommended that the City Commission adopt the attached emergency Ordinance to amend Development Impact Fees and the Downtown Development Supplemental Fee as provided in Chapter 13, Articles I and II of the City of Miami Code, as amended, by establishing a conditional and limited exemption for specified market -rate, middle income housing within the downtown central business district, and by clarifying the exemption for housing within areas supported by community development funding; more particularly by amending sections 13-2, 13-5, 13-6, 13-53, 13-55, and 13-58. BACKGROUND Dating back to the 1989 Downtown Miami Master Plan (the "Plan"), the City of Miami set a goal to "achieve a livable city center with a variety of urban housing for persons of all income levels." The Plan, as well as more recent studies, further asserts as a fundamental premise "that Miami cannot prosper as the metropolitan center of the region without substantial and diverse numbers of people living within downtown." Furthermore, in describing the need for "pioneering development", the Plan found that "there has been little private initiative in 30. years" (now 40 years) "to develop anything other that luxury waterfront housing. Financial institutions are reluctant to finance middle income housing, in the absence of a track record of proven market absorption. Until a few downtown housing projects are successful, most potential high density residential sites will remain undeveloped" within the central business district. The above described findings are nonetheless legitimate today, and the need for "pioneering development" is even more critical, as evidenced by the continued lack of housing for middle income families, the stagnation of this sector as a viable part of the City's tax base, and the delay of the city center in becoming a 24-hour community and metropolitan center of the region. Other objectives of the Plan support mixed -used residential development. The Plan encourages the integration neighborhood stores and professional offices on the ground floor of residential developments, and similarly recommends that residential use be included as a significant component of other office and retail mixed-use projects. Until now, the marketplace on its own has failed to attract the development, either as new construction or as rehabilitation of an existing structure, of any truly significant owner -occupied, 12295 market rate housing for middle income families within the downtown core, the central business district, despite the goals, objectives and strategies implemented from the Plan. It is thus necessary to provide an alternative measure to assure that the goals of the City are met as enumerated in the Plan, for the ultimate benefit of its residents through the creation of a livable downtown and the concomitant increase in property tax revenues. A suitable inducement is a financial incentive in the form of an exemption for a limited number of pioneering development projects from the imposition of the City's Development Impact Fee and the administrative portion of the Downtown Development Supplemental Fee as required under Chapter 13 of the City Code. This incentive would facilitate the financing of such pioneering projects, thus allowing a track record of performance to be established and thereby paving the way for similar projects in the future. The criteria we propose for a project's exemption are: ■ must be one of only the first residential development projects within the designated area that meet the specified criteria; ■ must have 200 or more units of multi -family, owner -occupied housing; ■ must be valued for purchase by middle-income families, that is, at least 80% of the units in such development shall be priced for purchase at a value not less than 121% and not more than 29.0% of the median value of owner -occupied dwelling units as listed in the 2000 U.S. Census. That value for the City is $120,000, thus the price range for units in exempt projects would be from $145,000 to $350,000; ■ must be located within the downtown central business district; and ■ construction building permits must be issued no later than December 31, 2005. Mixed-use projects are eligible, but the exemption applies only to the residential portion. For projects constructed in phases, only the residential portion for which building permits are issued by the required date are eligible. It should be noted that the City Code already provides citywide exemptions for single-family residential development and low and/or moderate -income housing. Additional exemptions exist for non-profit joint venture projects with the city, city -owned or operated facilities, and duplex and multi -family projects located within community development supported areas. An additional clarification within this Section of the City Code is required to specify the geographical area eligible for this last form of exemption. In 1999, the City adopted the Consolidated Plan to guide the distribution community development block grant dollars. In so doing, "community revitalization districts" were created in the place of "community development target areas". The districts are designated on the basis of their socio-economic characteristics, primarily levels for home -ownership and poverty, pursuant to federal guidelines. The proposed modification permits the exemption for such development located within designated target areas or their equivalent as defined within the effective community development block grant program plan approved by the City and accepted by the U.S. Department of Housing and Urban Development. Thus as target areas and/or revitalization districts are revised over time, the exemption would extend to only the current boundary. 12295 FISCAL IMPACT The exemption from the stipulated impact fees for the proposed residential projects, the first three market rate, owner -occupied middle income developments within the central business district, is expected to result in a one time revenue loss of approximately of $1,316,000. On the other hand, the construction of residential portions only of those same three projects is expected to bring in an additional $2,024,000 in annual city tax revenue. Both impact fees and taxes will be collected for the non-residential portions. 12295