CITY OF WEST PALM BEACH PLANNING BOARD Meeting Date: May 15, 2018

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1 CITY OF WEST PALM BEACH PLANNING BOARD Meeting Date: May 15, 2018 Planning Board Case No. 950EEEEE CityPlace CPD Major Planned Development Amendment Development regulations for Tent site and the Triangle site I. REQUEST A City-initiated request for a Major Planned Development amendment to the CityPlace Commercial Planned Development to adopt development regulations for the two blocks located between Okeechobee Boulevard and Lakeview Avenue, Rosemary Avenue and Dixie Highway. Affected properties are located within the Downtown Master Plan area, within Commission District No. 3 - Commissioner Paula Ryan. II. RECOMMENDATION APPROVAL - Based on the finding that the petition meets all eight Amendment Standards found in Section of the Zoning and Land Development Regulations (ZLDR). III. BACKGROUND AND ANALYSIS The subject amendment to the CityPlace Commercial Planned Development(CPD) is a companion item to PB 1794, 1794A and 1794B which proposes the necessary amendments to the Downtown Master Plan (DMP) to create and regulate the Okeechobee Business District(OBD). Because two of the properties included in the OBD are part of the CityPlace CPD, and therefore not regulated by the DMP, a major amendment to the CityPlace CPD is proposed to apply the same regulations of the OBD to the properties located between Rosemary Avenue to Dixie Highway, Okeechobee Boulevard to Lakeview Avenue. PB 950EEEEE - 1

2 The full explanation of the proposed Okeechobee Business District is included as Attachment I of this report. The original 77 acre CityPlace Commercial Planned Development (CPD) was created by the adoption of Ordinance No on March 20, 1989 to mirror the boundaries of the Downtown/Uptown Development of Regional Impact (DRI). The development approved as part of the Downtown/Uptown DRI was not constructed and the majority of the parcels within the DRI were acquired by the West Palm Beach Community Redevelopment Agency (CRA). On January 12, 1998, the City adopted Ordinance No , which replaced the Downtown/Uptown DRI with the CityPlace DRI. Later in 1998, approximately five (5) acres were added to the DRI with Ordinance No expanding the boundaries of the CPD to its current size of approximately 82 acres. At the time of the creation of the CityPlace DRI, the CRA owned the majority of the land within the DRI. The CRA issued a request for proposals to develop the majority of the parcels that they owned. CityPlace Partners was selected to develop a mixed use project containing residential, retail, restaurant, office, hotel and entertainment uses to be known as CityPlace. In 1997, the CRA and CityPlace Partners entered into a Lease Agreement for the development, construction, ownership and operation of the project to be known as CityPlace. The Palm Beach County Convention Center, the Raymond F. Kravis Center for the Performing Arts, the Opera Place parcel and the Tent Site were not included within the lease area, therefore no specific development regulations exists for those parcels, and they are only required to be compatible with the surrounding zoning. As CityPlace developed, the majority of the parcels that were once subject to the lease were conveyed to subsequent property owners in accordance with the provisions of the Master Lease. These included the residential buildings along Sapodilla Avenue and Fern Street, the CityPlace Office Tower, the CityPlace South Tower, the Okeechobee Parcel (Triangle site) and the Hilton Hotel. Considering the Tent site and the Okeechobee Parcel (Triangle site) are not regulated by any specific development regulations included in the CPD, staff proposes to include new building regulations for those two parcels similar to those proposed for the other parcels within the Okeechobee Business District. The proposed regualtions are included in Attachment II of the staff report. The proposed regulations will guide the development of the Tent site and the Tringle site in line with the intent of the Okeechobee Business District.

3 IV. AMENDMENT STANDARDS The Planning Division finds that the major amendment proposed in this report complies with all eight of the required amendment standards found in Section of the Zoning and Land Developemnt Regulations as follows: 1. Whether the proposed amendment is consistent with all elements of the City of West Palm Beach Comprehensive Plan; COMPLIES The proposed amendment to create the OBD is consistent with all elements of the City s Comprehensive Plan, and further advances several of the objectives and policies of the Plan, in particular the following: Future Land Use Element Objective 1.8 specifically states that the city shall expand its tax base by promoting the expansion of existing and new businesses, redevelopment and revitalizations activities; and Downtown Master Plan Element Objective 2.1 specifically states that the City shall promote the growth of the downtown employment base. Both of these objectives are directly addressed by the proposed OBD changes which seek to promote the construction of compatible, and properly placed buildings in the City s existing business corridor and, through the use of incentives, create new class A office space which will result in business expansion, tax base expansion, and new high wage jobs. The proposed OBD would create a regulatory environment that increases the likelihood of economic and tax base expansion. Future Land Use Objective 1.14 encourages the City to develop and implement green and sustainability strategies. The proposed OBD district would mandate green building certification, the only zoning district in the City that would have such a requirement. Future Land Use Element Objective 2.1 states that the City shall facilitate and encourage infill development especially within the areas east of I-95. The proposed OBD district encourages infill development in the downtown east of I-95, discourages urban sprawl, promotes more harmonious and compatible development of the downtown where all urban services presently exist, and creates the critical mass of people and jobs in the downtown that will foster meaningful public transit and multimodal goals. The Transportation Concurrency Exemption Area (TCEA), adopted more than 20 years ago, encourages the City to maintain a balance between residential and commercial. The TCEA called for a total downtown buildout of million square feet of non-residential development provided that 6,934 residential units are built (a ratio of one unit per 1,000 square feet of non-residential or 0.46) without the need for any further transportation improvements. The City has already achieved that residential figure but has only built 10 million square feet of nonresidential development resulting in an actual ratio of residential to non-residential of The proposed OBD district seeks to rebalance and increase the commercial development by promoting the construction of Class A office space within the existing financial district hub where other Class A office buildings are already located. PB 950EEEEE - 3

4 Transportation Element Policy 2.3.5(h) describes the link between the Downtown Master Plan and TCEA described above and discusses the City s desire to increase the density and mix of land uses downtown and to increase the ratio of residential to nonresidential land uses from a baseline ratio of 0.33 to Again, the City has exceeded this number and needs to increase the balance of office and other nonresidential uses. From 1995 to 2018, the amount of residential units increased by 4,064 units (151%) while nonresidential units increased by only 1.88 million square feet (23%). This results in a residential to nonresidential ratio of 2.16 when the desired or targeted balance should be 0.46). Future Land Use Objective 5.1 encourages the City to utilize incentives and programs to foster economic development and redevelopment/revitalization activities in order to improve economic conditions. The proposed OBD district would create a regulatory environment that increases the likelihood of new Class A office buildings being constructed and being constructed in the core financial district where such buildings would be compatible and harmonious with other existing development. The incentive element of the OBD 5-25 would foster economic development, redevelopment and revitalization of an area of the downtown with many vacant and underutilized parcels of land. This would provide the much needed Class A office space inventory that has inhibited many new businesses, corporate relocations and corporate expansions in the City s downtown in recent years. Future Land Use Policy requires the City to develop and implement economic development strategies to maintain its economic vitality through the following, but not limited to, a Brownfields Redevelopment Program, Small Business Assistance Program, Community Redevelopment Agency Strategic Plan implementation, retention and attraction of desired businesses in targeted sectors, and building public/private partnerships. The proposed OBD district would create a regulatory environment that increases the likelihood of new Class A office buildings being constructed in the core financial district of the City, which has a history of and is the highest likelihood in the future of attracting and retaining the targeted sector of financial service firms (e.g. banks, private equity firms, hedge funds, and money management firms). Future Land Use Policy states that the City shall reduce the potential for automobile emissions pollution by the following means: Promote alternative transportation modes which help to reduce greenhouse gas emissions, through the dissemination of information on carpooling, public transit, and bicycle and pedestrian facilities. The proposed OBD removes the minimum parking ratios and proposed a soft maximum parking which limits the amount of parking a project can provide on site by right. In addition, the district implements transportation demand management and contributions to support transit option in compensation for additional parking. The proposed parking regulations seeks to reduce the number of single occupancy vehicles on the street and promotes alternative transportation solutions, yielding less traffic congestion and reduced greenhouse gas emissions. Utilities Element Objective 1.2 and 1.4 state that the City shall maximize the use of existing facilities by concentrating new development activity around existing or planned infrastructure, including sanitary sewer facilities, and potable water facilities. The proposed OBD would encourage infill development in the downtown east of I-95, discourage urban

