HomeMy WebLinkAboutM-79-0720CITY OF MIAMI PLANNING DEPARTMENT OCT, 1979
t
I. BISCAYNE BOULEVARD NORTH: OVERALL OBJECTIVE
II. BISCAYNE BOULEVARD NORTHSTUDY DESIGN
III. SUMMARY OF FINDINGS ..............••.•••'•
IV. SUMMARY OF RECOMMENDATIONS ..............
V. BISCAYNE BOULEVARD NORTH OFFICE
▪ Office Employee Projections .. ...•••••••••••
Analysis: Office Space Projections ............`
VI. BISCAYNE BOULEVARD NORTH RESIDENTIAL PROJECTIONS>
Demand.........:....'.............:........ 23
Supply 23-25
Discussion ... ..:.... .... .:..`......:......... 25`
VII. .COMPARATIVE ANALYSIS.OF EXISTING LAND VALUES
- Analysis ........ .... ......... ....... ..,
▪ Comparative Land Values Illustrated ...........
-
Discussion
VIII. BISCAYNE BOULEVARD NORTH: ANALYSIS OF "MOTEL ROW"
▪ Tourism: Trends Affecting "Motel Row" .....a.
▪ "Motel Row": Existing Conditions
▪ Economic Impact of Adult Congregate Living
Facilities
▪ Economic Impact of Zoning District Change:
Biscayne Boulevard East between N.E. 50 Terra'
N.E. 55 Terrace
Special Transfer of Development Rights as a
Redevelopment Incentive ......... ..............
▪ Targeted Deepening of Commercial District ......
IX. BISCAYNE SHOPPING PLAZA ...............:....::.
Existing Conditions ............ .......... 51-57
Consumer Survey Results .............. .......... 57-59
▪ Residential Survey Results ..... .... ... ....... 59-60
Summary ................ •••••••. ••••• ••..... 60-61
- ▪ Area Retail/Eating and Drinking Space Demand .... 61-63
▪ Recommendations ............. .....-•• ......••••• 64-71
X.
APPENDIX ...................... •••.••••• •
...................... 72-76
Biscayne Boulevard; North Special Planning District:.
Zoning Overlay .. .... ..:..:....: ... .... ... 72-7
Illustration of Special Transfer ofDevelopment
Rights .................. ................ ........ 76
-i-
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-1-
BISC'AYNE BOULEVARD NORTH
ECONOMIC PLANNING STUDY
OVERALLOBJECTIVE
Responding to the failing economic health of Biscayne Boulevard,
residents of the northeaSt community came to the Planning Depart-
ment with an idea for its revitalization.
Often it is difficult to stimulate interest in an idea without
specific information with which to sell the idea. In this sense,
the technical, economic planning input can function as a market-
ing tool.
Adhering to this viewpoint, the City of Miami Planning Department
has prepared this "Biscayne Boulevard North Economic Planning Study"
with the intent that it will serve as the preliminary redevelopment
impetus for Biscayne Boulevard, north of N.E. 36th St.
-2-
11
BISCAYNE BOULEVARD NORTH STUDY DESIGN
•
I. Objectives
Four principal objectives noted in connection with this task are:
A. Document the existing environmental and physical conditions
in the study area which detract from the normal working of
economic growth, including an analysis of the existing
zoning pattern.
B. Perform a detailed economic analysis of the study area to
determine the land use program which might serve as the
p.i
redevelopment impetus for revitalizng Bscayne Boul.evarde
,
C. Prepare a realistic implementation program for meeting
redevelopment objections.
D. Produce a Biscayne Boulevard information base that can be
utilized by the Office of Trade and Commerce Development
and community Groups as a marketing tool to attract compatible
business development.
II.Work Effort
To achieve these objectives, the following specific actions are
proposed:
A. Office Space Projections (1985) for the City of Miami in
general, the Downtown area, and the Biscayne Boulevard
Corridor above NE 36th Street (Biscayne Boulevard North).
B. Analysis of existing office space and planned office
construction as it relates to the Biscayne Boulevard North
Study •Area's office space projections.
C. Residential projections for the Biscayne Boulevard North
Area as a function of office empl.oyment within the
general downtown area.
D. Analysis of existing residential occupancy rates and
planned residential construction as it relates to the
sales and rental 'projections for the Biscayne Boulevard
North. Area.
E. Perform detailed Land Use Analysis for the Biscayne Boule-
vard North Area.
F. Conduct a Comparative Analysis of Existing Land Values:
G. Assess the economic implications of specific land use
and reuse for parcels situated within the study area.
H. Biscayne Boulevard: Economic Analysis of "Motel Row."
Assess the economic implications of specific land reuse
with recommendations as to the zoning districts that
may be the most compatible with the specific land reuses.
I. An existing conditions statement with respect to the
Biscayne Shopping Plaza and, subsequent, policy implications.
J. Consumer survey. (conducted in the Biscayne Shopping Plaza)
and resident survey (telephone' survey of northeast community
residents). Survey to assess the demand side of the local
retail market, especially how it relates to the Biscayne
Shopping Plaza.
K. Prepare a realistic implementation plan which addresses
the policy implications of the study's findings.
- 4-
III
SUMMARY OF FINDINGS
Office Space Projections: 1985
Between 1975 and 1985, Biscayne Boulevard North can
capture approximately 500,000 square feet of office
existing vacancies within the same area.
Biscayne Boulevard may increase itsshare of new office
other areas in and around Miami by way of an aggressive
approach, zoning changes and community improvements.
Residential Projections: 1985
Between 1975 and 1985, one can expect an increase in demand for housing
within a 15 minute commuting distance (by car) from the Central Business
District equal to 1,325 units, at least.
Projects currently under construction and/or �n. the drawing board, totalling
1105 units of which 300 will be for rental purposes, will not address
middle/upper-middle income households for the most part.
Biscayne Boulevard North, between NE 36th Street and NE 62nd Street has
the potential to capture at least 30% of the residential demand generated
by the additional 1350 households wishing to live within a 10-12 minute
commute from the CBD by 1985. Sales prices for the 210 additional sales
units projected should range from $55,000-$85,000 (1979 dollars). Rental
units, an additional 195 projected for this segment of the Boulevard, should
range in monthly receipts from $400-$750. The income category being catered
to is the $18,000-$35,000 (1979 dollars) one.
Comparative Analysis of Land Values: 1978
The 1978 fair market value of land along Brickell Avenue is two times the
fair market value of land along Biscayne Boulevard between NE 36th Street
and NE 61st Street, $30 as opposed to $15 per square foot of land. Vacant
land along Biscayne Boulevard north of NE 72nd Street is valued at approxi-
mately $9 per square foot.
A modest size condominium will sell for at least $16,000 more in a Brickell
residential project than in an identical project built on Biscayne Boulevard,
simply a reflection of the difference in land values.
Assuming the exact same office building is built on both the Brickell site
and the Biscayne Boulevard site (cash on cash returns equal) 5,000 square
feet of office space would cost a customer roughly $25,000 less in the
Biscayne Project per year, a major savings.
Vacant land is a scarce commodity within the study area. The most
inefficient and obsolete use of land are the 18-32 unit motels that line
the Boulevard within the study area (objectively criticized in the next
section). This prime redevelopment property can be acquired for a
maximum cost of $8,000 per room which translates into $12-$15 per square
foot of land (inclusive of existing improvements).
-5-
• Economic Analysis. of "Motel Row"
Although tourism is increasing in South Florida, the number of tourists
coming here by automobile continues to decline. Consequently, the demand
for motel accomodations along the Boulevard above NE 36 St. has decreased
dignificantly. Escalating operating costs in the face of this demand
decrease have together worked to remove the profit from this area's
small motel establishments.
Encouraging Adult Congregate Living Facilities as alternative, interim
uses for these motels (the present trend) may function to make infeasible
the kinds of development this study has recommended for Biscayne Boulevard.
The financial feasibility of these projects (office, retail -commercial,
residential) rests on the premise that these motels can be acquired for
$12-$15 per square foot. Because these ACLF's are more profitable
operations than the motel operations for the same structure, the sales
value of the property will jump to $20 and beyond. Financing (developers
interests, too) will probably be difficult to acquire as a result. (The
Planning Department is conducting a study of the equitable geographical
distribution of these facilities).
The existing R-4 Zoning District along Biscayne Boulevard's east side,
between NE 50th Terrace and NE 55th Terrace will not allow for the land
use program which may serve as the redevelopment impetus for revitalizing
this stretch of the Boulevard. Ten marginal motels presently occupy this
zoning district. Residential and mixed use construction, similar to the
Falls apartments is deemed appropriate for this area.
The existing C-1 Zoning District which defines Biscayne Boulevard between
NE 60th Street and Little River does not: provide adequate redevelopment
incentives to builders; encourage the kinds of structural uses deemed
appropriate for this arterial landmark.
Biscayne Shopping Plaza
A combination of forces have detrimentally impacted the plaza during the
last several years. The catalyst of decline was managerial and financial
difficulties internal to the anchor stores within the plaza. These
vacancies were not caused by changes in the area's major demand determinants,
such as incomes and population. However, many of these initial vacancies,
allowed to persist by the management, effectively diminished the variety of
good supplied which decreased consumer's preference for shopping here.
More vacancies resulted as a consequence.
An analysis of the gross warranted retail floor area within the trading
area, based on total sales potential, discloses that the 300,000 sq. ft.
of retail space in the plaza represents only 13% of this warranted retial
floor area. Ample sales potential exists to support the plaza.
The consumer survey indicates that local residents are returning to the
plaza. 81% of those interviewed were there primarily to shop because of,
the convenience to their homes. Consumers are not coming, however, due to
good variety and quality of the merchandise offered.
The resident survey indicates that consumers shop at stores closest to
them along the Boulevard for groceries. Pantry Pride attracted many of the
residents. Groceries were found to be bought in the plaza, but very little
clothing or other goods.
-6-
Iv
SUMMARY OF RECOMMENDATIONS
Initiate a beautification program with the private sector between;
54th Street and NE 87th Street on the Boulevard.
The program will include the planting of approximately 200 trees ,to
enhance efforts currently underway for the economic revitalization
of the Biscayne Boulevard corridor.
Encourage the development of 500,000 square feet of office construction
by 1985 on Biscayne Boulevard between NE 36th Street and NE 87th Street
by the private sector.
Biscayne Boulevard can increase its share of projected development
away from other office markets in and around Miami by an aggressive
marketing approach emphasizing its relativelyless costlyland values,
zoning changes, lower rents and community improvements.
Encourage residential development along Biscayne Boulevard between NE 36th
street and NE 62nd Street for 405new housing units - 210 units for "'sale
:
plus 195 units for rent. This will be private sector, market rate
housing.
The residential projections for 1985 indicate that this area can
capture 30% of the total residential demand within a 10-12 minute
commute from the Central Business District, catering to the $18,000-
$35,000'family income category.
Rezone the eastside of Biscayne Boulevard between NE 50th Terrace
to: NE 55th Terrace from R-4 to R-C.
This zoning change will permit desirable mixed -used rental development
plus a maximum FAR. of 1.5 with no height. limitations.
Based on,proforma financial feasibility projections, the benefits
accrued to both the consumer (lower cost for residential units)
and; developer (lower fair market value thus making financing
easierto: obtain),` due to the zoning change, will serve as a
redevelopment impetusfor revitalizing this stretch of the Boulevard.:
Encourage, early acquisition of marginal motel properties along
Biscayne, Boulevard by the private sector.
Prime redevelopment property presently occupied
by motels of marginal economic and physical status
should be acquired as soon as possible. The motels,
especially those characterized by 12-32 rooms, represent
am inefficient and obsolete use of land along the Boulevard
which can now be obtained for $12-$15/sq. ft. The financial
feasibility of recommended office, commercial and residential
redevelopment projects rests on the premise that this property
will be obtained for the $12-$15/sq. ft. cost.
-7-
Several of the motels have recently become Adult Congregate
Living Facilities as an alternative and more profitable use.
As a consequence, sales values of the property can be
expected to rise to $20 and up/sq. ft. If this pattern continues,
the increased land costs will make infeasible the kinds of
development this study has recommended. Therefore, immediate
action should be taken to acquire the property.
Establish a Special Planning District Zoning Overlay for. the Boulevard'.
C-1 Zoning District between NE 60th Street and the Little River
(between NE 77th Street and NE 78th Street).
The area between NE 60th Street and the Little River represents
a viable location for mixed use redevelopment on existing
motel properties and underutilized ].ots. The zoning overlay
will limit the Boulevard to the kinds of C-1 uses that public
and private interests believe are appropriate for this arterial
landmark.
Furthermore, a special Transfer. of ;:Development Rights (TDR)
is proposed within this zoning overlay
This TDR 'will allow: the floor area of„an R-2 <(given FAR bonus
of,.9),:,P.-3 or FL-4 Transitional Use Lot,. to be transferred over to the
SPD building site which must exhibit at least 120' of street frontage
on Biscayne Boulevard.
Briefly, this TDR strikes an equilibrium in the sense that it: allows
the developer, relatively speaking, to maximize his cash on equity
return, and; insures appropriate physical development and redevelopment
by subjecting projects taking advantage of the TDR to site and
development plan reviews by the Planning Department.
Rezone the R-4 Zoning District on the west side of Biscayne Boulevard
between NE 62nd Street and NE 69th Street to R-C.
The commercial lots abutting the Boulevard are too small to take
advantage of the proposed transfer of Development Rights. Consequently,
developers will not build along this otherwise, excellent location for
residential and/or commercial development. Deepening of the commercial
district (270-280') is essential for this particular stretch of the
Boulevard.
- Revitalize the Biscayne Shopping Plaza to provide the redevelopment
impetus at Biscayne Boulevard and NE 79th Street.
Revitalization of the Biscayne Shopping Plaza will assist the
redevelopment process in the northern. portion of Biscayne Boulevard.
Upgrading of the shopping center will provide the redevelopment
impetus at NE 79th Street.
-8-
Some of the recommended actions to be taken include a plaza -side
beautification effort; strengthening of the plaza's Merchant
Association; a more aggressive marketing campaign intended to attract
tenants and shoppers; and extensive landscaping at the key intersection
of NE 79th Street and Biscayne Boulevard serving to demarcate the
shopping plaza as well as establish a positive identity for the Boulevard
as the "Gateway to Miami".
- Rezone the Biscayne Shopping Plaza from C-2 to C-1A.
If -improvements are made to the plaza, the City will become directly
involved in controlling the design of building plus access and ,circula-
•tionvwithin the plaza. Efficient functioning of the shopping area is
the major objective.
Rezone Biscayne Boulevard, north of NE 80th Street from C-2 to C-1.'
