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HEX-trio-Appeal-3-29-19ADA-PL20190000305 STAFF REPORT TO: COLLIER COUNTY HEARING EXAMINER FROM: ZONING DIVISION – ZONING SERVICES SECTION GROWTH MANAGEMENT DEPARTMENT HEARING DATE: May 13, 2019 SUBJECT: ADA-PL20190000305 - GATEWAY/TRIANGLE- APPEAL PURPOSE AND DESCRIPTION: The Appellant’s request is to seek reversal of the denial of an Insubstantial Change (SDPI) to PL20180002049 based upon the application failing to address the outstanding zoning comment requesting that the SDPI include a floor area ratio (FAR) calculation for the hotel portion of the mixed-use project. Per the Collier County Code of Laws and Ordinances, Section 2-87, the Hearing Examiner (HEX) shall review the record of action and to determine if any part of the administrative decision was inconsistent with existing Land Development Code (LDC) and the C-4/GTMUD-MXD (Gateway Triangle Mixed Use District-Mixed Use Subdistrict) zoning districts. The section states that the HEX must consider: a. The criteria for the type of application being requested; b. Testimony from the applicant; and c. Testimony from any members of the public. The appeal petition is focused specifically on the claims raised by the Appellant as they relate to the denial of the Insubstantial Change requested by staff. The issue here is whether the denial of PL20180002049, as rendered by the Growth Management Department (the administrative decision) was consistent with the existing Land Development Code and the C-4/GTMUD-MXD (Gateway Triangle Mixed Use District-Mixed Use Subdistrict) zoning districts. Should the HEX determine that the Insubstantial Change request denial is contrary to the Land Development Code and the C-4/GTMUD-MXD (Gateway Triangle Mixed Use District-Mixed Use Subdistrict) zoning districts, the HEX may overturn the administrative decision. Should the HEX find none of the above, the HEX shall accept the administrative denial of the Plan. SUBJECT PROPERTY: The appeal is focused upon property located at 1705 and 1807 Tamiami Trail East (Parcels No. 00386880009 & 00386840007), Naples, FL, 34112 (Overview provided for on following page) ADA-PL20190000305 ADA-PL20190000305 APPELLANT’S CLAIMS: BASIS OF APPEAL This is an appeal of a staff determination that there is a Floor Area Ratio (“F.A.R.”) applicable to a proposed hotel to be constructed to be constructed on an approximately two (2) acre parcel located within the Bayshore/Gateway Triangle Redevelopment Overlay (“Overlay”). The denial letter being appealed is attached hereto as Exhibit “A”. SUMMARY OF ARGUMENT: The Overlay was established to encourage redevelopment of property within the Overlay. The purpose of the Overlay was to incentivize development opportunities and allow greater densities and intensities than allowed on the properties in the Overlay prior to the adoption of the Overlay. Prior to adoption of the Overlay, hotel uses were not permitted on C-4 property within the Overlay that was not within an activity center. The subject property is zoned C-4 and is not within an activity center. Therefore, a hotel use is not a permitted use under the existing zoning for the property. It is through the establishment of the Overlay that the hotel use became permitted on the subject property. The Overlay provides for the development standards for all development within the Overlay. There is no need to look outside of the Overlay to determine development standards for hotel use in the Overly. Staff has never applied the FAR standard to this property. In fact, Staff approved multiple Site Development Plans (SDP’s) for a hotel without ever applying an FAR standard. It was not until a neighbor objected to a revision to a previously approved SDP that Staff elected to apply the FAR standard. The application of the FAR standard is contrary to the stated intent that the Overlay which was adopted to provide incentives to spur redevelopment. The FAR standard limits redevelopment of the property as a hotel because it artificially reduces the area eligible for hotel rooms even though the site complies with all other development standards applicable to the Overlay including, but not limited to height, setbacks, lot coverage and parking. THE OVERLAY WAS ESTABLISHED TO ALLOW GREATER INTENSITY & DEVELOPMENT OPPORTUNITY The Bayshore/Gateway Triangle Redevelopment Overlay, the GTMUD-MXD, Mixed Use Projects (MUPs) and the, mini-triangle catalyst site were established to foster redevelopment, incentivize development opportunities and allow