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� 04. Amendments to Chapter 13,Section 13-52 through 13-65
File ID: 2572
Applicants
Alyce M. Robertson, Executive Director, Downtown Development Authority, 200 S. Biscayne
Blvd, Miami, FL 33131 and
Daniel J. Alfonso, City Manager, on behalf of the City of Miami, 3500 Pan American Drive,
Miami, FL 33133
Location
The area contained within the boundary of the Downtown Development Authority Boundary
excluding the area located within the Southeast Overtown Park West.
Introduction
Florida Statute defines a development of regional impact ("DRI") as, "development which,
because of its character, magnitude, or location, would have a substantial effect on the health,
safety, or welfare of citizens of more than one county (Sec. 380.06, Florida Statute). The Miami
Downtown Development of Regional Impact ("DDRI") is a large-scale downtown DRI consisting
of 927 acres (see map in Exhibit A) for which the developer is the Downtown Development
Authority, as established by Sec. 380.06 (22), Florida Statute. On December 10, 1987, the City
Commission adopted Miami's Downtown DRI ("DDRI") through Resolution 87-148. This
resolution established that the DDRI would build several large-scale developments over several
decades in phases, or increments. Increment I was established by Resolution 87-1149 on
December 10, 1987 and Increment II was established by Resolution 02-1307 on December 12,
1987. The study that resulted in the adoption of the DDRI determined that there was impact to
transportation systems and to air quality. Heretofore, the DDRI has assessed fees
("supplemental fees") to mitigate these impacts as well as to fund master plan recovery and
administration of the DDRI. These assessments have been adopted by Ordinances and
memorialized in Chapter 13 of the City Code. With the impending adoption of Increment III of
the DDRI, it is necessary to update the Code with policies that reflect the changes in impacts to
be created by Increment III.
DDRI Supplemental Fee
On September 7, 2016, the Planning, Zoning, and Appeals Board voted 9-1 to recommend
approval of Increment III of the DDRI. On November 17, 2016, the City Commission voted to
approve adoption of Increment 111 by a vote of 4-0. Since this time, the Second Reading of
Increment III has been deferred for Hearing by the City Commission until September 28, 2017.
In the approach to the commencement for Increment III, the City has analyzed the supplemental
fee that has been enacted to mitigate the impact that the DDRI has on the region. The
supplemental fee comprises three components: a transportation mitigation fee, a DRI/master
Chapter 13 Amendments for DDRI Supplemental Fee
File ID: 2572
P1
plan recovery fee, and an administration fee'. The fees must be paid in total prior to the
issuance of a building permit for any given development. Payment of fees is based on the
amount of development by land use.
Land Uses in the DDRI
The DDRI has established eight land uses that it tracks for impact mitigation and estimated the
amount of development that will be performed for each land use over the next nine years, as
noted in the list below.
Table 1. Increment III Development Program
(Sept. 2025, estimated buildout date)
No. Land Use Increment Ill
1 Office (sf) 2,500,000
2 Retail (sf) 758,000
3 Hotel (rooms) 2,000
4 Residential (units) 18,000
5 Convention (sf) -
6 Industrial (sf) 250,000
7 Institutional (sf) 150,000
8 Attractions (seats) 2,000
The land uses that have been approved and the quantities proposed for development in
Increment III were proposed through the Application for Development Approval ("ADA").
Relevant reviewing agencies2 approved the above development program and this development
program is proposed for downtown through the buildout date for the DDRI.
Mitigation Costs for the DDRI
Mitigation costs for impacts are estimated based on the development program above. Mitigation
is necessary for three things in Increment III: Transportation, Master Plan Recovery, and
Administration. The total cost estimates for these items during Increment 111 are as follow:
Transportation: $7,785,065.08
Master Plan Recovery: $4,628,129,12
Administration: $2,228,100.00
Transportation Mitigation
The fees collected for transportation mitigation are charged to all net new development in the
DDRI area to pay for improvements to mitigate for impacts on the regional transportation system
in accordance with requirements of the ADA and the Increment III development order for
Downtown Miami and which shall be a component of the Downtown supplemental fee.
