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Ordinance 01-2011 Comprehensive Plan ORDINANCE NO. 1 -2011 AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF PALM BEACH, PALM BEACH COUNTY, FLORIDA, AMENDING THE TEXT OF THE FUTURE LAND USE ELEMENT OF THE TOWN OF PALM BEACH COMPREHENSIVE PLAN AS LAST AMENDED ON AUGUST 11, 2010, WITH THE ADOPTION OF ORDINANCE NO. 3-10, BY AMENDING THE DATA & ANALYSIS IN THE FUTURE LAND USE ELEMENT AND AMENDING POLICY 2.3.1 AS IT ADDRESSES SQUARE FOOTAGE THRESHOLDS FOR TOWN- SERVING BUSINESSES; PROVIDING FOR SEVERABILITY; REPEALING ALL ORDINANCES OR PART OF ORDINANCES IN CONFLICT HEREOF; PROVIDING FOR CODIFICATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town proposes to amend its Comprehensive Plan in accordance with the requirements of the 1993 Local Government Comprehensive Planning and Land Development Regulation Act; and, WHEREAS, the Town created the Town of Palm Beach Comprehensive Plan with the adoption of Ordinance No. 11 -89, and last amended the Comprehensive Plan on August 11, 2010 with the adoption of Ordinance No. 3 -10; and, WHEREAS, the Town is amending the Data & Analysis and Goals, Objectives, and Policies (GOPs) portions of the Future Land Use Element of the Town's Comprehensive Plan, specifically Policy 2.3.1 as it relates to square- footage thresholds for town - serving businesses; and, WHEREAS, after considering the data in the Report from LaRue Planning and Management Services, Inc. (Exhibit "A" attached) and reviewing the proposed amendments to the Town's Comprehensive Plan at their February 22, 2011 meeting, the Planning and Zoning Commission, acting as the Local Planning Agency (LPA), recommended approval and transmittal of the amendments to the Florida Department of Community Affairs (DCA); and, WHEREAS, after considering the data in the Report from LaRue Planning and Management Services, Inc. and reviewing the proposed amendments to the Town's Comprehensive Plan, the Town Council determined that there should be a change in the Town - serving threshold in different commercial zoning districts. NOW, THEREFORE BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF PALM BEACH, PALM BEACH COUNTY FLORIDA, as follows: Ordinance No. 1 -2011 Page 1 of 5 Section 1. INCORPORATION OF RECITALS The above recitals are incorporated as fully set herein. Section 2. FINDINGS The proposed amendments to the Data & Analysis and Goals, Objectives, and Policies (GOPs) portions of the Future Land Use Element of the Town's Comprehensive Plan, specifically Policy 2.3.1 as it relates to square- footage thresholds for town - serving businesses, as more particularly described in Section 3 below, have been determined by the Town Council to promote the public health, safety and welfare, and is consistent with the requirements of Chapter 163 Florida Statutes, Chapters 9J -5 and 9J -11 of the Florida Administrative Code, and all elements of the adopted Comprehensive Plan. Section 3. AMENDMENT OF COMPREHENSIVE PLAN The Data & Analysis (first two paragraphs below found on pages I -5 and I -9) and the GOPs in the Future Land Use Element in the Town of Palm Beach Comprehensive Plan are hereby amended as follows: The Town's Zoning Ordinance has established 4,000_square = feet as the maximum gross leasable area for commercial establishments in certain districts. To be granted a waiver from this provision, the applicant must demonstrate that the business is Town - serving; that adequate parking is available to support the request for increased floor area; and, that a hardship exists which prevents them from conducting their Town - serving business within 4,000 square -feet or less. The most common waivers have been for financial institutions and professional office space. 4. The dominant character of the Town's commercial sector is one of small scale. The vast majority of the commercial uses in the Town each encompass 4,000 square -feet or less of gross leasable area. Despite the reputation of Worth Avenue and the presence of some large retail anchors and office uses in the Town, the overall character of the Town's commercial areas is one of small business concerns which, individually, would not normally be expected to draw the majority of its patrons from beyond the Town's limits. POLICY 2.3.1 The following definitions shall pertain to the application of the non - residential land use designations and associated policies: Ordinance No. l -ll Page 2 of 5 a. "Town- serving" shall mean establishments principally oriented to serving the needs of Town persons and not substantially relying on the patronage of persons not defined as Town persons. Commercial establishments (other than those uses in the "Commercial — Office, Professional & Institutional" (C -OPI) zoning