Allow 'SPD-3:Zoning Overlay to apply to this ;new ,;C-1 District.
is intended to be that of
The general character of the Boulevard
office and retail development.
quality.
Uses permitted within C-2 Districts such as gasoline stations, second
hand stores, and auto repair shops are not appropriate along this
entryway portion of the Boulevard.
Develop an aggressive marketing strategy for therevitalization of
Biscayne Boulevard.
It is suggested that a Biscayne Boulevard North Action Committee
comprised of area business and community leaders be formed to coordinate
revitalization activities. The committee will have the responsibility
of sponsoring a promotional campaign to market the findings of this study.
The Chamber of Commerce, The Miami Herald, and local radio and TV
stations should be contacted for their support in the efforts. The City
will offer promotional assistance by preparing a distributional brochure
to further the positive image of the Boulevard.
It is recommended that the Action Committee sponsor a joint meeting
with realtors and developers with interests in the Biscayne Boulevard
Area. A concerted effort to promote the positive image of the corridor
is required. It is equally important to convince existing property
owners in the area that any involvement on their part will contribute
to the revitalization of the Boulevard and affect them benefically.
They should be encouraged to renovate and rehabilitate their property,
if need be, in an effort to upgrade the surrounding residential areas
and supplement the efforts underway along the Boulevard.
L�U
N. E. 79 ST L-
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-9-
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*Study Area includes
Biscayne Shopping
Plaza
MAJOR RECOMMENDATIONS
1. Change zoning from R-4 to R-C
(NE 50 Terr NE 55"Tern)_
a. Allow mixed use construction.
b. Increase building density.
2. Beautification Program (NE 54 St
- NE 87 St.): Tree Planting.
3. Change zoning from R-4 to R-C
(NE 62 St. - NE 69 St.)
a. Deepen commercial zoning.
270-280 feet.
b. Provide for maximum density of
120,000 sq. ft. building.
Special Planning District Zoning
Overlay (NE 60 _ St. - NE 78 St.)
Development bonus.
Use regulation restrictions.
Economic Revitalization of Bis-
cayne Shopping Plaza
a. Private initiated Tree Planting
b. Aggressive marketing campaign
c.:'Public improvements (signage,
bus shelters, traffic).
Change zoning•of Biscayne Shopping
Plaza from C-2 to C-lA
a. Improve quality control of
physical improvements
b. Mandatory parking and traffic
circulation improvements if
physical improvements made.
Change zoning from C-2 to C-1 •
(NE 80 St. - NE 87 St.). SPD will
cover this new C-1 District (#4.)
a. Use regulation restrictions
b. Visual improvements to Gateway.
IICDQT
-10-
BISCAYNE BOULEVARD NORTH OFFICE PROJECTIONS
-1985-
Introduction'
This analysis seeks to quantify 1985 office space projections. for the
Biscayne Boulevard corridor,. The end product is 1985 office employment
and office space floor areas for the areas north and south of 62nd street
Office Employee Projections
Office space needs for 1985 in the Biscayne Boulevard corridor are calculated
from office employee estimates.Table I estimates Miami's total office space
employment as of 1975 using figures supplied by Gladstone Associates. The
percentage of total employment by industry type .that is office employment.
estimated. .. In 1975 nearly 62,000,office workers were estimated in the
was
City of Miami or about
Next, Miami
that Miami's
one-third. of total employment.
total office employment was. estimated for 1985 Thisassume!
?
percentage share of total employment will remain the same andthat
the distribution
constant.Table:.
.of office employment to total employment will also remain.
n Miami during 1985 or
estimates 87_000._office;employees
40 percent higher than in 1975.
Table :3 summarizes the distribution of gross office floor areas among';
Miami's CBD and the two subareas in.the Biscayne corridor. Note that th
Biscayne corridor has approximately .7<percent of Miazni'S total office space
compared to,30.percent for the Central -Business District or CBD.:'
Table
compares 1975 office employment estimates with actual gross office:._.
floor areas leading to a ratio of 336 gross office square
feet
per office
The Biscayne Boulevard Corridor is defined as Biscayne Blvd. between N.E. 36
St. and N.E. 87 St.
Industry
•
Dade
• County.
(1).
•
TABLE V-1
NON-AGRICULTURAL EMPLOYMENT BY INDUSTRY
CITY OF MIAMI - DADE COUNTY
Percent of
City of Miami Total City of Miami
As Percent of Employment Estimated
Dade County City of In- Office Employment, In
.
Total (2) Miami . Space (2) Office Space
0
CsonrtitrcatcitonC°11- 37 '4(3° 2 30% 12111:27:
t
Manufacturing 85 '5(3° 35% 20 ,790
Comm
unications . _
and
30%
45 '2
d Public
ua__ io 175: 6 '782
Trade 150 .713° :...
Finnce, 45,900 31% 14'229 244% 10 ,245
Insurance and
Real Estate
serv3.2 30% ' 137,800 41'340
40%
GoIrerilment 76 ,700 40% 30'680
Total 184 ,844 61,988
593,400
(1) Dade County Labor Market Trends, State of Florida Department of Commerce Sept-.1975, 140.357
endTable -E, -1,
(2) Miami Com rehensive Nei hborhood Plan, 1976-1986 Economic Technical AppPaae. 235
19 , 430
12,272
•
35,203•
TABLE V-2
NON-AGRICULTURAL EMPLOYMENT BY INDUSTRY
CITY OF MIAMI- DADE COUNTY
-1985
City of Miami
As ; Percent of
Dade- CountY
Total (2)
30%
10,560
Percent
Total . .
Employment
In Office
Space : (2)
25%
City. of Miami.
Estimated,';
EmploymentIn
Office Space
2,640
Contract Con
struction
Manufacturing
Transportation,- - 1
Communications h.)and, public
Utilities
Trade
Finance,:.
Insurance .and.;.
Real "Estate
Services.+
Government
96,524-
89,564
25%
35%..
24,13
31,34 7
10% 2,413
40%
12,53.9:.
30% 4,495
15% 6,674
148, 317,
8,248
72% 13,139
8,866.
31%
294,305 30%-
88,2.92 47% 41,497.:
,234 0
40% 8,198
51
4� , 20,4.94
7., 566
87,:100
Total 774 , 013 23
ofitan ..Area=; 1970-1990
1) Derived from
Employment In The Miami.°Metrop __
tan Dade COunty; Planning> Department , ,;See-Table 6, Page 25.
Metropolitan
` i
(2) See Table I.
TABLE V-3
CITY OF MIANI
1975-`
DISTRIBUTION,' OF EXISTING GROSS OFFICE FLOOR AREA
High Value Downtown Area
Central Business District
Biscayne Boulevard North
North of 62nd Street
South of 62nd Street
City of Miami
,279,000
1,484,000
961,000
City of Miami Planning Department ,Urban Information System`
Percent of Total
47.75%.
30.14%
7.12%
4:'.61%
2.51%
100:00%
(1)
Total
Employment In:
Office Space
-1975-`
Table I
(2) Table III
(3) (2)
.TABLE `V 4
CITY' OF : MIAMI ;;OFFICE .SPACE
PROJECTIONS
1985-'
(2) (3)
Total
Gross; Office_
Floor . Area
-1975-
Gross
,Office Floor
Area Per Office
Employee
(4)'�;.
Total,
EmploymentIn
Office Space
1985-;
(5)
projected.,
Gross. Office
Floor Area
1985-
A
the High Value
-15-
employee. This ratio applied to Miami's 1985 office employment estimate.
yields a projected 29.2' millidn square feet of office space fieeded,'for
1985.
Table 5
takes thecitywide Projection -and distributes it to the High Value
District, the CBD (contained within the High Value District) and the Biscayne
Boulevard Corridor:: Between 1975 and 1985, the Corridorexpected to
capture about_`600,000 square
Analysis
The estimated
feet of new office construction.
600,000 Square feet- of office projection assumes. the status
ed-:'present distribution of office space among
eaerally, one; neighborhood might capture office
quo concerning the:continu
Miami's office markets G
growth to the detriment of other, areas because of a change in amenities,
transportation systems, perceptual attitudes and/or marketing approaches.
The rapid transit system,' emergence of, the
City as a financial center for
the Caribbean. and Latin America, the generally renewed interest in central:
factors which are functioning
business districts throughout the U.S., are
to increase the' High Value District's share of office growth
accomplished by interceptingoffice growth now destined for outlying areas
or other Miami areas.
This will be
Office space esently under construction and/or on the drawing boards for
District exceeds the area's projection by 970,000 square feet.
If the 'citywide ;total projection proves to be reasonably accurate, the High
Value District will have captured at least 10% of the growth in office space
within the City by 1985, see Table 6.
destined -for other areas
TABLE .V-5
-1985 -
GROSS OFFICE PROJECTIONS DISTRIBUTED
TO BISCAYNE CORRIDOR
AND HIGH VALUE DISTRICT
(1)
Percent of 1975
Grossl'Office Floor
Area - •
- .
(2) (3)
Estimated Gross Existing 1975
Office Floor Gross Office Floor
Area Area -
High Value Downtown Area 47.75% 13,974,300 9,947,130 0
CBD 30.14% 8 820,700 6,279,000
Biscayne -Boulevard North -7.3.2%
2,083,700 1,4/34;000
North of 62nd Street ' 4:61% - 1349,100 961,000
South of 62nd Street 2.51% 734,600 523,000
City of Miami 1()0.00%, .29 265 600 20,837,000
Projected Growth
in Gross Office
Floor Area
1975-1985
4,027,300
2,541,700
599,700
388,100
211,600
8,435,600
-17-
There are 103,000 sq.ft. of office floor area now, vacant in seven major office
buildings along the Biscayrre`Boulevard,Corridor. Three; of these seven build-
ings surveyed are'completely.vacant, accounting for nearly'40% of this total.
However; the balance .of office building space along Biscayne Boulevard (roughly
1 million
(average percentage).
Boulevard will have:to
markets within.
realized (see Table .7)..
o,be at least 90% occupied
One implication of these vacancies is that Biscayne;.
capture projected development away from other office
office space isr:.to be
Biscayne Boulevard might increase its share of new office space vis-avis
other areas in and around Miami by an aggressive marketing approach (emphasizing
cheap land values relative to distance from the High Value District); zoning
changes and community improvements.
-17-
There are 103,000.sq.ft. of office floor, area now vacant in seven major office
build -
buildings
along the Biscayne`' Boulevard., Corridor. Three of these seven
ings suiveyed are completely vacant, accounting for nearly 40% of this total.
However, the balance of office building space along Biscayne, Boulevard (roughly
1 million sq. ft.) appears; based on our field survey", to.beat least 90% occupied
(average percentage).
Boulevard will have to
0ne implication of these vacancies is that Biscayne
capture projected development away from other office
markets within the City if the 600,000 sq.'
(see Table 7)`.
realized
Biscayne
of new office space is to be
Boulevards
might increase its` share of new office space via -vie
other areas in and around Miami by an aggressive marketing approach (emphasizing
cheap land values relative to distance from the High Value District zoning,
changes and Community -improvements.
PROJECT. NAME
Plaza Venetia:
LOCATION
Along; Biscayne Bay
just North, of Venetian
Causeway -
TABLE V-6
NEW OFFICE DEVELOPMENT AND REDEVELOPMENT
-DOWNTOWN MIAMI-
ESTIMATED
COST.. -
A) Phase I:
$23 million
B) Phase, -II
$64 million
Phase III:
Unknown
New Town -In -Town 65 acres between Biscayne Unknown
Blvd. '6' N.W. lst Ave.:,
east -west spur: of,FECRR,
and:1-395
Freedom Tower
(Existing)
Education
Complex
ANTICIPATED' USE
Phase I: 299 residential units,
40 hotel rooms, 30,000 sq. ft. of
quality shops, 50,000 sq. ft. health
club, 2 restaurants, a disco, 6 a
private club, 200 slip marina.
Phase II. . 810 residential units,
120 hotel rooms.
Phase III. Office/shopping complex
Major, residential new town, including
hotels and other: commercial development..
BEGIN'.
CONSTRUCTION
Phase is under`
const.
Phase II: Unknown
COMPLETE
CONSTRUCTION
A) Phase I:
Mid 1979
B) Phase II:
Unknown
Phase III:
Unknown
-One <,year feasibility study to be done
.Biscayne Blvd.`& N W.6th, $700,000 land -No anticipated use as of yet. 60,000sq:ft. Unknown
Street cost.. usable.Space,
Blocks North, South & . $16 million:;_ A)llorth�Block: '120,000 sq.ft of class- A) August 1979.
B) Unknown
Northwest of present for North rooms 6 abs,10,000 sq.ft. bookstore,
Miami Dade Community and South faculty -offices, 150 unit senior citizen C) Unknown ,
College Bldg. at N.E. lit blocks housing;; tower.; ,
Ave. & N.E. 3rd St.
B):South Block:=, small theater, gymnasium,
Other' _atudent`..facilities.
C),Northwest: Fla Int'l University
Unknown
A) North block
by 1981
B) Unknown
C) Unknown
TABLE V-6 continued...
PROJECT NAME
Federal. Court
Miami World
Trade Center
James LKnight`
International
Center
Sports'Arena+
Government
Center
N.:Miami Ave. between N.E.
3rd St. & N.E. 4th Str.
On air rights above the
1,000 car parking garage
to be constructed as part
of convention center
0n Miami River just west,
of Brickell Ave. bridge
7-acre tract facing Miami
River, just west of:Bauder
Fashion College
30-acre tract to the West"
and North of Dade County
Courthouse.
ESTIMATED
'COST-
$13.5 million
$26 million
$300 million-
$12:million
land cost
ANTICIPATED;USE
BEGIN
CONSTRUCTION
An 11-story 190,000 sq.ft..tower,for'Federal .March.31, 1978 "
courts and related offices Plan"includes (groundbreaking)
renovation of old post offices.;
250,000 - 350,000 sq:ft.'-bldg.;providing
common meeting place for localS and for-
eigners engaged in international" trade and,
commerce
5,000 seat auditorium, 607 room hotel,
30,000 sq.ft. shopping complex,10,000•sq.ft.
of meeting rooms, restaurants, 1,000=car
parking garage
18,000 seat indoor arean that could'be
used for professional basketball, hockey
and tennis
Includes: A)
B)
C)
D)
E)
F)
G)
H)
I)
A) --
B) Unknown •
C)--
D) Under Constr.
E) Design Phase.
F) Design Phase
G) Design Phase
H) Unknown
COMPLETE
CONSTRUCTION
Early 1982
Feasibility Study
completed.
