Okeechobee Business District Planning Board. May 15, 2018

Transcription

1 Okeechobee Business District Planning Board May 15, 2018

2 Agenda Requests History and Background Concerns Raised To Date Okeechobee Business District Proposed Changes - Ana Aponte Review of Amendment Standards Summary

3 Okeechobee Business District Requests May 15, 2018

4 Requests Case No. 1794: A request for an amendment to the DMP Element of the Comprehensive Plan in association with the creation of the new Okeechobee Business District within the Downtown Master Plan. Case No. 1794A: A request to create the new Okeechobee Business District which includes all the properties located between Okeechobee Boulevard, Lakeview Avenue, Flagler Drive and Rosemary Avenue. The new district will amend the Downtown Master Plan Zoning Atlas. Case No. 1794B: A request for an amendment to the Zoning and Land Development Regulations Article IV DMP in association with the proposal to create the new Okeechobee Business District, and promote the construction of Class A office downtown. Case No. 950EEEEE: A City-initiated request for a Major Planned Development amendment to the CityPlace CPD to adopt development regulations for the two blocks located between Okeechobee Boulevard and Lakeview Avenue, Rosemary Avenue and Dixie Highway.

5 History and Background Planning Board Case No. 1749: An amendment to the DMP Element of the Comprehensive Plan to provide for the creation of a new Okeechobee Business District within the DMP. Planning Board Case No. 1749A: An amendment to Article IV (Downtown Master Plan) of the City s ZLDRs to create a new Okeechobee Business District and promote the construction of Class A office downtown. Planning Board Case No. 1749B: An amendment to the Downtown Master Plan Zoning Atlas, changing the designation of all of the properties located between Okeechobee Boulevard, Lakeview Avenue, Flagler Drive and Rosemary Avenue to Okeechobee Business District. July 26, Planning Board (Approved 6 0) Aug. 7, 2017 DDA Authority (5-0) Aug. 9, 2017 Downtown Action Committee (5 0) Sept. 25, 2017 City Commission Planning Board Case No Ord : An amendment to the DMP Element of the Comprehensive Plan to provide for the creation of a new Okeechobee Business District within the DMP. FAILED 3-2 Planning Board Case No. 1749A (Ord ): NO ACTION TAKEN Planning Board Case No. 1749B (Ord ): NO ACTION TAKEN

6 History and Background Spring 2018 Completion of the WPB Mobility Plan Alta Planning & Design w/gabe Klein Parking & Transportation Demand Management Study Sam Schwartz Okeechobee Boulevard Corridor Study McMahon Bicycle Master Plan Gehl Public Realm Action Plan

7 Public Meetings Okeechobee Corridor Community Charrette 4 days, 600 people

8 April 30, 2018 Mayor-Commission Workshop

9 April 30, 2018 Mayor-Commission Workshop people showed up to contribute productively. We need carrots and sticks and we need many more carrots if we want to get people excited about the change that s coming to WPB. The good thing abut this plan is that it s based on best practices from all around the world. WPB is going to grow dramatically. You need to have mixed use development where people can live, work and play. Congestion is actually is a sign of a very successful downtown. Former DOT director in Chicago Former director of the District DOT (Washington DC) Spent 4 years as the VP for Zipcar In 2015, he joined Fontinalis Partners as a Special Venture partner His work has been featured in the New York times, Washington Post, Washington Business Journal, Bloomberg and many more.

10 Change Is Inevitable

11 Before and After

12 30 Years Ago

13 Convention Center Brightline Train Today Kravis Center Hilton Hotel

14 Generations GI generation (teenagers in the Great depression and fought in WWII) Baby Boomers (protested Vietnam War and participated in civil rights movement) Generation X (MTV generation) Millennials (aka Generation Y) Generation Z (igeneration for internet)

15 Forbes Magazine (Dec. 28, 2017) Baby Boomers are starting to retire Millennials have taken over the largest population of the workforce With the oldest members entering their mid- 30 s, they re becoming more experienced (20% of all leadership roles) Millennials will be more ready to settle down and start showing more employer loyalty

16 Millennials The 54 million adult Americans aged between 21 and 37 in 2018 The will soon overshadow the GenXers & Baby Boomers In 2015, made up 1/3 of the American Workforce By 2020, they will make up 50% of the workforce The most high maintenance workforce in the history of the world but they may also be the most high performing. (Bruce Tulgan It s Okay to Manage Your Boss)

17 100 Best Workplaces for Millennials (1-30)

18 100 Best Workplaces for Millennials (31-100)

19 Concerns Raised to Date Traffic on Okeechobee Boulevard Response: The proposed amendments limit development and do NOT allow more traffic than what could be built today under our current Codes. Was there a traffic study done for the proposed building? Response: These amendments do NOT contemplate approving any new buildings. If approved, any subsequent project would need to submit an application to the City which would undergo a separate review process.