district, which are not required to meet town - serving requirements) of 2,000 square -feet or less of gross leasable area in the "Commercial — Planned Center" (C-PQ zoning district, 3,000 square -feet or less of gross leasable area in the C -TS and C -B zoning districts, and 4,000 square -feet or less of gross leasable area in the C-WA zoning district are assumed to meet the intent of the first part of this definition. i Section 4. SEVERABILITY If any section, subsection, sentence, clause or phrase of this ordinance for any reason, is held to be unconstitutional, void or otherwise invalid, the validity of the remaining portions of this Ordinance shall not be effected thereby. i Section 5. EFFECTIVE DATE i The effective date of this plan amendment shall be the date a final order is issued by the Department of Community Affairs or Administrative Commission finding the amendment in compliance in accordance with Chapter 163.3187(3)(C), Florida Statutes, whichever occurs earlier. No development orders, development permits, or land uses dependent on this amendment may be issued or commence before it has become effective. If a final order of noncompliance is issued by the Administration Commission, this amendment may nevertheless be made effective by adoption of a resolution affirming its effective status, a copy of which resolution shall be sent to the Florida Department of Community Affairs, Division of Community Planning, Plan Processing Team. I Ordinance No. 1 -11 Page 3 of 5 PASSED ON FIRST READING in a regular, adjourned session of the Town Council on the 13`" day of April 2011. PASSED AND ADOPTED in a regular, adjourned session of the Town Council on the 13`" day of July 2011. 0AAIL V &XA�& " N� i it L. Coniglio, Mayor David A. Rosow, Town Council President L4 \y Robert N. Wildrick, Coun si ent Pro Tem i I William J Diamond, Town C uncil ember i Richar Kleid, Town Council Member Michael . Pucillo, I T wn Council Member ATTEST: i u san A. Owens, own Clerk i i P 'ti! f r, 4 ®rc? naac d i -1 Page 4 of 5 'v EXH IBIT 66A9 The Town of Palm Beach Town-Serving Deport prepared by j LaRue Planning and Management Services, Inc. I I �I I i i I i i i Ordinance No. 1 -11 Page 5 of 5 i I �..�✓ Wn rIO 1 ( I To Study of i "Town rvi ng" Provisi September 30, 2010 i i Prepared by: i Planning B Sc Manage ent Services, Inc. <i; �• 1375 Jackson Street, Suite 206 Fort .Myers, FL 33901 2393343366 Serving Florida Local Governments Since 1988 I i TABLE OF CONTENTS 0 1. BACKGROUND TO THE "TOWN- SERVING' CONCEPT ...... ....................... ................ ............ 1111............. ,............. 1 II. BASIC FINDINGS: 1979 -80 COMMERCIAL DISTRICT STUDY .............................................. ............................... 2 III. CURRENT MIX OF USES BY ZONING DISTRICT TYPE OF USE, AND SQUARE FOOTAGE ............................. 5 C -TS, TOWN- SERVING DISTRICT .................... ............................... ....,.............111.....,.1.. 9 C -WA, WORTH AVENUE DISTRICT .................................................................................. .............................10 CB, OFFICE DISTRICT ....................................................................................................... .............................11 C -OPI, OFFICES, PROFESSIONAL AND INSTITUTIONAL DISTRICT ............................. .............................12 C -PC, PLANNED CENTER DISTRICT ................................................................................ .............................13 IV. COMPARISON OF 1979 and 2009 PATTERNS ........................................................................ .............................14 TOWN CENTER COMMERCIAL AREA ............................................................................... .............................14 ROYAL POINCIANA COMMERCIAL AREA ......................................................................... .............................18 V. APPROVALS OF SPECIAL EXCEPTIONS BETWEEN 1990 & 2009 FOR BUSINESSES OVER 2,000 SF ........... 20 VI. OTHER RELEVANT FACTORS AND CHANGES SINCE 1980 ................................................. ............................... 23 VII. CONCLUSIONS AND RECOMMENDATIONS ......................................................................... ............................... 24 CONCLUSIONS....................................................................................................................... ............................. 1, Relevancy of the "Town- Serving" concept and continued need for a "Town Serving" provision ................... 24 2. Ramifications of eliminating the " Town - Serving" provision ............................................ ............................... 