Financing being sought
City of Miami Police Building
Parking Garages
State of Fla. Regional Service
Center
City of Miami Adm. Buildings
Dade County Adm. Buildings
Cultural Center
Utilities Plant
Dade County School Board
Park
Early 1982
to
A) August 1976
B) Unknown
C) First building
dedicated June
• 1978
D) Mid 1979-
First bldg.
E) Design Phase
F) Design Phase
G) Design Phase
R) Unknown
TABLE V-6 continued...
PROJECT NAME LOCATION,
•
Flagship Center
Interra
Building
Brickell Ave. between S.E.
7tti St.
ESTIMATED
COST
N.I4. corner of Brickel.l. Ave.
& S.W. 1.3th St.
A) Unknown
B)'. Unknown
$22 million
ANTICIPATED USE BEGIN
CONSTRUCTION
A) 14-story office bldg. serving as head-. A) Under Constr.
quarters for Flagship Bank'-- 280,000 B) Unknown
B) 2nd phase office building
20-story office bldg. *and shopping mall; Mid. 1979 - Mid 1980
600 car parking garage. 192,450 sq.ft.
of office, 10,000 sq.ft. retail,
17,800 sq.ft. penthouse
A) Brickell Key -Ultimate development of A) Late 1979
2,000 residential units plus office, B) Unknown
COMPLETE
CONSTRUCTION
dential units, 231,000 sq.f t. office,
• -. 33,000 sq.ft. retail
__. _
U.S. Justice,- ,',:.. N.E. .:..:-$5-.,*illiOn, • A 175,000 sq.ft., 14-story office bldg.: : -, Late:;1978
Building •:•,' :_. •• -.:,-,'-'-.Ave.cr-,&.••S;W:,•20d•rSt.",.:- ..--,,, --, , ,,,,: - ,,, ,,r, ..,,. with prime tennants being Immigration - - • (GrOUnd-;,:, -' ' : ' '• -.
- - ,' • - •••• --• - - -.--'' r ."' '-'•:-• .-:'•',,' '' ' •' - .------ ' '---, ': - ',' ,- - & Naturalization Services of the U.S.. - ' breaking)
r • .. - - '', - - • ' .•.-'- • :- - -::•• -• ' --"'•'.,- ',• ' -• ''..-- -1'',',• • ' --' ' • Department of Justice. Small restaurant •--- '- -'-- -'. .- - •
_ , _ .-. ,.. .. , .--,, . - • . -: : ,
- - ',- .. - ..,..._ --,.. •
''•••"-•••••• ••• • • - ,' . ' . . - ' ':',,,..,-.;_•' ' • -•1,• •,,,-,-- r, - :, .located on groung floor . .
- - - - - - : - .. . .., - - , - ,- ,,.,,,-..: .. -,, .•...,,. -, - • ,
675 hotel two condo7.-.'-::.• - ••.---:-.•-•- suirmer1979':::::.- •.., , .: ,
Claughton A4-aere 'Slant!: it- mosith '• .A)$67 million
_
Island - of rI41.am.tRiver Biscayne • B) Unknown
• - -
retail owned hotel space, 1st phase
„ 305-unit 27-story condominium.
Bay
B) Claughton -400 -room hotel, 650 resi-
,
Ball Point
FEC Property
=
8.45-acre tract on north
side of the Miami River on
Biscayne Bay
3-1/2 blocks on west side,- of
NW 1st Ave. between NW th St
and NW 1st St.
33-story, room ,
minium bldgs. totaling 500 units,
679 000 sq.ft. office space, parking
for 2,565 cars. 75,000 sq.ft. retail
. Unknown Property is adjacent to the main rapid
. , transit station and the Government Center
$1(/0 million
• density office deve opmen
•
„. 4.y 4-4 4 • 44,
Complex. There is potential for high-
1 t 284, 000 sq.ft.
A) Late 1979
B) Unknown
A) 6 phases over
a 6 to 9 year
period
B) Unknown
Late 1979
1981
No pl.ans announced
TABLE V-6 completed.
PROJECT NAME
Hanna=Jeffers
Property
Family=Finance
Building%
Office
Building:
Doran .Jason
!Wilding
Offic Building
LOCATION
848 Brickell•Ave.
East, side •of;Brickell._';
Ave.' just south: of
-S._10th-St..
-ESTIMATED
COST =
Unknown
Unknown..
SW corner of grickell Ave. Unknown
and; SE 8th St.
1/2"block west of Brickell Unknown
Ave. between 7th b•,.8th 'Sts.
Block between NE 8th St
and NE 7th St. frontage on
Biscayne Blvd.
$1.5, million'
land.'.cost,
$20 million
development:
costs
•
ANTICIPATED;: USE
Office - 2`::times'lot; area
317,000 sq,ft.:
12"story
office:: tower, ,112,128;sq.ft. 1979
of floor. area and.;138,000 sq.ft. park-
ing garage. Addition to existing
12`story office' building. •
206,000 sq.ftofficebuilding with
limited ground; floor__ retail
89,000 sqft. office building.
282.parking -spaces
Retail, parking," hotel` twin towers
and office. 2,000.sq:ft's site',
BEGIN;:
CONSTRUCTION
Unknown:
COMPLETE
CONSTRUCTION
Unknown
Unknown
.Preliminary architectural design
Zoning approval and building permits
are being.. sought.
N
Land' has .been acquired
LOCATION.
3883`Biscayne Blvd.
5220 Biscayne Blvd.
6660 Biscayne Blvd.
7100 Biscayne Blvd.
7101 Biscayne Blvd.
7300 Biscayne Blvd.
7880 Biscayne Blvd.
-22-
TABLE'V-7
CORRIDOR OFFICE BUILDINGS
WITH NOTABLE VACANCY. RATES
11,000
22,500
12,000
20,000
5,400
18,000
132,000
11, 000
22,500
8,000
400
5,400.`
16, 000.:
40,000
PERCENTAGE
VACANT
100%
100%
67%.
2%
100%
.89%
30%
-23-
BISCAYNE BOULEVARD NORTH RESIDENTIAL PROJECTIONS.
1985
DEMAND
An additional 20,500 office employees are expected to be working within the
High Value Downtown Area and along the Biscayne Boulevard Corridor by 1985.
An estimated 16% of these persons will want to own or rent housing that is
located, less than or equal to 15 minutes of driving time from their place
of work.
The demand for residential. units associated with -this increment of office
employees is roughly 1,725.units.- 55% of which will be for rental units.
These same households(1,725) will be characterized by incomes ranging from
$18,000-$35,000.(1979 dollars).
Rentals must, therefore, range from $400-$725 per unit (1979 dollars). The
demand for home ownership,roughly;780units, will be expressed within the
range of $55,000-$85,000 per unit (1979 dollars).
Generally, non -price determinants of. residential demand other than distance
from work, include: convenient shopping facilities; condition of the surround-
ing housing stock; neighborhood -aesthetics -such as character of buildings
and parks, close proximity to.beaches,�'regional access and public transpor-
tation.`
SUPPLY
At present, the number ofnon-subsidized sale and rental residential oppor-
tunities is extremely litnited for middle and upper middle income households
($18,000-$35,000). Major housing projects under construction and/or on the
drawing board add. up to 1405 units. Approximately 78% or 1105 of these new
units will be for sale, with prices starting at $85,000 per unit (see Table 1).
Thesenew multi -family condominiums will absorb a negligible percentage of
this increment of office employment expected by 1985, given $35,000 of yearly
income required to purchase an $85,000 unit.
The occupancy rates in existing rental buildings within the High Value Down-
town Area are high, 96% on the average. For example, the Parkleigh House
Apartments, located at 530 Biscayne Blvd., has a vacancy rate of 5%. All of
the Dupont Plaza's 148 apartments are occupied (the Plaza often receives
requests for apartments renting for $400 a month). Therefore, the existing
rental stock will absorb 2% of the 1985 demand, at best.
-24-
BOSCAMBE E3MULEVA,Q0 OkOCE:2TIMI
cirG2AVIEO. TO FER2CDM BD
:-".
-25-
Plaza Venetia, located next to the Omni Complex,, will be completed by Sep
tember of 1979. Three hundred (300) apartments will be offered at prices
ranging from $400-$900"per month. Although Plaza Venetia's rental structure`'
conforms ideally to the clemand side identified in this study, 2/3 of the
projected demand as of 1985 will not be captured by related supply.
The occupancy rates in existing condominiums within and around the High
Value Downtown Area is also very high. Indicative of this observation
is the recent turn around of the Charter Club Condominium. Four years
ago many of the 446 units were being marketed as rentals because they
simply were not selling. Recently the sales demand has picked up enormously.
Consequently, 98% of the units have been sold and are now occupied. The sales
prices start at $60,000. Rentals from existing owners (speculators) start. at $500.
DISCUSSION
The Planning Department predicts that the residential market within.a
10-12 minute driving time from'the CBD'Can.support (without subsidy)"",as
of 1985, 700 new. sales units ($55,000-$85,000per unit Price) Fins 650
rental units ($400-$725 monthly rent):;
Biscayne Boulevard between N.H. '36th St. and N.E..62nd°"St`. has the. potential
to capture 30% of this market. activity;' or 210 units for sale and 195 units
for rent. Biscayne Boulevard'scomparative`advantage";is it's central location.
A 10 minute drive to Omni and-downtown,:regional.B'access,.. convenience'shopping
along Biscayne Boulevard,' close proximity to Miami each, Morningside Park, and
Morningside Elementary School, make this area'of the'citydesirable
location for the consumer.
Furthermore, the price of land decreases at a .relatively faster rate as you
move north of downtown rather than south of`downtown.- Consequently,
residential development'withinr15;minutes north of downtown is more financially
feasible than the same project would be at the same distance south, given
the sales prices and rents associatedwith the demand.
Finally, 27% of the northeast community's population is at least 65 years
old, residing mostly in single family houses. Apartment living, free of the
heavy household chores and: responsibilities associated with single family
homes, may prove to be very attractive to many of these elderly households.
since they will not have to leave their neighborhood in order to obtain such
housing.
The opportunity for younger families with a"minimum "family income of $25,000,
to purchase single famuly homes within one of the few coastal areas that has
been able to retain a single family residential environment will be increased
significantly.
This is a hypothesis. An analysis of existing land values'alono.
Biscayne Boulevard will be performed to determine if""this" assumption'
is accurate and to what degree. See section entitled "Comparative Land
Value Analysis: 1978".
11111111I11ii
TABLE VI-1
PROJECT
Downtown North
7700 N.E..Bayshore Ct. Condo
801 Venetian Way Condo
1866 North 13aystiore Dr. Elderly
Plaza Venetia (Phase _Rental
1852 North Bay Shore Dr. Condo
Downtown South
1541 Brickell Ave- Condo
Brickell Forest Condo
Brickell Point Condo
STATUS
Permits issued:
under construction.
Building permits obtained.
Under construction
Under construction
Proposals submitted.
Needs city approval.
New proposals submitted.
Needs city approval.
65 plus Under c°11structi°11
single fairt. houses •
99 13uilding permits obtained.
1
1111111111111111.1111.11.1111111111PIPPAPPM
-27-
VII
COMPARATIVE ANALYSIS OF EXISTING LAND VALUES
1978
Analysis
The objective of this segment of the study is to provide the necessary tools
for assessing the economic implication of specificland use and reuse
for parcels situated along Biscayne BoulevardbetweenN.E. 36th Street and
N.E. 87th'Street.
This is a comparative analysis of land values, focusing in on sales along
Biscayne Boulevard and Brickell Avenue north of 15th Road. Specifically, the
six sub -areas of this corridor are:
(1) Brickell Avenue between the Miami River and 15th Road
(2) Downtown or Biscayne Boulevard between Ball Point and. N.E. 6th Street
(3) OMNI or Biscayne Boulevard between N.E. 15th Street and N.E. 21st Street
(4) Biscayne Boulevard between OMNI and 36th Street.,.:.
(5) Biscayne Boulevard between N.E. 36th Street and N.E.
(6) Biscayne Boulevard north, of 62nd Street
The analysis has drawn, upon two
(1) 1978 Sales transactions recorded in the Redi Books
(2) Interviews with realtors active in the specific subject areas.
The data collected on 1978 sales transactions was restricted to transactions
where the value of the property was centered on commercially and residentially
zoned vacant land and/or land with structures of negligible value (relative
to land value) at the time of the sale. Therefore, the comparables essen-
tially reflect land sales. Only in four instances were attempts made to
evaluate substantially improved sales. Only when an area was devoid of
sales conforming to our methodology was this step taken. Finally, the $45
S.F. sales price for the Ball Point property is a low -end prediction based
upon recent publicity surrounding the transaction about to take place.
Land sales of approximately 720,000 square feet were observed for 1978
within the overall subject area. Sales,- however, were not distributed equally
among all six subareas. In fact, nearly 1/2 the land sales observed (measured
in square feet) were along BrickellAvenue.: Nonetheless, the Planning Depart-
ment believes the results to be an accurate account of the land value con-
figuration as of 1978 along the. Biscayne-Brickell corridor.
The .results of the Comparative Analysis of Existing Land Values (1978) is •
presented in map-formon the following
. page.
Discussion>
One can easily see that the 1978 fair market value of'lland within the Brickell sub-
area is two times the fair market value of land on Biscayne Boulevard between
N.E. 36th Street and N.E. 61st Street.
From a development perspective this has significant implications, especially.
ESTIMATED' FAIR MARKET .VALUE"
PER SQUARE FOOT OF LAND
-29-
for residential construction. Hypothetically, assume a parcel of 30,000 square
feet of land is acquired in both subareas - Brickell above 15th Road and
Biscayne Boulevard between NE 36th Street and NE 61st Street. The floor area
ratio for both areas is the same, 1.5 (assuming no bonuses on Brickell) and,
therefore, a building of 45,000 gross square feet is constructed on both
parcels of land. Construction costs are assumed to be identical for both
buildings, $30 square foot. The land will be used as equity to secure a con-
struction loan on both cases. The cost of money and all other costs, except
land cost, are the same for both projects. Finally, assume the profit margin
on construction is the same in both cases, 15%.
A modest size condominium, 1100 square feet, will sell for at least`$16,000.
more in the Brickell project than in the Biscayne;project.l The basic reasons
for the significant difference in price'is,the initial cost of land plus the!
rate of land appreciation. Between 1973 and 1978, the fair market price of
land in the Brickell subarea has nearly doubled, from $16 S.F. to $30.20 S.F.;
an absolute change of $14 S.F. The rate of price increase for land in the
Biscayne Boulevard subarea has remained relatively constant, a negligible
$4 increase during the same period. Because land is appreciating at such a
rapid rate along Brickell the developer will presently try "and capture as
much of these future earnings as possible, constrained only by the bank's
perception of what the selling price of these units should be (fair market value).