20 Concerns Raised to Date Meeting was conveniently scheduled for when most of the winter residents are gone. Response: West Palm Beach is not a seasonal city only open four or five months of the year. We are a great city open for business 12 months of the year. Was the plan to close Flagler Drive or reduce the number of lanes factored into the traffic study? Response: West Palm Beach is not proposing to reduce lanes or close Flagler Drive as part of this amendment. The proposed district runs eastwest and not north-south. This is spot zoning. Response: Subsequent to this issue being raised last year and after the City Commission vote, the City hired an independent law firm specializing in land use law to review the claim. The attorney, Charles Siemon, stated that this amendment clearly is NOT spot zoning. This will be discussed tonight.

21 Concerns Raised to Date A citizen driven voter referendum limited development east of Olive Avenue to five stories in height. Response: The referendum had approximately 4,200 voters supporters and 2,800 opponents. In 2011, the State ruled that voter referendums cannot dictate zoning regulations. The City also recently approved the 8-story redevelopment of the Old City Hall Building. Today, most of the Flagler Drive waterfront has buildings in excess of 15 stories but, again, this proposal runs east-west and not north-south

22 Opposition As a resident of 2 City Plaza, downtown West Palm Beach, I would like to express my support for the OBD. The newly created business district concentrates much needed class A office space down the major corridor of downtown and helps define the Flagler Financial District. If we are to compete for job creating businesses, we need to have special and unique offerings. OBD will allow for this. 1 City Plaza Esperante 2 City Plaza Trump Plaza The major complaint of traffic is unfounded, as the roads are only congested during rush hour (I can see the roads from my window). It would be detrimental to any city to plan roads and office space based upon traffic that occurs during one hour of the day. Rush hour traffic is an international problem affecting all cities and is a symptom of uniform working hours rather than a problem caused by our local roads. The traffic study showed that the extra office space would not add any significant delay to our roads. Esperante 1 City Plaza 2 City Plaza Trump Plaza

23 Okeechobee Business District Proposed Changes May 15, 2018

24 Proposed changes 1. Create new downtown district The Okeechobee Business District is the traditional business district of downtown, around which office buildings have historically located. The OBD is intended to attract high intensity office uses to consolidate the area as an economic center of downtown. The district shall develop with innovative high-rise buildings with smaller floor plates to allow for view corridors, and compatible with the surrounding highrise buildings.

25 Proposed changes 2. Limit corridor s development capacity OBD-12CP OBD 25CP OBD-25 OBD-5-25 Four sub-districts: OBD-12CP OBD-25CP OBD-25 OBD-5 Incentive area: OBD-5-25

26 Proposed changes 2. Limit corridor s development capacity OBD-12CP OBD 25CP OBD-25 OBD-5 CityPlace CPD: PB 950EEEEE OBD-12CP OBD-25CP

27 Proposed changes 2. Limit corridor s development capacity OBD-12CP OBD-25CP OBD-25 OBD-5-25 Existing regulation Proposed regulation Sub-district Height FAR Height FAR OBD-12 Not specified DRI capacity 12 stories 1.77 OBD-25CP Not specified DRI capacity 25 stories 4.75 OBD stories stories 7.0 OBD-5 5 stories stories 2.75 Proposed incentive Height FAR Min 200,000 sf of office

28 Proposed changes 3. Mobility strategies a. Remove the minimum parking requirement. New soft maximum and hard maximum Proposed parking ratios Soft max. Hard max. Retail, restaurant or commercial 0.75/1000sf 2.87/1000sf Office 1/1000sf 2.47/1000sf Hotel 0.25 per room plus 0.75/1000sf of restaurant and conference rooms 0.89 per room plus 2.87/1000sf of restaurant and conference rooms Residential 0.25/unit 1.37/unit Live/work 0.75/1000sf 2.87/1000sf