25 3, Are there better alternatives to the "Town- Serving" provision? RECOMMENDATIONS............................................................................................................ ............................. Table 1 Commercial Retail and Service Anchor Establishments Major Commercial Areas 1979 -80 ............................ 3 Map, Commercial Zoning, 1979 ....................................................... ....:..................... ................................................. 4 Table 2 Square Footage of Commercial Retail Service Establishments 1979 -80 ......................................................... 5 Map, Commercial Zoning, 2009 .................................................................................................. ............................... 6 Table 3 Business Square Footage by Zoning District 2009 ............................................................ ............................... 7 Table 4 Distribution of Business by Zoning District 2009 ................................................................ ............................... 8 I Table 5 Gross Leasable Area of Businesses C-TS District 2009 .................................................... ............................... 9 Table 6 Gross Leasable Area of Businesses C -WA District 2009 .................................................... .............................10 Table 7 Gross Leasable Area of Businesses C -B District 2009 ........................................................ .............................11 Table 8 Gross Leasable Area of Businesses C -OPI District 2009 .................................................... .............................12 Table 9 Gross Leasable Area of Businesses C -PC District 2009 ..................................................... .............................13 Table 10 Number and Size of Businesses by Zoning District Town Center Commercial Area 1979 and 2009 .............15 Table 11 C -WA District Business by Type and Square Footage 1979 and 2009 ............................. .............................16 Table 12 C-TS District (Town Center Commercial Area) Businesses by Type and Square Footage 1979 and 2009 ...17 Table 13 Number and Size of Businesses by Zoning District Royal Poinciana Commercial Area 1979 and 2009........18 Table 14 Royal Poinciana Commercial Area Businesses of 4,000 and More Square Feet by Type andSquare Footage 1979 and 2009 .................................................................................. ............................. Table 15 Approvals Businesses in Excess of 2,000 Square Feet Town of Palm Beach, Florida 1990 -2009 20 Table 16 Special Exception Approvals Businesses in Excess of 2,000 Square Feet by Type of Use Town of Palm Beach, Florida 1990 - 2000 ....................................................................... ............................... 21 Table 17 Special Exception Approvals Businesses in Excess of 2,000 Square Feet by Zoning District Town of Palm Beach, Florida 1990 -2009 ................... ................... ..................... ........... .................... 111,1.......... 22 i® BACKGROUND TO THE 11 11 CONCEPT At the Town Council meeting on January 9, 1979, Mrs. Barbara Hoffstot, representing the Garden Club, made a presentation to the Council concerning the changing condition of the Town and the Garden Club's dismay at the collapse of services to the residents including the then recent loss of small local oriented retail and service businesses. She noted the demise of a gas station, car repair shop, bakery, fish market, florist, hardware store, hotel, small restaurant, water /ice business and a landscape company. It was this initial presentation that ignited the Town Council's concern over what was perceived to be an evolving trend that was changing the character of the Town's commercial sector. In April of 1979 the Town Manager, George Frost, provided a memorandum to the Town Council outlining the basis for adopting Ordinance No. 5 -79 implementing a Commercial Moratorium. In this memorandum the following paragraphs described the purpose of the study of the Town's commercial development that ultimately formed the basis for the "Town- Serving" provision and associated limitation on gross floor area for commercial uses in the Town. "9. Review the existing composition of commercial development in the C -A and C -B Zoning Districts with the intent of encouraging and providing a necessary balance of personal service' commercial uses for residents of the Town and discouraging high - volume retail and other commercial uses whose principal purposes are to serve other than residents of the Town." 3. Via memoranda dated March 28 and April 3rd on topics of the 1980 Zoning Hearings, .Mr. Adley has been