5 sprawl, promote harmonious and compatible development of the downtown where all urban services presently exist, and create the critical mass of people and jobs in the Downtown that will foster meaningful public transit and walkability goals. Recreation and Open Space Element Policy requires that structures built on privatelyowned waterfront lands are designed in a manner to maximize water views for the public in accordance with the City's Zoning Code. The incentive element of the OBD 5-25 would, by definition, prohibits new structures from being constructed closer than 400 from the seawall cap along Flagler Drive, and it will require more open space than the existing zoning regulations. Recreation and Open Space Element Objective 2.3 directs the City to seek opportunities to provide additional park lands, open space, and green space to serve as linkages that would enhance the City s open-space system. The proposed OBD provides for language to require properties with frontage along Flagler Drive to provide additional open space and programmed activities to encourage the use of the space by the general public. Transportation Element Policy1.2.1(b) states that the City shall permit increased land use densities, where appropriate, based upon the Future Land Use element and along major streets in growth areas served by public transit; Policy 1.2.1(c) states that the City shall promote the designation of land uses and densities which are supportive of mass transit in areas around public transportation corridors. Both of these policies are supported by the proposed OBD which seeks to incentivize the location of new class A office uses along an existing urban corridor where compatible heights and intensities of development already exists, and where the concentration of high-end jobs will promote public transportation. The proposed OBD further implements Objective 1.1 of the DMP Element which states that The City shall promote, reinforce and protect the identity of each neighborhood, district, and corridor within the Downtown through the development and implementation of policies which establish appropriate regulations, consistent with the character of each neighborhood, district, and corridor. The proposed regulations for the OBD is consistent with the character and identity of the surrounding area as it proposes high-rise buildings in an area currently occupied by high-rise buildings. The proposed building height are compatible with existing building heights on adjacent districts within the DMP. 2. Whether there exists changed conditions which require an amendment; COMPLIES Downtown West Palm Beach is a dynamic area that is always changing. Since the adoption of the Downtown Master Plan in 1995, and the voter referendum height restriction in 1996, more than 4,000 residential units have been built, and more than 1.8 million square feet of non-residential uses have been completed. The area has been transformed from a sleepy downtown with only some office buildings and almost no activity after the 5 p.m. week day, to a 24-hour urban center, with a convention center and more than 1,000 hotel rooms. The changes have also been dramatic since 2009, when nobody predicted the arrival of the PB 950EEEEE - 5

6 modern Brightline passenger train service to the core of downtown West Palm Beach, or the rapid changes in transportation options offered by Uber, Lyft or skybike. The new Brightline train station, that will efficiently connect downtown west Palm Beach with Fort Lauderdale and Miami, is already open, and 810 new residential unit will further support the mass transportation system. The key to the City s economic future (and therefore social and cultural future) is attracting, growing, and retaining clean, high value jobs in the industries that will survive the rapid evolution occurring in America. The strategy of the City to target these clean, high value industries and employers in order to stabilize the cyclical nature of our local economy and provide for a modern job base is working. There is growth in this sector and much more interest that can be harnessed and converted into economic prosperity for the City. However, if the City is going to compete for these coveted employers and jobs, it must have the appropriate inventory of buildings to accommodate them. The City currently cannot accommodate most corporate relocations or expansions that require Class A office space because there is effectively none available. Because no community can accurately forecast or predict its future, communities must be able to adapt to changing conditions and changing opportunities. The global and American economies are in the midst of one of the most radical shifts in history. The City and its regulations must be nimble and adaptable to the extraordinary changes that our economy is experiencing. This City s recognition of this and willingness to adapt regulations to the changed needs and modern economic realities is evidenced by how many times the City has amended the DMP in recent years. The proposed OBD is but one more example of this. The City s DMP has morphed over time and with that a new financial corridor has presented itself which not only represents a location for similar Class A office but also serves as a gateway into the City and further into the Town of Palm Beach. The OBD sits in a geographically important location, connecting I-95, the Florida Turnpike, and Palm Beach International Airport to the core downtown financial district and the heart of the Town of Palm Beach. It is the most important business artery in the Downtown. The City s DMP is designed and intended to function as a fluid and flexible document allowing for amendments and changes over time as conditions warrant and the City deems appropriate. In fact, the current DMP has been amended multiple times in recent years, primarily because of: (1) Significant changes to the original underlying economic, transportation, and development assumptions; and (2) Market trends, housing trends and needs, new corridors and new multi-modal opportunities. Multiple studies and policy statements by the City, BDB, and the local real estate industry point to the almost complete unavailability of Class A office space in downtown West Palm Beach as the single most limiting factor in executing the City s economic development plan. With all the construction activity downtown, the construction of class A office space has not

7 followed the same pace, and the current vacancy rate for class A office space is at the lowest rate since 2013, reaching 5% vacancy the first quarter of The proposed OBD district will create a regulatory environment to increase the probability of attracting new Class A office buildings, being constructed in the core financial district where the office buildings have traditionally located (note that all three existing Class A office buildings in the City, Phillips Point, Esperante, and City Place Office Tower, are located along the Okeechobee Spine). The OBD corridor is currently supporting a large number of financial and other high tax base generating businesses which creates a synergy allowing like businesses to collaborate in close proximity. The City also contracted with Hank Fishkind, Ph.D. of Fishkind & Associates, Economic Consultants, who prepared a report entitled Economic Impact Analysis of the Okeechobee Business District (see Attachment III). Dr. Fishkind has over 30 years of experience in economic analysis and forecasting and is widely regarded as one of Florida s premier economists and financial advisors having served on the governor s economic advisory board and a member of governor Bush s Council of Economic Advisors. His report, prepared on September 20, 2017, noted the City s Class-A office market is underserved and the project (Specifically referring to a new Class A office tower) will increase the demand for supporting services, restaurants, bars, and residential uses in the immediate market area. Comparable Class-A office buildings showed a vacancy rate of just 4% as reflected below: The OBD will also set a benchmark for development specifically along the waterfront which doesn t currently have preservation and protection measures in place. The OBD is designed to protect and preserve the Flagler Drive green belt and push tall buildings away from the waterfront. 3. Whether the proposed amendment is in conformance with all applicable portions of the City Development Code; COMPLIES The proposed OBD amendment is consistent with existing and proposed land uses contained in the DMP and the CityPlace CPD,and will not allow any uses not currently allowed under the existing regulations. The proposed OBD is harmonious, compatible, and in conformance with all applicable portions of the City s DMP. The proposed OBD also incentivizes PB 950EEEEE - 7