greater densities and intensities. The GTMUD is intended to provide greater intensity as supported by the GMP, LDC, and the Community Redevelopment Agency’s (“CRA’s”) scope of work associated with the mini-triangle catalyst site. a. GMP intent language: Policy 5.6.F. “Bayshore/Gateway Triangle Redevelopment Overlay The Bayshore/Gateway Triangle Redevelopment Overlay, depicted on the Future Land Use Map, is within the boundaries of the Bayshore/Gateway Triangle Redevelopment Plan adopted by the Board of County Commissioners on June 13, 2000. The intent of the redevelopment program is to encourage the revitalization of the Bayshore/Gateway Triangle Redevelopment Area by providing incentives that will encourage the private sector to invest in this urban area. This Overlay allows for additional neighborhood commercial uses and increased intensity and higher residential densities that will promote the assembly of property, or joint ventures between property owners, while providing interconnections between properties and neighborhoods. The intent of this Overlay is to allow for more intense development in an urban area where urban services are available. Two zoning overlays have been adopted into the Collier County ADA-PL20190000305 Page 4 of 10 Land Development Code to aid in the implementation of this Overlay. The following provisions and restrictions apply to this Overlay: ….” See Attachment “1”. b. LDC intent language: LDC Sec 2.03.07.N.4.a “The Gateway Triangle Mixed Use District consists of the following subdistricts: i. Mixed Use Subdistrict (GTMUD-MXD). The purpose and intent of this subdistrict is to provide for pedestrian-oriented commercial and mixed-use developments and higher density residential uses. Developments will reflect traditional neighborhood design building patterns. Individual buildings are encouraged to be multi- story with uses mixed vertically, with street level commercial and upper level office and residential. Included in this District is the "mini triangle" formed by US 41 on the South, Davis Boulevard on the North and Commercial Drive on the East, which is intended to serve as an entry statement for the Bayshore Gateway Triangle CRA and a gateway to the City of Naples. …” See Attachment “2”. c. Catalyst site intent: The attached Mini-Triangle Catalyst Project document was provided by David Jackson (prior CRA Director) as guidance for work RWA conducted on the Bayshore Gateway Triangle Redevelopment Overlay, and the catalyst site plans developed for the mini- triangle and Kelly Lake properties. As stated in Attachment 3: “Mini-Triangle Catalyst Project: Intended as a higher density Mixed-Use Project, with focus on Hotel, Retail, Restaurants and potential for condominium uses. Maximize buildout potential and utilize structured parking. CRA staff felt concepts included in the original Redevelopment Plan did not provide sufficient density/footprint size. Potential to make the tip of the triangle (intersection of Davis and US 41) a strong focal point.” The subject property is located within the Mini-Triangle Catalyst area. This request is to build a hotel. LACK OF A HOTEL F.A.R. WAS NOT AN OVERSIGHT Assuming that omission of the FAR in the GTMUD-MXD was an oversight and that the C-4 Hotel FAR should apply is illogical, since this reasoning is inconsistent with the stated intents in the GMP and LDC. Assuming that when an overlay is silent on a given standard, the County will revert back to the base zoning is inconsistent with common zoning practices and the evidence within those overlays. The Hotel and Motel use was intentionally added to the overlay as part of a list of uses found in Table 2 of LDC Sec 2.03.07. Other uses within that table contain additional standards;” the Hotel and Motel use does not. Should we then assume that all uses without additional standards are subject to oversights and that we can revert to base zoning or other code sections as we please? The answer is clearly no. As evidence, the “Dwelling, Mobile Home” use contains the following additional standard “*If permitted by the underlying zoning,” No other use allowed in the GTMUD contains this exception which demonstrates that the underlying zoning standards do not apply unless specifically stated. It is common practice to administer the LDC based on the development standards set forth in an Overlay ADA-PL20190000305 Page 5 of 10 within the LDC. It cannot be assumed that the lack of an FAR was an oversight unless evidence supports that assessment. There is no evidence that the