requested to study and recommend on the creation of a new commercial zoning districts) and other relevant techniques and approaches which j would differentiate between various types of commercial uses and which would give different treatment to commercial uses providing services'to the immediate residential I neighborhood..." In a memorandum dated April 28, 1979 from Harry C. Adley, President of Adley Associates, Inc., the Town's Planning and Zoning Consultant, to the Town Manager, the primary objective of the study to be conducted during the Commercial Moratorium was described as follows: 1. Primary Objective: Modification of Character of Town's Commercial Areas To halt, and where possible reverse, the trend by which the Town's commercial districts are changing from a "Town- Serving" function to a region - serving function, changes which are resulting in an increase in traffic congestion, parking demand, loss of convenience to the Townspeople and related problems." i I i I 1 of 27 I 119 BASIC FINDINGS: 1979-80 COMMERCIAL DISTRICT Adley Associates, Inc. conducted its study of the uses in the Town's commercial areas during the late summer of 1979 and provided initial findings in October of that year. In December of 1979, the firm presented its "Summary of Research and Findings" for the Commercial District Study. These findings served as the basis for establishing the "Town- Serving" concept and requirement to obtain approval of a special exception to expand an existing commercial use, or establish a new commercial use, involving over 2,000 square feet of gross leasable area (GLA). Market analysis based on population and spending patterns indicated that the square footage of retail and service type commercial uses in the Town were not likely supportable by the local population. It was also suggested that the loss of small local serving businesses at that time was due to rising rents and property values spurred by competition from larger businesses eager to take advantage of a Palm Beach location and name. Much of the original Commercial District study dealt with trying to determine the character of the Town's commercial sector and the extent to which "region serving" businesses were located in the commercial districts. However, early on it was suggested, based on general marketing patterns and local knowledge of the character and makeup of commercial establishments in the Town, that commercial uses of over 4,000 square feet were the uses most likely to be serving a market beyond the Town limits. Inventory of the businesses in the Town indicated that about 80% of the retail and service busi- nesses in the Town contained 2,000 square feet or less of gross floor area. Consequently, the Town determined that it was prudent to set this as the threshold beyond which substantiation would be required to show that the majority of customers of the business could be expected to be "Townpersons ". The definition of "Townpersons" included all full -time or seasonal residents living in, or employees working in, or visitors staying overnight in the Town. i i Businesses of 2,000 square feet or less were therefore automatically considered "Town- Serving" by virtue of their small size, which was the defining and predominant characteristic among busi- nesses in the Town. A business over 2,000 square feet that could substantiate that the majority of its customers were "Townpersons," was also deemed to be "Town- Serving." While the investigation into the sizes and character of businesses in the Town in 1979 -80 was limited to the type and sizes of retail and service businesses in the Town, it was also found that much of the competition for commercial space was due to demand for office space. Occupational license information for 1979 indicated that there were slightly over 400 office -type businesses in the Town. The gross floor area of these businesses was not identified at that time. 2 of 27 At the time the Commercial District Study was undertaken, there were only two commercial zoning districts in the Town, C -A and C -B. The C -B district encompassed only a very small area along Royal Palm Way between South County Road and South Ocean Boulevard. While there was, and still is, a small area of commercial zoning in the vicinity of South Ocean Boulevard and the Lake Worth Bridge, the primary commercial areas in the Town were located, as they are now in two areas of the Town - the Town Center and Royal Poinciana areas. These two areas are identified on the map on the following page. The Town Center area included Worth Avenue, Peruvian Avenue, South County Road and Royal Palm Way, -all zoned C -A, as well as the small area along Royal Palm Way zoned C -B. This area was referred to in the 1979 -80 study as the "Worth Avenue