1 The Environmental Protection Agency determined that the City of Miami no longer needs to mitigate for air pollution,.
so no supplemental fee is assessed for air quality in Increment III.
2 Reviewing agencies included: adjacent local governments; school board; Florida Department of Economic
Opportunity; Florida Department of Environmental Protection; Florida Department of State; Florida Department of
Transportation; Florida Fish and Wildlife Conservation Commission; South Florida Water Management District; the
Metropolitan Planning Commission; and the South Florida Regional Planning Commission,
Chapter 13 Amendments for DDRI Supplemental Fee
File ID: 2572
P2
Master Plan Recovery Fee
The fees collected for master plan recovery are charged to all net new development in the DDRI
area to reimburse the City and the Downtown Development Authority for costs incurred in the
DRI and master plan study and future related studies in accordance with the ADA and the DDRI
development orders.
DDRI Administration Fee
The fees collected for administration are charged to all net new development to pay for the
City's administrative costs for enforcing the terms and conditions of the Downtown development
orders, including but not limited to preparation of ordinances and procedures, review of permit
applications, monitoring compliance with requirements, and enforcing violations.
Supplemental Fee Coefficients
Having established the development program and the mitigation fees for the buildout over the
new increment, fee coefficients are the tool by which the supplemental fee for individual
developments are assessed. The coefficients effectively break up the total cost of each
mitigation fee by unit, that is to say, coefficients are a multiplier that determines what the
cost is per unit of development (e.g. square foot, residential unit, hotel room, or seat,
depending on the land use) that net new development must be assessed to ensure that a
development pays its fair share for its impact on the region. For any given land use, each
fee (Transportation Mitigation, Master Plan Recovery, and DDRI Administration) has an
associated coefficient for each land use, please see the table below.
Table 2. Supplemental Fee Coefficients for Increment III of the DDRI
COEFFICIENTS
Land Use
Transportation
Master Plan
Administration
Total Coefficient
Office
0.47570
0.15622
0.07521
0.70713
Retail/Service
1.37840
0.15622
0.07521
1.60983
Convention
0.31740
0.15622
0.07521
0.54883
Institutional
0.55020
0.15622
0.07521
0.78163
Industrial
0.25800
0.15622
0.07521
0.48943
Hotel
0.31380
0.15622
0.07521
0.54523
Residential
0.15310
0.15622
0.07521
0,38453
Recreation
0.27330
0.15622
0.07521
0.50473
To apply the coefficient for a project that will pay in installments at the time of having a zoning
permit issued and again at the time of having a building permit issued (assuming the payments
are made without any annual adjustment for inflation -see below), an example mixed use
project with 400 residential units and 100,000 square feet of retail/service space will owe
$87,944.54 at the time of receiving a zoning permit (e.g. Warrant, Waiver) and a balance due of
$225,704.00 due at the time of building permit, or a total due of $313,648.54. The formulas for
these fees are as demonstrated on the following page:
Chapter 13 Amendments for DDRI Supplemental Fee
File ID: 2572
P3
Retail/Service
160,983.30 = (100,000 * TM) + (100,000 * MPR) + (100,000 * Admin)
Hotel3
152,665.24 = (280,000 * TM) + (280,000 * MPR) + (280,000 * Admin)
Where:
• TM is the given land use's coefficient for Transportation Mitigation;
• MPR is the given land use's coefficient for Master Plan Recovery; and
• Admin is the given land use's coefficient for DRI Administration.
Developers for projects in the DDRI are provided this information with a fee schedule, an
example of which is provided for the above example project in Exhibit B of this report.