29 Proposed changes 3. Mobility strategies a. Remove the minimum parking requirement. New soft maximum and hard maximum Proposed parking ratios Existing parking ratios Soft max. Hard max. Min Max Retail, restaurant or commercial 0.75/1000sf 2.87/1000sf Office 1/1000sf 2.47/1000sf Hotel 0.25 per room plus 0.75/1000sf of restaurant and conference rooms 0.89 per room plus 2.87/1000sf of restaurant and conference rooms Residential 0.25/unit 1.37/unit Live/work 0.75/1000sf 2.87/1000sf 2/1000sf 2.5/1000sf 0.25 per room plus 1/800sf of rest./ conf. rooms 1/unit 2/1000sf 4/1000sf 4/1000sf 1 per room plus 1/400sf of rest./conf. rooms 2/unit 4/1000sf

30 Proposed changes 3. Mobility strategies 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 - Allow an increase in parking ratio by 50% - Exact amount of contribution established by CC. Resolution. b) Design at least one parking garage level for retrofit. c) Comply with Transportation Demand Management initiatives that enhance the mobility in downtown and create a more walkable development pattern

31 Proposed changes c) Transportation demand management requirements: Parking management Requirement Point earned = parking spaces Unbundle parking spaces Offer discounted parking for nonpeak hour travelers -No enter between 7:30-9:00am -No exit 4:30-5:45pm Offer employees options to work from home 1 day/week and during major events Reserve parking spaces for carpool and vanpool 50% of parking spaces provided 30 10% of parking spaces 10 Permanent program with promotional every year Two parking spaces, up to

32 Proposed changes c) Transportation demand management requirements: Incentive programs Requirements Points earned= parking spaces Offer parking cash out programs Offer daily/monthy and yearly 10 Offer discounted car share membership and ride share discounts Offer discounted bike share membership 1/10,000sf of net office 1/25 res units 1/50 hotel rooms 1/10,000sf of net office 1/25 res units 1/50 hotel rooms Offer discounted Palm Tran, Trirail or Brightline passes 1/10,000sf of net office 1/25 res units 1/50 hotel rooms 15

33 Proposed changes c) Transportation demand management requirements: Shared services Requirements Points earned= parking spaces Provide carshare station on site One carshare station 10 4 additional point/ each additional staion Provide bike sharing station on site Provide electric vehicles charging stations One station with min 6 docks 4 Two charging stations 4

34 Proposed changes d) Additional mobility requirements for all QBD: - Construct pedestrian crossings at all corners adjacent to proposed development. - Increase number of bike racks on site: 1/10 parking spaces (1/15 required) - Increase number of showers and changing facilities: -1/30,000sf of net office or 100 hotel rooms - Provide a freight delivery plan and route to ensure deliveries do not impact traffic operations. - Provide a curb side management plan to prioritize multimodal travel. - No travel lanes shall be blocked during peak hour for ingress/egress of parking garages.

35 Proposed changes 4. Increased public open space a. Increased percentage of public open space for OBD-12CP and OBD25CP - Parcels > 80,000 POS increased from 5% to +10% Example: Tent site = 102,801sf Required POS = 10,280sf New Alexander open space = +/- 12,000sf

36 Proposed changes 4. Increased public open space Incentive area only b. Increased percentage of public open space for OBD Parcels > 80,000 POS increased from 5% to 15% Example: First Church of Christ scientist = 107,467sf Current 5% POS required = 5,373sf Proposed 15% POS = 16,120sf POS shall be programmed with activities to encourage use of the space by the general Public.

