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HomeMy WebLinkAboutStaff AnalysisCity of Miami Planning and Zoning Department Community Planning Division Discussion / Analysis Downtown Development of Regional Impact Increment III File Id: 16-00896 Applicant(s): 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 with the exception of Southeast Overtown Park West Request The City requests approval of the Development Order for Increment III of the Downtown Development of Regional Impact. Background The State of Florida adopted the Environmental Land and Water Management Act in 1972 as a response to an intense drought that was accompanied by severe wildfires throughout the Everglades and saltwater intrusion in the Biscayne Bay Aquifer. This Act created the regulatory process for Developments of Regional Impact ("DRIs"). A DRI is defined as a "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 (FL Statute 380.06).1 The City of Miami has a total of 16 DRIs. About half of these DRIs are located in the urban core and were approved between 1979 and 1986. Examples of these DRI projects include the Intercontinental Hotel (f/k/a Southeast Financial Center) and the Miami Tower (aka Total Bank Building) (f/k/a Miami World Trade Center). Until 1986, in downtown Miami, all DRI projects, like large office buildings, hotels, convention centers, etcetera underwent rigorous DRI reviews on an individual, inharmonious basis through all regulatory agencies (e.g. City of Miami, Dade County, FDOT, RPC, State of Florida). In 1987, the Downtown Development Authority and the City co -applied to the Department of Community Affairs to create a DRI that encompassed the downtown area, The Downtown DRI boundaries were coterminous with the boundaries served by the Downtown Development i Joseph Van Rooy. The Development of Regional Impact in Florida's Growth Management Scheme: the Changing Role in Regionalism. Journal of Land Use. Vol. 19:2. Pp 255-296. https://localgov.fsu.edu/readings_papers/Growth%2oManag/Vanrooy_DRIs_Regionalism.pdf Authority, with the exception of Southeast Overtown Park West. Through this approach, the City created a DRI that covered almost the entire urban core, with studies that informed a master planned approach to the City's growth over the next two decades. This particular approach to large-scale downtown development is explicitly contemplated in FL Statute 380.06 (22): A downtown development authority may submit a development -of -regional impact application for development approval pursuant to this section. The area described in the application may consist of any or all of the land over which a downtown development authority has the power described in s. 380.011 (5). For the purposes of this subsection, a downtown development authority shall be considered the developer whether or not the development will be undertaken by the downtown development authority. The process to complete studies on the regional impacts of the Downtown Development of Regional Impact (DDRI) area, relative to air quality, the regional economy, transportation systems, historical assets, housing stock (including affordable housing), storm water, natural resources, and sanitary sewer took the City of Miami nearly three years. The conclusion of these studies was that a measured approach to development through three phases, over time, would be tracked by "development credits." Development credits are derived differently for each land use, as summarized in the table below: Table 1 Land Uses and the Basis for Their Corresponding Development Credits Land Use Basis for Development Credits OfficeSquare Footage Government Office Square Footage_ Retail Square Footage Hotel Rooms Residential Units Square Footage Square Footage Institutional Square Footage Attractions Seats Convention Industrial History of the Downtown DRI 1. The Downtown DRI was created in 1987 by Resolution 87-1148 through a Master Development Order. This Master Development Order conceptualized development of the downtown urban core in three Increments. Companion Resolution 87-1149 created Increment I Development Order. These Development Orders established development guidelines which included development credits for Increments I, II, and III for proscribed land uses. The table below summarizes the downtown development as conceptualized in the original Development Order. In its original conceptualization, downtown Miami was envisioned to become an area with concentrated commercial, retail and industrial uses. Minimal hotel and residential uses were originally anticipated for Miami's downtown area. Downtown DDR Increment 111 File Id 16-00896 Page 2 of 8 Table 2 Summary of Land Use Credit Allocations As Adopted by Resolution 87-1148 Land Use Increment I Increment II Increment III Total Office (sf) 7,100, 000 3,600,000 3,700,000 14, 400, 000 Government Office (sf) 300,000 250,000 200,000 750,000 Retail (sf) 1,050,000 400,000 500,000 1,950,000 Hotel (rooms) 1,000 500 1,100 2,600 Residential (units) 3,550 2,550 2,920 9,020 Convention (sf)* 500,000 - - 500,000 Industrial (sf) 1,050,000 - 1,050,000 2,100,000 Institutional (sf) 300,000 - 