Commercial District ". The other commercial concentration was mainly in the vicinity of the Royal Poinciana Plaza and along Royal Poinciana Way, Bradley Place, Sunrise and Sunset Avenues, and North County Road. This area was referred to as the "Royal Poinciana Commercial District" in the 1979 -80 Study. i The number, type and scale of the larger retail and service establishments in each of these two areas are illustrative of each district's character. The Town Center area was the larger of the two with about 450,000 square feet of retail and service space compared to about 180,000 square feet in the Royal Poinciana area. The former was overwhelmingly devoted to shoppers' type goods and, as can be seen in the Table 1, more and larger retail anchor stores (except for the Publix supermarket which is considered a convenience- oriented retail outlet). I Table 1 Commercial Retail and Service Anchor Establishments Major Commercial Areas 1979 -80 TOWN CENTER AREA ROYAL POINCIANA Anchor Stores S quare Footage Anchor Stores F oolap Saks Fifth Ave. 16,380 Publix 32,000 Brinkley's Grocery 9,750 Sara Fredericks 10,286 Bonwit Teller 9,576 St anley N elson Boutique 4,679 Frances Brewster 8,550 Worrills 10,136 Gucci 5,400 Sara Fredericks 5,225 Maus- Hoffman 4,320 Stagg Ltd. 4,240 M ajor Restaurants Square Footme Major Restaurants Square Footage Taboo 9,678 Restaurant Pappagailo 4,725 Nandos 6,300 Cappriccio 4,679 Petit Marmite 5,796 Maurice 4,642 Mandarin 5,400 Testa's 4,125 Flame 4,500 O'Hara's 4,125 Source: 1979 -90 Commercial District Study, Adley Associates, Inc. LaRue Planning & Management Services, Inc. 3 of 27 i CO MMERCIAL ZONING, 1 b i.iJJt[!.J..l1Ll •I Royal Poinciana Area - -_- 400 0 400 800 Feet IL 1J. � ij I TT i .._ - - I - i FT Zo " JF' Reyµ PAM r— KPA - -_. •t3..s:; -1 F - - 41 Town Center ' r 1 c.� _ — I Area 4 of 27 The inventory of retail and service uses in 1979 excluded offices, financial institutions and hotels. Using raw data from the 1979 inventory of retail and service uses, the information in the following table indicates that about 76% of the uses were comprised of 2,000 square feet or less. This is reasonably consistent with the initial estimate of about 80% during the 1979 -80 study. Table 2 Square Footage of Commercial Retail and Service Establishments 1979 -80 "WORTH AVENUE" "ROYAL POINCIANA" AREA AREA TOTAL Square Feet Number Percent Number Percent Number Percent Up to 2,000 177 78.7 57 69.5 234 76.2 2,001 to 4,000 32 14.2 15 18.3 47 15.3 Over 4,000 16 7.1 10 12.2 26 8.5 Total 225 100.0 82 100.0 307 100.0 Aver a a 1,598 2,243 1,770 Median 1,080 1,332 1,152 Source: 1979 -90 Commercial District Study, Adley Associates, Inc. LaRue Planning & Management Services, Inc. III. CURRENT MIX OF USES BY ZONING DISTRICT, TYPE OF USE, AND SQUARE FOOTAGE I Since 1980, there have been five commercial zoning districts in the Town. The C -A district was divided into the first four districts listed below. The C -B district involves the same geographic area as in 1980. The map on the following page shows the delineation of the Town's five commercial zoning districts listed below. C -TS, Commercial — Town - Serving C -WA, Commercial — Worth Avenue C -OPI, Commercial — Offices, professional and institutional C -PC, Commercial — Planned center C -B, Commercial — Offices 5 of 27 COMMERCIAL ZONING, 2009 -. PQ Royal Poinciana Area i _ I I i I 400 0 400 800 Feet LCT_�hCIIZT` I `_� � �...,, ' • -Li ` Lam(. _ :[[�.;" Zo C ®WA C -OPI C- C - 13 i 3 - ,1 I i i "Gown Center ! Area 'F .- - -__ - - - -- - - -------------------------- - ... -- 6 of 27 Unlike the 1979 -80 study which relied on physical visits to the site of each business to estimate its square footage based on a rough measurement of the geometry of the specific building or unit, the 2009 information is taken from the Town's computerized records of Business Tax Receipts. Obvious examples of businesses with multiple BTRs (e.g., a restaurant that also carried a BTR for its nightclub or catering operation, or for individual lawyers within a firm which had been issued a BTR), were deleted from the list. Hotels and offices were not included in the 1979 inventory. Therefore hotels and the very largest banks and brokerage and administrative offices have been excluded from the 2009 inventory of the C -TS and C -WA zoning districts. However, since banks and offices have been subject to the need for a special exception to exceed 2,000 square feet, these smaller banks and offices up to 10,000 square feet are included in the 2009 inventory. This leaves 639 BTRs of which 473 (74 %) contain complete information. It is these 463 businesses upon which the information in Tables 3 through 9 and associated analyses are based. Table 3 BUSINESS SQUARE FOOTAGE Y ZONING DISTRICT 2009 