'Let the People Know'
Commission educating public about TDR's (transfers of development rights)

By Bari Auerbach

At recent City Commission meetings, TDR's (transfers of development rights) have become a familiar topic - but just ask a typical Sunny Isles Beach resident if they know what TDR's are, and most likely you'll hear responses ranging from "touchdowns" to "some kind of new high-tech video device." In an effort to educate the public about the significance of TDR's as they pertain to future development in the city, the Commission has been providing explanations helping to clarify whether or not the existence of TDR's is in the best interest of "the people" who reside in Sunny Isles Beach.

At the Feb. 19 City Commission meeting an ordinance passed on second reading amending Land Development Regulations pertaining to TDR's. The amendments were made to encourage developers to dedicate land that can be used for parks, open space and other public amenities while ensuring property owners as well as the city are fairly compensated. During the meeting, citizens in attendance learned the answers to many FAQ's (frequently asked questions) about TDR's (transfers of development rights).

What are TDR's?
TDR's can be defined as "the process by which development rights are transferred from one lot, parcel, or area of land in a sending district (usually where land conservation is sought) to another lot, parcel, or area of land in one or more receiving districts (where property is desired and can be serviced properly)." Pertaining to specific parcels in Sunny Isles Beach, if a property owner has no interest in building on the site he owns, he would then have the option of picking up the TDR's on that property and transferring them over to another site in the city upon approval of the City Commission.

Main TDR receiver sites where land could potentially be donated to the City are the east side of Collins Avenue and the Town Center district on the west side of Collins Avenue from 172nd Street to and inclusive of Sunny Isles Boulevard.

'Are TDR's beneficial?'
At the Feb. 19 City Commission meeting, Mayor Norman Edelcup said, "Without TDR's, [the city would have to] take money out of taxpayers' pockets to buy pieces of land that we need for the [city's betterment]. With TDR's we don't take one dollar out of anybody's pocket to buy a piece of land because we get the land for free. It's not the city's money; and it's not the taxpayers money in the TDR's.It's the money that property had in the way of a value that it could have been developed with and that property owner gives to the city at no cost. Then the city may allow the transfer of development rights to another piece of property.

"The bottom line is, in the view of this Commission, the creation of TDR's has been a plus to the city because we never would have gotten green space free for the city without the use of TDR's. Every one of those lots would have been filled with buildings and there would have been less trees, and less parks and less public amenities if we had not created TDR's."

During the meeting, Winston Towers resident Cecile Sippin, a leader of the Sunny Isles Beach Citizens' Coalition, announced, "I'm against TDR's and would like to see them terminated.Because of these TDR's, our comprehensive plan and city codes are being changed on a daily basis to accommodate the developers.This is the power that 'we the people' always wanted - to control development especially on the west side of Collins Avenue." Sippin also said she feels the existence of TDR's can lead to developers being able to exceed FAR (floor area ratio) and building heights designated in the city's comprehensive plan.

'Can TDR's support controlled development?'
According to Commissioner Danny Iglesias, "TDR's can protect the west side of Collins Avenue from [over] development. One of the reasons [the city] pushed for TDR's was to get parks; build 'slower' on the west side; and actually encourage those TDR's [to be transferred to] more valuable land. Doing so does not necessarily raise FAR or building height because that's already set on the west side - and you can only transfer 30 percent.In fact, to me, [the concept of] TDR's is such a good idea [because developers] could actually be 'leaving money or building on the table' since they would rather have a piece of property that's worth $20 million [on the east side] versus $2 million [on the west side]."

'Who do TDR's belong to?'
Edelcup noted, "[It has been] questioned whether or not [TDR's] are the rights that belong to the citizens. They don't. The development rights belong to the property owner - so this Commission is not giving away TDR's that belong to the people. The development rights are on that property.they're an inherent property right.

"When property is proffered to the city for a public purpose, [the city], at our own discretion, can allow those rights to be transferred if we want to accept that property. If we don't want to accept that property it stays there - those rights are never changed - they belong with that property and that owner could then go ahead and build in accordance with the rights that are on that property.

"But if [the city decides] we want that property, then at that point we're saying, 'Give us that property for a public purpose and we'll allow you to [transfer the development rights] to something else'.That's not taking anything away from the people in the way of property value nor is it taking any dollars out of the pockets of any citizen in the city because the dollars of those TDR's are only attributable to that property."

'Is it OK for RK to benefit from TDR's?'
Sippin's concern with TDR's stems in part from a situation involving a one-acre property at 181st Street the city is seeking to obtain to enhance public amenities on the west side of Collins Avenue neighboring the new City Hall currently under construction. In lieu of acquiring the property by eminent domain, the City Commission is opting to enter into an agreement with Raanan Katz of RK Associates (owner of RK Shopping Centers).