37 Proposed changes 4. Increased public open space - Incentive setback from Flagler Drive and from waterfront

38 Proposed changes - Setback of existing buildings along Flagler Drive 162 St. Andrews Flagler Center 178 Trump Plaza 172 Phillips Point 400

39 Proposed changes 4. Increased open space

40 Proposed changes 5. Protect eligible landmark building Designation of the First Church of Christ Scientist required to utilize the OBD incentive

41 Proposed changes 6. LEED certification - LEED certification or similar accreditation, required for all new buildings. - OBD-5-25 required LEED Gold certification OBD-12CP OBD 25CP OBD-25 OBD-5

42 Okeechobee Business District Amendment Standards May 15, 2018

43 Amendment Standards (pp.21-28)

44 Standard #1: Whether the proposed amendment is consistent with all elements of the City of WPB Comprehensive Plan. * Future Land Use Element Objective 1.8 Expand its tax base by promoting the expansion of existing and new businesses * Downtown Master Plan Element Objective 2.1 Promote the growth of the downtown employment base. * Future Land Use Element Objective 2.1 Facilitate and encourage infill development especially east of I-95. * Future Land Use Element Objective 5.1 Utilize incentives and programs to foster economic development in order to improve economic conditions. * Future Land Use Policy Develop and implement economic development strategies to maintain its economic vitality * Future Land Use Policy Reduce the potential for automobile emissions pollution by promoting alternative transportation modes

45 Standard #1: Whether the proposed amendment is consistent with all elements of the City of WPB Comprehensive Plan. * Transportation Policy (b) City shall permit increased land use densities along major streets in growth areas served by public transit * Transportation Policy (h) City s desire to increase the density and mix of land uses downtown * Utilities Objective 1.2 and 1.4 concentrating new development activity around existing or planned infrastructure * Recreation and Open Space Policy requires structures built on privately-owner waterfront lands are designed to maximize water views for the public * Recreation and Open Space Objective 2.3 directs the City to seek opportunities to provide additional park lands, open space and green space. The proposed OBD requires properties with frontage along Flagler Drive to provide additional open space * DMP Objective 1.1 City shall promote, reinforce and protect the identity of each neighborhood, district, and corridor within the Downtown through policies consistent with the character

46

47 Standard #2: Whether there exists changed conditions which require an amendment 1. Since the DMP adoption in 1995 and the voter referendum height restriction in 1996, 4,000 residential uses and more than 1.8 million square feet of non-residential uses have been completed. 2. The City s original DMP contemplated a minimum residential unit to non-residential (per 1,000 sf) ratio of 0.33 with a goal of Today, the City is at a current rate of 0.67 meaning more people living and working downtown than hoped for. 3. Arrival of Brightline, Uber, Lyft, Skybike has altered our modes of transportation. 4. Lack of available Class A office space to attract, grow and retain clean, high value jobs. 5. Low vacancies in existing Class A office buildings (4% - 5%) 6. BDB reports of interest with no success 7. Incentives for additional Class A office space outside of the OBD downtown has failed to date.

48 As of March 2018, the City has a residential to non-residential ratio of 0.67 (6,753 residential units & 10,009,494 s.f. of non-residential) Transportation Concurrency Exception Area Transportation Element Policy 2.3.5(h) was adopted to ensure that future growth of the Downtown is predicated on a balance of land uses (residential to nonresidential) leading to a reduced dependence on automobiles. DOWNTOWN BASELINE RATIOS YEAR BASELINE RATIO

49 Transportation Concurrency Exception Area NO required traffic improvements 7,563 units Upon completion of The Alexander, Broadstone City Center and AAF Residential (810 units) As of March 31, million 6,753 units Actual Ratio = 0.67 (March 31, 2018) million 4,591 units Ratio of Res. to Non- Res./ 1000 sf = % of buildout 109.1% of buildout

50 Transportation Concurrency Exception Area 1995 Non-residential Residential Hotel 8,126,945 sf 2,689 units 349 rooms ,009,494 sf 6,753 units 1,066 rooms +23% +151% +205% +1,882,549 sf +4,064 units 717 rooms Traffic on Okeechobee Boulevard has increased by 0.9% in the past 20 years.

51 Flagler Financial District West Palm Beach offers easy access and mobility, including international connections by air, port, rail and highway. The City actively fosters a positive, pro-business climate; fasttracking development, permits, cutting red tape; and where possible, locating grants and financial assistance. And maybe best of all Florida has no state income tax.