300,000 600,000 Attractions (seats) 3,400 1,600 5,000 10,000 A map of the DDRI is provided here. Figure 1 Map of the DDRI. RI AistrIct Arts & Entertainment Brlokell CBD ownmwsud ......0 DDRI Boundary Roadways �\ -- ----------= Water Downtown DDR Increment III File Id 16-00896 Page 3 of 8 2. Between 1987 and 2002, the Downtown DRI was modified nine times by resolution or ordinance. Changes to the DDRI included changes to the dates when Increments would build out as well as simultaneous increases and decreases in credits between land uses. 3. In 2002 Increment II of the Downtown DRI was adopted through Resolution 02-1307. Changes in land use credit allocations in Increment I reflect the DRI program's modifications to realities that unfolded over time. By 2002, it was becoming clear that there was more demand for living downtown than originally anticipated. The initial vision of a downtown Miami with a concentration of commercial towers was moving into a more mixed -use vision of a downtown where people live, recreate, and work, as illustrated by the distribution of development credits in the table below. Table 3 Development Credits for Downtown DRI As Proposed and Adopted by Resolution 02-1307 Land Use Increment I (approved) Increment II (original) Increment II (proposed & approved) Increment III (proposed & approved) Office (sf) 3,681,890 3,600,000 1,300,000 3,700,000 Government Office (sf) 300,000 250,000 ** 200,000 Retail (sf) 1,453,500 400,000 750,000 500,000 Hotel (rooms) 4,500 500 1,500 1,100 Residential (units) 10,550 2,550 7,500 2,920 Convention (sf)* 500,000 - 500,000 - Industrial (sf) 1,050,000 - 750,000 1,050,000 Institutional (sf) 200,000 - 450,000 300,000 Attractions (seats) 30,500 1,600 60,000 5,000 Marine Facilities (sf) 100,000 - ** - *500,000sf of unused Convention land use credits rolled over from Increment Ito Increment II. **Rolled into Office. 4. Increment Ili of the Downtown DRI is proposed for adoption by the City Commission in November 2016. A downtown Miami, activated by a thriving commercial sector, bustling nightlife, and charming, walkable, multi -family neighborhoods is a vision realized. There is still room to grow, and Increment III is proposed for adoption to facilitate this growth. The table below summarizes the proposed development program for Increment III. Downtown DDR Increment III File Id 16-00896 Page 4 of 8 Table 4 Increment III Development Credits Proposed for DDRI, Autumn 2016 Land Use Increment I Increment II Increment III Office (sf) 3,681,890 1,220,000 2,500,000 GovernmentOffice(sf) 300,000 - Retail (sf) 1,453,500 747,774 758,000 Hotel (rooms) 4,500 1,605 2,000 Residential (units) 10,550 € 6,750 18,000 Convention (sf)* 500,000 300,000 - Industrial (sf) 1,050,000 = 550,000 250,000 Institutional (sf) 200,000 350,000 150,000 Attractions (seats) 30,500 59,000 2,000 Marine Facilities (sf) 100,000* 50 (wet slips) ** - **Additional 42slips are vested from DRI review pursuant to DCA BLIVR 11003-001. Review of Application and Its Findings The DRI review process consists of the host jurisdiction, the county in which the development is located, adjacent local governments, school board, and state and regional agencies, including the Florida Departments of Economic Opportunity, Environmental Protection, State, Transportation, Florida Fish and Wildlife Conservation Commission, Water Management District, and the Metropolitan Planning Organization. The review process includes: 1. Pre - Application; 2. Application for Development Approval; 3. Impact Assessment Report; and 4. Recommendation to Department of Economic Opportunity regarding the adopted Development Order's consistency with rules and regulations. Increment III of the City of Miami's DDRI application has been reviewed by all relevant regulatory agencies. The main agency coordinating these reviews is the South Florida Regional Council (SFRC). Review of Regional Impacts Positive Impacts Based on the application submitted by the City of Miami and DDA, the review process found that the DDRI will have positive regional impacts at buildout: 1. Project costs of $7.3 billion, of which $5.8 will be spent in the Region. 2. 13,674 non -construction jobs will be created. 3. An estimated $268 million non -recurring and $134 million recurring revenue through 2024. 4. The construction or rehabilitation of at least 2,700 affordable housing units. 