County intended that an FAR apply to the hotel use being added to the permitted uses within the Overlay. Unlike group housing, which has a LDC section dedicated to the development standards applicable to group housing, no such general development standard applies to hotels. Accordingly, there is no specific section in the LDC that adopts development standards for hotels. In this case, it is the Overlay that permits a hotel to be developed on the property. It is the Overlay development standards that apply to development on the property, not a portion of the C-4 zoning district standards that are not the basis for the hotel to be built in the first place. RWA developed the GTMUD and BMUD Overlays. At that time, Patrick Vanasse led the RWA team that worked on the overlay. Mr. Vanasse clearly recalls that the team intentionally removed barriers to redevelopment and drafted the overlay without a Hotel FAR in order to allow more intensity and to encourage hotel development within the mini-triangle area. The team intentionally allowed more intensity in the mixed use subdistrict to foster redevelopment of the mini-triangle and make it attractive for a hotel and corporate offices to be built within the mini-triangle catalyst site. Not requiring an FAR for the GTMUD district was intentional and is consistent with the GMP, and LDC Sections that outline the intent of the overlay, as well as the scope of work provided by the CRA. Should a Hotel FAR have been desired, specificity would have been provided on how to calculate and administer this regulation. As staff knows, applying a Hotel FAR requirement to a mixed-use project is very complicated. By the very nature of a project being horizontally or vertically integrated, it is difficult to discern what should be counted toward the hotel use versus the rest of the commercial uses that have no FAR. CONSISTENCY WITH GMP As commonly accepted in the planning and zoning profession, the GMP supersedes the LDC. The GMP clearly states that the intent of the Bayshore/Gateway Triangle Redevelopment Overlay is to “allow more intense development” per Policy 5.6 F. Furthermore, it states, “This overlay allows for additional neighborhood commercial uses and increased intensity and higher residential densities….” If you apply the C-4 Hotel FAR to the overlay, then the intensity for Hotel uses is not increased, and therefore, inconsistent with the GMP. The overlay’s intent is clearly to increase intensity; therefore, having no FAR limit within the overlay is consistent with the stated intent. THE BAYSHORE GATEWAY TRIANGLE OVERLAY SUPERSEDES C-4 BASE ZONING a. The notion of an overlay superseding base zoning is consistent with planning and zoning best practices. Overlays in Collier County and other jurisdictions typically supersede or supplement existing restrictions, rights and/or privileges for a certain geographic area governed by the subject overlay. It is common practice for CRAs to use overlays to encourage and stimulate redevelopment by allowing greater densities and intensities, thus allowing greater development opportunity through more flexible development standards. b. GMP Policy 5.6.F.1 states that for Mixed Use Developments like Gateway Naples “a mix of residential uses is permitted. For such development uses are limited to C1-through C- 3 zoning district uses, except as otherwise provided for in the Mini Triangle Subdistrict; ADA-PL20190000305 Page 6 of 10 hotel/motel use; theatrical producers (except motion picture), bands, orchestras, and entertainers; and, uses as may be allowed by applicable FLUE Policies.” The hotel use is not permitted on the property under the C-4 zoning designation. It is the overlay that is allowing for the development of the hotel. As such, C-4 limitations identified under Section 4.02.1 do not apply. Hotel uses within the Overlay district are therefore strictly regulated by Section 4.02.16 Design Standards for Development in the Overlay which intentionally does not contain an FAR limitation. c. LDC Sec 4.02.1 (Attachment “4”) which provides a development standards table for various commercial zoning districts contains a row for Overlay Districts that states, “See table of special design requirements applicable to overlay district.” This clause acknowledges that the overlays provide separate and more specific regulations, which as a result supersede base zoning district standards and have primacy over base zoning design requirements. LDC Section 4.02.16 (Attachment “5”) contains the development standard for the