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HomeMy WebLinkAboutDocumentation_Workshop_Tab 02_7/1/2024 Agenda Item #2. Workshop STAFF MEMO Meeting: Workshop - Jul 01 2024 Staff Contact: Jay Hubsch Department: Community Development ITOMM Discussion on Commercial Zoning Overlay's At the July 13th Regular Council meeting, the Village Council voted 3-2 to delay adoption of Ordinance 1-24 (Commercial Overlays) to further workshop the definition of formula business and consider development incentives. Staff has compiled some ideas for further consideration as it relates to formula businesses and development incentives. Formula Businesses The draft code defines "formula business" as an establishment with 10 or more locations in the nation that offers health care, medical, dental, retail, personal service, or real estate services. There has been discussion amongst the Village Council about amending this definition to remove certain uses such as real estate, personal service, health care, medical, and dental. If these were removed from the definition, a formula business would then by definition only be a retail-oriented business. There has also been further Council discussion about loosening the restrictions on formula businesses in certain overlay districts. There are three proposed zoning overlays. In the Tequesta Drive Overlay, formula restaurants are prohibited, and formula businesses are required to obtain a special exception. In the Village Center Overlay, formula restaurants are prohibited, and formula businesses are required to obtain a special exception. However, a new development that is larger than 2 acres may apply for one special exception for a formula restaurant in the Village Center Overlay. In the US Highway 1 Overlay, formula businesses and restaurants are required to obtain a special exception. At the June 13th Council meeting, a lawyer representing the new owner of the Village Square shopping center expressed concerns with requiring every formula business to obtain a special exception approval. The primary concern was that this will delay their ability to replace tenants in a timely fashion. In response to these concerns, Village staff are prepared and able to establish an expedited approval process for new formula businesses and restaurants that are located in an existing commercial development. Additionally, the Village Council can elect to extend the time that existing uses have to be replaced by the same use without having to go through the special exception process. This is currently 180 days in the code, but could be extended to 240, 270, or 365 days. Development Incentives Property owners of 1 Main Street have attended Village Council and Local Planning Agency meetings to request that the Village create additional waivers/incentives in the commercial overlays. The owners have claimed that they would be able to donate a larger civic open space to the Village if they were able to be granted additional development incentives. The Village Master Plan states, "The concept of development incentives was raised during the Village of Tequesta planning process and Page 22 of 74 Agenda Item #2. there was little to no interest in raising building heights or increasing densities. Should the Village reconsider this concept at some point, regardless of the incentives being offered, it is recommended that the affected areas be limited and precise. There should be a clear and transparent process which specifically articulates the incentives offered and the public benefits gained." In the list of "Prioritized Action Items" in the Master Plan, "Consider Appropriate Development Incentives for Town Center and Main Street" was listed to take place within one year of adoption, with the entities for coordination listed as Village of Tequesta and property owners. If the Village Council is interested in considering appropriate development incentives, staff recommends not granting outright development allowances, but instead requiring waivers for any development incentives. Additionally, staff recommends requiring a set amount of extra civic open space or substantial offsite improvements to be provided before an applicant is even eligible to apply for a waiver for incentives. Finally, staff recommends that any development incentives be relatively minor, since participants in the Master Plan charrettes indicated that they did not want incentives for additional height or density. Currently the draft code does not allow waivers to be granted for additional height and density. The waiver section can be modified to allow limited waivers for building height and density. An example of this could be drafted looks like this: "Waivers. Waivers from site or landscape requirements may be requested from certain overlay zone regulations. All waivers must be granted by the Village Council in conjunction with a site plan review application. Waivers cannot be used to: a. Add uses that are not permitted in the overlay or zoning district. b. Increase the maximum allowed density/intensity. Except that a development over 2 acres that creates 15% civic open space, substantial offsite improvements, or a combination of the two; may be eligible to apply for a waiver to allow one-bedroom units to count as .5 dwelling units for density purposes. c. Increase the maximum building height. Except that a development over 2 acres that creates 15% civic open space, substantial offsite improvements, or a combination of the two; may be eligible to apply for a waiver for a partial fifth story, which cannot exceed 50% of the building footprint." As written in the draft code "An applicant requesting a waiver shall demonstrate that the waiver provides a public benefit, including, by way of example, high-quality architectural design, pedestrian amenities, no-cost dedication of rights-of-way, construction of public parking, public art, or other improvements adjacent to the property, provision of public parks and/or open spaces". In order to be granted limited waivers like counting one-bedroom units as .5 dwelling units or a partial extra story, an applicant would have to provide a public benefit in exchange. The Village Council would have full discretion to deny a waiver request if it was determined that the waiver would not be in the public interest. This document and any attachments may be reproduced upon request in an alternative format by completing our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561- 768-0443. Page 23 of 74 Agenda Item #2. BUDGET AMOUNT n/a AMOUNT AVAILABLE n/a EXPENDITURE AMOUNT: n/a FUNDING SOURCES: n/a IS THIS A PIGGYBACK: ❑ Yes ❑ N/A DID YOU OBTAIN 3 QUOTES? ❑ Yes ❑ N/A COMMENTS/EXPLANATION ON SELECTIONn/a Page 24 of 74