Demanding a larger return on his equity (the land in this case): is a common
strategy to realize future earnings ;from.the land.at the present. time. Between
1977-78 the price of land per square foot along Brickell Avenue increased by
roughly 30%. The developer will require a return on his land of at least 15%
given the market trend, when the project is completed. A return on equity
(land) for the Biscayne project of 6% is assumed.
From the buyers perspective,."the 1100"SF. Brickell condominium will cost
him/her $82,000 while the ";Biscayne condominium of equal` size and quality will
cost the buyer".$66,000," The Biscayne project: will cater to the upper middle
income family•($26,500), 'precisely the demand category that will exhibit signi
ficant need .within a 10 minute commuting+time from downtown as of I985.' The
Brickell condominium, on,the.other hand,°will -cater to a family income of $33,000..
This' income level will, for the"
most part, exceed the $18,000-$35,000 family
income range that is associated with theincrease in office employment projected
for downtown by 1985 (see Exhibit VII-1).
The Planning Department firmly believes that Biscayne Boulevard, between 36th
Street and NE 62nd Street with its comparative advantage, with regard to location
is prime settlement area for middle, and upper middle income families .wishing to
locate close to downtown. Mostimportantly, the construction of housing catering
to the $18,000-$35,000 income category is financially feasible within this Biscayne
Boulevard. subarea.
1
This difference in sales price is determined strictly from the supply side
of the market. Once the demand forces enter the market, the price will no doubt
be bid up at a faster, rate in the Brickell project. Consumers' perception of
what a condominium will cost on Brickell•is"higher than the supply side would dic-
tate. The Biscayne Project, on the contrary, is not in a "prestigious"area.,
Consumers' perception of; what <a condominium should cost may initially be slightly
lower than the supply side would have it. The rate of price increase will, con-
sequently, be slower:
-30-
Now, assume the same prototype office building and parking structure are
constructed on both the Brickell site and the Biscayne Boulevard site.
Also assume the developer desires the same percentage yield on equity (13%).
plus the same ratio of equity to total cost (10%) for both projects. The
developer must, therefore, charge'.a rental fee of $17.65 per sq. ft. in the
Brickell project vs. a rental fee .of $15 in the Biscayne project. This..
$2.65 per square foot difference adjusted over the economic life of the
project will offset the $2n. difference in the acquisition cost (1978) of land
per square foot, all other things equal (see Exhibit V.!I-2).
In reality, however, the developer will receive a larger percentage return,
on his equity in the Brickell project as evidenced bypresent market rentals
of $20 per square foot. The intangibles (e.g. prestige) are, deductively,
accounting for the $2.50 per square difference in rentcs.;;
From the consumers'` perspective, the following rental comparisons are made
for selected building occupants and: corresponding square footage requirements.
The rental difference implies the yearly cost savings to a firm that locates
in the Biscayne Boulevard building.
TABLE VII-1
Space Yearly Rental.
Type of Firm Requirement Difference.
Accounting 1,000.S.F.. $5,000
Medical -Dental 1,600 S.F. 8,000
Finance 1,800 S.F. 9,0,0 10,000
0
Real Estate 2;000 S.F.
Legal 2,500 S.F. 12,500
Insurance Agency 3,000 S.F. 15,000
Architectural 3,500 S.F. 17,500
Brokerage 5,000 S.F. 25,000
Source: Urban Land Institute'
City of. Miami Planning Department.
Clearly, any firm requesting torentone floor in this prototype office
building (assuming a lot coverage of 20%) must be prepared to spend
$25,000 more each year for rent in. the Brickell project than in the
Biscayne project.
Finally, development within the study, area, is notably constrained by the lack of
vacant land. The most inefficient use of scarce land must, therefore give way to
the kinds of development that are economically and socially superior. The next
section of this report asserts that the 18-32 unit motels lining the Boulevard
above N.E. 36th St. represent inefficient and obsolete land uses. This is prime
property for redevelopment conforming to the needs previously disclosed in this
report. These operations can be acquired for a maximum cost of $8,000 per room
or between $12-$15 per square foot of. land (inclusive of existing improvements),
consistent with vacant land values in the same area.
-31-
EXHIBIT VII-1
PROFORMA FINANCIAL PROJECTIONS
PROTOTYPE RESIDENTIAL PROJECTS
Zoning District:
Floor Area Ratio:
Size of Parcel:
Gross Improvements:
Efficiency Ratio:
Improvements for Sale:
Average Unit Size:
Total No. of Units:
Construction. Profit Margin:..
Return on Equity (Land)
Land: -.
Construction Cost:
Surfacee-Parking
Estimated Total Cost
Land:
Building:
Non -construction:
Parking:
Total Cost
Biscayne
Project
R - C
Brickell
Pro]ect
R:-'CB;
1.5 i.�
30,000 S.F. 30,000 S.F.;
45,000 S.F.: 45,000 S.F.
85% 85%
38,500 S.F. 38,500 S.F.
1,100` S.F.; 1,100 S.F.
35 35
15% 15%
6% 15%
$15 S.F. $30 S
$30 S.F. $30 ;S.F.
'.•;
$400/space $400/space''
$450,;000 $900,000.'!
1 350, 0'00 1', 350,.000
230, 000 230, 000,
14,000 .14,000'`
2044,000 2,494,000„
Estimated Total Revenue.
Return on Equity: 27,000 135,000
Construction Profit Margin: 239,000 239,000.
Total Cost 2,030,000. 2,494,000
Required Total Revenue. $2,310,000 $2,868,000
Estimated Sales Price Per Unit
Average Sales Price 2
(1100 S.F.)
Income; Affordability
17% of Construction Cost
66,000
($60 S.F.)
26,500
2 Actually equal to bank'sassessment of the unit's value.
82,000
($74 50;S F.)
33,000
-32-
EXHIBIT VII-2
PROFORMA FINANCIAL PROJECTIONS
PROTOTYPE OFFICE PROJECTS
Biscayne Brickell
Project Project
Zoning District: R C
Floor Area Ratio : 1.5
Size of Parcel: 30,000 S.F.
Gross Improvements: 45,000 S.F.
Efficiency Ratio: 82%
Leasable Space: 36,900 S.F
Land: $12 S.F.
Construction: $38 S.F.
Non-ConstrUction: 17% of ConSt.
Capitalization RAte: .095:`
Debt Service Constant .11
Rent: $15 S.F.
Parking (Structured): $15 S.F.
Parking Spaces: 150
R -`CB:
30,000� S.F
45,000 S.F.•
•
171-of Const
.11
$17.65 S.F.
$15 S.F.•
-150,.
Estimated Total Costs
Land:
$ 360,000 $.:. 960,000
Building:
1,710,000 1,710,000
- `
Parking: 560,000 560,000
Non -Contraction: 385,700 385.700
Total Cost $ 3.103,700. $ 3.615,100
Estimated Net Operating Income
Annual Gross Income
Less: Vacancy (4 %)
Effective Gross. Income:
Less:. Operating Expenses:.
Annual Net Income:
553,500. $ 651,285
22,100 26,050
.531,400, 625235 r
193.725 228000 .,
337.,675 $_ 397235
Financing:
Economic Value: $-3,554,475 S 4,1812,420
Mortgage Obtainable:
2,665,855 3,136.065,
AnnualDebt Service..
293,245 344,970
Net"Cash`Flow
$ 337,675 $ 397.235 sr
Annul Nets
aIncome:
Less. Debt•Service: 293,245 . 344-,970
Net Cash Flow . $ 44,430.. $ .,. 52,265,
PercentageYield on Equity
Total Cost
Mortgage Obtainable
Equity
Yield on Equity:
Equity as % of Total Cost: 14% 141
$ ;3,103000 $ 3,615,700
2,665,855. 3,136,065
$` 437,845 ' $ 479,635 :
10% 10%;.
-33-
VIII
BISCAYNE BOULEVARD:
ANALYSIS OP'MOTBL ROW
INTRODUCTION'.'`
The year 1957 witnessed the construction of the last two motels that would crop
up along Biscayne Boulevard between N.E. 6th'St.•and N.E. 8th St. The completion
of these two structures marked the encl of this study area's motel construction
boom that began in1947'and ended in 1957. During this decade, 32 of the 36
motel structures were built, bringing the total number of marketable roots to
roughly 1,000. Nearly-70% of the motels contained 25 rooms or less, while only
14% were composed of 50 rooms or ntore. The average size of a motel was approx-
imately;25 units.
Location was the key to successfor all these establishments. Vacationers driving
from virtually anywhere in the U.S. were funneled into Miami and, then, across
to Miami Beach via Biscayne Boulevard "The Gateway to Miami". The motels along
the Biscayne corridor offered the traveling consumer comfortable accommodations
for a fee that was `approximately. `20-25%'less than comparable facilities on Miami
Beach. Access to the beaches was so convenient by car that many budget -minded
tourists were indifferent,at least, to staying on Biscayne Boulevard rather than
staying on Miami Beach; given the price difference.
The following is an account of emerging trends that,. cumulatively, are creating
significant negative impact upon•this "Motel Row" which flourished for a relatively
short period of time.
TOURISM: TRENDS AFFECTING
MOTEL ROW
Tourism has been steadily increasing in South Florida since the early 1960's. It
is not correct, however, to make the assumption that the growing number of tour-
ists effect the motel industry beneficially. The gains in the tourist industry
are,in fact, masking the deteriorating economic condition which small motels
along Biscayne Boulevard now find themselves the victims of. Although more visitors
are coming to Miami, they represent in a few significant ways, a different type
of traveler than the typical tourist of the 1950's and 1960's. The motels lining
Biscayne Boulevard, north of N.E. 36th St. once representing the ideal accommodations
for the budget -minded vacationer, are not being supported by today's tourist.
The composition of Miami's tourist trade (from a socioeconomic perspective) and
their mode of travel has notably shifted. These factors have had a negative
impact on Biscayne Boulevard's Motel Row, making them obsolete facilities.
According to the Florida Tourist Study 1969, Miami ranked first in destination
of incoming automobile tourists, with 1.4 million of the 17.2 million total drivers
traveling to Miami. The Miami Herald (Jan. 22, 1978) reports that since 1970,
the number of tourists driving to South Florida has declined from 4.6 million to
2.8 million in 1974. Today, Dade County ranks sixth in capturing the tourists
traveling by car with 1.3 million vacationers coming to the county.
1111111 of i
-34-
The reasons for the decline in travel by car to Miami is due to a shift in
tourist tastes and the influence of a single attraction - Disney World.
Tourists are driving no farther south than the central part of the state.
Orange County ranks first in destination of auto travelers with 3.4 million
visitors in 1977. Disney World is the top tourist attraction. 37.8% of
driving tourists visit the Magic Kingdom while on vacation,according to the
Yearly Tourism Summary - 1977. The Miami News (Nov. 23, 1978) reports that the '.
best thing that could happen to South Florida is for Disney World to close down.
The conglomeration of attractions in that area divert driving tourists from
going to South Florida. Auto travelers, once in the vicinity of Disney World,'
proceed to visit Circus World and Sea World. Busch Gardens is then a relatively.
short drive from the Orlando area. All of these attractions are easily
accessible to the tourist traveling by car. Thus, Miami is deleted from the,
itinerary, much to the dismay of motel owners who depended upon family -oriented
tourists arriving by car seeking lowpriced accommodations.
While auto travel is declining to South Florida, air arrivals are increasing.
Air travel has increased from 4.2 million arrivals in 1970 to 8.5 million
arrivals in 1977. It appears that the difference between auto and air travelers
is one of income rather than preference. This represents a shift from lesser
to more affluent customers. Travelers arriving by air stay less time, but spend
more money. It is reported in Metropolitan. Miami A Demographic Overview
(Jenne, 1972), that the average tourist today to Miami is older, has been to
Miami before, and flies totown. Dade County ranks first in visitors arriving
by plane - 2.8 million visitors annually, as cited in Florida Statistical
Abstract 1978. These characteristics function as detriments to the motels on
Biscayne Boulevard. The profile of the tourist to Miami is not one choosing
to stay on Motel Row. Those motels are not attracting the visitors.
Much of the increased air travel is a result of increasing foreign visitors
into Miami. The composition of the tourist is experiencing a shift. An increase
in foreign tourists, primarily from Latin America, is clearly noticeable and
has been documented in The Direct and Indirect Impact of International Tran-
sitions Upon Employment (FIU, 1975). This influx began in 1973 and has continued
to increase yearly. The rapidly developing area of the Caribbean, South and
Central America provide excellent opportunities for exchange with Miami. Miami
experienced an increase of 8.65% in foreign visitors during the year 1976-77
reports the Miami Herald (July 18, 1978). The Annual Summary of Foreign Visitors
by Region (Dade Co. Office of Economic Dev., Oct. 1978), shows an 88% increase
since 1973 in visitors from South America,up from 158,782 to 299,052 tourists.
For the year 1977, almost'300,000 South American's vacationed in Miami. The
Miami Herald (July 18, 1978) reported that during the first six months of 1978
the number of visitors from foreign countries rose 29.8%. Miami's bilingualism
and shopping opportunities lure Latin American's to Miami.
For example, Venezuelan tourists have also increased by 37.5% from 1976 in
Miami. The purpose of, their trip is to shop - mostly in the downtown area
extending up to Omni - because prices of consumer goods in their country are
staggering. The Miami News (March 22, 1979) reports that up to $350,000 of Dade
County's new tourist tax revenues may be spent to lure more of this trade to
Miami. Consequently, the demand for hotel accommodations originates downtown
• -35-
and moves up (North) along Biscayne Boulevard. Motels just south of. N.E.'"36thSt.
capture the last of the rapidly diminishing demand due to the 'ample motel accommo-
dations available downtown.
Besides the prevalence of foreign visitors who come to shop, the tourists char-
acter is becoming more residential. An article in'the :Miami _News (Jan. 3, 1978)
contends: that increases in air travel cannot be compared to hotel/motel revenues
since the kinds of tourists flying in are not staying in these motels. The
growth of condominium construction has taken away from the traditional hotel/
motel facilities. Seasonal owners of condominiums and apartments are not
utilizing'- any other services. The residential type tourists are booking avail-
able seatson early scheduled flights, actually shutting out the impulse travelers
who would probably be staying in low-priced motels. Thus, the air arrival
figures increase, but not the motel' occupancy rates. Motel row is not benefiting.
from the increasesin tourists coming into Miami.
In conclusion, it has been found that although tourism is increasing in South
Florida, the composition of the tourist has changed. There has been a great
influx of foreign tourists and a decline in auto travelers. Miami is now cater-
ing to the wealthy Latin American's who 'generally shop and stay in the downtown '
area. Families driving to Florida are vacationing no farther south than the
central part of the state. Other tourists from the U.S.` to Miami are arriving
more than ever by air and are staying in their own homes or apartments. None
of the emerging characteristics found in Miami tourists` appear to support the
motels lining Biscayne Boulevard.
