Laserfiche WebLink
�o _= City of Sunny Isles Beach <br /> , 18070 Collins Avenue <br /> ��t.._` i Sunny Isles Beach, Florida 33160 <br /> •'a,� aoPe4 (305)947-0606 City Hall F 1 O o (305)949-3113 Fax <br /> TOs 5Vµ' <br /> MEMORANDUM <br /> • <br /> TO: The Honorable Mayor and City Commission <br /> VIA: Christopher J. Russo, City Manager <br /> FROM: Claudia C. Hasbun, Planning and Zoning Director <br /> DATE: 5/17/2018 <br /> RE: Increment of Pricing for Bonus Participation Unit <br /> RECOMMENDATION: <br /> This Ordinance is presented for your consideration. <br /> REASONS: <br /> The purpose of this memorandum is to review the price for the bonus participation unit under the <br /> development bonus program as required by Chapter 265 of the Land Development Regulations. <br /> This review is generally required every two (2)years by the City Manager or his designee. <br /> Background <br /> As you know, the City's Comprehensive Master Plan and Chapter 265 of the Land Development <br /> Regulations (LDR5) permit developers with the opportunity to increase density and intensity by the <br /> purchase of monetary bonuses under the development bonus program. The funds from the bonus <br /> program are allocated to City's Capital Improvement Program. There are a total of six (6) <br /> monetary bonuses under the development bonus program. Specifically, the following bonuses are <br /> available under the program: (1) Beach Access Bonus; (2) Public Beach Recreational Bonus; (3) <br /> Collins Avenue Streetscape Bonus; (4) Sunny Isles Beach Public Parking Bonus; (5) Public <br /> Oceanfront Park and Open Space Enhancement Bonus; and (6) Educational and Cultural <br /> Infrastructure Bonus. Currently, a participation unit from any of the bonus programs is priced at <br /> $100,000.00. <br /> As indicated below, the participating unit price for a bonus is extremely low in comparison to the <br /> increase in the price of construction for development projects in the City of Sunny Isles Beach. <br /> Moreover, the participation unit price of a bonus in terms of per square foot is extremely low in <br /> comparison to the pricing for Transfer of Development Rights (TRDs) on a per square foot basis. <br /> For example, the most recent price for TDRs on a per square foot basis is $125 per square feet <br /> whereas a participation unit price on a per square feet basis is$45.91 per square feet. <br /> Bonus Analysis and Formula <br /> Since the implementation of the density and intensity bonus program, the City has tracked <br /> development costs and value, which include TDRs, property values, and the costs for the Capital <br /> Improvement Programs (CIPs). The associated costs of the CPIs together with the long term <br /> needs of the City require a closer nexus between the current value of the participating unit price <br /> under the bonus program and the Capital Improvement Programs. <br /> The following is an analysis of the bonus pricing increments over-time: <br /> Bonus value Bonus value <br /> Year Ordinance per participation unit per square footage Percentage increase <br /> 2002 2002-165 $14,000 $6.43 Creation of bonus system <br /> 2004 2004-192 $35,000 $16.06 150% <br /> 2006 2006-257 $50,000 $22.95 43% <br />