HomeMy WebLinkAboutPZD-02 Letter of Intentakerman
August 11, 2020
Francisco J. Garcia, Director
Planning Department
City of Miami
444 SW 2nd Avenue, 3rd Floor
Miami, FL 33130
This su bmMal needs to he scheduled bra puboc hearing
In accordance with timelines set forth in the City of
Miami Code. The applicahle decision -malting body will
rewewthe information at the pubec hearing to render a
recommendation or a final decid on.
Three Bri
98 Southeast S
Miami, FL 3
PZ-20-9082
03/02/21
Re: Letter of Intent re: Amendments to Miami Design District Retail Street Special
Area Plan; Modifications to Regulating Plan and Development Agreement
Dear Mr. Garcia:
As you know, Akerman LLP represents Miami Design District Associates (Del.) LLC and its
affiliated entities' (collectively, "Applicant") in the above -referenced modifications to the
Design District Retail Street Special Area Plan ("DD SAP") and modifications to the Regulating
Plan, Concept Book and Development Agreement between Applicant and the City
("Development Agreement").
A. Background on the Design District
Around 60 years ago, Miami's Design District ("Design District" or the "District") became
a center for the interior design and furnishings industry. Due to changing development trends
out of the urban core and new suburban design centers, the Design District rapidly declined by
the 1990s, and there were high crime rates and vacancies in the neighborhood. At that time,
most businesses had left and the existing buildings were deteriorating. In this period Craig
Robins, already a pioneering developer in South Beach, began acquiring abandoned and
underutilized properties in the Design District, including a significant number of parcels now
within the DD SAP. Mr. Robins sparked reinvigoration of the District by rehabilitating existing
buildings, occupying them with new design and furniture tenants, and infusing the District with
important publicly -accessible artwork from famous artists. In this way Mr. Robins began the
transformation of the Design District into a world-renowned center for art and design.
' The affiliated entities of Applicant are the following: Norwegian Wood Acquisitions, LLC; Oak Plaza Associates
(Del.) LLC; Jungle Plaza, LLC; 4200 Associates, LLC; Paradise Plaza Associates, LLC; Half -Circle Property (Del.) LLC;
Lovely Rita Acquisitions, LLC; Uptown Girl Development, LLC; Sun King, LLC; Dacra Design 4141 LLC; MDDA Morning
Dew, LLC; and Tiny Dancer Acquisitions, LLC.
akerman.corn
52263093;3
Ten years ago, Mr. Robins partnered with other developers to plan and
SAP. The idea was to continue previous revitalization efforts through formation
planned neighborhood that advocates creating through design, art, food, and fash
This submittal needs to be scheduled for a public hearing
In accordance whh timelines set forth in the City of
Miami Code. The applicable decision -malting body NOR
review the information at the public hearing to render a
recommendat on or a final decla on.
on this vision, the City Commission approved the original DD SAP in 2012. Along with
SAP, the City Commission approved certain land use modifications for the District under the
Miami Comprehensive Neighborhood Plan ("MCNP"), and a companion development
agreement consistent with the requirements in Section 3.9 of the Miami 21 Code ("Miami 21").
PZ-20-9082
03/02/21
The City Commission has approved several amendments to the DD SAP since its original
approval in 2012, as the Design District vision became a reality. Today, initial phases of the DD
SAP are fully constructed, providing a unique pedestrian -oriented urban retail street
environment anchored by high -end fashion and art tenants. With the evolution of the retail
experience in recent years, together with demand for increased residential housing options in
Miami's rapidly revitalizing urban core, further modifications to the DD SAP are now necessary.
B. Current Status of the DD SAP
The DD SAP now spans portions of 15 city blocks containing most of the properties
generally bounded on the east by Biscayne Boulevard, on the west by N. Miami Avenue, on the
north by NE 42nd Street, and on the south by NE 38th Street. Through redevelopment of the
District, substantial investment has been made in public spaces, public infrastructure, public
art, and new construction that focuses on the pedestrian -level experience with unique,
Instagram-able facades. Notably, these projects were developed with less square footage than
authorized under land use designations in the MCNP and zoning designations in Miami 21.
Moreover, projects did not utilize allowable residential density in a retail -focused destination.