8 alternative modes of transportation, greater setbacks from the waterfront, creation of additional open spaces, and preservation of historic buildings, all of which further other existing public policy goals of the City. 4. Whether and the extent to which the proposed amendment is inconsistent with existing and proposed land uses; COMPLIES The proposed amendment is consistent with existing and proposed land uses. The proposed amendment will not allow any uses not currently allowed under the existing regulation. The OBD is harmonious and compatible with the surrounding properties and those within the proposed OBD. There are a large number of financial and office industry businesses within and immediately surrounding the OBD, which indicates that this geographic location is already a hub of like businesses. In the Fall of 2017, there were 232 financial companies located in the downtown area. A total of 82 firms, or 35%, were located within the proposed OBD or within one block of the proposed OBD. The OBD seeks to enhance this collaboration between businesses and create a corridor to foster these businesses and their collaborative ties within the district. 5. Whether and the extent to which the proposed amendment would exceed the capacity of public facilities, including but not limited to transportation, sewerage, water supply, parks, fire, police, drainage, schools, and emergency medical facilities; COMPLIES The proposed amendment has no substantial impact upon services or facilities due to the fact that no increase is proposed on the development capacity of any parcel above the existing development capacity, and the overall capacity of the CPD is still regulated. To the contrary, a portion of the OBD will be restricted to a development capacity below the maximum allowed under the current CPD regulations. All needed public facilities presently exist in the area affected by the proposed amendment. Adequate capacity for all public facilities presently exists. The area is a designated Traffic Concurrency Exception Area. The proposed OBD would improve the transportation capacity by requiring Transportation Demand Management plans for all new buildings constructed in the district, restricting parking and encouraging a shift-mode away from vehicles. The TDM plans will include techniques such as implementation of ride share spaces within the buildings, staggered work hours, transit contributions, incentives to utilize Tri-Rail and Brightline train services, and bike share among others. 6. Whether and the extent to which the proposed amendment would result in significantly adverse impacts on the natural environment; COMPLIES The proposed amendment will not impact the natural environment, to the contrary, the proposed amendment will require additional public open space for the citizens to enjoy. In addition, the proposed amendments will promote the redevelopment of underutilized parcels located in the core of the downtown, creating a vibrant urban environment that will favor pedestrian activity and the use of alternative modes of transportation.

9 The proposed OBD district requires green building certification which reduces carbon footprint and benefits the natural environment. Green buildings are not mandated under the current zoning. If adopted and utilized, the incentives under the proposed OBD district would result in new, additional urban green space along the waterfront because buildings would not be able to be constructed within 400 of the seawall cap along the Intracoastal Waterway. The existing zoning has no such requirement and development could be situated at the setback line along Flagler Drive. 7. Whether and the extent to which the proposed amendment would adversely affect property values in the area; and COMPLIES The proposed amendment will not adversely affect property values in the area. In fact, the reverse is true. Adopting the proposed OBD district will instigate new development, which will fill-in several vacant parcels, eliminate existing surface parking lots, and cause the more expeditious redevelopment of underutilized parcels. Moreover, adopting the proposed OBD will result in mandated certified green building construction and mobility planning, both of which will add value to the surrounding area. This higher quality development will have positive impacts on surrounding property values. As non-residential buildings are built in the OBD, it will drive up demand and pricing in the existing residential buildings in and around the OBD. Should incentives be utilized in the OBD 5-25 sub-district, permanent open space would be created along Flagler Drive making the waterfront area more walkable and usable by the public and creating a greater sense of place. This would enhance the value of the entire neighborhood and Downtown. 8. Whether and the extent to which the proposed amendment would result in an orderly and logical development pattern, and the specific identification of any effects on such pattern. COMPLIES The proposed amendment would create a new district including all the properties between Okeechobee Boulevard, Lakeview Avenue, Flagler Drive and Rosemary Avenue, which are currently part of three different districts. The new district seeks to highlight the importance of this corridor for the location of class A office uses, and its identity as high-rise, high-quality business district. The district is already identified as a high-rise district, except for the two blocks located east of Olive Avenue, which despite its former 5-story height restrictions include the tallest building in the district (The Esperante building at 21 stories). As a result, only one single block in the entire corridor is currently restricted to the 5-story high limitation. The proposed amendment will allow all the parcels east of Olive Avenue, including the only block currently with a 5-story limitation, to increase its height from 5-stories to 25-stories, consistent with the surrounding area. The development of the existing vacant properties within the district as high-rise buildings is completely harmonious and compatible with the existing conditions of the district. PB 950EEEEE - 9

10 The subject sites are located between existing high-rise building, consistent with the regulations of the CityPlace CPD and the proposed regulations. V. PROJECT DETAILS A. Land Use and Zoning The subject area is within the CityPlace Development of Regional Impact (DRI) and currently has an Urban Central Business District (UCBD) Future Land Use designation and a Commercial Planned Development (CPD) zoning designation. The adjacent Future Land Use designations are: North: Urban Central Business District (UCBD) South: Urban Central Business District (UCBD) and Commercial (C) East: Urban Central Business District (UCBD) West: N/A - ROW The adjacent zoning designations are: North: CityPlace Commercial Planned Development (CPD) South: CityPlace Commercial Planned Development (CPD) and General Commercial East: Quadrille Garden District 25 (QBD-25) West: N/A - ROW B. Public Notice Notices of the Public Hearing were mailed to property owners within 500 feet of the Lease Area and signage was posted around the site. Prepared and Respectfully Submitted by: Ana Maria Aponte City Urban Designer, AICP

11 ATTACHMENT I Justification statement for the Okeechobee Business District In January 2016, Related Urban Development L.P, approached the City with a proposal to preserve the existing First Church of Christ Scientist building located at 809 South Flagler Drive, and construct a new 30-story class A office building on the existing surface parking lot located behind the church building at Lakeview Avenue. Considering the proposal would require a substantial modification of the current zoning designation for the property, the idea was presented to the City Commission at the August 22, 2016 Mayor/Commission work session for direction. The concept presented to the City Commission included two separate ideas: 1. An incentive for the preservation of significant historic structures through the creation of the landmark designation. 2. An incentive for the construction of Class A office uses along the Flagler Waterfront District (the district where the property is located). The general input from the City Commission directed staff to proceed with the incentive for the preservation of significant historic structures, and the possible incentive for class A office with considerations for the traffic impact generated by the new development, the reduction of the parking garages associated with it, and additional enhancements of the public realm or other community benefits in exchange for the additional height up to 30-stories. After the initial input from the City Commission, the City worked further on the possible changes and presented the concept to the Downtown Action Committee (DAC) at its October 18, 2016 meeting. The proposal presented to the DAC recommended two separate changes: 1. Historic Landmark properties: The creation of the Landmark status for historically significant buildings that demonstrate an exceptional contribution in history, architecture, archeology, engineering or culture and have maintained a high degree of integrity. The proposal would incentivize the preservation of such potential landmark sites by being eligible to receive City owned Transfer of Development Right s (TDRs) equivalent to their current development capacity in addition to their original set of TDR s. 2. Flagler Waterfront District class A office incentive: The creation of the Flagler Waterfront District Class A office incentive for those properties located between Okeechobee Boulevard, Datura Street, Olive Avenue and Flagler Drive, allowing an increase in height from 5 stories to 30 stories, and an increase in development capacity from 2.75 to 3.75 through the TDR program. The proposal for the Flagler Waterfront District class A office incentive was not approved by the DAC which expressed concerns with the impact of possible 30-story buildings along the Flagler Drive waterfront, the additional traffic generated by the possible development, and the impact of the proposed changes on the predictability of the Downtown Master Plan. The Board also expressed the need for additional community input. PB 950EEEEE - 11

12 Despite the fact that the Flagler Waterfront District class A office incentive was not approved, the proposal for the creation of the Landmark designation received positive support at the time, and staff initiated a separate code amendment to create the landmark program. The Landmark program was reviewed and approved by the DAC, Planning Board and City Commission through the adoption of Ordinance No on February 13, Ordinance No did not include any language associated with the previously proposed class A office incentive along Flagler Drive. After comments were received from the DAC and the public at the October 18, 2016 meeting, staff took some time to further evaluate the proposed changes and obtain additional input from the community. Since the October 18, 2016 DAC meeting, a public outreach process took place to discuss the main issues highlighted during the public hearing. The two main topics of discussion were the additional height proposed at the Lakeview Avenue site and the traffic increase associated with any changes in the development capacity permitted by the current DMP. The following meetings took place to obtain input from the community: 1. Related Urban Development L.P organized a series of community meetings where the proposal for the First Church of Christ Scientist site was presented. Staff attended two of these meetings. Based on information provided by Related Urban, the following meetings took place:

13 Date Location Group/Neighborhood Attendance / Spoke With 12/1/16 Shutts and Bowen Northwood/Grandview/SE/EL Cid Residents 4 12/1/16 Shutts and Bowen South End/Andros Residents 2 Northwood/Villages/Downtown 1/23/17 Shutts and Bowen Residents 4 Land of the Presidents/Northwest Residents 2 1/23/17 Shutts and Bowen 1/26/17 Chamber Board Room Chamber of Commerce Gov't Affairs 20 1/31/17 Chamber Board Room Chamber of Commerce BOD 40 2/1/17 Airport Hilton Kiwanis WPB 50 2/8/17 Kravis Center Economic Forum 180 Condo Residents - Whitney; One and Two City Plaza; Trump; Prado; Wagg Building; 610 Clematis; The Strand; Flagler Pointe; South Tower 25 2/15/17 The Prado, 600 S Dixie 2/16/17 Trinity Church, th St NW NA / Roosevelt Estates NA 25 2/20/17 Private Home, 1100 Bear Island Drive Villages POA 30 2/21/17 Armory Arts, 1700 Parker Ave. El Cid BOD 10 2/28/17 Fire station, 5050 Broadway NCON BOD 8 3/1/17 Critton, Luttier & Coleman Citizens for Thoughtful Growth 4 3/21/ Clematis St #200 Downtown Development Authority 20 3/22/17 Hilton Hotel Downtown Neighborhood Association 120 3/23/17 Salvation Army; 600 N. Rosemary Ave. Northwest Community Consortium 20 3/23/17 Armory Arts, 1700 Parker Ave. Flamingo Park / Grandview / Pineapple 25 3/24/ North County Road, Ste. 22 PB Civic Association 5 3/28/17 Hilton Hotel Pastoral Roundtable 12 4/2/17 CitySide Suites 401 N. Rosemary MLK CC 12 4/6/17 South Olive Community Center SENA General Meeting 35 4/10/17 Andros Isle Clubhouse Andros Isle Community 20 Downtown Action Committee 4/12/17 City Hall Workshop 50 4/18/17 City Hall Planning Board Workshop 65 4/22/17 Sunset Lounge Heart and Soul Festival 150 5/17/17 Iron horse Clubhouse Iron horse POA 25 Historic Tour of the First Church of 6/8/17 First Church of Christ Christ, Scientist 100 6/14/17 Hilton Hotel Community Leader Roundtable 12 PB 950EEEEE - 13

14 2. In addition to the community meetings organized by Related Urban, the City scheduled two workshops at City Hall, one with the DAC (4/12/17) and one with the Planning Board (PB) (4/18/17). During the workshops Related Urban presented the details of the proposed office building at the First Church of Christ Scientist site. The meeting was open to the public, and the public provided comments on the proposed 30-story office building. Though the information presented during the workshop was focused on the project proposed at the First Church of Christ Scientist site, the comments and concerns raised by the public also included general comments about the future development of the Okeechobee Boulevard corridor. 3. In addition to the previously mentioned meetings, the City organized a charrette and public meeting centered on the traffic operations of Okeechobee Boulevard. The charrette was part of the ongoing mobility study currently being prepared by Alta Planning and Design for the City. The charrette, which took place on June 12-15, 2017, provided the opportunity for an open discussion on one of the main concerns expressed by the community: the traffic congestion on Okeechobee Boulevard. Although elements of the mobility study were reviewed in conjunction with the proposed Okeechobee Business District, this study along with the Okeechobee Boulevard Corridor Study and the Parking & Transportation Demand Management Study by Sam Schwartz were still in very preliminary form. Before the DAC and the PB workshop, and in response to the comments heard from the DAC and the community during the October 18, 2016 meeting and the subsequent community meetings, Related Urban Development LP submitted an application to modify the Downtown Master Plan (DMP) creating a new district between Okeechobee Boulevard, Lakeview Avenue, Flagler Drive and Rosemary Avenue to be known as the Okeechobee Business District. The district was identified as one of the City s office and financial districts, and it would allow buildings up to 25 stories, with an increase in FAR for projects proposing at least 250,000 square feet of class A office space. After receipt of the application the City determined that due to the scale of the proposed amendment a privately initiated amendment was not appropriate. The City continued analyzing the submitted application and determined a City-initiated amendment to incentivize the construction of class A office uses along the Okeechobee corridor was in the best interest of the City. The changes proposed in original application constituted recommendations from staff, the public and elements of the draft transportation studies for the Okeechobee Business District. The Planning Board reviewed the proposed amendment at its July 26, 2017 public hearing, and recommended approval (6-0) of the proposed changes. The Downtown Action Committee also reviewed the proposed amendment at its August 9, 2017 public hearing, and recommended approval (5-0) of the proposed changes. At the September 25, 2017 City Commission meeting, the Commission voted against Ordinance No , an amendment to the Comprehensive Plan to provide for the creation of a new

15 Okeechobee Business District within the Downtown Master Plan Element, by a 3-2 vote. The Commission took no action on Ordinance No or which amended the City s Zoning and Land Development Regulations to create a new district and enact regulations for the district. In the Spring of 2018, all of the elements of the many studies came together in the formation of several plans prepared by consultants under the guise of an overall Mobility Plan for the entire downtown. These included the following: Mobility Plan Okeechobee Corridor Study Downtown Parking Management and Transportation Demand Management Study City-Wide Bicycle Master Plan Gehl Public-Life Action Plan Figure No. 1 Mobility Plan Studies The Mobility Plan created a vision of desired outcomes, goals, a mode hierarchy, a mode-shift goal and a series of proposed projects and strategies to improve mobility not only along the Okeechobee Corridor but also in the entire downtown. On April 30, 2018, Gabe Klein, former Department of Transportation Director in Chicago and former Director of the District Department of Transportation in Washington D.C., presented the Mobility Plan to the Mayor and City Commission. At the conclusion of the workshop discussion, the Mayor directed staff to bring back the Okeechobee Business District proposal to include many of the newer elements contained within the Mobility Plan and to further the goals and objectives contained within. PB 950EEEEE - 15

16 Figure No. 2 April 30, 2018 Mayor-Commission Workshop Discussion on Mobility Studies The amendment before the Board contains many of the recommendations contained within the recently-completed studies and is a refinement of what was originally presented last summer and fall. The recommendations made as part of the OBD are intended to further the goals of the Mobility Plan, improve circulation along the Okeechobee Boulevard corridor and facilitate the economic growth that is desperately needed in our downtown. I. PROPOSED CHANGES Over the last 18-months, the city has gone through a series of discussions on the pros and cons of modifying the DMP creating what is now referred to as the Okeechobee Business District to incentivize the construction of class A office uses. The idea, originated from a site specific project, evolved into an effort to clearly identify the Okeechobee corridor as one of the core office districts in Downtown, incentivize the construction of class A office and increase the city s chances to construct new class A office downtown. Staff s proposal intends to address some of the concerns expressed by the public, the DAC and the Planning Board during the previous public meetings, always keeping in mind the development goals of the downtown area and the City as a whole. The proposed amendment includes: 1. New Okeechobee Business District (OBD). The new downtown OBD includes all the properties located between Okeechobee Boulevard, Lakeview Avenue, Rosemary