MOTEL ROW: EXISTING CONDITIONS
The South Pacific Motel was purchased by a husband and wife in 1973 for $162,000.
The motel has 23 units for rent and is situated at 6300 Biscayne Boulevard. This
motel was sold March, 1979 for $115,000 to Hodzic Agan - a price $47,000 less
than the present sellers paid for the business six years earlier.
The reason why the land and its existing use are presently worth $47,000 less
than they were in 1973 is illustrated on the following page by way of a 1978
Operating Statement for a prototype 24 unit motel.
The Operating Statement assumes that the motel was purchased by a family in 1972,
a relatively active year for motel transactions along Biscayne Boulevard. Real
estate taxes, plus operating expenses are the actual costs associated with one
of Biscayne Boulevard's few quality, 24 unit motels. Furthermore, the gross in-
come figure for this statement is that which was reported by the same operation
for fiscal year 1978.
The Operating Statement shows an accounting profit of $9,000. This is terribly
misleading from an economic perspective. One realizes, after careful inspection
of this statement, that all managerial, bookkeeping, handiman and desk clerk
responsibilities are not accounted for in operating expenses. Typically, these
tasks are performed by the owner, ergo, no explicit expense is entered into
the ledger. Should this person put these relevant skills on the market by
seeking a job for the same number of hours per week, the salary he/she would
receive would, no doubt, be much greater than $9,000 (the accounting profit).
Consequently, he/she is actually loosing money by holding onto the motel (save
for his free but modest living accommodations.
-36-
EXHIBIT VIII-1
1978 OPERATING STATEMENT
PROTOTYPE 24 Unit Motel
Biscayne Boulevard
INCOME:
Rooms2
Other
Total
FIXED EXPENSES:
Real, Estate Tax
Insurance
Principle and Interest
Depreciation
Total
OPERATING EXPENSES:
License and Usr Tax
Payroll Cots
Utilities
Laundry
Kitchen and Linen Supplies
Car 7
Repair and Maintenance
Administration and General
Total
NET PROFIT (pre-tax)
Footnotes
1
Reported 1978 gross
Boulevard.
income for the Knoxon Motel (24
2
Includes revenue from vending machines.
3 Financing $200,000 over 15 years at 8-3/4%. Property, purchase'
$250,000.
4Straight line method. Building assessed at-60% total value, $150,000.
5 50 hoursof domestic labor per week @ $3.00 per hour.
Gas = $914; water = $785; elec. (central air) = 9,000.:!
7 Includes, the depreciable amounts associated with tasks such as:
resurfacing parking area; new asphalt; painting; trees and shrubs;,.
carpeting; roofing.
78,000:,
500
78,500
4, 500, .,
4,000
24,000
10, 000'
42,500
280
�7,800
10,700:';
850•
370
500
3,500
3,000
units
7,000
,000
7411 Biscayne
Includes: advertising =`$1,000; telephone = $2,000.
in 1972 for '.
-37-
Apparently this type of motel owner is fastly becoming a dying breed on His-.
cayne Boulevard. The stagnation of the motel real estate market within the
study area since 1975, supports this observation. In addition, four motels
along Biscayne Boulevard have been transformed into Adult Congregate Living
Facilities (3) and Group Homes for Developmentally Disabled (1) because the
structures were no longer viable as motels and, therefore, not capable of being
sold.
The Aloha Motel, for example, was recently transformed into an Adult Congregate
Living Facility; unable to survive as a legitimately. run; motel. The existing
capacity of the Aloha Retirement Residence is 150 patients. The occupancy rate.;
as of June 22, 1979 was 98%. Each of these 147.patients pays between $300-$450
per month. Given this occupancy rate, the average gross income generated by
this use is $661,500.
Assume that this operation has a modest profit margin., of 10% (20%.being more
realistic): Therefore, the pre-tax profit is'$66,150'per.year.. As .a motel,.
the Aloha must be able to charge an average priceof,$25.00per room.and.main-
tain a year-round average occupancy rate ofi 45%-to,match' this pre-tax profit
(assuming the restaurant breaks even).- Thisis a,feat that' the present tourist
market renders highly improbable chiefly;because-of the motel's poor location.
Motels along Biscayne Boulevard must
give way. to more efficient land use.
ECONOMIC IMPACT OF ADULT CONGREGATE LIVING FACILITIES
Encouraging Adult Congregate Living Facilities as alternative, interim uses
for these motels may,,however, function to make infeasible the kinds of develop-
ment this study has recommended for Biscayne Boulevard. The financial feasibility
of projects the Planning Department is encouraging, based on residential and
office space projections, rests on the premises that vacant land may be acquired
for $9-$15 per square foot and that motel property, representing an obsolete land
use, can be acquired for $12-$15 per square foot. There are very few vacant lots
along Biscayne Boulevard within the study area. Consequently, the success of
this plan is contingent upon the acquisition and redevelopment of existing motel
property.
From a demand perspective, the category that residential construction is recom-
mended to cater to is the $18,000-$35,000 income bracket. The financial success
of these Adult Congregate Living Facilities may drive the acquisition cost of a
motel`: and its land up to $20 per square foot. The cost of a condominium con-
structed on property acquired for $15 per square foot is $66,000. The same apart-
ment constructed on the same property acquired for $20 per square foot will
probably cost $71,000, assuming the profit margins remain constant (see Comparative
Analysis; of Existing Land Values). A family income of roughly $29,000 per year
warrants the purchase of this $71,000 unit.
The objective is to build a residential' structure that caters to the largest
percentage of the target demand while remaining, financially feasible. At $20
per square foot land cost, a. significant portion of this target demand remains
unattended to, ergo, the probability of filling the building decreases. Con-
struction financing becomes highly improbable under these profit margin as-
sumptions. stated above.
-38-
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Motel Presently OPerating as
Adult Congregate Living Facility
Notel Presently Operating as
Transitional Living -Facility`
EXOSTOINICG UVUCU ELM
-39-
The construction of an office building that is capable of charging rents that
are `$3-$5 cheaper per square foot than comparable facilities downtown and along
Brickell is ",again, contingent upon the cost of land.
This $3-$5"cost saving per square foot in the Biscayne project is financially
possible (given a 10% cash=on-cash return plus a 14% equity as % of total cost)
if 'the property can be purchased at $15 per square foot. A property acquisition
cost exceeding $15 per square foot will result in the projects' loss of its
only competitive edge, encouraging high vacancy rates in the process.
PUBLIC SECTOR ACTION: "MOTEL ROW" Between N.E. 50th Terrace and N.E. 55th Street
Motels lining Biscayne Boulevard between N.E. 50th Terrace and N.E. 55th Strom,'`
especially the 12-32 unit operations, represent an inefficient and obsolete use
of scarce land. This land exhibits the areas best parcel assembly; potential for
spot redevelopment.
The Planning Department believes that the best alternative use of this land i
for residential (condominium) and mixed use (apartment and office rentals)
development. This study has directed attention to the notable demand for dwelling
units ($18,000-$35,000 income range),both ownership and rental, that will exist
as of 1985 within a 10-15 minute drivefrom downtown. Judging from the limited
existing relative supply and the acute shortage projected for 1985, Biscayne
Boulevard has the potential to capitalize on this residential market situation.
A modest increase in new office space of 500,000 square feet is also projected
for 1985.
There presently exists, however, two constraints standing in the way of the kinds
of redevelopment that will serve as the impetus for revitalizing Biscayne Boule-
vard between N.E. nth Street and; N.E. and S ree : The first constraint is the
small size of the parcels to be redeveloped, roughly 14,000 square feet at best.
Furthermore, despite excellent parcel assembly potential, a maximum of only two
parcels may be assembled before either backing onto an R-1 zoning district or
crossing a street. The largest parcel capable of being assembled is, therefore,
approximately 28,000 square feet.
The second constraint, one that is removable, is the existing R-4 Zoning District.
which defines this target area. Office space is not allowed, so mixed use ren-
tal development, similiar to the. Falls Apartments located just a few blocks north,
is prohibited. .Also, R-4zoning has a.maximum floor area ratio (FAR) of 1.1.
This means that the size of -'the building is restricted to 1.1 times the size
of the lot upon .which it will be. built.
If the FAR was increased to.1.5, allowing an additional two floors of construction
on this. lot (assuming"the improvements will cover 20% of the lot), the sales
price,.of'.the exact:, same residential unit could"be=$5,000 cheaper. This assumes
of course, that the project's profit margin m reains a constant percentage of
the total cost. Greater consumer interest in.the?project should be expected.
-40-
From a developer's standpoint, an FAR of 1.1 would,.technically, force the
unit sales price up to $61 per sctuare foot, assuming his profit margin is
fixed at a minimum of 12% . If the FAR was increased to 1.5, the developer
could still realize the 12 /profit margin by asking a unit sales price of
$56 per square foot. No doubt,the developer and the lending institution
will have an easier timecoming to grips with a fair market value of $56
per square foot than with “air market value of. $61 per square foot. Con-
struction financing will,'consequently, be relatively, easier to obtain.
The Zoning District that is most compatible to this area as well as with the
interests of residents and developers alike, is R-C. A change in Zoning
District from R-4 to R-C will allow for office space development plus a
maximum FAR of 1.5 with no height limitations. :,The benefits accrued to
both the developer and consumer due to this change in zoning are illustrated;
on pages 42-45 byway of proforma financial feasibility projections.
Changing the Zoning District from R-4 to R-C alon$Biiscayne Boulevard's
east side ,between N.E. 50th Terr. and N.E. 55th_8#. will allow for the land
use program which the City believes will serve as the redevelopment impetus
for revitalizing this' stretch of the Boulevard'. (See Zoning, District Map,''
-41-
i61
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-42-
EXHIBIT VIII-2
PRO FORMA FINANCIAL PROJECTIONS:
PROTOTYPE RESIDENTIAL CONDOMINIUM PROJECT
SITE: ":5201-5215.Biscayne "Boulevard
(between NE 52ndSt. and NE
ZONING, DISTRICT: R-4
FLOOR AREA RATIO: 1.1 Maximtm
SIZE OF ASSEMBLED PARCEL:
FAR: 1.1
GROSS IMPROVEMENTS: 30
EFFICIENCY RATIO: 85%
IMPROVEMENTS FOR SALE: 26,200
AVG. SIZE OF UNIT: 1,100 S.F.
TOTAL -# OF UNITS: 24
TOTAL # of Surface PARKING SPACES:
24 @ $400 each
ESTIMATED COSTS
LAND AND EXISTING IMPROVEMENTS:
BUILDING CONSTRUCTION: 2
PARKING:
NON CONSTRUCTION COSTS:
TOTAL COSTS
ESTIMATED TOTAL REVENUE
CASH -ON -CASH RETURN:6%
RETURN ON CONSTRUCTION 15%
TOTAL COST
REQUIRED TOTAL REVENUE
ESTIMATED SALES PRICE PER;UNIT
AVERAGE SALES PRICE
1
2
3
4
Estimated @ $12 S.F.
Estimated @$30 S.F.
17% of construction costs. Includes financing, demolition, real estate
taxes during construction,
336,000
924,000,
9,660.
157,000
, 426,600
164000
1,426600
$1,610;800
north
N.E. 52 TERR.
t 127
R-1
127
N.E. 52 ST.
architectural, legal and title fees.
Caters to family income of $27,000.
-43-
EXHIBIT VIII-3
PRO FORMA FINANCIAL PROJECTIONS:
PROTOTYPE RESIDENTIAL CONDOMINIUM PROJECT
SITE: 5201-5215 Biscayne Boulevard
(between NE 52nd St. & NE 52 Terr.
ZONING: R-C.(Changed from• R-4)
FLOOR AREA RATIO: 1.5 Maximum.
SIZE. OF ASSEMBLED PARCEL:. 28,000 S.F.
F.A.R.: 1.5
GROSS IMPROVEMENTS: 42,000
EFFICIENCY RATIO: 85%;,.
IMPROVEMENTS FOR SALE: 35,725 S.F.
AVG. SIZE OF UNIT: 1,100'SF.
TOTAL # OF UNITS:> 33
TOTAL # OF SURFACE PARKING SPACES:
3 @ $400 each
ESTIMATED COSTS
LAND AND EXISTING 'IMPROVEMENTS :
2
BUILDING CONSTRUCTION:,
PARKING•
NON -CONSTRUCTION COSTS:
TOTAL COSTS.
ESTIMATED TOTAL REVENUE`
CASH ON -CASH. RETURN,'
RETURN ON CONSTRUCTION -15%
TOTAL COST
REQUIRED TOTAL REVENUE
ESTI1ATED SALES PRICE PER UNIT
AVERAGE; SALES PRICE
Estimated @.$12 S.F.
2 Estimated @ $30 S.F.
3 17% of construction costs.
taxes during construction,
4 Caters to family income of
R '- C
cc) N.E. 52 TERR.
I27
}�E
R-1
N Ni
m 127
N.E. 52 ST.
Includes financing, demolition,.. real estate
architectural, legal and title fees
$25,000.
-44-
EXHIBIT VIII-4
PRO FORMA FINANCIAL PROJECTIONS:
PROTOTYPE RESIDENTIAL AND OFFICE PROJECT
SITE: `;:5201-5215.BiSCayne Boulevard.
(between NE 52nd'St. and NE 52 Terr.
ZONING DISTRICT: R-C (changed from
FLOOR AREA RATIO: 1.5 Maximum
SIZE OF PARCEL: 28,000 S.F.
FAR: 1.5
GROSS IMPROVEMENTS: 42,000 5.F.
EFFICIENCY --RATIO: 85%
RENTABLE SPACE:-35,725 S.
Office 14,300 S.F..
Residential: 21,245 S.P.
AVERAGE'SIZE RESIDENTIAL UNIT:
PARKING:. 65 spaces
ESTIMATED COST
•
R-4)
1,000.S.F.
LANDAND EXISTING IMPROVEMENTS:
BUILDING CONSTRUCTION:2
PARKING:
NON -CONSTRUCTION COSTS:
TOTAL COSTS
336,000
,260,000
150,000
239,000
1,985,000
ESTIMATED. ANNUAL: INCOME AND EXPENSES
GROSS RENTS::
-OFFICE . $ 214,500
APARTMENTS 6 '118,800
PARKING: 11,000,;
SUBTOTAL 344300
LESS .VACANCY (4%) 13500.
EFFECTIVE, GROSS INCOME 330,800,.
LESS: OPERATING EXPENSES8 115800
215 000
NET OPERATING INCOME.
north
T
m N.E. 52 TERR.
e 127
NJ
R-1
N.E. 52 ST.