1 TRICT TOTAL T ATA TOTAL AVERAGE NUMBER PERCE SO. FT. S . FT. i C -TS 266 180 68% 256,096 1,423 C -WA 233 181 78% 397,120 2,194 C -01 79 62 78% 193,640 3,123 C -PC 47 39 83% 105,718 2,711 C -S 14 11 79% 25,748 2,341 i I TOTAL 639 473 74% 978,322 2,068 Based on active BTRs for which square footage data is available, but with obvious duplications removed. (Z) Includes all BTRs but with obvious duplications removed. Source: Business Tax Receipts, Town of Palm Beach, 2010 LaRue Planning & Management Services, Inc. 7 of 27 Among the 473 businesses included in the analysis, the average size was computed to be 40 2,068 square feet of gross leasable area. As would be expected based on the intended character of the zoning districts, the lowest average is found in the C-TS district and the highest in the C -OPI and C -PC districts. Because of the small number of uses in the C -B District, data for this district has little significance in this analysis. As can be seen in Table 4, almost 78% of the businesses contain 2,000 square feet or less and almost 89% contain fewer than 4,000 square feet. Again the C-TS District has the largest per- centage of small businesses with over 84% containing 2,000 or fewer square feet and just under 92% of the businesses have less than 4,000 square feet. A substantial majority of businesses in all districts have less than 4,000 square feet of gross leasable area. i Table 4 DISTRIBUTION OF BUSINESSES BY SQUARE FOOTAGE CATEGORY Y ZONING DISTRICT 2009 TOTAL SQ UARE C-TS C -A C-OPI C -PC C-B NUMBER PERCENT CUMULATIVE 2,000 & Under 152 145 39 23 9 368 77.8% 77.8% 2,001- 2,999 9 12 5 5 1 1 32 6.8% 84.6% 3,000 - 3,999 4 6 9 1 0 20 4.2 88.8% 4,000 - 4,999 6 3 0 3 0 12 2.5% 91.3% 5,000 - 5,999 2 4 2 4 0 12 2.5% 93.9% 6,000 - 6,999 4 2 1 1 0 8 1.7% 95.6% 7,000 - 7,999 2 1 1 0 0 4 0.8% 96.4% 8,000 - 8,999 0 0 0 0 0 0 0.0% 96.4% 9,000 - 9,999 0 4 0 0 0 4 0.8% 97.3% 10,000 - 12,999 0 1 1 2 0 4 0.8% 98.1% 13,000 or more 1 3 4 0 1 9 1.9% (1) TOTAL 180 181 62 39 11 473 (1) 2,000 or less 84.4% 80.1 % 63.9% 5910% 81.8% 77.2% Less than 4,000 91.7% 190.1% 186.9% 74.4% 190.1%1 88.8% (1) Parts to not add to100.0 due to internal rounding Source: Business tax receipts, Town of Palm Beach, 2010 LaRue Planning & Management Service, Inc 8 of 27 C -T , TOWN-SERVING TOWN-SERVING DISTRICT The average square footage of retail and service businesses in the C -TS District is 1,427 square feet and the vast majority of uses contain 2,000 square feet or less. Almost 92% contain less than 4,000 square feet (See Table 5). The largest retail and service uses in the C-TS are the Palm Ballroom (which is now vacant) at 235 Sunrise Avenue and the Bank of America at 140 North County Road. Including the Palm Ballroom (which held BTRs for restaurant, catering and nightclub operations) there are six restaurants in the C -TS District. Restaurants are the most prevalent uses with over 4,000 square feet in the C-TS District. Table 5 GROSS LEASABLE AREA OF BUSINESSES C -TS DISTRICT 2009 LARGEST FIRMS SIZE (sf) NUMBER PERCENT Club Collette 6,734 2,000 & Under 152 84.4% Cafe L'urope 6,774 2,001 — 2,999 9 5.0% Palm Beach Historic Inn 7,000 3,000 — 3,999 4 2.2% Bank of America 7,700 4,000 — 4,999 6 3.3% The Palm Ballroom 14,000 5,000 — 5,999 2 1.1% 6000-6,999 4 2.2% 7000-7,999 2 1.1% 8000-8,999 0 0.0% 9000-9,999 0 0.0% 10,000 — 12,999 0 0.0% 13,000 or more 1 0.6% i TOTAL 180 (1) TOTAL SF 256,096 A VERAGE SF 1,423 (1) Parts to not add to 100.0 due to internal rounding Source: Business tax receipts, Town of Palm Beach, 2010 LaRue Planning & Management Services, Inc. 9 of 27 C- A, WORTH AVENUE DISTRICT is Table 6 provides data for businesses in the C -WA, Worth Avenue District. Worth Avenue remains primarily a location for high -end shopping goods. Larger businesses are more prevalent and of considerably greater size in the C -WA District than in the C -TS District. The average square footage is over 1' /2 times that prevailing in the C -TS District. There are 18 businesses with over 4,000 square feet in this District. The largest are Neiman Marcus (49,917 square feet) and Saks Fifth Avenue (48,661 sf). Both are located on Worth Avenue east of South County Road, Neiman Marcus was first approved in 1998 and the expansion of Saks Fifth Avenue was also approved in 1998. Fourteen (14) of the businesses with 4,000 or more square feet are merchants, two are restaurants and two are banks. Table 6 CROSS LEASABLE AREA OF BUSINESSES C -WA DISTRICT 2009 LARGEST FIRMS SIZE (a) NUMBER PERCENT Tiffany and Company 11,360 2,000 & Under 145 80.1% Polo Ralph Lauren 15,816 2,001 — 2,999 12 6.6% Neiman Marcus 49,917 3,000 — 3,999 6 3.3% Saks Fifth Avenue 48,661 4,000 -4,999 3 1.7% 5,000— 5,999 4 2.2% 6000-6,999 2 1.1 7000-7,999 1 0.6% 8000-8,999 0 0.0% 