Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Establishing The Hollywood Beach Public Benefit And Resilience Trust Fund; Establishing The Purpose, Administration, Accounting, Revenue Sources, Eligible And Ineligible Expenditures, Project Identification, Prioritization, Allocation, Appropriation, Reporting And Oversight Of The Fund; Establishing Contribution Rates Associated With Optional Bonus Entitlements Within The Hollywood Beach Overlay District; Amending The Comprehensive Schedule Of Fees; Authorizing Administrative Procedures; And Providing For An Effective Date. (26-T-70b)
Strategic Plan Focus
Economic Vitality
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The proposed Resolution formally establishes the Hollywood Beach Public Benefit and Resilience Trust Fund (“Fund”) as the administrative and financial mechanism for receiving and expending public benefit contributions associated with certain Optional Bonus Entitlements available through Section 4.26, the Hollywood Beach Overlay District (PO-2026-026a).
The Resolution establishes the purpose of the Fund; City Manager and departmental administrative responsibilities; accounting and financial controls; contribution calculation and payment procedures; eligible and ineligible expenditures; project identification and evaluation procedures; project prioritization considerations; allocation and appropriation through the City’s established budget and Capital Improvement Program processes; annual reporting; and related administrative procedures.
Fund revenues are intended to support infrastructure and public improvements that provide a direct and identifiable benefit to Hollywood Beach and assist the City in responsibly accommodating planned growth and redevelopment. Eligible investments may include stormwater and drainage improvements, utility infrastructure, flood mitigation and coastal resilience improvements, roadway and streetscape improvements, pedestrian and bicycle facilities, beach access, public parking, mobility improvements, shade and green infrastructure, emergency access, and associated planning, engineering, design and implementation activities.
The Resolution establishes a coordinated process under which City departments may identify candidate projects; the City Manager evaluates and recommends projects based on applicable planning, infrastructure, resilience and implementation considerations; and the City Commission determines the allocation and appropriation of Fund revenues through the annual budget, Capital Improvement Program, budget amendment or other lawful budgetary action.
The Resolution also amends the Comprehensive Schedule of Fees to establish the applicable contribution rates. Payment of a contribution does not itself grant an Optional Bonus Entitlement, and all applicable land use, zoning, design, infrastructure, resilience and development review requirements must be independently satisfied.
Background
Section 4.26 establishes a voluntary framework through which eligible development may request Optional Bonus Entitlements beyond otherwise available as-of-right development permissions. Certain Optional Bonus Entitlements require a public benefit contribution based on Bonus Floor Area.
The Fund provides a dedicated mechanism to ensure that these contributions are accounted for separately and strategically directed toward infrastructure and public improvements necessary to support planned growth, redevelopment and long-term resilience within Hollywood Beach.
The Resolution is intended to ensure that Fund expenditures are coordinated with the City’s Capital Improvement Program, applicable infrastructure studies, utility plans, mobility plans, resilience plans and other short-, medium- and long-range planning efforts. It also preserves the ability to respond to urgent or unforeseen infrastructure, public safety, resilience or environmental needs.
Contribution Rate Methodology
The proposed contribution rates were developed using available planning-level infrastructure and resilience information to establish a reasonable benchmark for the public benefit associated with receiving additional discretionary development capacity through the Hollywood Beach Overlay District. Hazen and Sawyer identified approximately $125 million in wastewater improvements associated with the modeled increased-density scenario and provided the Equivalent Residential Unit (“ERU”) methodology used to distinguish relative utility demand between hotel and residential uses. Arcadis identified approximately $45 million in water treatment improvements, CDM Smith identified approximately $234 million in stormwater improvements, and the City’s Chief Resiliency Officer identified approximately $167.36 million in additional direct resilience and infrastructure hardening improvements, including coastal and public infrastructure protection measures.
Water and wastewater are treated as demand-based systems and are therefore allocated using ERUs. This recognizes that multifamily residential development places a greater relative demand on water and wastewater infrastructure than a hotel room. The methodology also recognizes that projects utilizing Overlay bonuses are expected to include a combination of underlying development capacity and additional bonus capacity. For rate-setting purposes, staff assumes that approximately 50 percent of the underlying development capacity will ultimately be incorporated into redevelopment projects utilizing an Overlay bonus, allowing a corresponding portion of the underlying infrastructure demand to be reflected in the bonus contribution. This results in an estimated water and wastewater component of approximately $5,419 per TIDE hotel room and $8,100 per residential unit.
Stormwater and the broader resilience and hardening improvements are treated differently because they are not consumption-based systems. Improvements related to drainage, flooding, shoreline protection, coastal resilience and infrastructure hardening provide a shared area-wide benefit and are not meaningfully differentiated based on whether a unit is hotel or residential. Accordingly, the approximately $234 million stormwater program and $167.36 million in identified resilience and hardening improvements are combined, resulting in approximately $401.36 million in shared stormwater and resilience infrastructure. This amount is distributed evenly across the same modeled physical development inventory of approximately 33,173 hotel rooms and 500 residential units, or 33,673 total units, resulting in a shared resilience component of approximately $11,919 per unit.
When combined with the water and wastewater component, the calculated contribution benchmarks are approximately $17,338 per TIDE hotel room and $20,019 per Flex residential unit. For administration through the Comprehensive Schedule of Fees, staff recommends rounded rates of $17,500 per TIDE hotel room and $20,050 per Flex residential unit.
The contribution is separate and distinct from otherwise applicable impact fees, utility connection charges and other development fees. Those charges remain independently applicable and generally address the capital facility demands associated with new development and increased use of public systems. The Public Benefit and Resilience Trust Fund serves a broader purpose by providing an additional source of funding to fortify, adapt and improve the infrastructure and public realm serving Hollywood Beach in response to increased development intensity, flooding, sea level rise, climate-related risk and other long-term resilience considerations. Eligible investments may include stormwater and drainage improvements, utility hardening, coastal and flood protection, roadway and public-realm resilience, mobility improvements and other projects intended to strengthen the Beach over time.
Because the contribution is not structured as an impact fee, the recommended rate is not dictated by a statutory impact fee formula, and the City Commission retains policy discretion in establishing the appropriate contribution associated with optional bonus capacity. Rather than selecting an amount without reference to actual conditions, Planning, Utilities and Resiliency staff used available infrastructure studies, capital cost estimates, and forecasted development, population and tourism assumptions to provide the Commission with a practical, data-informed benchmark. The Fund is not intended to recover the entirety of the Beach’s long-term capital needs, but to ensure that development receiving additional discretionary capacity contributes meaningfully toward the infrastructure and resilience investments necessary to sustain and adapt Hollywood Beach as redevelopment occurs.
Conclusion
Staff recommends approval of the Resolution establishing the Hollywood Beach Public Benefit and Resilience Trust Fund and the related amendment to the Comprehensive Schedule of Fees.
The proposed framework provides clear administrative responsibilities, financial controls, project planning and prioritization procedures, and City Commission oversight while ensuring that revenues generated through Optional Bonus Entitlements are reinvested in infrastructure and public improvements that directly benefit Hollywood Beach.
Fiscal Impact:
The Resolution establishes a new restricted revenue source funded primarily through contributions associated with qualifying Optional Bonus Entitlements. The amount and timing of revenues will depend on future development activity and cannot presently be quantified.
Fund revenues will be separately accounted for and may be expended only for Eligible Projects consistent with the Resolution and appropriated through the City’s established budgeting and capital planning processes.
Recommended for inclusion on the agenda by:
Cameron Palmer, Assistant Director, Development Services - Chief Planner
Andria Wingett, Director of Development Services
Jose Cortes, Assistant City Manager