17 Avenue and Flagler Drive. The goal of the OBD district is to identify the corridor as one of the core office districts, recognizing that office uses have traditionally located along the corridor, and incentivize the construction of new class A office uses along the corridor. The new OBD will be a high-rise district compatible with the surrounding area. 2. Limits to the corridor s overall development capacity. The proposed OBD, divided in four sub-districts, includes two sub-districts (OBD-12 and OBD-25CP) currently located within the CityPlace Commercial Planned Development(CPD). The two parcels, known as the Triangle Site and the Tent site, are part of the CityPlace CPD and therefore unrestricted in terms of maximum height. The development capacity of the two parcels is limited only by the overall development capacity of the CityPlace CPD. As the DMP regulations are not applicable to the CityPlace CPD a separate major amendment to the CityPlace CPD is being process concurrently with this amendment to include the development restrictions for the OBD-12 and OBD-25CP regulated by the CityPlace CPD. The major amendment will restrict the development capacity of both blocks, establishing a maximum capacity for the OBD. The two eastern sub-districts (OBD-25 and OBD-5) will maintain the same development capacity previously allowed, and no increase in development capacity is proposed thought any incentives. 3. Mobility strategy. The new OBD will promote pedestrian activity along the corridor and encourage new buildings to sponsor the use of alternative modes of transportation through the removal of the minimum parking requirements, a reduction of the maximum number of parking spaces permitted by right for new projects, and the requirement to develop Transportation Demand Management (TDM) initiatives. New projects within the OBD will be required to contribute a yearly fee to support the operation and construction of alternative modes of transportation. 4. Increased public open space and protection of the waterfront. The OBD includes regulations that increase the minimum amount of public open space required for new projects by more than double the current requirements. New projects within the district will be required to provide between 7% and 10% of the lot area for new public open spaces. In addition, for the incentive area, additional restrictions are proposed which prohibit the construction of any structure within 400 feet from the sea wall cap, and require a minimum of 15% of the lot area as public open space, resulting in a substantial increase on the amount of public open space along the waterfront. 5. Protection of the existing eligible landmark building within the OBD. The proposed OBD includes a class A office incentive which will require the historic designation of the only eligible historic landmark structure within the district, and its protection for future generations. PB 950EEEEE - 17

18 II. ANALYSIS Recognizing that the idea of allowing buildings higher than the existing 5-story limit east of Olive Avenue has brought a large number of comments from the public, both in favor and against. Staff has decided to present the proposal through a specific analysis of the concerns raised by the public, as well as the perceived benefits of the proposed changes. A. MAIN CONCERNS RAISED BY THE PUBLIC After analyzing all the comments received in relation to the proposed Okeechobee Business District, which would allow buildings taller than the existing 5-story height limitation east of Olive Avenue, staff has summarized the main concerns in three main points: 1. Modifications to the existing DMP 2. Existing traffic congestion along Okeechobee Boulevard and the additional impact created by any new project in the area. 3. Negative impact on the waterfront views of existing adjacent buildings. Staff s analysis of these concerns is as follows: 1. Modifications to the existing DMP Since the adoption of the Downtown Master Plan (DMP) in 1995, the goal to create a downtown area that provides a dynamic mix of commercial and residential uses in an urban pedestrian friendly environment has been a fundamental guide of the downtown development process. Over the years, the City has modified the original master plan several times to incentivize specific uses throughout downtown. In 2001, the City adopted the Residential Incentive Program (RIP) which allowed residential projects to increase building height by 60% (3 additional stories above the original 5 stories). The RIP resulted in the construction of 1,197 new residential units between 2006 and 2009, supporting the redevelopment process of the downtown, and contributing to the desirable mixed-use environment envisioned by the Downtown Master Plan. In addition to the RIP, and with a less successful rate, the City has attempted several strategies to attract Class A office to downtown West Palm. In 2007, the DMP update prepared by Zyscovich Inc., proposed special incentives to attract the construction of Class A office buildings to the downtown area. The main incentive, known as the Quadrille Business District Incentive, allowed up to 3 times the development capacity, and increased the allowable height from 8 stories to 25 stories for those properties located within the Quadrille Business District between Rosemary Avenue and Quadrille Boulevard, 3rd Street and Gardenia Street. The incentive was directed to attract class A office uses and full service hotels to the physical center of the downtown core. In 2015, the City approved an additional incentive to promote the construction of Class A

19 office, this time extending the height and development capacity incentive along Quadrille Boulevard from Iris Street to 5 th Street. As a result of the existing incentives, two separate buildings have received site plan approval. The Cosmopolitan (107,000 square feet of office and a 201 room hotel) which received site plan approval last September 19, 2016, and One West Palm (337,000 square feet of office, a 204 room hotel, and 78 residential units) which received site plan approval last August 29, Neither of these projects is actively pursuing a building permit approval or has started construction. On March 13, 2018 the City received a new application for a new office building on Rosemary Avenue between Evernia Street and Fern Street (258,449 square feet of office and 21,335 square feet of retail). This project is utilizing the Quadrille Business District incentive currently adopted. Despite these efforts to incentivize Class A office downtown, no new projects have been built since the CityPlace Tower in Between that building, the two Phillips Point buildings built in 1985 and the Esperante Building built in 1989, the City has nearly one million square feet of Class A office space that is virtually totally occupied. Table No. 1 below illustrates all the projects within the downtown area that have received site plan approval and are currently active. PB 950EEEEE - 19

20 Table No. 1 Downtown Active Projects List (updated 06/13/17) Project Description (include name of project) Location # of Units Office sf Retail sf Hotel (rooms) Parking Lot Size - Acres Gross sq footage Density/ Intensity status Opera Place Lakeview ,179 57, , story office- 30 story hotel- 10 story residential ACTIVE Site plan expires 8/11/ SB 1752 extension to 8/11/2015. Extended to 12/11/16 Extended to 1/3/ 2020l The Harrick - Hotel 720 S. Dixie Hw ay. 139 n/a stories ACTIVE - Site plan expires 10/23/2009 Extension approved until 10/23/2012 Ord Additional extension approved under HB 7207 until 10/23/2014. Additional extension approved under SB2156 unitl 6/23/15. Extended to 2/23/18 by Storm Erika. Extended until 10/10/18 Extended until 8/9/ Algae Bloom EO Clematis Hotel 335 Celmatis St N/A N/A 3, N/A , stories/6.0 FAR Stie plan approved (must stat construction by2/28/2018-extended by TS Erika) Extended by EO Extended by and Current expiration date 05/23/2020 Datura Hotel 302 Datura Street Palm Harbor Marina 300 N. Flagler Hotel Drive 108 Transit Village 55 offsite 8 on-site 150 Clearw ater Drive ,862 34, , (37,499sf) , ,119, stories/2.75 FAR 8 stories 63 un/ac Site plan approved 7/3/14 Extended by EO Site plan expires 3/5/18 Site Plan approved 5/22/17 Site plan expires 5/23/20 Site plan approved 10/20/15 Site plan expires 10/21/ Quadrille 550 quadrille Blvd (leasable) 17, , (863 req.- 173, (Net) 17, shared Gardenia Cosmopolitan 417 Dixie 107,756 10, Trinity Place Canopy Hotel Dixie Hw ay 4, NWC of Rosemary Ave. Prive Suites and 2nd St (149,402) 827, , , ,600sf) 30 stories 18 stories 123, stories 188'-5" roof Site plan approved 8/29/16 Site plan expires 8/30/18 Site plan amendment under review process Site plan approved 9/19/16 Site plan expires 9/20/18 Site plan approved 11/10/16 Site plan expires 11/11/ ,000 Withdraw n It did not complete site plan approval process Banyan Micro-units 550 Banyan Blvd stories Under planning approval Burger King 1210 N Dixie Hw ay 2, ,060 1 story Site plan approved 2/1/17 Site plan expires 2/1/19 Old City Hall site 2nd version Clematis Place 200 2nd St and 201 N Flagler Dr , Clematis St Datura St , , ,140 8 stories 70 u/ac Under planning approval 129 u/ac Under planning approval The City is now proposing to modify the DMP to create a new district to promote the construction of Class A office uses. The new district called Okeechobee Business District includes all the properties located between Rosemary Avenue and Flagler Drive, Okeechobee Boulevard and Lakeview Avenue as depicted in Figure No. 1 on the following page.