52 Background Discussion of incentives for additional Class A office space in the downtown Class A office in downtown WPB Esperante built ,151 sf Phillips Point built ,498 sf CityPlace built ,933 sf Total square footage of existing Class A office 995,582 sf

53 Summary of Class A Office Space Year Square Appraised Taxes City Taxes Building Built Ft.* Value Paid Paid. Phillips Point ,498 $186,737,224 $4,604,856 $1,602,150 (@$48/s.f) $124,815,784 in 2009 (+49.6%) CityPlace Tower ,933 $131,043,378 $2,955,702 $1,122,342 (@$45/s.f)$58,000,000 in 2009 (+125.9%) Esperante ,151 $ 97,000,000 $1,759,697 $ 833,781 (@$58/s.f) ) $57,724,569 in 2009 (+68.0%) TOTAL: 995,582 $385,754,891 $9,320,255 $3,558,273 $240,540,353 in 2009 (+60%) Palm Beach Outlets: $5,742,923 * Palm Beach County Property Appraiser, Fishkind & Associates

54 Avalanche City contracted with Avalanche to perform an Economic Development Study for the City of West Palm Beach. Tony DeLisi, Senior Consultant Noelle Salerno, Consultant Amy Holloway, President Advisory Group created (Chamber, DDA, CRA, Convention and Visitors Bureau, representatives from the business sectors) Interviews, focus groups, meetings with stakeholders, presenting to the Commission in late June or early July 2018.

55 Avalanche Consulting City of West Palm Beach Economic Development Study Preliminary Office Real Estate Analysis

56 Office Availability Office vacancy rates continue to fall Class A office is in especially high demand Supply in Downtown West Palm Beach is limited No construction is currently occurring in the city Boca Raton North Palm Beach / Palm Beach Gardens Downtown West Palm Beach West Palm Beach Royal Palm Beach / Wellington Palm Springs / Lake Worth Palm Beach Jupiter Delray Beach Boynton / Lantana Palm Beach County SOURCE: Avison Young / Avalanche Consulting CLASS A OFFICE VACANCY RATE Q % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 6.6% 9.2% 9.6% 10.5% 0% 2% 4% 6% 8% 10% 12%

57 Office Pricing Limited supply & high demand are driving up costs Class A office in Downtown West Palm Beach is now more expensive than Downtown Miami Under these conditions, costs will likely keep rising Downtown West Palm Beach Boca Raton North Palm Beach / Palm Beach Gardens West Palm Beach Royal Palm Beach / Wellington Palm Springs / Lake Worth Palm Beach Jupiter Delray Beach Boynton / Lantana Palm Beach County SOURCE: Avison Young / Avalanche Consulting CLASS A OFFICE AVERAGE RENT PER SQUARE FOOT Q $0.0 $0.0 $0.0 [VALUE] $0.0 $0.0 $0.0 $41.8 $39.0 $44.5 $60.6 $0 $10 $20 $30 $40 $50 $60 $70

58 Economic Perspective West Palm Beach is growing residents and jobs faster than the the metro, state, and country The city is an attractive destination for financial, tech, and professional businesses Quality of place Downtown walkability Room for growth Brightline station But without new office product, future economic growth will be constrained

59 Easing Constraints In most markets, this would be touching off multiple new projects, but for developers the barriers to entry for new development are significant. In addition to geographic constraints, there are entitlement challenges as well as the fact that for developers multifamily is currently fostering a greater rate of return. - CBRE, Palm Beach County Office Outlook 2018

60 Traffic on Okeechobee Blvd.

61 Mobility Studies Mobility Plan Public Realm Action Plan Parking & Transportation Demand Management Study Okeechobee Corridor Study Bicycle Master Plan

62 Mobility Study - Okeechobee Charrette was held in mid- June for four days. Okeechobee Blvd. traffic has increased by 0.9% annually over the past 20 years (18%) cars/day 569 cars/year

63 Standard #3: Whether the proposed amendment is in conformance with all applicable portions of the City Development Code. 1) The amendment is consistent with existing and proposed land uses contained in the DMP and will not allow any uses not currently allowed. 2) The amendment is harmonious, compatible and in conformance with all applicable portions of the City s DMP. 3) The proposed OBD also incentivizes 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) Expert opinion that this is NOT spot zoning.

64 Is OBD Spot Zoning? Charles L. Siemon Director of the Law Firm Gray Robinson B.S. in Biology Emory University (1967) Graduate Degree, FSU (1969) FSU College of Law, J.D. (1974) Certified to practice law in Florida, Illinois, U.S. Court of Appeals (5 th, 7 th and 9 th Circuits), U.S. Supreme Court Member of the Florida Bar (Environmental and Land Use Law Section), American Bar Association, American Planning Association In , he was chosen as the Top Rated Land Use & Zoning Attorney in Boca Raton. Published numerous articles, taught at several universities, worked on numerous zoning codes and comprehensive plans and known for the Boca Raton downtown master plan/dri which resulted in the development of Mizner Park.