Applicant deliberately chose to develop the Design District with substantially less FLR
and height than allowed, to create a destination focused on shopping and artistic experiences.
The current modifications to the DD SAP would permit Applicant to transfer unutilized density
and FLR away from already redeveloped, lower -scale destination locations (such as Palm Court
and Paradise Plaza) to still -undeveloped parcels in the Design District. This will allow the DD
SAP to incentivize new office, hotel, and residential development in the DD SAP, which is
needed to continue the evolution of the Design District into a true live, work, play destination.
Bringing in residential uses will attract working professionals and other residents. Additionally,
it would provide transit oriented residential development close to a proposed TriRail Station
and astride the FEC Corridor. It would also increase jobs in the immediate area, generate
impact fees, tax revenue and economic development.
C. Proposed Amendments to the DD SAP
For the reasons set forth above, Applicant seeks to make certain modifications to the
core operative documents of the DD SAP including the Development Agreement, Regulating
2
52263093;3
Plan and Concept Book ("SAP Documents"). Below is a summary of the propos
to the DD SAP and the underlying SAP Documents (collectively, the "Proposed A
1) Updated DD SAP Entities and History: Various modifications to the un
Documents reflect developer entity changes over the years via
conveyances and other modifications. Additional "whereas" clauses were added to
the Development Agreement to explain the history of the DD SAP and approved
modifications in a centralized location.
This submittal needs to be scheduled bra public hearing
In accord ante with timelines set forth in the City of
Miami Code. The applice de decision -malting body will
reWewt to information at the public hearing to render a
recommendation or a final decision.
PZ-20-9082
03/02/21
2) Transfer of Density and Intensity within T6: Modifications to the SAP Documents
that would permit parcels within the SAP Area having unutilized density or unutilized
FLR and located within the T6 Urban Core transect zone ("T6 Properties") to transfer
such unutilized density or unutilized FLR to other T6 Properties within the DD SAP,
provided however that each individual project on those T6 Properties must comply
with the limits imposed by the Regulating Plan and the MCNP. In other words,
density and intensity would be counted on an aggregate basis for all T6 Properties
located within the SAP; such that the total aggregated density and intensity
throughout the T6 Properties would not surpass the aggregated as -of -right
maximum (i.e. base) density and intensity permitted in underlying T6 Properties.
3) Chapter 4 Alcohol Revisions: Section 12 of the Master Development Agreement
regarding alcoholic beverage sales is amended to be consistent with the updated
provisions of Chapter 4 of the City of Miami Code of Ordinances.
4) NE 38th Street Requirements: Section 19 of the Development Agreement is
amended to review the condition of the cross -block pedestrian connections
between NE 38th and 39th Streets in the annual review, every five (5) years. There
are no crosswalks that provide a safe route to any "cross -block pedestrian
connections." The main North -South connections are along N.E. 2nd and N.E. 1st
Avenues where pedestrian crossings are provided. Additionally, glazing
requirements for NE 38th Street are being modified in the Regulating Plan. This is
because current glazing requirements on the north side of N.E. 38th street are
impractical because the south side of N.E. 38th Street is dominated by 1-195 and
surface parking, and thus cannot function as a street with viable pedestrian -level
retail activity. Pedestrian activity from the District to Midtown naturally flows
through N.E. 1st, N.E. 2nd and Miami Avenues.
5) Additional Uses: The Regulating Plan is amended to include Apartment -Hotel and
Condo -Hotel as permitted uses under Article 4, Table 3; consistent with the recent
City Planning Department interpretation. Auto -Related Commercial Establishments
are also permitted by right when the business is under 55,000 square feet and no
automobile services are performed. These uses are complimentary to other
commercial uses in the neighborhood. Establishments over 55,000 square feet or
with automobile services remain subject to approval by Warrant.
3
52263093;3
6) Gateway Site: The Regulating Plan is amended to create a Gateway
Gateway Site North (i.e. Tuttle North located at 299 NE 38th Street; f
011-0330) and Gateway Site South (i.e. Tuttle South located at 37
NOTICE
This submittal needs to be scheduled fora puboc hearing
In accordance whh Idmatinee set forth in the City of
Miami Code. The appli®de decision -malting body Nall[
review the information at the pubdc hearing to render a
recommendation or a final decision.