21 Figure No. 3 Proposed Okeechobee Business District Boundaries Lakeview Ave Okeechobee Blvd The proposed OBD is intended to clearly identify the Okeechobee corridor as a core of economic activity, where class A office uses are the primary use. The OBD and the proposed incentives for the construction of class A office uses recognize the importance of the location on the decision making process for future development of class A office, and acknowledges that class A office uses favor waterfront views over other downtown locations. The importance of the real estate along the Okeechobee Boulevard corridor and the city s waterfront is not a new idea. The Downtown Master Plan, drafted by Duany Plater-Zyberk & Company and adopted by the City Commission on December 4, 1995, included a specific vision with recommendations for the properties along the Okeechobee corridor and Flagler Drive. The vision highlights the importance of the linear space along Flagler Drive but emphasizes necessary actions to make the space a great waterfront promenade. The vision presented by the adopted 1995 DMP illustrates the Flagler waterfront and the Okeechobee corridor lined with residential or office buildings with up to 15-stories to create urban corridors. Subsequent to the adoption of the 1995 DMP, a citizen s initiative petition was filed with the City s Clerk proposing an amendment to the DMP to reduce new building heights from 15 to five stories on all properties east of Olive Avenue in the Waterfront District and all properties in the Government Center district. During the March 12, 1996 general election, the citizens voted 4,227 (60%) in support of the height reduction, and 2,772 (40%) against the reduction. This total represented about 9% of the City population at the time. On January 24, 1997, the City Commission adopted Ordinance , codifying the height restrictions approved by the voter referendum. Ordinance No subsequently removed from the referendum area the properties within the Government Center district west of Olive Avenue. Since the adoption of the DMP, several changes have been adopted modifying the building height through downtown, but did not impact the areas east of Olive Avenue until 2014 when an amendment was approved to allow the properties east of Olive Avenue from Banyan PB 950EEEEE - 21

22 Boulevard to 5 th Street to increase in height from five stories to eight stories, and increase its development capacity from a 2.75 Floor Area Ratio (FAR) to 3.75 FAR through the Transfer of Development Rights program (Ordinance No ). This change allowed the proposal for a new 8-story hotel and residential building at the site of the old City Hall, recently approved by the Downtown Action Committee, and expected to start construction in The new project along the waterfront will create a new public open space along Flagler Drive along with a new waterfront restaurant, activating the waterfront north of Banyan Boulevard (see below). Figure No. 4 Proposed Old City Hall Development at 8 Stories The changes proposed for the Okeechobee Business District are directed to attract additional development to the downtown, primarily of class A office uses to promote the economic development of the City with new jobs and companies locating in the downtown area. Since the adoption of the DMP in 1995, the downtown has substantially changed, with more than 4,064 residential units built, most of them in high-rise buildings in the core of the downtown. Approximately 1.8 million square feet of non-residential uses have also been added to the downtown. Although the redevelopment of the downtown area is moving in the right direction, the City is interested in attracting specific uses to the downtown, such as class A office uses, due to the economic impact that these uses could have in the overall growth of the City. From the 1.8 million square feet of non-residential uses built in downtown since 1995, only 313,975 square feet are class A office space, resulting in the current lack of class A office space. As explained in the previous paragraphs, the City has implemented several incentives to attract new class A office to the downtown, but the existing incentives have not resulted in the construction of class A office up to this point. The proposed OBD will focus the attention to the area of the downtown where the class A office buildings have traditionally located, providing the best conditions for attracting the desired class A office use in a harmonious way with the existing surrounding area.

23 2. Existing traffic congestion along Okeechobee Boulevard One of the main points of concerns expressed by the public during the public meetings was the existing perceived traffic congestion on Okeechobee Boulevard, and the additional traffic any new construction along the corridor will generate. Information collected by the Mobility study reflect that despite the significant growth in the downtown over the past 20 years, traffic on Okeechobee Boulevard has only increased at an annual rate of 0.9% as reflected below: Figure No Year History of Average Daily Traffic on Okeechobee Boulevard The City recognizes the downtown is experiencing some traffic congestion, mainly at the main entry points like Okeechobee Boulevard and Banyan Boulevard, and therefore it has embarked on an initiative that goes beyond traffic congestion. The City is committed to enhancing the way people move around, and it has initiated a planning effort to create a road map for a wellbalanced transportation system that provides real mobility choices for everyone while creating great places to live. The planning exercise towards the development of a mobility plan, undergway while the OBD was presented for consideration in 2017, has been completed now, and the final results include a series of recommendations to address downtown mobility holistically. The mobility study, which includes the Parking and Transportation Demand Management Study and the Okeechobee Corridor Study include a list of actions recommended for different areas to improve the overall mobility of the downtown area. The final report for the mobility study, as well as the companion studies are available for review through the website at wpbmobility.com. PB 950EEEEE - 23

24 Staff has reviewed the studies and has incorporated those recommendations appropriate for the implementation through the zoning regulations for the OBD. Other actions recommended by the mobility study will be addressed by the City through the mobility plan implementation process. The most important recommendations included in the OBD in support of the downtown mobility plan layout by the mobility study are the recommendations directed to reduce the use of single occupancy vehicles and to increase the use of active modes of transportation and public transit. The zoning regulations for the OBD specifically include: 1. Removal of the minimum parking requirement. The minimum parking requirement has been removed, and replaced by a soft maximum parking, which establishes the amount of parking any new project is allowed to have by right. Any additional parking spaces, above the soft maximum, and up to a hard maximum, will require the project to do the following: a) Contribute to the transit fund. The contribution to the transit fund will be required for any increase in the number of parking spaces provided by a project above the established soft maximum. The contribution to the transit fund will allow the project to increase the allowable parking ratio by 50%. The exact amount of the contribution for the transit fund will be adopted by the City Commission by Resolution, and it will be charged on an annual basis for each project. b) Implement different transportation demand management strategies. Above the parking ratio authorized by the contribution to the transit fund, any new project can increase the total number of parking spaces provided on site up to the established hard maximum by implementing different transportation demand management inititatives. c) Parking garage retrofit. If the proposed project is intended to containat least one parking garage, it must be designed such that a level of parking can be converted into usable space once the parking demand is lower. A 10% increase of the parking ratio will be allowed per each level provided. The proposed hard maximum parking cap for the OBD is lower than the previous maximum parking allowed for the same area, guiding any new construction within the OBD towards a desirable shift on modes of transportation. 2. The proposed regulation also includes a series of requirements for new projects to implement pedestrian improvements and promote alternative modes of transportation to reduce the traffic congestion on the corridor. The City s desire is to encourage a modeshift resulting in a 14% increase in walking, biking and transit.