-45-
EXHIBIT VIII-4
FINANCING
NET OPERATING INCOME $ 215,000
ECONOMIC VALUES 2263,160
LOAN TO VALUE RATIO'75%
MORTGAGE OBTAINABLE`.
DEBT SERVICE io.
CASHFLOW
NET OPERATING INCOME%
DEBT', SERVICE
CASH FLOW BEFORE INCOME TAX
PERCENTAGE YIELD: ON INVESTED CASH
TOTAL COST
MORTGAGE OBTAINABLE
EQUITY
% YIELD ON EQUITY.;.:
Estimated@$12 S.F.
2 Estimated @. , $30 S.F.
3 40 Structured spaces (2 floors) @ "$3, 500 each; 25:`surface spaces `@ $400 each.
17% of construction costs. Includes financing, demolition,,
real estate taxes during construction, architectural, legal and title fees.
@ $15 S.F.. per year
@ $480 per unit/month
30;spaces rented'@ $30/ space/month
8 35% of Gross Income
9 Capitalization rate = 9.5%
10 Debt Service Constant = '-11
-46-
SPECIAL TRANSFER OF DEVELOPMENT RIGHTS AS A REDEVELOPMENT INCENTIVE
Tiie'existing.C-1 Zoning District which defines Biscayne Boulevard between N.E.
60th St. and Little River does not: provide adequate redevelopment or'develop-
ment incentives to builders; encourage the kinds of structural uses deemed ap-
propriate for this arterial landmark. This segment of the report addresses the
first of these assertions. Proposed is a Special Planning District - Zoning
Overlay for Biscayne Boulevard's C-1 Zoning District between N.E. 60th St. and
Little River. This Zoning. Overlay includes a section entitled, Special Transfer
of Development Rights to provide building incentives, given the mechanics des-
cribed in detail below and in the Appendix of this report. The Zoning Overlay
also modifies use regulations with the intention of improving upon the second
shortcoming cited above (see SPD - Biscayne Boulevard North Special Zoning Over-
lay in Appendix).
The physical nature of existing motel development and underutilized land along
the Boulevard, most notably between N.E. 71st St. and N.E. 77th St., is such
that the acquisition of more than 22,500 sq. ft. is exceedingly difficult. In.
light of this constraint plus a maximum floor area ratio (PAR) of 2.0 for C-1
property, the return on equity associated with the final product, a mixed use
structure, will not be attractive enough to warrant the initial investment..
In direct responseto this critical problem, the Special Transfer, of Develop
mentRights`is proposed for the C-1 District,, the limits of which are ,mentioned
above. ` .The exercise on the following two pages illustrates; the. rationality, from adeveloper's perspective, for allowing_ floor area ' to bed -transferred
from an abutting R-2 Transitional Use Lot to the development site within the
Special Planning District (SPD) - again, the overlay for the existing C-1 Dis-
trict. Proforma financial projections' for prototype mixed use buildings, with
and without the proposed Transfer of Development Rights (TDR), represent the
framework for this exercise:
The Special Transfer of Development Rights may function to increase the dev-
eloper's returnon equity from 8% to 13.5%, assuming; the Transitional Use
Lot is purchased. Furthermore, equity is reduced by $82,800 because the
economic value of the project has increased relative to construction costs.
The Transfer -of Development Rights with respect to floor area generates
an additional 11,250 square feet of gross improvements to the 22,500 square
feet of SPD asseinbled lots. This is equivalent to an FAR increase of .5
for the development site which translates into approximately $130,000 of ad-
ditional gross income each year (assuming full occupancy).
In summary, this Transfer of Development Rights strikes an equilibrium in the
sense that it: allows the developer, relatively speaking, to maximize his
cash on equity return, and; insures appropriate physical development and; re-
development by subjecting projects taking advantage of the Transfer of Dev-
elopment Rights to site and development plan reviews by the Planning.Depart-
ment.
A map showing the
47
EXHIBIT VIII-5
PRO FORMA FINANCIAL PROJECTIONS
PROTOTYPE OFFICE AND COMMERCIAL PROJECT
(Without Proposed Transfer"of'Development Rights)
ESTIMATED COSTS
Land and Existing Improvements
Building Construction •
• Retail Level @$28 S.F.:
Office Levels @$38 S.F.:.
Parking Levels @$15
Surface Parking.@$400/space
Subtotal
Non -Construction
Total Costs
:252,000
1,368,000
270,000
20,000
ESTIMATED ANNUAL INCOME AND EXPENSES
Gross Rents:
Retail @ $9 S.F.: 60,750
Office @ $14 S.F.: 413,280`:_.
Subtotal
Less: Vacancy (5%)
Effective Gross Income
Less: Operating Expenses
Net Operating Income
FINANCING
Economic Value (Cap Rate .095)
Mortgage Obtainable (.75)
Debt Service (.11)
CASH FLOW
Net operating Income
Debt Service
Cash Flow (Before.Y Tax and CCA
PERCENTAGE YIELD ON INVESTED CASH;
Total Cost
Mortgage Obtainable
Equity
Yield on Equity
Return on ;Investment
474,030
23,700 `.
450,330
165,910
284,420
284,420.`
247,000
37.,"420
48
EXHIBIT VIII-6
PRO FORMA FINANCIAL PROJECTIONS
PROTOTYPE OFFICE AND COMMERCIAL PROJECT
(With Proposed Transfer of Development Rights);:
ESTIMATED COSTS
Land and Existing Improvements
Building Construction
Retail Level @ $28 S.F.:
Office Levels @ $38 S.F.,
Parking Levels @ $15 S.F.
Parking Surface @ $400/space:'
Subtotal
Non -Construction Costs .
Total Coats -
ESTIMATED ANNUAL`INCOME AND`EXPENSES;;
Gross Rents : ,
Retail @,$9.S.
Office @ .$14: S.
Subtotal
Less: Vacancy (5%)
Effective Gross Income
Less: Operating Expenses
Net Operating Income
FINANCING
Economic Value (Cap Rate .095)
Mortgage Obtainable (75%)
Debt Service (Constant 11)
CASH FLOW
Net Operating Income.
Debt Service
Cash Flow (Before Y Tax and CCA
PERCENTAGE YIELD' ONINVESTED
Total Cost
Mortgage Obtainable`
Equity.
Yield on Equity
Return on Investment
360,845
313,365
47,480
49
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N.E. 60 ST.
Targeted Deepening of Commercial District:
The commercial lots abutting the west sideof Biscayne Boulevard
between N.E. 69th St and N.E. 64th St. are too small for
developers to reap the benefits provided by way of the proposed
Special` Planning District.
The Special Planning District will have its minimal impact upon
the commercial lots abutting the westside of Biscayne Blvd between
N.E. 69th St. and N.E. 64th St. These commercial lots are simply
too shallow for the proposed transfer of Development Rights to be
effective. Consequently, developers will not build along this
otherwise excellent location for mixed use construction. Deepening
of the commercial district between NE 69th St and NE 64th St. is
essential if appropriate development is to be realized here.
The existing R-4 Zoning District which separates the C-1 district
from the R-2 district between NE 69th`St. .and .NE.64th,St.
contains the following land uses:, rear extension of motel structures
on the Boulevard; parking for motels on the Boulevard; vacant and
underutilized land; shably apartment buildings; five single family.
homes, ,three of which are advertised for sale.
The existing land uses within the C-1 District which, between NE
69th Street and NE 64th Street, separate the R-4 District from
the Boulevard include: two vacant retail commercial buildings; four
marginal motel operations; a gas station; and vacant land.
The depth of the commercial area will increase from 110 feet to an
average depth of 270 feet. A minimum of 120 feet of street frontage
can mean a maximum of 34,800 square feet of assembled commercial
property. The acquisition of one block of Biscayne Boulevard street
frontage gives the developer the potential to acquire 69,600 square
feet of commercially zoned' property.
34,800 square feet of commercial, land translates into 58,800 square
feet of gross improvements or roughly a 6-8 story buildings.
(excluding structural parking).
69,600 square feet of commercial land translates into 117,600 square
feet of gross improvements or roughly an 11-13 story building..,.
(excluding structural parking).
51
IX
BISCAYNE SHOPPING PLAZA
Existing Conditions'
The Biscayne Shopping Plaza is, located on a 20 acre site at the -:inter-
section of N.E. 79th Street and Biscayne Boulevard. Built in 1953 at this
ideal location in the city,1 the plaza is one of the first shopping centers
of Miami.
High vacancy rates and a rather shabby, appearance presently characterize
this shopping center. Although the Biscayne. Shopping Plaza Merchants Associa-
tion reports that there has been an increase in sales this past year over
previous years indicating improved conditions, the following is a chronological
presentation of past events and forces which in conglomeration have created
the existing state of the plaza.: A combination of forces have 'detrimentally
impacted the plazaduring the last several years, but the catalyst of decline
was managerial and financial difficulties internal to; the anchor stores
within the plaza. Changes in the service area's demand determinants such
as incomes and population, did not cause the vacancies. The vacancies, however,
caused people to shop elsewhere, traveling greater distances to do so.
Within -.the last four years, W.T. Grants, Junior's Restaurant, and Neisners
have. gone out of business. These -anchor stores: represent a total of approxi-
mately 56,000 sq.ft. (18.5°% of total retail square footage) left vacant. Grants
bankruptcy. All chain stores folded
and.Neisners closed down
as a result. Junior's went out of business because of poor management of the.
once very popular restaurant. The large vacancies left by these stores closing
within a short time
1
The Department of Transportation reports that the average daily traffic count
for Biscayne Boulevard just north of M.E. 79th Street is 31,000 automobiles,
Fourth -highest in the City of Miami (excluding expressways).
due to national
span of one another manifested
a run-down appearance. The
52
vacant stores aggravated by declining appearances began to deter shoppers
from the plaza.
The Biscayne Shopping Plaza. hasalso suffered from ownership problems.
Sections of the shopping center are owned separately by .two absentee owners:
Biscayne Plaza Associates and Franklin Life Insurance. Company. The manager
for Biscayne Plaza Associates occupies office space on site and manages the
southern strip of the plaza running parallel to Biscayne Boulevard (where
Flagler Federal is located around to McDonald ), the strip which; extends
north from and includes Pantry Pride, and the smallsegment whereservice
shops are located acrossfrom the bank which also runs parallel to Biscayne
Keyes Management Co. manages the northern strip Of the
Boulevard..
owned by Franklin Life Insurance Co.
Grants store. The ;absentee ownerships a
hurtthe overall marketing;`: approach of the shopping center.
W.T.
tween- them have
extending rfrom :J.
id the lack :o
plaza,
. Penney to the vacant
coordination
A lack of aggressive promotional efforts'to fill the vacant stores has
e
indered'
the plaza's ability to keep vacancy rates negligible.
Presently, the Biscayne Shopping Plaza has ';approximately 37,150:sq..f
of retail/commercial space available for rent. There is an additional 18,500
sq.ft. available for office occupancy The total vacant space amounts to
55,650.sq.ft. This figure is a combinationtof
vacantsquarefootageB g
Plaza.
the two owners
and s representative of.the entire
A portion of the vacant space is difficult
ward size dimensions left by the large anchor stores.'
Neisner's," and Slater's Shoes occupied relatively large
since been leasedbya furniture store.. Th
The empty stores are either too small:: to.
space has
vacant. T
department .stores, .i.e. Zayre,'Woolco
0
exis, in
iscayne,Shoppin
ease due to the awk-
W.T. Grants,'?Junior'.
areas. 'Neisner's
e others still remain
lease to discount-tYpe
consumer and resident surveys indicate
111111111 111111111111111111111111111111
53
a strong desire for this kind of store) or too large for most other kinds
of operations. The management prefers not to modify store sizes, especially
where additional air-conditioning units must be installed as a consequence.
The costs associated with altering the air-conditioning system to cool
separate store units are relatively significant, according to the manager
of Biscayne Plaza Associates.
These chronic vacancies and the lack of. strong anchor stores have had
a negative impact on consumer spending within the chopping center. The number
of shoppers frequenting the plaza has declined because the number of stores
and, therefore, the variety of goods and services offered in the shopping
centerhas declined. The other shops, whose success has been tied directly
to the economies of conglomeration once prevalent, have had to go it alone.
Consequently, Thom McAn Shoes, Slater's Shoes, and a few of the better dress
shops have gone out of business. Table 1 shows the previous tenants of the
ten vacant stores' the square footage generated by their loss, and t.he. length
of time these stores have remained vacant. Table 2 lists the remaining
tenant composition of the plaza. In fact, as one drives south along Biscayne Boulevard and casually
glances into the shoPPinigegce
variety, and thheersuhno-pdpown appearance, tinreomovterall a
p
p
e
a
r
a
-n
bcle
e fcrinimenttneilse angle
n
rl.aautzniadoeindsiauyilerito high vacancies, less.
As shoppers discouragedfrom nothoeoprepe
were a m
suggests that t
riety,
frequenting the shoppingcenter. This additiona deterred shoppers.
While the level of shoppers was dropping, the presense of this unwanted
element rose accordingly. These conditions served as impetus into the
detrimental cycle already in motion.
Although the Biscayne Shopping Plaza has experienced a decline
during the last several years, it is evident that these past trends are being
54
TABLE Yx-1'
EXISTING RETAIL -COMMERCIAL VACANCIESI
Length of
Previous Tenant Sg.F Time:Vacan
W.
T. Grants':'
Junior' s Restaurant
S1ater's Shoes
Mays. Dress Shop
Ne1son ':s Womens Wear
Graber's Dress Shop
Ponn's Jewelers
Thom McAn Shoes
Cosmetic Studio.
16,000
7,0003
5,300
3.years,
3 years
3 . months
1,800 2 1/2`years
'
1,800 2 1/2 years
1,550 2 years
1,500
1,500 3 months
700.
7,1:50�:
Personal communication with Manager of Biscayne
`Eagle Family Discount Store now' occupies
of Grants.
3McDonalds now occupies 5,500
4
Represents 12.4% of the total
occupancy.