Boulevard; folio: 01-3219-045-0010). Tuttle South will be eligible for a Bonus
of thirty-six (36) stories, due to the public benefits provided throughout the district
to date and Tuttle South will also provide additional public benefits as described in
Section 3.14.3 of the Regulating Plan. The additional flexibility in height will allow
Applicant to construct an architectural work of art at the gateway of the DD. This
fits within the DD SAP vision while providing appropriate transitions to surrounding
areas. Immediately to the West of the Tuttle South site is the two lane North
Federal Highway and the FEC railroad corridor. Tuttle South is bounded by 1-195
immediately to the south, with abutting properties zoned T6-24. And immediately to
the east of the Tuttle Properties is Biscayne Boulevard —one of Miami's most
heavily -trafficked streets. Given the context of Tuttle South, the proposed height is
reasonable in scale, and provides appropriate transitions. Moreover, Tuttle South is
near one of the proposed TriRail Stations along the FEC Corridor. Compared to the
currently vacant Tuttle South property, the height increase will allow more flexibility
in residential development, which better achieves goals of the MCNP and Miami 21.
PZ-20-9082
03/02/21
7) Outdoor Dining and Art Installations: The Regulating Plan is amended to clarify that
outdoor dining areas in Plazas, Courtyards, and Pedestrian Passages are permitted
by Right, and outdoor dining fronting Thoroughfares is permitted by SAP Permit.
Moreover, artwork and exhibits (including but not limited to art, structures, tents,
shipping containers, or other creative installations) are permitted by SAP Permit.
Additional definitions have been updated along with minor clean-up edits to the underlying SAP
Documents as indicated in the enclosed documents for the DD SAP application.
D. Statement Regarding Public Benefits
The Applicant is not proposing to use any bonus density or FLR in the Design District.2
Rather, the DD SAP modifications would permit Applicant to transfer unutilized "as -of -right"
FLR and density between parcels with an underlying zoning designation of T6 Urban Core.
Moving forward, it is vital to the Design District to intersperse a mix of uses —including
residential and office components —to continue to thrive as a true live, work, play community.
The ability to transfer unutilized as -of -right FLR and density between T6 Urban Core parcels will
facilitate development of these types of projects. Therefore, Applicant is proposing to change
the DD SAP to allow the transfer of unutilized FLR and density so long as the total aggregate FLR
and density remain under maximum as -of -right amounts for all T6 Urban Core parcels in the DD
SAP. This would occur in lieu of the "bonus" FLR (and density) permitted under Miami 21.
Similarly, with respect to height limitations, the maximum measured height is not changing, but
2 Note the applicant may utilize Bonus Height for Tuttle South pursuant to Section 3.14.2 of the Regulating Plan.
4
52263093;3
rather the concept of benefit height is being replaced with the term "maximu
than the Bonus Height proposed for Tuttle South).
Even though it has been unnecessary to obtain "bonus" development capa
the Applicant has nevertheless provided significant public benefits to the City and its r
to implement the vison for the DD SAP, as described in Section 3.14.1 of the Regulating Plan.
See below list of public benefits completed since the 2012 approval of the DD SAP. These
public improvements are not required by the City's Code of Ordinances, by Miami 21 or by the
Miami -Dade County Code, and that the District could have been legally developed and
constructed without completing any of them. See below:
This submittal needs to be scheduled fora puboc hearing
In accordance wah fa matinee set forth in the City of
Mlaml Code. The appLicalle decision -making body will
review the Information at the pubdc hearing to render a
recommended on or a final decla on.