Annual Adjustment with the Consumer Price Index
The Supplemental Fee adjusts on an annual basis, starting on March 1, 2018, based on the
Consumer Price Index (CPI). In the event that the rate of increase through the CPI exceeds 10
percent, the proposed policy will cap the adjustment factor to 10 percent. If the CPI is lower than
zero, the adjustment factor shall be zero.
Updates for Current Code
Several references in Chapter 13 address procedures regarding the Supplemental Fee with
regard to the previous zoning code. These references have been updated in such a way that
projects with development rights vested under the previous zoning code or under the current
zoning code are governed by a clear process as it relates to the Supplemental Fees with the
DDRI.
Recommendation
The City recommends approval of amendments to Chapter 13 of the Code for the City of
Miami, as Amended, for final adoption by the City Commission in time for the effective
implementation of the Downtown Development of Regional Impact ("DDRI").
Jacqueline Ellis, Land Development Chief
Planning and Zoning Department
City of Miami
S Trone
3 According to the ITE Manual, one hotel room is equivalent to 700 square feet for purposes of DRI credit
calculations. Hence, for a project with 400 hotel rooms, the DRI views it has having 400 x 700 square feet, or 280,000
square feet.
Chapter 13 Amendments for DDRI Supplemental Fee
File ID: 2572
P4
Exhibit A: Map of the DDRI
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qN 24114
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Chapter 13 Amendments for DDRI Supplemental Fee
File ID: 2572
P5
Exhibit B: Fee Schedule Example
PLANNING & ZONING DEPARTMENT
DOWNTOWN DEVELOPMENT OF REGIONAL IMPACT FEE SCHEDULE
Today's date:
Jun-17
Planning staff name:
MIAMI PLANNING
APPLJCANT INFORMATION
Name'
EXAMPLE
Phone Contact:
EXAMPLE
Applicant Address:
EXAMPLE
Applicant Address confd:
EXAMPLE
Email Contact
EXAMPLE
Role in Project (atty, PM, etc_}-
EXAMPLE
PROJECT INFORMATION
Project Name:
EXAMPLE
Project Address:
EXAMPLE
Project Address confd:
EXAMPLE
Project Phase, ifapplicable:
INPUT PROJECT
DATA
INPUT PROJECT
DEMOLITION Conversion
Total Credits
OOffice SF 0
100,000 Retail/Svc SF 0
0
100,000
0, Convention SF 0
0 Institutional (SF) 0
0
0
0
280,000
O Wholesale/Industrial (SF) 0
400 Rotell (Rooms) 0
0 Residential (Dwelling Units) 0
0 Recreation (Seats) 0
(room = 700 SF)
280,000
(du = 1000 SF)
-
0
(seat = 20 SF)
-
Ij
DRI Fee Schedule
Land Use
Total
Coefficient SF
Transportation
Mitigation
DRUUMaster Plan
Recovery
DRI Admin
Office
0_707133
0
0_475700
$ -
a156223
$ -
0.156223'
$ 15,622.30
0156223'
$ -
0.0752TO
$ -
0.075210
$ 7,521.00
0.075210
$
0075210
$ -
0.075210
$ -
0.075210
$ 21,058_80
0.075210
$ -
Wholesale/
industrial (S9
0_489433
0
` 0,258000
$ _
' 0,313800'
$ 87,864.00
' 0.153100'
$ -
' 0273390'
$ -
I
Hotel (Rooms)
0 545233
280,000
Residential (tkl)
0384533
0
Recreation (Seats
0.504733
0
$ 225,704.00 $ 59,364.74 $ 28,579.80
$225,704.00 I $87,944-54
Due al Building Permit Due to Reserve DRJ Credits
$313,648.54
Total
Note: Totals may not add up due to rounding. These fees are subject to change if project plans change. Fees
charge each year on May 1. An official copy of project plan is required for renew to issue DRI in nice.
Chapter 13 Amendments for DDRI Supplemental Fee
File ID: 2572
P6