The agreement calls for Katz to donate the property to the city, thus enabling him to receive millions by subsequently selling TDR's. In essence, Katz would be able to sell the development rights applicable to his property on the west side of Collins to an entity owning property elsewhere in the city such as the east side of Collins where oceanfront land is substantially more valuable (upon approval of the City Commission).

At a special Commission meeting held on Jan. 15, Mayor Norman Edelcup expressed his opinion that it was in the best interest of the city to enter into the agreement with Katz rather than subject the city to possible litigation that could ensue by forcing property owners to sell their land (via eminent domain proceedings). The agreement with Katz will also eliminate the need for the city to actually expend any cash for the desired property.

The city originally tried to buy the land at 181st Street last year - but the former owner of the property, Mitsubishi Motors, did not want to sell at the time. Subsequently, eminent domain proceedings initiated by the City stalled when Mitsubishi sold to RK Associates, owned by Katz. According to a Miami Herald article, "RK paid $1.9 million for the land, approximately $300,000 more than its appraised value." Since Katz could appeal an eminent domain action as well as challenge any court determined price, this kind of case could potentially drag on for years.

At the Feb. 19 Commission meeting Edelcup said, "In the case of the [181st Street property], we don't know what a court would have to rule on eminent domain for that property.it could be $5 million, $7million or $2 million. The fact that we had an old appraisal and not a current appraisal on that property for less than what the current owner paid is indicative to me that the appraisal may be faulty.Certainly, that property had to be worth more than that appraisal if somebody bought it at the time before there was any idea that the city was going to condemn it."

Sippin, who has expressed her opposition to the agreement with Katz, feels the city could have benefited more by proceeding with the eminent domain case, acquiring the land for public use, and retaining the TDR's.

Stating his position Edelcup explained, "The fact that Mitsubishi decided to sell [for about] $2 million is Mitsubishi's decision. If [the land was really worth] $5 or $7 million at the time and they chose to 'give it away' because they didn't bother to get the facts then that's their mistake and the buyer's gain by being in a fair marketplace. [The city] can't [interfere] and say to Mitsubishi, 'You're making a lousy deal with someone else - why don't you come and talk with us - if they don't want to talk to us."

'Who's entitled to TDR's?'
At the Feb. 19 City Commission meeting, Vice Mayor Gerry Goodman brought up the question of whether only developers should be entitled to take advantage of TDR's - and if property owners with merely the intent to sell TDR's should also be able to benefit from the concept.

Expressing his opinion, Edelcup said, "I'm amazed you would have a double standard for people.I thought it was 'equal protection and treatment under the law' and what you're proposing would be unequal treatment. What you're saying is that if the property owner isn't a developer, you won't let [the TDR's] be transferred. But if he's a developer, you would let it get transferred - that's unequal treatment under the law."


'What amendments were made to TDR's?'
At the Feb. 19 City Commission meeting, the amended TDR ordinance that passed on second reading included an incentive for owners of privately owned sites utilizing TDR's to donate parcels of three acres or more to the city for public use. In exchange, FAR could be increased to 3.75 and a time frame of five years allotted to transfer development rights.

"This [TDR amendment] is an effort to try to get valuable property adjacent to Collins Avenue needed for the west side to 'tone down' development and allow [for the creation of] public plazas," Commissioner Danny Iglesias explained when he proffered the amendment. "Most importantly, the fact still remains that at any time the city, in any way shape or form, doesn't like what's going to be developed or the land the property owner wants to give - we have a right to reject it.so it's really a win-win situation for the city and residents."

In addition to technical amendments, others made to the TDR ordinance state that no single applicant for TDR's be permitted to purchase from the city more than 50,000 square feet of TDR's remaining in the city's bank of TDR's.

In addition, the ordinance now further provides that no less than 100,000 square feet of TDR's shall remain in the city's bank of TDR's for future use by and for the city for city designated purposes for the city's benefit. There are four city-owned sites creating a "bank" of transferable development rights: Golden Shores Park (205-191 Terrace), the active park (18115 N. Bay Road); Sen. Gwen Margolis Park (17815 N. Bay Road); and Gilbert Samson Oceanfront Park (17425 Collins Avenue).

'How can people learn more about TDR's?"
The City Commission invites members of the public who may not understand the meaning of TDR's or other issues to learn more. "We welcome anyone to come in and visit [commission members at City Hall] if you don't understand what we're doing or want to get prepped on [commission agenda items]," Edelcup said. "We're not trying to pull the wool over anyone's eyes.We certainly want to take the time to make sure everyone understands why we're doing what we're doing and how the city benefits from it."

TOP