65 Is OBD Spot Zoning? October 6, 2017 Reviewed the testimony at the 7/26/17, 8/9/17, and 9/25/17 hearings, proposed Ordinances Nos , and , the staff report and state and national case law. the analysis in support of the proposed rezoning is comprehensive and welreasoned and that a court of competent jurisdiction would not likely find that the proposed ordinances constituted spot zoning. And, given that adjacent property to the north and the west of the area of the proposed amendments is developed and zoned for significantly more intense use than the affected properties, the failure to grant approval arguably falls into the same reverse spot zoning trap as the City of Palmetto Bay in the Palmer Trinity case.

66 Standard #4: Whether and the extent to which the proposed amendment is inconsistent with existing and proposed land uses. 1) The proposed amendment does not allow any uses that are currently not permitted today. 2) The corridor currently has FARs well in excess of what is proposed. 3) The corridor contains office uses today both within and adjacent to the OBD. 4) Many of the City s financial firms are located in or adjacent to the corridor. A total of 82 firms (35%) are located inside or within one block of the proposed OBD.

67 Okeechobee Developments Downtown Master Plan currently Project Status FAR (BLDG./LAND) has a MAXIMUM FAR of 7.0 Myers Auto Group Completed 0.20 Palm Beach Atlantic Completed 0.27 Restoration Hardware Under Construction 0.59 Hilton Hotel Completed 2.15 Hyatt Hotel Completed 2.56 OBD-5-25 Proposed 2.75 Esperante Completed 2.94 Phillips Point Completed 3.65 Tent Site Proposed 4.75 CityPlace Tower Completed 5.64 CityPlace South Tower Completed 6.24 Opera Place Approved 9.34 City Plaza II Completed 9.51 City Plaza I Completed 9.76

68 FARs Along the Corridor Restoration Hardware FAR 0.59 Opera Place FAR 9.34 City Plaza II FAR 9.51 Hyatt Hotel FAR 2.56 Phillips Point FAR 3.65 CityPlace Tower FAR 5.64 Hilton Hotel FAR 2.15 CityPlace S. Tower FAR 6.24 Myers Auto Group FAR 0.20 City Plaza I FAR 9.76 PBAU FAR 0.27 Esperante FAR 2.94 OBD 5-25 FAR 2.75

69 Standard #5: Whether and the extent to which the proposed amendment would not exceed the capacity of public facilities transportation, sewerage, water supply, parks, fire, police, drainage, schools, and emergency medical facilities. 1) The Okeechobee Business District is proposed to be a REDUCTION in the amount of development that can take place along the corridor. 2) Further road improvements, conditions imposed in the OBD and implementation of the mobility plan will REDUCE the traffic on Okeechobee Boulevard. 3) First Church of Christ Scientist property floor area ratio does not change 4) The City s Tent Site and the Triangle site have no maximum development thresholds and governed by the CityPlace Development of Regional Impact. Staff is suggesting a max floor area ratio of 1.75 on the triangle site and 4.75 on the Tent Site which would REDUCE the development potential along the corridor. 5) The other mandatory requirements of a maximum parking ratio, TDM study would REDUCE traffic along the corridor.

70 Standard #5: Whether and the extent to which the proposed amendment would not exceed the capacity of public facilities transportation, sewerage, water supply, parks, fire, police, drainage, schools, and emergency medical facilities. 6) Most importantly, the downtown is part of an approved TCEA which allows an additional 5 million square feet on non-residential development. 7) Emergency response times will not decrease.

71 Average Emergency Response Times In comparison to City Average (1/1/15 to 8/15/17) Project Fire Police Esperante -0:02-8:17 City Plaza II -0:05-7:44 City Plaza I -0:15-5:20 Phillips Point -0:45-1:42 CityPlace Tower -0:57-10:49

72 Standard #6: Whether and the extent to which the proposed amendment would result in significantly adverse impacts on the natural environment. 1) The amendment will require additional public open space. 2) Promote the redevelopment of underutilized parcels located in the core of the downtown that will favor pedestrian activity and the use of alternative modes of transportation. 3) The proposed OBD requires green building certification which reduces carbon footprint and benefits the natural environment. 4) The OBD would result in a new, additional urban green space along the waterfront with no development permitted within 400 of the Intracoastal Waterway.