5. Over $6 million in transit and roadway improvements. Adequate Housing The Development Order assures that 15 percent of the number of dwelling or housing units proposed for development in the Increment are affordably priced. Affordable housing ranges are Downtown DDR Increment III File Id 16-00896 Page 5 of 8 contemplated for households that are extremely -low, very -low, low, moderate, and workforce income levels. Education The School Board identified concerns relating to school concurrency due to the projection of the development of 18,000 residential units by the conclusion of Increment 11I. The City, DDA, Miami Parking Authority, and Miami -Dade County School Board have formed an Education Task Force to identify solutions to increase student stations in the urban core. Sea Level Rise Although addressing sea level rise is not required for DRI review, the issue was contemplated for Increment III due to the project area's proximity to Biscayne Bay and Miami's sensitivity to sea level rise in general. In the Development Order, the City and DDA have voluntarily agreed to consider the findings of the Southeast Florida Regional Climate Change Compact in decisions concerning design, location, and development of infrastructure and public facilities in the project area. Transportation and Mobility Person Trip methodology is used to estimate development's impact on the transportation network. Florida Administrative Code establishes the standard used to determine adverse and significant impacts on regional networks through a two -prong test: 1. The traffic projected to be generated at the end of any stage or phase of proposed development, cumulatively, will utilize five percent or more of the adopted peak hour level of service maximum service volume of the roadway; and 2. The roadway is projected to be operating below the adopted level of service standard at buildout. Based on requirements of 73C-40.045 Florida Administrative Codes (FAC), the DDRI is not projected to create adverse and significant impacts to the regional transportation network. However, the Development Order conditions the City to pay, contract or otherwise commit to pay or cause payment of $6,005,829 (2016 dollars) to Miami -Dade County to expend on some or all of the following transit projects2: Government Center Station Upgrade Historic Overtown/Lyric Theater Station Upgrade Brickell Metrorail/Metromover Station Upgrade Downtown Intermodal Bus Terminal Bus -Only Lanes in Downtown Miami. Discussion To date, a total of 85 projects have been built in the DDRI. These projects are increasingly mixed -use, with a growing trend toward residential development. Increment II was modified once (04-0425), with a simple boundary expansion to add Watson Island. Since 2002, it is 2 City administrators negotiated these conditions with Dade County in the preparation of the Conditions of the Development Order. Downtown DDR Increment III File Id 16-00896 Page 6 of 8 evident that Attractions, Institutional, Industrial and Convention land uses had the least development (see Table 5 below). Residential uses saw the most development-165% of development credits have been used for this land use category. Other categories have been developed at more than half. With regard to the development of residential uses, Florida Statute 380.06 and the DDRI Development Order allow for the simultaneous increase and decrease of land uses. This is facilitated through Land Use Exchange Rates (See Exhibit A). By exchanging a land use in high demand with another with surplus supply (i.e. credits), residential land use credits can be restored. Table 5 Disposition of Development Credits in the DDRI, August 2016 Land Use Credits Allocated, Increments I & II Used Credits, Increments I & II N Office (sf) 4,981,890 3,908,757 1,073,133 78% Retail (sf) 2,203,500 2,062,183 141,317 94% Hotel (rooms) 6,000 3,208 2,792 53% Residential (units) 18,050 29,792 (11,742) 165% Convention (sf)* 500,000 97,220 402,780 19% Industrial (sf) 1,800,000 - 1,800,000 0% Institutional (sf) 650,000 130,720 519,280 20% Attractions (seats) 90,500 30,446 60,054 34% Marine Facilities (sf) 100,000 50 wet slips* 100,000 N/A * An additional 42 slips are vested from DRI review pursuant to DCA BLIVR 11003-001 Staff Assessment Living, working, and playing in downtown Miami has become an attractive option for people of all ages. Miami is witnessing a successful reversal of the pull of suburban sprawl. The DDRI is a critical tool for the City to manage its development. The DDRI allows the City to masterplan the growth of the urban core. The tracking of development credits creates a basis for monitoring growth. Development credits also create a simple, straight -forward whole -number multiplier to assess DRI fees that mitigate the impacts created by development. Without the DDRI program, growth will continue under the Miami Comprehensive Neighborhood Plan (MCNP) and Miami 21 Zoning Ordinance in a piecemeal fashion without the benefit that comes from review from the SFRC and other state agencies. Additionally, the measureable value that comes from DRI fees provides support for valuable amenities in the urban core. Recommendation Staff recommends approval of the Downtown Development of Regional Impact (DDRI) Increment III Development Order and implementation of the Development Program under the DDRI with the condition that the Downtown Development Authority be responsible for Condition Downtown DDR Increment III File Id 16-00896 Page 7 of 8 10 in the Conditions of the Development Order, maintaining a distribution of labor for the implementation of the DDRI between the City of Miami and the DDA as established by paragraph 16 in Resolution 02-1307, adopted on December 11, 2001 (Exhibit G). CQ(L,-) ana L. Gonzalez, Assistant Director Planning and Zoning Department City of Miami S. Trone Downtown DDR Increment III File Id 16-00896 Page8of8