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HomeMy WebLinkAboutBack-up DocumentDiscussion 1 Analysis 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, 3600 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 11 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 III 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 III 1 Office (SD 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 agenciesz 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 III 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. 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 111. 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 MasterPlan 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 0.156221 0.07521 0.54523 Residential 0.1S310J 0.156221 0.07521 038453 Recreation 0.273301 0.156221 0.075211 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) Hotel' Where: 152,665.24 = (280,000 * TM) + (280,000 * MPR) + (280,000 * Admin) 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 MW 2ST9 ST NE ST ._05-^S W 24 -FH ST "N2WDST --"T- 5T HE 24TH ST 23RO57W MV ST MUD LN Nw 22ND 22%0 ST TER 1 ,2U,I,T ST 2157 Nw 22ND STNE =2NL TER " 2iST ST W21ST ST23 v 4, HW XT. TER we— —4-191HIER SE E,g is- -11 TV .ST' NE I TER ST ,CTX TER NN+ ItTm TER NW 'ST. 57T MIT H SWT MWET ST UEIV-ST Heti 13TH ST NW ST NE 15T. ST ,NTH TER TER US 14TH ST LA TER M!2T.51 NVW !—TER 1W, -OT ST ST NE !DT. ST w 9TH S� UE 2 T H BT. ST ME NETTN rT p1 u 1 x� 1 Nw aTH ST e HG aTH ST 4:4 M 3RO ST ua3 v 4D NWzNDsT me NO ST TW 'ST ST ME IST ST 0 sb 'IT SO 2 U0 ST ;iL . Sw... SN 3AD V �3RC S- Sr cl�� UMLEWD "Y SW 4T+ ST SW STN ST SW6 T *% ST SW ST- ST S. low ST SW 10T, 57 Sr Is SW 121 ST ST S.,7TH S 9t Sr % ©ORI Major Roads S 0 0 125 025 0,5 Mites Chapter 13 Amendments for DDRI Supplemental Fee File ID: 2572 P5 Exhibit B: Fee Schedule Example DATA DOWNTOWN DEVELOPMENT OF REGIONAL IMPACT FELE SCHMULE 4.i Today's date: Jun -17 Planning staff name: MIAMI PLANNING APPLICANT 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 cont'd: EXAMPLE Project Phase, ifapplicable: DATA �DBVIOLITION 0 Office SF lConversion 0 Total Credits 0 100,000 RetarllSvc SF _ 0 1()0,000 0 O;CornerdionSF 0 0 InstrtuWmi (SF) 0 0 O WholesaleJ4ldustrial(SF) 0 0 400 Hotel (Rooms) — _ - 0 (room = 700 SF) 280,000 280,001 0 Residential (Dwelling Units) 0 (du = 1000 SF) 0 O Recreation (Seats) 0 (seat = 20 SF) 0 DRI Fee Schedule Total Transportation DRUMaster Plan Land Use Coefficient SF Mitigation Recovery DRI Admin Office 0.707133 0.475700 0.156223 0.075210 0 $ - $ - $ - RetaLf7Src 1.6109&33 1.378100 a 156223 0.075210 100,000 $ 137,840.00 $ 15,622.30 $ 7,521.00 0.m"dion (SF) 0-548&33 0-317400 0156223 0.075210 0 $ $ $ Insfitrdidxraf (SFJ 0.781633 0.550200 U 156223 0-075210 0 $ Is _ $ - Wholesafel 0=0-313800' 0-258000 0.156223 0.075210 MduSdial (SF) 0 $ - $ - $ - HOW (Rogers)0 0.156223 0.075210 280,000 $ 87,864.00 $ 43,742.44 $ 211,058.80 ResidurWaf (tx/j 0384533 0.153100 a 156223 0.075210 a $ $ $ Recreation (Seats 0.504733 0 273300 0.156223 0.075210 0 - $ - $ - $ 225,704.00 $ 55;364.74 $ 28,579.80 $225,704.00 $87.944.54 Due at Building Permit nue to Reserve DRI Credits $313,648.54 Total Note: Totals may not add up due to rounding. These fees are sAect to change if project plans change. Fees 0 hange each year on May 1. An official copy of project plan is required for renew to issue URI irmce. Chapter 13 Amendments for DDRI Supplemental Fee File ID: 2572 P6