25 The proposed OBD has been carefully drafted not to increase the development capacity of any parcel in the district beyond what is currently allowed, and, in some case, the proposal includes regulations that restrict the development capacity of the two properties located within the CityPlace CPD below the possible capacity under the current DRI regulations. 3. Negative impact on the waterfront views of existing adjacent buildings Some of the stronger opposition comments against the proposed changes to the Okeechobee Boulevard and in particular to the possibility to allow buildings higher than five stories east of Olive Avenue have come from residents of the City Plaza I and City Plaza II buildings, located west of Olive Avenue, and directly impacted by the construction of any new high-rise building east of their property. Staff understands the view impact that any new high-rise building may have on the existing surrounding buildings, but the overall benefit to the City outweighs the partial obstruction of some privately owned properties, not adjacent to the Lake Worth intracoastal waterway. B. BENEFITS OF THE PROPOSED CHANGES The same way an analysis has been conducted for the concerns raised by some members of the public, Staff has conducted an analysis of the benefits of the proposed change as follows: 1. Economic development opportunities. Downtown West Palm Beach has been identified as the center of the City, and the City s Comprehensive Plan Goal No. 2 specifically states that The City shall promote a variety of activities that support downtown West Palm Beach as the urban center of Palm Beach County and make it a memorable place of positive human interaction. More specifically, the Plan includes Objective 2.1 which directs the City to promote the growth of the downtown employment base. To implement the goals, objectives and policies in the Comprehensive Plan, two class A office and hotel incentive programs have been created for properties along Quadrille Boulevard within the Quadrille Business District and the Quadrille Garden District. However, despite the City s interest to attract new class A office uses to the physical center of the downtown and along Quadrille Boulevard, the Class A office market is driven by attractive locations such as the waterfront, and the existing incentive programs have not resulted in the construction of any new class A office building up to this point. Recognizing that the prime waterfront location is one of the most important factors on the private decision to develop a new class A office building, the City is proposing the OBD as the new office district downtown. The OBD is the location where traditionally class A office buildings have located, and in fact, the four existing class A office buildings (Esperante, Phillips Point I and II, and CityPlace office tower) are located along the Okeechobee Boulevard corridor. Cityplace Tower, Phillips Point and Esperante have nearly one million square feet of combined PB 950EEEEE - 25

26 rentable building area. In discussions with the Business Development Board and leasing agents for the properties, they have indicated that vacancies in these buildings are virtually non-existent. The amount of available class A office space in the downtown is very limited, reaching 4% vacancy rate for the third quarter of according to numbers provided by Co-Star for August 2017 and shown in Table 2 below, making more urgent than ever for the city to attract new class A office buildings to the downtown area. Table 2 Downtown West Palm Beach Class A Office Space (August 2017) Over the past few years, the City of West Palm Beach has lost several major tenants seeking class A office space in the downtown due to the inability to secure space for their needs. Most recently, the City lost a medical company with hospitals in Atlanta, Chicago, Philadelphia, Phoenix and Tulsa that targeted a corporate relocation to West Palm Beach but moved into 77,000 square feet of office space in Boca Raton when Class A space could not be made available. The City s Economic Development Director also prepared an Economic Development Strategy, dated April 2, 2014, which stated that in order to attract more companies and jobs to the central business district, the City needs to focus its economic development efforts on 1) Constructing new Class A office space and 2) Encouraging the renovation of vacant or underutilized upper-story office space in downtown historic buildings. In response to the Economic Development Strategy, the City recently created a Flagler Financial District in an effort to market and brand the downtown area as an attractive venue for Class A development. Marketing efforts to recruit corporate relocations to West Palm Beach have been underway but a scarcity of available premium office space has been a deterrent to companies. Since the adoption of the Downtown Master Plan update in 2007, the City has made a substantial effort to attract the construction of Class A office buildings in the downtown area. Two incentive areas have been created to promote the construction of new Class A offices, the Quadrille Business District incentive and the Quadrille Garden District Class A office and hotel incentive, both along the Quadrille Boulevard corridor. The incentive areas utilize the transfer of

27 development rights program to allow an increase in development capacity for those projects proposing the construction of a minimum 200,000 square feet of Class A office. Figure No. 6 Existing Class A Office Incentive Areas 550 Quadrille The Cosmopolitan Within the two incentive areas, two Class A office projects have been proposed, The Cosmopolitan project, located at the corner of Quadrille Boulevard and Gardenia Street, is proposing 107,000 square feet of Class A office use while the 550 Quadrille Boulevard project, located on a full block development between Quadrille Boulevard and North Dixie Highway, 4 th Street and 5 th Street, is proposing 330,000 square feet of Class A office uses. Neither of these projects have started construction. An inventory of the land available for redevelopment within the two incentive areas result in a total of approximately 2.9 million square feet of potential development. However, considering the Class A office market is driven by attractive locations such as the waterfront, it is the city s desire to highlight the new OBD as a location for Class A office buildings, including a height incentive for the construction of class A office space in one of the most desirable locations of the entire downtown. The proposed OBD is just a way to recognize and further promote the development of the corridor as a high-intensity corridor with high-rise buildings, and a high concentration of class A office uses. 2. Preservation of an eligible historic landmark property Located within the proposed OBD, along Flagler Drive is the First Church of Christ Scientist, a remarkable religious facility designed by the prominent Philadelphia architectural firm of Horace Trumbauer in 1928, led by Julian Abele as the chief designer. The church has been identified as PB 950EEEEE - 27

28 a building of historic significance as well as architectural significance. Prominently located along the West Palm Beach waterfront, the church is one of the most iconic images in the City. Despite its historic importance and its architectural significance, the church is not currently designated in the Local Register of historic places or the National Register of Historic Places, and therefore it is not protected from demolition or alterations. In 2002, the City created the Transfer of Development Rights (TDR) program to promote the preservation of buildings with historic significance, and create a private real estate transaction opportunity that would compensate the property owners for the remainder of their development opportunities that could not be realized. The TDR program has been generally successful in the downtown, providing additional economic incentive to property owners of more than 20 historic structures. However, the program has not been successful with the protection of historic buildings located on prominent locations where the land value is substantial, such as the First Church of Christ Scientist site. The proposed OBD incentive is being proposed to close that financial gap. The incentive allows additional height on sites previously restricted in exchange for the construction of class A office use, and the preservation of a historic structure. The additional height allowed by the incentive has been carefully regulated not to negatively impact the historic building, but to work with it, and allow any new high-rise to serve as a backdrop to the historic structure. 3. New public open space along the waterfront The last benefit of the proposed amendment is the additional public open space that will be created along the waterfront and throughout the district. The proposed OBD is increasing the amount of public open space required for new development from 5% to 10% of the lot area, and up to 15% in the case of the incentive area. The increased public open space will support the new vision of Okeechobee Boulevard as a pedestrian friendly area with increased street level activity. Specific regulations are proposed to require the location of the high-rise towers towards the western portion of the properties, and the public open spaces towards the eastern portion, facing the waterfront when appropriate. Figure No. 7 illustrates the additional public open space that would be generated along the OBD if all the existing undeveloped sites are developed.

29 Figure No. 7 Additional public open space along the Okeechobee Boulevard corridor New public open space required throughout the OBD In particular for the incentive area, the proposed regulation requires a minimum of the 15% of the lot area designed as public open space, and requires the public open space to be located facing the waterfront, substantially increasing the amount of public space provided along Flagler Drive. Figure No. 8 Additional public open space required along Flagler Drive by the OBD Incentive Existing urban open space along the waterfront New public open space required by the OBD class A office incentive New public open space proposed by proposed hotel and residential north of Banyan Boulevard PB 950EEEEE - 29

30 ATTACHMENT II Proposed development regulations for Tent site and Tringle site 1. Ockeechobee Business District The parcels located between Rosemary Avenue and Dixie Highway, Lakeview Avenue and Okeechobee Boulevard contained within the CityPlace CPD shall be developed in accordance to the following regulations: a. CityPlace CPD-OBD subdistricts shall include: OBD-25CP and OBD-12CP as depicted in Figure No. 1. b. Subdistrict requirements. Developments shall comply with the following: (1) Table No. 1: OBD-25CP (2) Table No. 2: OBD-12CP c. Additional subdistrict requirements: (1) Parking shall be regulated by Table 3: Soft and hard maximum parking ratios. (2) Soft maximums represent parking ratios allowed by right. (3) Hard maximums represents parking ratios allowed if project complies with requirements described under numeral (4). (4) If a developer wishes to exceed the soft maximum parking ratios, the project shall: i) Contribute to the transit operation fund. Contribution to the transit operation fund allows the parking ratio to be increased by 50% from the established soft maximum. The exact amunt of the contribution will be established by Resolution of the City Commission. ii) iii) Design at least one parking garage level in a way that it can be converted into usable space once the parking demand is lower. A 10% increase of the parking ratio will be allowed per level. Comply with Transportation Demand Management (TDM) initiatives that enhance the mobility in Downtown and create more walkable development patters. The implementation of each transportation demand management initiative will allow additional parking spaces for the project at a ratio of one additional parking space per each point earned as indicated in Table 4.