Overlay. This Section does not include the FAR now being imposed by Staff. d. LDC Sec 2.03.07 (Attachment “2”) pertaining to Overlay Districts makes it clear that while densities and uses can be established according to the base zoning district or the overlay that “in either instance the GTMUD site development standards as provided for in section 4.02.16 shall apply.” Therefore, the BCC specifically and intentionally determined that the development standards in Section 4.02.16 at the LDC apply to development in the Overlay. Had the BCC intended to establish a FAR for hotels, it would have included such a requirement in Section 4.02.16 of the LDC. Section 4.02.16 of the LDC contains very detailed development standards for projects within the Overlay. To somehow imply that you must look to the C-4 zoning standards to determine that a FAR applies is not supported by the actual detail in the LDC. e. LDC Section 10.02.15 Requirements for Mixed Use Projects within the Bayshore Gateway Triangle Redevelopment Area states the following: “A. Mixed Use Project Approval Types. Owners of property located in the Bayshore Gateway Triangle Redevelopment Area designated as Neighborhood Commercial (BMUD-NC), Waterfront (BMUD-W), and Mixed Use (GTMUD-MXD) Subdistricts may submit an application for a Mixed Use Project (MUP). The MUP shall allow for a mixture of residential and commercial uses, as permitted under the Table of Uses for the appropriate subdistrict. Applications for a MUP may be approved administratively or through a public hearing process as described in this section. A pre- application meeting is required for all MUP applications. 1. Administrative Approval: a. MUPs may be approved administratively provided they meet the following conditions: i. The MUP complies with all site development standards as outlined in section 4.02.16 of the LDC; ii. The MUP only includes permitted uses as outlined by the Table of Uses for the subdistrict in which it is located; and iii. The MUP does not seek additional density through the Bonus Density Pool provisions of LDC section 10.02.15 C. b. The Administrative Code shall establish the submittal requirements for MUP administrative approval. The application shall follow the applicable submittal requirements and procedures for site development plan submittal and review. …” ADA-PL20190000305 Page 7 of 10 It should be noted that Sec 10.02.15 makes it very clear that Sec 4.02.16 applies to MUPs, not Sec. 4.02.01. Moreover, the clause states that MUPs can only include uses outlined in the Table of Uses for that subdistrict. That would negate the ability to revert back to Sec 4.02.01 and apply the C-4 Hotel FAR. (see Attachment “6”) STAFF DETERMINED IN WRITING THAT THE FAR DOES NOT APPLY The attached email from Chris Scott (Attachment “7”) dated June 6, 2018, states “The FAR requirements for hotels in a C-4 district would not apply to projects in the Bayshore Gateway Triangle, as the development standards 4.02.16 would supersede the base zoning.” This determination is consistent with the findings detailed in this report. In addition, this property has received multiple SDP review. As can be seen in Composite Attachment 8, the County at no time required the hotel to meet a FAR threshold. In fact, as can be seen in Attachment 9, the FAR threshold not being applied by Staff was exceeded when it approved the revise SDP to increase the number of hotel rooms to 48 from 12. CONCLUSION: The Overlay was established to encourage redevelopment of property within the Overlay. The purpose of the Overlay was to incentivize development opportunities and allow greater densities and intensities than allowed on the properties in the Overlay prior to the adoption of the Overlay. Prior to adoption of the Overlay, hotel uses were not permitted on C-4 property within the Overlay that was not within an activity center. The subject property is zoned C-4 and is not within an activity center. Therefore, a hotel use is not a permitted use under the existing zoning for the property. It is through the establishment of the Overlay that the hotel use became permitted on the subject property. The Overlay provides for the development standards for all development within the Overlay. There is no need to look outside of the Overlay to determine development standards for hotel use in the Overly. Staff has never applied the FAR standard to this property. In fact, Staff approved multiple Site Development Plans (SDP’s) for a hotel without ever applying an FAR standard. It was not until a