9000-9,999 4 2.2% 10,000— 12,999 1 0.6% 13,000 or more 3 1.7% TOTAL 181 (1) TOTAL SF 397,120 AVERAGE SF 2,194 (1) Parts to not add to 100.0 due to internal rounding Source: Business tax receipts, Town of Palm Beach, 2010 LaRue Planning & Management Services, Inc. 10 of 27 CIB, OFFICE DISTRICT The C -B District was retained from the original zoning in 1979. It was intended to provide for office type uses in structures compatible with nearby residential neighborhoods. It is fully developed in office type uses including banks, law, real estate, business and administrative offices. It is also the home of the Palm House (formerly the Heart of Palm Beach Hotel). Because of its small size and limited scope of uses, the C -B District has little relevance to this study of the "Town- Serving" provision. The data provided on Table 7, following, are provided in support of this assertion. Table 7 CROSS LEASABLE AREA OF BUSINESSES C -B DISTRICT 2009 LARGEST FIRMS SIZE ($f) NUMBER PERCENT Palm Beach Board of Realtors Inc 2,970 2,000 & Under 9 81.8% U S Trust 13,300 2,001— 2,999 1 9.1% 3,000 — 3,999 0 0.0% 4,000-4,999 0 0.0% 5, — 5,999 0 0.0% 6000 -6,999 0 0.0% 7000-7,999 0 0.0% 8000 -8,999 0 0.0% 9000-9,999 0 0.0% 10,000-12,999 0 0.0% 13,000 or more 1 9.1% TOTAL 11 100.0% TOTAL SF 25,748 I AVERAGE F 2,341 Source: Business tax receipts, Town of Palm Beach, 2010 LaRue Planning & Management Services, Inc. i I i i i i 11 of 27 C -OPI, OFFICES, PROFESSIONAL AND INSTITUTIONAL DISTRICT The C -OPI District is located along both sides of Royal Palm Way, the central entrance to the Town from the mainland via the Royal Park Bridge. It is characterized by banks and other financial institutions, law and real estate firms, and business and administrative offices. In prior years some restaurants were located in this district, but have since been replaced by office type uses. This district has the highest average size per business (3,123 square feet) and has a considerably lower percentage of businesses of 2,000 square feet or less than the neighboring C-TS and C -B districts and the nearby C -WA District. Except for the Rehabilitation Center, the largest businesses are all financial and related institutions. Table 8 CROSS LEASABLE AREA OF BUSINESSES C -OPI DISTRICT 2009 LARGEST FIRMS SIZE (sf) NUMBER PERCENT UBS Financial Services Inc 11,000 2,000 & Under 39 62.9% Merrill Lynch Pierce Fenner & Smith 14,164 2,001 —2,999 5 8.1% Morgan Stanley and Co Inc 14,318 3,000 — 3,999 9 14.5% JP Morgan Securities 22,185 4,000-4,999 0 0.0% i Rehabilitation Center for Children and Adults 30,000 5,000-5,999 2 3.2% 6000-6,999 1 1.6% Ain 7000 —7,999 1 1.6% 8000-8,999 0 0.0% 9000-9,999 0 0.0% 10,000-12,999 1 1.6% 13,000 or more 4 6.5% TOTAL 62 100.0% TOTAL SF 193,640 AVERAGE SF 3,123 Source; Business tax receipts, Town of Palm Beach, 2010 LaRue Planning & Management Services, Inc. i 12 of 27 i C- PC, PLANNED CENTER DISTRICT The Poinciana Plaza is considered a planned commercial center and its most recognizable fixture has been the Royal Poinciana Playhouse which was recently given Landmark status by the Town. Apart from the now vacant Playhouse, the C -PC District is largely devoted to office type uses including administrative/business, real estate and property management, law, consulting and banks (19) and medical offices (11). The remaining uses are retail merchants (9), services (5) and restaurants (3). The largest use is the law firm of Alley Maass Rogers & Lindsay with 12, 256 square feet (see Table 9) While most of the uses (59 %) do not exceed 2,000 square feet in gross leasable area, this percentage is even less than that recorded for the C -OPI District. Table 9 GROSS LEASABLE AREA OF BUSINESSES C -PC DISTRICT 2009 C -PC DISTRICT LARGEST FIRMS SIZE (afl NUMBER PERCENT Palm Beach Grill 6,515 2,000 & Under 23 59.0% Island Hospitality Mgt Inc 10,000 2,001 -2,999 5 12.8% Alley Maass Rogers & Lindsay PA 12,256 3,000 — 3,999 1 2.6% 4,000-4,999 3 7.7% j ® 5,000— 5,999 4 10.3% 6000-6,999 1 2.6% 7000-7,999 0 0.0% 8000-8,999 0 0.0% 9000-9,999 0 0.0% 10,000-12,999 2 5.1% 13,000 or more 0 0.0% TOTAL 39 (1) TOTAL SF 105,718 A VERAGE S F 2,711 (1) Parts do not add to 100.0 due to internal rounding. Source; Business tax receipts, Town of Palm Beach, 2010 LaRue Planning & Management Services, Inc. 13 of 27 IV. COMPARISON OF 1979 and 2009 PATTERNS The information contained in the 1979 -80 Commercial Study is not directly comparable to that collected for 2009. This is because there was only one major commercial zoning district in 1979, the C -A District. Consequently, the 1979 inventory was developed on a geographic basis, separating the Town Center commercial area from the Royal Poinciana commercial area. The Towns current commercial zoning employs five different