Public Benefit
Developer Costs
Total Benefit
Public Right of Way Investments
Paving, Utilities, Drainage
$ 6,296,731
Landscaping
$ 12,883,112
Pavers
$ 2,065,328
Site Amenities
$ 906,729
Street Lighting
$ 1,863,832
Subtotal
$ 24,015,732
Less Public Funding
$ (4,250,000)
Less Standard Right of Way Work
$(6,000,000)
Total Public Right of Way Investment
$13,765,732
$ 24,015,732
Public Art Investments
$6,908,000
$6,908,000
Artistic Garage Facades
$8,744,475
$8,744,475
Contribution towards ICA3
$23,600,000
$75,000,0004
Ongoing Maintenance Costs5
$4,900,000
$4,900,000
PUBLIC BENEFITS PROVIDED IN DD SAP
$57,918,207
$119,568,207
PZ-20-9082
03/02/21
Applicant has already installed much of the infrastructure needed to support future
development for the remainder of the District. Nevertheless, an additional $2-5 million in
public infrastructure and $1-3 million in public art spending are estimated in conjunction with
future DD SAP projects, inclusive of the Gateway Site.
The already constructed privately -funded right-of-way, art improvements in the
District, ongoing maintenance costs and contribution towards ICA, amount to almost $58
3 Donation of the underlying lots for the Institute of Contemporary Art, Miami ("ICA").
This amount has been raised to fund ICA for 10 years.
This is an estimate of the net present value of maintenance costs over 20 years.
5
52263093;3
million in public benefits,6 plus the total benefit to the City (including the actu
of ICA) amount to over $119 million in public benefits. Together wi
improvements — the public benefits will result in a total value of over $122 millio
This submittal needs to be scheduled for a pubic hearing
in accordance wTh timelines set forth in the City of
Mlaml Code. The appllc0Ge decision -making body will
review The Information at the pubic hearing to render a
recommendation or a final decision.
All public benefits described above are unique to the Design District and coul
replicated by developers of other projects. These investments have and will continue to
provide real and immediate benefits to the public, whereas payments into the City's Public
Benefits Trust Fund for bonus height and FLR only produce speculative benefits that may take
years to come to fruition. In the next phase of the Design District, it is vital to evolve this retail -
focused neighborhood into a true mixed -use, pedestrian -oriented community. As such, the
Applicant is proposing to transfer unutilized as -of -right FLR and density within the T6 Urban
Core parcels of the DD SAP; this process is separate and apart from the Public Benefits Program
set forth in Section 3.14 of Miami 21 and Section 3.14 of the Regulating Plan (i.e. Bonus Height
for Tuttle South). Applicant is not requesting any increase in density or FLR over the as -of -right
maximums, in aggregate, but only the ability to shift that capacity to future redevelopment
sites, while maintaining the per project restrictions imposed by the Regulating Plan and MCNP.
PZ-20-9082
03/02/21
F. Conclusion
In conclusion, as no residential structures have been constructed in the Design District,
and as much of the DD SAP has been substantially implemented with understated elegance, it is
now time for the Design District to evolve by bringing in residential, hotel and office
components to complement existing retail and cultural amenities. As the Design District did not
utilize a large percentage of the FLR available to it, Applicant seeks to shift the density and FLR
to those properties that have not already been redeveloped to facilitate further revitalization.
The proposed changes to the DD SAP will continue to facilitate large numbers of
temporary and permanent jobs. In addition, redeveloping the Design District in conformance
with the DD SAP will produce tremendous recurring fiscal benefits for the City through
significant increases in ad valorem tax revenues, parking surcharge revenues, and sales tax
remittances. Most importantly, continued redevelopment in the DD SAP with residential
housing in this shopping and arts destination will further reinforce Miami's growing standing
internationally as an important urban center for commerce, culture, and for living in a diverse
community.
For the foregoing reasons, we respectfully request the City's approval of the proposed
amendments to the DD SAP and Development Agreement.
6 This amount does not reflect the additional benefit provided by the Applicant for the four (4) publicly accessible
parking garages, privately financed by the Applicant. In addition, operational costs are currently subsidized by the
Applicant to maintain inexpensive public parking in the District.
6
52263093;3
Sincere
Nelsen 0. Kasdin
Enclosures
cc: Craig Robins, Miami Design District Associates, LLC
Alex Schapiro, Development Manager, Miami Design District Associates, LLC
NOTICE
This submittal needs to be'scheduled fora puboc hearing
In accordance whh timelines set forth in the City of
Miami Code. The appLIca decision -malting body will
review the information at the pubdc hearing to render a
recommended on or a final decla on.
PZ-20-9082
03/02/21
7
52263093;3