neighbor objected to a revision to a previously approved SDP that Staff elected to apply the FAR standard. The application of the FAR standard is contrary to the stated intent that the Overlay which was adopted to provide incentives to spur redevelopment. The FAR standard limits redevelopment of the property as a hotel because it artificially reduces the area eligible for hotel rooms even though the site complies with all other development standards applicable to the Overlay including, but not limited to height, setbacks, lot coverage and parking. County’s Position: The zoning for the property is C-4/GTMUD-MXD. The GTMUD zoning overlay requires development to meet the Overlay development standards of 4.02.16, which does not include a FAR requirement for hotels or any other measure that controls the overall size of a hotel. The ADA-PL20190000305 Page 8 of 10 underlying C-4 zoning district does limit the development of a hotel to a Floor Area Ratio (FAR) of 0.6. While the overlay does not provide a FAR, units per acre, or alternative standard to control the amount/intensity of hotel that can be built, the past precedent for interpretation of the LDC would not suggest that the amount of hotel that can be built in the Overlay is unlimited, but rather the FAR requirement for hotels within the C-4 zoning designation would be the most restrictive and should apply. This interpretation is based upon LDC Section 1.03.01 D. , which reads: “In the interpretation and application of any provision of these regulations, it shall be held to be the minimum requirement adopted for the promotion of the public health, safety, comfort, convenience, and general welfare. Where any provision of these regulations, the GMP, or any other law or regulation in effect in Collier County, Florida, imposes greater restrictions upon the subject matter than any other provision of these regulations, the GMP, or any other law or regulation in effect in jollier County, Florida, the provision imposing the greater restriction or regulation shall be deemed to be controlling.” Additionally, Ordinance 14-33, which amended LDC Section 4.02.16, Design Standards for Development in the Bayshore Gateway Triangle Redevelopment Area, contains a Conflict and Severability provision which reads: “In the event that any provisions of this Ordinance should result in an unresolved conflict with the provisions of the Land Development Code (LDC) or Growth Management Plan (GMP), the applicable provisions of the LDC or GMP shall prevail. In the event this Ordinance conflicts with any other Ordinance of Collier County or other applicable law, the more restrictive shall apply.” Based upon these factors, the FAR standard of 0.6 for hotels expressed in the C-4 zoning district is considered the more restrictive regulation and shall apply to this project. This interpretation also applies to the previously approved SDPA- PL20170002293. The SDPA did not include FAR calculations; therefore, any subsequent building permit submittal will be required to demonstrate that the hotel portion of the development complies with the FAR requirement prior to permit approval. Additionally, the LDC Section 1.03.01.D was an adopted regulation at the time of the adoption of Section 4.02.16, with this recognition if the overlay district intended to truly be the only zoning district within the LDC that allowed hotels with no limitations to the intensity of a hotel, it would have specifically stated as such, or the provision of 1.03.01.D would apply to lack of specific direction contained in 4.02.16. This fact is further advanced by the specifics of the language within the adopting Ordinance for Section 4.02.16, which provides for the more restrictive language being applicable, the very issue the HEX is being requested to review. Additionally, LDC Section 2.03.07.I states, “Property owners within the BMUD may establish uses, densities and intensities in accordance with the LDC regulations of the underlying zoning classification, or may elect to develop/redevelop under the provisions of the applicable BMUD Subdistrict. In either instance, the BMUD site development standards as provided for in section 4.02.16 shall apply.” The provision states that a property owner can develop uses and intensities within the underlying zoning or under the provisions of the applicable BMUD and in either instance the site development standards as provided for in the 4.02.16 shall ADA-PL20190000305 Page 9 of 10 apply. In review of 4.02.16, there are no applicable development standards