8000.
l aza Associates,
•
my 1979.
of space once a part
sq.ft. of space once apart' of Junior'
300000
q,ft. available .for retail
commercial
55
TABLE IX--2
TENANT COMPOSITION OF THE BISCAYNE SHOPPING PLAZA
Shoppers Goods:
Crystal Furniture,
Eagle Family Discount
Edison Furniture
Fayva Family Shoes
Holly Discount Center
J.C. Penney
Kings Northeast Jewels
Lerner Shops
National Shirt Shops
Plaza Hearing Aid
Radio Shack
Real Auto Parts
Three Sisters
Convenience Goods:
Baskin -Robbins Ice Cream
Caper Sandwich Shop
Lantern Gifts -Cards
McDonald's
Pantry Pride
Sun Up Nutritional Center
Walgreens
Walgreens Liquor Store
Service
Aladdin's Castle Family Amusement Center
Barber Shop
Flagler Federal Bank
Hair Fashion Salon
The Insurance Place
Nu -Life Shoe Repair
1-Hour Dry Cleaners
Wash Bowl Coin Laundry
Total number of stores in operation;=;
56
reversed. The Biscayne Shopping Plaza Merchants Association has reported
to the -City -Of .MiamiPlanning Department that sales have increased since the
previous year. McDonalds moved in two years ago and has helped,instill
confidence in the shopping plaza by their choice of location.
Federal is, sponsoring a',,tree-planting project, i
as an act of appreciation to the Biscayne Shopping Plaza and commemorating,:
the Bank's 25th Anniversary in the plaza.
The recent increa
turning to the plaza.
Flagler
n cooperation with the City,
sesin spending indicates that more shoppers are. re
The incidences of crime, a major deterrant to consumer
spending, are generally expected to rise with an increasing population This
is not the case, however, in the study area for all criminal` offenses: Crime`
data provided by the City of Miami Police Department reports a 1.3% decrease
in the combined totals of robberies, assaults,and. breaking & entering inci-
dents from 1977 to 1978 for the Biscayne Boulevard area A decreasing crime
rate is a very positive factor which will beneficially affect the Biscayne
Shopping Plaza..
Consumer and resident surveys recently administered indicate that local people
are returning to the plaza The consumer survey indicates` that 81% of all
persons interviewed within the shopping center were there primarily,to shop
(as opposed to work or eat). The resident, survey indicates that 53%:of
those living within the northeast community
N.E.,87th St.) are also shopping a
reason for. .shopping in the
consumers and residents.
definedas N.E. 36thSt:. t
t the Biscayne Shopping Plaza.
The primary
plaza was found to be for: convenience by. both
The majority of: the shoppers lived less than five
minutes away by car. More detailed ;survey results are presented in the next
section. These survey findings' further support the premmse that past trends
57
hindering the Biscayne Shopping Plaza's successful operation are being.
overcome and reversed.
SurveyResults:
Consumer Survey:
The thrust of development and redevelopment underway
from the downtown area and is gradually moving north along Biscayne Boulevard.
In an effort to hasten the process along this corridor between N.E.
and N.E. 87th St., impetus is needed at N.E. 79th St. The Planning Depar
ment believes that the Biscayne Shopping Plaza can play an integral part
stepping up the redevelopment process in the northern area of the Boulevard.
Consistent with this belief, the Planning Department has conducted a consumer
survey to increase staff literacy, with regard to problems and opportunities
within the Biscayne Shopping
Plaza.
The City of Miami Planning Department administered a survey to shoppers
on July 12th, 1979 between 10:30 am and 4:00 pm. Three interviewers "'con-
ducted the face-to-face survey at different points in the center. A random
sample of 100 shoppers was obtained. All, shoppers in the plaza that day
were free to stop and: answer the survey questions.
The. consumer survey indicated that 81% of those interviewed did infact,
come to the Biscayne Shopping Plaza to shop l2% came primarily to work in"
theplaza but all did do some shopping once off work.
The majority of the shoppers, 83%,chose the plaza for shopping because
it is convenient to where'they'live. It was found that 46% of the shoppers
lived less than five minutes away by car.
shoppers was found to
support, the assumption that localresidents are again shopping attheir
neighborhood shopping plaza. The BiscayneShopping Plaza is attracting
consumers from the surrounding neighborhoods in close proximity to the shopping
center.
A substantial percentage of
have
walked ;to
the shopping center--26%. These results
58
security.,
was
coming because of
The survey showed >that consumers are not coming to the plaza primarily.
cause of good variety and quality offered by the merchants 99% are
1% because of the variety.
35% of the shoppers expressed a desire to see more discount/outlet clothing
stores move ;in where existing vacancies presently occur. 15% desired a
large discount type store, i.e. Zayre, Woolco, K-Mart, to open up in order
to provide more variety within the shopping center. d
that of the 32% of the consumers buying clothes in"
than 25% of their clothing there, due to the lack.
did not meet with their tastes, and preferences.
Pantry, Pride attracted a large proportion of the
the center. Some of these shoppers indicated they would shop f
iterns besides groceries if the vacancies were occupied by stores offering
quality merchandise at discount prices:and more of a selection
The consumer survey produced evidence that the majority of shoppers
would support a revitalization effort within the plaza.
le
The survey indicate
the plaza, all bought- less
of :variety, and styles that
shoppers, '68/, into
21%
specifically",
The "policeman
-
on -a -horse"
popular request Of the 45 people who made suggestions
for upgrading the shopping plaza, two-thirds recommended beautification
projects such as repainting exteriors, a tree -planting program to provide
much needed shade, and similar facelifting efforts. Other requests were
made in lesser frequencY for better lighting facilities at night, greater
enforcement of no-bikesand loitering ordinances within the plaza, and
improvement of the traffic pattern in the parking, area to relieve congestion
or other
59
100% of the consumers surveyed who now shop in the plaza infrequently,
expressed their, commitment toshopping :more frequently if the center was
upgraded They felt that the plaza would again attract more local residents
back to this convenient shopping center if improVement.measures were imple-
mented.
Survey Results: Resident Survey
A recent survey was conducted by telephone to gather data regarding
shopping locations and characteristics of Biscayne Boulevard area resident
Polk's.City 'Directory 1976 was utilized to obtain telephone numbers.. of per-
sons residing east of the Boulevard from N.E. 50th-Terri north to N E 87th St
Every fifth entry in the directory was called until a random sample of 100
respondentsto the questionnaire was obtained. The survey was conducted by
S.
the City of Miami Planning Department beginning`: June 20th through July 5th,
1979 between thehours .11:00.am and.5:00 pm daily.,
The residentsurvey results indicate that consumers shop at stores
closest to them along Biscayne Boulevard, especially for groceries. 45% of
the residents living in the sample area shop at the Biscayne Shopping Plaza.
Pantry Pride's location in the plaza was found to be a large drawing force.
89% of the residents shopping at the plaza responded that convenience was
the reason they went there to shop. Local residents shopping in the center
stated they, shop most frequently for groceries and notclothing in the plaza.
81% of the survey respondents was found to shop for clothing off Biscayne
Boulevard.` 25% of those polled shopped,. downtown and 15% traveled north to
buyclothes. Residents indicated the lack of variety and
Miami: Shores,.to c o es. e
quality: merchandise accounted for their abstention from shopping along the
Boulevard and in the. Biscayne Shopping Plaza.
60
28% of the residents surveyed by phone made comments regarding the
Biscayne Shopping Plaza, although no question was included in the question-
100% of these' respondents
upgraded. Residents
Shopping Plaza
naire referring to the shopping.. center per se.
stated they would like to see the Biscayne Shop
expressed a desire for physical improvements, increased quality and variety
of merchandise, and vacant stores leased to tenants selling stylish goods
at reasonable prices.
Summary
Negative changes :in the service area
demand determinants such as income
and population have not caused the noticeable vacancies and shabby appearance
which now characterizes the Biscayne Shopping Plaza. Instead, decreases
demand have resulted from forces such as national bankruptcy and managerial
problems inherent to three of the major stores.'
Although the Biscayne Shopping Plaza has experienced
the last several years, it is ev:ident` that consumer spend
upswing according t t
d resident: g
sumer an
to the', plaza to shop.;
o the Biscayne Shopping Plaza tlerchan
in
a decline during;
ing is now on the
s`Association. Con -
surveys also indicate that local residents .are
returnin
e shopper's are
The consumer survey points` out that the majority of th
attracted to this shopping center by Pantry Pride and its convenient location.
These same:. consumers are not coming to the plaza because of good variety and
quality merchandise offered by the merchants The findings of the resident
survey are consistent with the above Those living closer to Publix on
Biscayne Boulevard prefer to do their grocery shopping there and therefore
make separate trips to shop for clothing,
etc.;
61
Both the consumer survey and the resident survey produced strong evidence
that local residents would commit themselves to more frequent trips to the
shopping center if the managements' and merchants association instituted a
beautification project that includes tree planting and a basic facade treatment.
Furthermore, when 'asked what kinds of stores should replace the existing
vacancies, the majority replied that they would like to see a discount store
(i.e. Zayre, Woolco, K-Mart), and an outlet clothing store selling quality
merchandise at discount prices.
Biscayne Shopping Plaza: Area Retail/Eating and Drinking Space Demand
The community shopping center trade area which is serviced by the Biscayne
Shopping Plaza's retail facilities is defined, for the purpose of this analysis,
as the area between NE 36th Street and NE 121st Street with NW 7th Avenue
and Biscayne Bay functioning as the west and east boundaries, respectively.
The population, households, household income and household retail expenditure
potential for this trade area have been developed.
The shoppers goods expenditure potential is $77,157,356. Convenience
goods expenditure potential is $96,446,695. These expenditure potentials
are available to all retail facilities both within and without the defined
trading area. The extend to which any store or group of stores captures
a market share of the total potential depends on a combination of such
factors as.
1.. The type and quality level of the store/merchandise line
presentations and consumer acceptance of the above;
2. store mixtures and balance of store types;..on
aggressive management andmerchant.association
policies prom
licies in otion and marketing,
4. access; and
. environment.
62
An Analysis of the gross warranted retail floor area within the
trading area, based on total sales potential, discloses that the 300,000
sq. ft. of retail space characterizing the Biscayne Shopping Plaza
represents only 13% of this warranted retail floor area. Ample sales
potential exists to support the Biscayne Shopping Plaza, see Table 3.
Besides community trade area residents, Biscayne Shopping Plaza s
retail facilities are supportable by the employees/clients associated
with the 150,000 sqftof office space within the shopping plaza.
Furthermore, the 7880 BiscaYne •Office Building and t e laml •
r'lationl Bank Building, both a stone's throw from the shopping plaza, repre-
sent 194,000 sq ft. of office space that favorably impact the aggre-
gate sales of the Plazas retail facilities. •
The Biscayne Shopping Plaza office space together with these two
office buildings are capable of supporting 10,000 sq. ftof general
retail activity within the shopping plaza.
Shoppers Goods`
General Merchandise
Apparel
Furniture
Other
Total
Convenience:: Goods
Food'.
Eat/Drink
Drug
Liquor
Other
Total >_
GRAND:
TABLE ix-3
RETAIL OPPORTUNITIES AVAILABLE MOM
SERVICE AREA POPULATION
1979
Total Sales Potential'
$37,035,531
13,888,648
12,345,177
13,888,000
$77,157,356
$59,796,952'
7,715,735
22,182,740
4,822,334
1,928,944
$96,446,695
$173,604,051
BISCAYNE SHOPPING PLAZA
Percentageof Total Warranted Retail Floor
ity;of Miami Planning Departmen
-Est:_:Sales 'Per rS.F.
$75
85
75
$135
100
90
100
Warranted:: Gross Fir. Area
493,807 S.F.
163,395
164,602.
163,388
985,192 S.F.
4111,273 S.F.
77,157.
246;474
482233
22,693
1,272830S.F.
2258,022`S.F.
000: S.F.
64
Recommendations
Based on the findings of the surveys and increased understanding of the
problems and opportunities existing in the Biscayne Shopping Plaza, a vigorous
concerted effort must be made to revitalize the shopping center in order to
attract new tenants and shoppers. This •needed impetus at N.E. 79th St. would
assist in stepping up the redevelopment process in the northern area of
Biscayne Boulevard. The following actions are therefore recommended by the
City of Miami Planning Department to stimulate the revitalization of Biscayne
Shopping Plaza.
•
--Undertake a beautification project within the plaza to enhance its physical
appearanc
Physical improvements within the shopping center are needed to upgrade
the image it now projects to passing motorists and shoppers. Treatment to
the facade, exterior painting, minor repairs and modifications, and similar
"paint -up, fix -up" actions would greatly enhance the appeal of the shopping
plaza. The facade would be most effective if blended together in a coordinated
manner. Visual cohesiveness gives the impression of a one -stop, efficient
•
shopping center.
--Improve the physical environment within and around the shopping plaza by
extensive landscaping
A tree planting program extending throughout the plaza would greatly im-
prove the attractiveness of the plaza and provide much needed shade. Land-
scaping, in conjunction with a beautification Project, would create a pleasant
shopping atmosphere.
A joint private -public tree planting effort is encouraged for the key
intersection of N.E. 79th St. and Biscayne Boulevard. The City of Miami wiul
65
provide assistance in planting the trees (in a similar arrangement which now
exists betWeenthe Flagler Federal Bank and the city in their project), The
City cannot plant trees north of N.E. 79th St. on the Boulevard because it is
classified a stateroad and lacking curbs. Curbs must, be present for trees
to be planted to avoid obstructing motorists' views and to maintain the safety
of the road, Extensive landscaping around the major N.E. 79th St./Biscayne
Boulevard intersection would, however, greatly improve the visual appearance
and help to establish a distinct entryway into Miami, as well as the Biscayne
Shopping Plaza.
--Implement an aggressive marlteting campaign to reduce vacancies and attract
more shoppers
A more aggressive marketing approach would help to attract new tenants
and fill the unwanted vacancies. Efforts to attract tenants offering a greater
variety of goods and services to consumers should be made.
Although the surveys recently conducted indicate Pantry Pride attracts
a large percentage of the shoppers into the plaza--68%, it does not appear to
function as an anchor store for other consumer -type stores located in the
shopping center. Another anchor store that would serve to compliment the
others shops and draw shoppers into the plaza should be encouraged to occupy
space in the center.
An appropriate theme for the Biscayne Shopping Plaza to emphasize when
acquiring new tenants is quality merchandise at discount prices. The shopping
center must create a unique shopping experience and opportunity for consumers
who would otherwise go elsewhere and, in fact, now do.
The City of Miami Planning Department, after reviewing prevailing condi-
tions within the marketplace and carefully examining characteristics of
66
existing facilities, has identified a number of retail establishments and
service firms which would contribute to the economic Viability of the Biscayne
Shopping Plaza. Tables . 4 and 5 are included as guides to be used in the
selection of new tenants which could realistically be attracted to fill the
existing. Vacant retail a'nd office space.
--Strengthen the Biscayne Plaza Merchants Association's involvement.
a positive image of the shopping center.