73 Evolution of the Downtown Increased Open Space Phillips Point Trump Plaza Flagler Center In the early 1980 s, construction of major office and residential projects began in the downtown. In addition, the City conducted a slum and blight study and formed a Community Redevelopment Agency (CRA) in 1984 capturing the tremendous value ($250 million) of property in the downtown area

74 Evolution of the Downtown Increased Open Space Amphitheater Pavillion Great Lawn Docks Old City Hall Site In the early 2000 s, significant efforts to revitalize the City s waterfront began. Public spaces were created and additional enhancements are planned for the immediate future.

75 Evolution of the Downtown Increased Open Space Old City Hall Jose Marti Park Northbridge Flagler Park Fishing Club Flagler Memorial Bridge Landscaping Providencia Park

76 Evolution of the Downtown Increased Open Space 4. Increased open space

77 Standard #7 - Whether and the extent the Amendment would adversely affect property values in the area. 1)Impact on the City s Class-A office market 2)Impact on surrounding property values 3)Impact on property values in nearby residential developments

78 Hank Fishkind, Ph.D. Hank Fishkind, Ph.D. 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. In 1980, Dr. Fishkind became the associate director for programs at the University of Florida s Bureau of Economic and Business Research. During his tenure at the University, Dr. Fishkind served on the governor s economic advisory board. From Dr. Fishkind was a member of Governor Bush s Council of Economic Advisors. In 1988, Dr. Fishkind formed Fishkind & Associates, Inc. as a full service economic and financial consulting firm. The 35- member firm has offices in Orlando and Port St. Lucie, Florida and has extensive experience in economic and fiscal impact analysis, policy studies, forecasting, and finance throughout Florida and the United States.

79 Summary of Findings 1) Approval of the Okeechobee Business District ( OBD ) will have a positive impact on the City s Class-A office market Vacancy rate <5% and market cannot accommodate new Class-A users downtown 2) Approval of the OBD will have a positive impact on surrounding property values They will increase demand for all types of goods and services including residential housing 3) The OBD will not have a negative impact on property values in Trump Plaza, One City Plaza, or Two City Plaza The views are already obstructed by existing buildings Any impact on property value of the condominiums will be offset by the increased demand for condominiums from One Flagler

80 4 Comparable Office Buildings There are 4 comparable, Class-A, high-rise, office buildings in the City s OBD Vacancy rate is just 4% as of according to Co-Star Average rental rate $46 Market cannot accommodate significant new users

81 Market Characteristics and Drivers Market characteristics

82 Summary Proposed changes: 1. Are harmonious and compatible with the surrounding development pattern. 2. Do not create additional traffic congestion along Okeechobee Blvd beyond currently expected for a high intensity downtown area. 3. Offer mitigation measures to alleviate expected congestion. Proposed changes will: 1. Attract needed class A office to increase the City s economic base and create jobs - Location is attractive for office market. 2. Create additional public open space (POS) along the Okeechobee corridor and along the Flagler waterfront. - Protect the waterfront (400 setback) - Support the transformation of the Okeechobee corridor into a more pedestrian-friendly environment. 3. Designate a significant historic structure and protect it for the future.

83 CityPlace Office Tower (2008) Sold in 2014: $150,000,000 (48.4% more than PAPA value) Sold in 2011: $125,500,000 (49.0% more than PAPA value)

84 CityPlace South Tower Condo (Sales from May 1, 2017 to May 1, 2018) Values rose from Sales Price increased an average of 81% from 09 appraised value

85 Standard #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. 1) The district is already identified as a high-rise district with only one block limited to a 5-story height. A taller, slender building on this site would afford more parks and open space given the same level of development. 2) The amendment would make the entire corridor consistent in scale with the surrounding area. 3) 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.

86 What could be built by right today 5 stories (FAR = 2.75) What could be built with the proposed amendment (FAR = 2.75)

87 Present Looking West

88 Current Zoning 5

89 Future Zoning

90 Questions?