that address hotels. The appellant’s argument, that the lack of standards was intentional and therefore, the intensity of a hotel is unregulated is not supported by the existing guidance of 1.03.01.D and further questioned by LDC Section 2.03.07.I.4.b.iii, which provides for the table of uses for the Bayshore Mixed Use subdistricts. Within that specific table (portion provided below), the first column provides for the use type and the last column provides for additional standards. Under the use type, “Lodging”, the first entry for Bed and Breakfast has a reference to 4.02.16.C.4, as additional standards for the use, informing the reader to look to the section for modifications to how the LDC address that use. The second entry under the “Lodging” does not provide a reference to the 4.02.16. It is staff’s opinion that this lack of reference to the section for Hotels indicates that the section does not modify the manner in which the LDC addresses the intensity of the use and creates a conflict with the applicable development standards or intensity for a hotel. The LDC is clear, when the language of the LDC creates a conflict, the more restrictive regulation should apply. It should be noted that Development Review Staff and the Zoning Director did discuss whether a FAR ration should apply to the project and based upon the reading of the GMP language for the Bayshore Community Redevelopment Area, which states higher intensities should be expected in the overlay, Staff originally concluded that no limitations on a hotels intensity, as suggested by the silence of LDC section 4.02.16, should prevail. This was based upon the recognition that the GMP is the controlling document which establish the legal nexus for the regulations contained in the Collier County LDC. It was at a subsequent staff level discussion that the interpretation section of the LDC Section (1,03.01.D) was highlighted to include not only conflicting provisions of the LDC, but also the GMP; and when there was conflict, the determining factor was the more restrictive provision and not the document with regulator y authority. This unique distinction was the key factor in Staff’s determination that the more restric tive provision of the C-4 zoning district and the FAR, which controls hotel intensity, was controlling and thus applicable to the project. The arguments presented by the appellant, while persuasive, are characterized by staff as circumstantial, in that the LDC does not specifically state that a hotel developed in the BMUD has no intensity restrictions, as all other zoning districts in the LDC provide, but rather that the absence of standard s in 4.02.16 related to hotels was intentional, and the fact that the overlay provides for higher intensities by nature of the overlay being constructed for Community Redevelopment Area (CRA) supports this position, then the conclusion must be that the Overlay was intentionally silent to a hotel’s intensity in the Overlay and therefore there are no intensity restrictions imposed upon a hotel within the Bayshore overlay. While the arguments do infer that conclusion, Staff is relying upon the direct evidence of LDC ADA-PL20190000305 Page 10 of 10 Section 1.03.01.D., which states that when there is conflict within provisions of the LDC and GMP, the more restrictive shall apply. Ultimately, the final arbiter of this appeal will be the Board of Zoning Appeals and based upon the nature of this issue, it is Staff’s opinion that it is inappropriate fo r Staff to arrive upon a determination that provides for higher intensity of a land use, when there is clear conflicting regulations within the LDC and GMP related to that use, and that the guidance provided by the LDC is to side on the more restrictive position and allow the Board of County Commissioners, acting as the Board of Zoning Appeals to provide the policy determination on intensity. GROWTH MANAGEMENT IMPACT: The areas addressed within the appeal are contained within the LDC, therefore no impact to the Growth Management Plan. COUNTY ATTORNEY OFFICE REVIEW: This Staff Report was reviewed by the County Attorney’s office on. RECOMMENDATION: For the HEX to affirm the administrative denial of SDPI-PL20180002049 and determine that based upon the direction for interpretation provided for in LDC Section 1.03.01 D., the FAR of .6 provided for in the Commercial -4 zoning district is applicable to the project. Prepared by: ________________________________________ ______________________ MIKE BOSI, AICP, DIRECTOR DATE ZONING DIVISION