All tenants should be encouraged to join the Merchants Association. This
would help overcome problems inherent in the dual ownership of the plaza. A..
cooperative, united group of merchants would foster more effective promotional
efforts. Actions that might be carried out by a strong association are
collective advertising measures;; staging of plaza wide sales involving all
merchants;.' and a collective, visible listing of all tenants erected at the
entrances to the; shopping centerA concerted effort on the part of all mer-
chants would stimulatelocal pride in the plaza:
promoting
--Improve signing demarcating the: Biscayne Shopping Plaza
A single large sign serving to -mark the district as a whole would be very
effective at the busy intersection of N E 79th`St. and Biscayne Boulevard.
The existing signs, one on 79th St and one on the Boulevard, are not large
enough and are inconspicuous.' They do not adequately demarcate the shopping
plaza to passing motorists.
Welcome signs posted at Miami city limits at the north and south ends of
Biscayne Boulevard identifying the Boulevard as the "Gateway to Miami" would
be very effective in establishing a positive identity for the area. The signs,
listing the components of the Boulevard and including the Biscayne Shopping Plaza,
would assist in attracting more shoppers to the plaza.
67
TABLE Ix-4
TYPICAL RETAIL
SERVICE
SQUARE tFOOTAGETS
AND CORRESPONDING
REQUIREMENTS
Space
Requirements
(Square Foot)
Establishment
500 - 3,500
Fast Food Outlet 1,200 - 7,500
Clothing 1,300 - 5,000
Shoes 600 - 7,800
Furnishings 1, 200 - 5, 200
Appliances 1,000 - 6,500
Hardware 1,000 - 3,800
Cards And Gifts 2,000 - 5,200
Stationary ' 2,500 - 6,500
Drugs 450 � - 2,300
Barber And Beauty 450 - 2,100
Cleaners 500 - 1,200
Shoe Repair
Source: Urban Land Institute
68
TABLE IX-5
SELECTED OFFICE BUILDING OCCUPANTS
AND CORRESPONDING SQUARE FOOTAGE
REQUIREMENTS
Accounting
Architectual
Advertising
Brokerage
Credit Reporting
Engineering
Employment Agency
Finance Company
Insurance Agency
Interior Decorator
Legal
Medical - Dental
Mortgage Company
Public Relations
Real Estate
Travel Agency
Office Space
Requirements
(Square Foot)
300 - 1,000
400 - 3,700
300 - 1,500
350 - 5,600
350 - 3,500
300 - 1,600
750 - 1,800
300 - 2,600
900 - 1,800
300 - 2,500
500 - 1,600
800 - 1,800
300 1,500
150 - 2,200
i50 - 1,500
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--Improve signing within the Biscayne Shopping Plaza to increase the safe and
efficient flows of vehicular and pedestrian traffic
Better sign communication is needed to relieve confusion to drivers in
the entrances, exits and parking areas. The entrances and exits should be
clearly identified to driver's approaching from N.E. 79th St. and the Boulevarc
The parking area east of N.E. 5th Ave. (in front of Walgreen's) has a
confusing traffic pattern. One-way and other directional signs; should be
clearly displayed to lessen the confusion.
To facilitate safer pedestrian movement throughout the plaza, pedestrian
crossing signs must be posted at the three crosswalks designating them as such.
The existing sign marking the crosswalk on` N.E. 81 St near the bank needs to
be set back a greater distance from the crossing Approaching cars would then
have sufficient opportunity to slow before reaching the crosswalk. Since the.
plaza is bisected by two streets producing a sizeable amount of traffic (5th Ave.
and 81st St.) during shopping hours, additional` caution signs and/or lights
would further promote the general welfare of the pedestrians. These measures
would encourage safe driving speeds and increased awareness of pedestrian.
traffic.
In order to futher promote safer pedestrian movement within the plaza,
"no -bikes" signs should be posted throughout. Presently, "no -bikes allowed"
messages are stenciled in yellow on the shopping center's walkways.` These.
by bike -riders. The provision
would also discourage
are not clearly visible and are often overlooked
of bike racks at several spots in the shoppin
center
bikes from being ridden.' on pedestrian walkways.
The directory maps located at different points in the plaza, designed to
aid shoppers in finding the various stores, are in need:; of repair and updating.
70
Stores no longer in operation should be deleted from these signs.
The Junior's
Restaurant sign on the N.E. 81st St. and Biscayne Boulevard should also be
removed.
--Provide amenity comforts throughout the shopping plaza
shopping atmosphere and experience
A successful neighborhood shopping center desires to be comfortable a
well as convenient. Benches placed throughout the Biscayne Shopping Plaza Would
provide those persons accompanying shoppers with a comfortable place to wait.
The benches now scattered throughout the plaza are in, poor condition an
not being utilized by tired shoppers and waitingfriends.
be'undertaken to improve the bus stop waiting areas which
Action should
service the plaza on N.E. 5th Ave at N.E. 79th St. and
sections. Covered waiting areas would be more desirable
them shelter from the sun
These
conjunctio
and rain.
o promote a -pleasant
are
I.E. •81st. St. inter -
to riders, providing
measures to accommodate shoppers in a comfortable environment,.in
n with a beautification and landscaping program, would considerably
improve conditions at the Biscayne Shopping Plaza.
-Provide more visible security measures
Presently, there are security measures implemented within the shopping
plaza A security officer walks throughout the center and police cars regularly
patrol the area. However, consumer surveys indicate a desire for more visible
security. Crime has been found to be more perceived than actual. A perceived
situation is still detrimental to the positive` image theBiscayne.Shopping
Plaza would like to portray The return of the "policeman on -a horse" would
helpto alleviate this condition. The novelty of such law enforcement, would
also serve to attract more shoppers
IIIIIiIIIIII1111 I UIIU
71
•
--Establish better coordination between the Little River Business District
and the Biscayne Shopping Plaza
Coordinated development of these two adjacent commercial nodes would
create a more viable business concentration. There is presently little inter-
action between these two. areas. Although they are physically separated by
the Little River Canal, they should not be viewed in isolation of one another.
The improvement of pedestrian linkages and the futureestablishment ofa
shuttle bus servicing the two areas should be investigated.These actions
would assist in tying the market area of the Biscayne Shopping Plaza to the
west.
--Rezone Biscayne Boulevard, north of N.E. 80th St., from C-2 o .As11c.:44
the proposed Special Planning District (see Appendix) to apply to
new C-1 District.
The general character of Biscayne Boulevard is intended to be that of
quality office, residential, and retail development. Uses Permitted with-
in C-a Districts such as second hand shops and auto repair shops are not
appropriate along this entryway portion of the Boulevard. Furthermore,
the Special Planning District with its modified use regulations will ex-
ert positive spillover effects with respect to the Biscayne Shopping Plaza
and its economic vi abi 1 i ty.
SPD-3-BISCAYNE BOULEVARD NORTH SPECIAL OVERLAY DISTRICT.
Section
INTENT
(1) Biscayne Boulevard has traditionally been known as the
"Gateway to Miami". It is, therefore, in the public interest that future developmentand redevelopment upgrade
and, subsequently, augment the visual impression of this
arterial landmark. The intent of these regulations is to
encourage high quality office, residential and commercial
development in a linear. setting. This district, superimposed
over the existing zoning district, modifies use regulations
and explicitly states the manner in which development rights
may be transferred from transitional use lots to SPD 3 lots
with respect to floor area':
(2) All other zoning regulations and procedures not affected
by this regulations shall be in full force and effect.
REGULATIONS
(1) Any use permitted in an R-3 District, Subject to USE, AREA,
YARD, LOT COVERAGE, MINIMUM FLOOR AREA AND USABLE
OPEN SPACE regulations specified in said District.
(2) Apartment buildings and apartment hotels not exceeding a
density of one (1) dwelling unit for each six hundred (600)
square feet of lot area.
(3) Hotels, Motels.
(4) Office for the conduct of real estate, mortgage financing,
accountants, tax consultants, dental or medical (including
clinics), or office of other professions, or businesses, not
involving sale or handling of merchandise on the premises.
(5) Banks and finance offices, exclusive of drive-in tellers.
(6) Broadcasting Stations for Radio and T.V.
(7) The following kinds of retail stores: Bookstores open to
the General Public; Stationery; Confectionery or Ice Cream;
Drugs; Newsstand or Sundry; Florists; Fruit or Vegeta
les;
Gifts; Grocery; Hardware; Hobby; Home Appliances;
welry
Liquor Package; Meat Market or Delicatessen; Music; Film
Exchange and Photographic Supplies; Shoes; Clothing; China
and Crockery; Variety; Antique; Carpets; Rug and Floor Covering.
(8) Art Supplies
(9) Bakery Goods Shop
(10) Personal Service Shops such as Barber Shops and Beauty Parlor.
(11) Dry Cleaning Agencies or Pressing Establishments.
(12) The following uses when conducted within a building or portion
thereof which has no openings on any side adjacent to
residentially zoned property, and which has all activities,
other than retail sales and display or office usage, confined
either to the rear one-half of the ground floor, or to a floor
other than the ground floor.
(a) Letter Service and Mimeographing.
(b) Custom Dressmaking, Millinery or Drapery Store, provided
that no products are prepared for the purpose of
supplying other business located elsewhere.
Laundry Agencies.
Leather Goods.
Optical Stores.
Photographers.
The sale and incidental servicing of Radio, Television,
Phonographic and Home Appliances, provided that:
(a) The servicing of all appliances shall be confined to no
more than the rear one-half of the premises.
(b) The area of the building devoted to service activity shall
be effectively screened from the front portion of a
building so as to not be viewed from any portion of the
area of the building devoted to sales or display.
Areas for service trucks and loading and unloading
activities shall be properly screened with walls or
landscaping from abutting residential areas.
Restaurants, Tea Rooms or Cafes (excluding dancing or
entertainment).
(19) Shoe Repair Shops.
(20) Sporting Goods.
(21) Tailor Shops.
(22) Art Galleries, Museums and Libraries.
(23) Parking lots and parking garages.
(24) Watch and Jewelry Repair.
(25) Department Store.
(26) Furniture Store.
(27) Office Furniture and Equipment.
(28) Interior Decorating.
(29) Ticket Agencies.
(30) Telephone Exchange and Telegraph Office.
(31) Educational Institutions of a business, professional or
scientific nature (classroom or lecture instruction only),
not including music school, trade school, nor any school
specializing in manual training shopwork, or in repair or
maintenance of machinery or mechanical equipment.
(32) Medical or Dental Laboratory.
(33) Employment Office.
(34) Theater.
(35) Commercial marinas on non-residential sites, subject to the
on -site parking, open space, sanitary and safety provisions
required in Article IV, Section 23, Sub -section (8) of this
Ordinance.
(36) Wet dockage or moorage of vessels sixteen (16) feet and over
in length, as an accessory use to a principal residential
use, provided that the total number of slips does not exceed
more than twenty (20) percent of the total number of existing
dwelling units in facilities with more than twenty (20) slips.
An accessory use permit is required for non -owned vessels
sixteen (16) feet or over in length.
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Wet dockage or moorage of permanent live -aboard
vessels, subject to the following density limitations.
(a) On Vacant Sites.
Maximum density permitted is the maximum use density
allowed in the district. The docking of one (1)
or more permanent live -aboard vessels is subject to
the on -site parking, open space, sanitary and safety
provisions required in Article IV, Section 23, Sib -
section (7) of this Ordinance.
(b) On sites with existing dwelling units.
Maximum permitted is either the difference between the
maximum use density allowed in the district and the
actual density of one (1) permanent live -aboard vessel
for every six thousand (6,000) square feet of lot area,
whichever is less. In no case, shall the use density
of the zoning districts be exceeded by the addition of
permanent live -aboard vessels. The docking of five (5)
or more permanent live -aboard vessels is subject to the
on -site parking, open space, sanitary and safety provisions
required in Article IV, Section 23, Sub -section (8)
of this Ordinance.
Accessory Uses and Structures.
The following uses if approved as a CONDITIONAL USE:
(a) An addition to a conforming or non -conforming building
or structure which contains a non -conforming COMMERCIAL
USE, subject to the provisions of ARTICLE XXVIII, Section
1, (1) (a) through (f) or Section 2, (2) (a) and/or
Section 2, (3) (a) .
(b) Automobile Agencies (Sales + Display only).
(c) Clubs or Lodges, Fraternal or Religious Associations.
(d) Commercial boats, boat rentals, boats for hire, charter
boats and sale of marine fuel and supplies.
(e) Post Office.
(f) COIN OPERATED LAUNDRIES -provided that: A self-service
laundry shall not exceed, for all washing units combined,
a total rated capacity of 500 pounds, and provided
further that no machine shall exceed a rated capacity
of twenty-five (25) pounds. All vents and exhaust
outlets which are used for removing fumes and/or heat
from washers or dryers shall be confined either to the '
roof area of a building, or to the portion of an exterior
wall area which is eight (8) feet or more above grade,
and all such outlets shall be constructed so as to
discharge in a vertical direction.
(g) Drive-in Tellers.
(h) Wet dockage or moorage of vessels sixteen (16) feet and
over in length, representing more than twenty (20).
percent of the total number of existing dwellingunits
in accessory, use facilities with more than twenty (20)
slips.
•
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(40) Other uses: Other uses or enterprises similar
to the above, which, in the judgement of the
Zoning Supervisor of the Building Department
are similar to and not more objectionable to
the general welfare, than the USES listed.
"OTHER USES", so determined shall be regarded
as listed uses. In no instance, however, shall
the Zoning Supervisor determine, nor the regula-
tions be so interpreted, that a USE shall be
permitted in a District when such USE is speci-
fically listed as first permissible in a less
restricted District.
TRANSFER OF DEVELOPMENT RIGHTS.
For building sites which have a minimum of 120
feet of street frontage along Biscayne Boulevard
and which have an adjacent transitional use lot
in an "R" District, development rights for the
floor area may be transferred from this "R" District
lot to the assembled SPD-3 lots (principal site).
The floor area ratio for the principal site upon
which the building must sit, shall not exceed 2.5.
An R-3 or R-4 transitional use lot, not
exceeding 7,500 square feet of net area,
may transfer floor area development rights
equivalent to an FAR of 1.5 times the net
square footage of said lot.
An R-2 transititional use lot, not exceeding
7,500 square feet of net area, may transfer
floor area development rights equivalent to
an FAR of'.6 plus an FAR bonus of .9,
equaling an FAR of 1.5, times the net square
footage of said lot.
Where transfer of said development rights occurs,
all new development and redevelopment to the prin-
cipal site shall be subject to site and develop-
ment;plan review by the Planning Department in
accord with Article IV, Sec. 42.
A legal document binding the transitional use lot
to the principal site must be approved by the
City Attorney and recorded.
•
. .
-76-
22,500 SO. FT.
LOT SIZE
11,250 SO. FT.
GROSS IMPROVEMENTS
45,000 SO. FT.
GROSS
IMPROVEMENTS
56,000 SO. FT. GROSS
IMPROVEMENTS
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