31 iv) Any increase in parking ratios will require the payment of the contribution to the transit operation fund first before any parking increase can be claimed from the transportation demand management initiatives. (5) Uses. 1. Buildings that have a class A office primary use greater than or equal to 75 percent of the total gross building area shall not be required to provide active use liners above the ground floor, but shall be required to provide architectural treatment to extend the façade of the office tower such that the office tower is perceived as having one continuous uninterrupted façade from the ground floor to the top of the building for 100 percent of the tower building frontage. Parking garages of such buildings may provide living green walls to screen the parking uses in lieu of active use liners above the ground floor. (6) Special requirements. 1. Tower orientation shall be towards the west side of the properties to open up the views. When more than one tower is provided, this provision shall apply to the tower with the greatest height and floorplate area. 2. Parking on exposed roof surfaces will not be permitted within this district. 3. For properties with frontage along Flagler Drive, public open space shall be located adjacent to Flagler Drive. 4. All new development within this district will be required to implement the following strategies to improve mobility downtown: a. If not existing, pedestrian crossigns shall be provided at all corners adjacent to proposed development, as required by the City. b. Commercial, office and hotel uses shall provide i) secure bike racks at a ratio of 1 bycicle parking space per every 10 parking spaces provided, and ii) a minimum of one showers and changing facilities per every 30,000 sf of net office space, and/or every 100 hotel rooms. c. Additional TDM strategies will be required for those projects seeking to exceed the soft maximum parking ratios as prescribed by the parking regulations in Table No. 3. d. Any new project shall provide a freight delivery plan and routes to ensure deliveries do not impact traffic operation. e. Any new project shall provide a curb side management plan to prioritize multimodal travel. PB 950EEEEE - 31

32 f. No travel lanes shall be blocked during peak hour for ingress/egress of parking garages.

33 TABLE No. 1: BUILDING REQUIREMENTS OBD-25CP (a) FAR All Lots 4.75 (b) HEIGHT 25 stories or 308 whichever is less; 25 (308 ) (c) SETBACKS STREET DESIGNATION/ SIDE/ REAR STORIES TYPICAL SETBACKS CONDITIONAL SETBACKS GROUND TO 25 (308 ) ABOVE 5 (68 ) ABOVE 7 (92 ) MINIMUM MAXIMUM PARKING USES ONLY MINIMUM MINIMUM Avenue Primary Pedestrian Secondary Side Interior 0 or NFPA * * 0 for portions of facades that abut existing buildings with no windows on adjacent lots. (d) MAXIMUM BUILDING FOOTPRINT STORIES LOT AREA <50,000SF 50,000SF 80,000SF >80,000SF Podium: Ground 87% 84% 82% Podium: 2 to 5 (68 ) 87% 85% Podium: 6 to 7 (92 )* 90% 60% 55% Tower: 8 to 25 (308 ) 55% 50% * Parking uses may exceed maximum building footprint in compliance with conditional setback. (e) MINIMUM OPEN SPACE TYPE MINIMUM AREA Public 10,866sf Private 25% (f) MINIMUM ACTIVE USES STREET DESIGNATION GROUND FLOOR LINERS: 2 TO 5 STORIES (68 ) Avenue 60% 60% Primary Pedestrian 80%* 60% Secondary 30% --- * 65% for lots with buildable lot frontage 250 (g) MINIMUM TRANSPARENCY FOR ACTIVE USES ON GROUND FLOOR STREET DESIGNATION PERCENTAGE OF TRANSPARENCY Avenue 50% Primary Pedestrian 50% Secondary 30% (h) MINIMUM ACTIVE USE LINER DEPTH ACTIVE USE GROUND FLOOR LINERS: 2 TO 5 STORIES (68 ) Commercial Residential Not Permitted 15 PB 950EEEEE - 33

34 TABLE No. 2: BUILDING REQUIREMENTS OBD-12CP (a) FAR All Lots (b) HEIGHT 12 stories or 170 whichever is less; 12 (170 ) (c) SETBACKS STREET DESIGNATION/ SIDE/ REAR STORIES TYPICAL SETBACKS CONDITIONAL SETBACKS GROUND TO 25 (308 ) ABOVE 5 (68 ) ABOVE 7 (92 ) MINIMUM MAXIMUM PARKING USES ONLY MINIMUM MINIMUM Avenue Primary Pedestrian Secondary Side Interior 0 or NFPA * * 0 for portions of facades that abut existing buildings with no windows on adjacent lots. (d) MAXIMUM BUILDING FOOTPRINT LOT AREA <50,000SF 50,000SF 80,000SF >80,000SF Podium: Ground 87% 84% 82% Podium: 2 to 5 (68 ) 87% 85% Podium: 6 to 7 (92 ) 90% 60% 55% Tower: 8 to 12 (152 ) 55% 50% (e) MINIMUM OPEN SPACE STORIES TYPE Public (f) MINIMUM AREA 9,125 sf MINIMUM ACTIVE USES STREET DESIGNATION GROUND FLOOR LINERS: 2 TO 5 STORIES (68 ) Avenue 60% 60% Primary Pedestrian 80%* 60% Secondary 30% --- * 65% for lots with buildable lot frontage 250 (g) MINIMUM TRANSPARENCY FOR ACTIVE USES ON GROUND FLOOR STREET DESIGNATION PERCENTAGE OF TRANSPARENCY Avenue 50% Primary Pedestrian 50% Secondary 30% (h) MINIMUM ACTIVE USE LINER DEPTH ACTIVE USE GROUND FLOOR LINERS: 2 TO 5 STORIES (68 ) Commercial Residential Not Permitted 15

35 Table No. 3 Parking requirements for OBD Use Soft Max Hard Max Retail, restaurant or commercial 0.75 per 1000sf 2.87 per 1000sf Office 1 per 1000sf 2.47 per 1000sf Hotel 0.25 per room plus 0.75 per 1000 sf of restaurant and conference rooms 0.89 per room plus 2.87 per 1000 sf of restaurant and conference rooms Residential 0.25 per unit 1.37 per unit Live/work 0.75 per 1000sf 2.87 per 1000sf PB 950EEEEE - 35

36 Table No. 4 Transportation Demand Management requirements Program a. Parking management Unbundle parking spaces from lease agreements and sale separately. Offer discounted parking for nonpeak hour travelers (no enter between 7:30-9:00am and no exit between 4:30-5:45pm) Offer employees option to work from home 1 day per week and during major events Reserve parking spaces for carpool and vanpool b. Incentive programs Requirements 50% of parking spaces provided 10% of parking spaces Points earned Permanent program with promotional every year 2 Two parking spaces up to 20 Offer parking cash out programs Offer daily/montly and yearly 10 Offer discounted car share 1/10,000sf of net office space membership and ride share discounts 1/25 residential units 15 Offer discounted bike share membership Offer discounted Palm tran, tri-rail or brightline passes 1/50 hotel rooms 1/10,000sf of net office space 1/25 residential units 1/50 hotel rooms 1/10,000sf of net office space 1/25 residential units 1/50 hotel rooms c. Shared services Provide carshare station on site One car share station 10, 4 additional points for each additional station Provide bike sharing station on site Provide electric vehicles charging stations One bike share station with minimum 6 docks Two charging stations

37 Figure No. 1 CityPlace CPD Okeechobee Business District PB 950EEEEE - 37