Resolution LPA 2004-13 - Laserfiche WebLink

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The Honorable City Commission December 18, 2003 Page 2 estimated total cost of capital projects, both planned and anticipated, as part of a long term goals and objectives that have been stated over time by the City Commission. This was looked at in relationship to land value and costs of participation units based on current construction and square footage value of property. Bonus numbers were adjusted downwards to strike a balance between its per-unit relationship to land values versus the capital improvement needs of the City. In other words, the City's projected capital improvements are not as high as the full market land value, therefore the costs per square footage or unit, depending on how you want to look at it, for a bonus will still remain substantially less than the cost for a TOR. The existing bonus system category shall remain intact. They are beach access (which has no fee associated with the bonus program). Beach access trust fund which is .05 per participation unit for a maximum of .20 FAR; public beach recreation which has a .05 per participation unit for a maximum of .50 FAR; Collins Avenue Streetscape which has a .05 per participation unit for a maximum of .30 FAR; Sunny Isles Public Parking bonus which has a .05 per participation unit, maximum .20 FAR; and lastly, public oceanfront park bonus which has a .20 FAR for dedication of 10,000 square feet of beach park land to be used at the City's discretion. These categories remain the same for the MU-R district and for the applicable bonuses in the RMF-2 and B-1 districts, Under the previous RU-4A zoning from the County, .02 represented a unit of participation, which, at the time contemplated the average size of 871 square feet. That number is now .05 per participation unit for an average of 2178 square feet. For each .05 participation unit a developer is able to achieve 2.5 units at the 871 square feet which was the minimum size unit allowed under the old zoning. Therefore, when you divide the 871 by the $14,000 that would equal $16 per square feet. However, the square foot dollar amount was reduced when the value of the square foot was based on a participation unit of .05, which would result currently in a value of $6.42 per square foot. Extremely low as we all know. Following through with this thinking, you may deduct that if the .02 density increase in FAR bonus is increased to the .05 as proposed, the value of the FAR bonus per participation unit is increased accordingly which would result in a division between .02 and .05 per participation unit which would equal 2.5 units times the current participation unit cost of $14,000 which equals the $35,000 per participation unit. This valuation is still far less than the current market value per square foot of property, however it does balance the nexus between the City's long-term improvement needs and the cost of the bonus program. ADDITIONAL INFORMATION: I want to acknowledge and commend Jorge Vera for his assistance in this analysis. I had originally come up with the conceptual process and nexus between the Capital Improvement Program and the bonus program for which the final analysis was based on. Through his diligent work with the numbers, and our joint efforts with regard to the long term projections of capital needs within all the categories of our zoning ordinance Bonuses, we were able to come up with a balanced rationale for this increase to update the original calculations arrived at years ago through the planning process. CJR:ch