zoning districts one of which, the C -TS District, is located in both the Town Center and Royal Poinciana areas. The Town Center area contains the C -WA, C -TS, C -B and the C -OPI Districts. The Royal Poinciana area now contains the C -TS District and the C -PC District. The following discussion will compare these areas to the extent that valid comparisons can be made. TOWN CENTER COMMERCIAL AREA Because the C -B and C -OPI districts are limited primarily to office type uses for which we have little 1979 data, for the purposes of this analysis these districts are excluded. The Town Center area includes all uses in the C -WA District as well as uses in the C -TS District along Peruvian Avenue, South County Road and parts of Phipps Plaza. As can be seen in Table 10, overall the average business size in this area has increased by 18% since 1979. This is largely due to changes along Worth Avenue where average size has risen by 28 %. The new Nieman Marcus store and the expansion of Saks Fifth Avenue combined with other large stores has resulted in a 64% increase in businesses of 4,000 square feet or more since 1979. More dramatic, however, is the fact that the total square footage associated with these types of businesses has increased to almost 272 times what it was in 1979, from 81,738 square feet to 197,480 square feet. A listing of retail and service businesses located in the C -WA District and having 4,000 square feet or more of gross leasable in 1979 and 2009 is provided in Table 11. I Change in the C -TS district has been relatively modest, with average square footage per business increasing less than 7% since 1979. A listing of retail and service businesses of 4,000 square feet or more located in the Town Center C -TS District is provided in Table 12. 14 of 27 I Table 10 NUMBER AND SIZE OF BUSINESSES BY ZONING DISTRICT TOWN CENTER COMMERCIAL AREA 1979 AND 2009 C -W :.�k T ICT 1979. 2009 GLA SF Number Percent Number Percent 2,000 & Less 106 80.9% 145 80.1% 2,001 — 3,999 14 10.7% 18 9.9% 4,000 & Over 11 8.4% 18 9.9% TOTAL 131 1 100.0% 181 (1) AVERAGE 1,715 2,194 c�T� .l� 2 & Less 70 . 77.8% 118 84.9% 2,001 — 3,999 17 18.9% 10 7.2% 4,000 & Over 3 3.3% 11 7.9% TOTAL 90 100.0% 139 100.0% AVERAGE 1,345 1,434 `�: `' : I JAL 2,000 & Less 176 79.6% 263 82.2% 2,001-3,999 31 14.0% 28 8.8% 4,000 & Over 14 6.3% 29 9.1% TOTAL 221 (1) 320 (1) AVERAGE 1,577 1,864 (1) Does not add to 100.0 % due to internal rounding. Source: 1979 Commercial District Study, Adley Associated, Inc., 1980 Business tax receipts, Town of Palm Beach, 2010 LaRue Planning & Management Services, Inc I i i I I I i 16 of 27 Table 11 C ®WA DISTRICT BUSINESSES BY TYPE AND SQUARE FOOTAGE 1979 and 2009 1979 B USINESS NAME GLA a TYP Saks Fifth Avenue 16,380 Merchant Frances Brewster 8,550 Merchant Taboo 9,678 Restaurant Bonwit Teller 9,576 Merchant Wally Findlay Galleries Inc 8,073 Art Gallery Petit Marmite 5,796 Restaurant Gucci 5,400 Merchant Sara Fredericks 5,225 Merchant The Flame 4,500 Restaurant Stagg Ltd. 4,240 Merchant Maus & Hoffman 4,320 Merchant Number 11 Total Square Foota 81,738 2009 Neiman Marcus 49,917 Merchant Saks Fifth Avenue 48,661 Merchant Polo Ralph Lauren 15,816 Merchant Tiffany And Company 11,360 Merchant Chanel 9,526 Merchant Mary Mahoney 9,200 Merchant Escada 7,100 Merchant Taboo 6,334 Restaurant Brooks Brothers 6,000 Merchant Trevini Restaurant 5,243 Restaurant Maus & Hoffman Inc 5,200 Merchant St John 5,200 Merchant Wally Findlay Galleries Inc 5,140 Art Gallery Giorgio Armani 4,683 Merchant Giorgio's Of Palm Beach 4,100 Merchant AB Levy Palm Beach 4,000 Merchant Number 16 Total Square Footage 197,480 Source: 1979 Commercial District Study, Adley Associates, Inc., 1980 Business tax receipts, Town of Palm Beach, 2010 LaRue Planning & Management Services, Inc n 7 16 of 27 Table 12 C-TS DISTRICT (Town Center Commercial Area) BUSINESSES BY TYPE AND SQUARE FOOTAGE — 1979 and 2009 1979 B USINESS NAME GLA (sfl 1°YP ADDRESS Brinkleys 9,750 Grocery 354 S. County Rd Mandarin 5,400 Restaurant 323 S County Rd Courtyard Plaza Interiors 4,125 Interior Decorator 240 S County Rd Grill & Bar 2,700 Restaurant 264 S County Rd Number 4 Total Square Footage 21,975 '2bb9` Cafe L'Europe 6,774 Restaurant 331 S County Rd Club Collette 6,734 Restaurant 215 Peruvian Ave C Orrico 5,500 Merchant 336 S County Rd Amici Ristorante & Bar 5,270 Restaurant 375 S County Rd 264 The Grill 4,816 Restaurant 264 S County Rd Church Mouse 4,759 Merchant 374 S County Rd Number 6 Total Square Footago 33,583 Source: 1979 Commercial District Study, Adley Associates, Inc., 1980 Business tax receipts, Town of Palm Beach, 2010 LaRue Planning & Management Services, Inc I I i, i i i i i 17 of 27 ROYAL POINCIANA COMMERCIAL A 40 The Royal Poinciana commercial area includes all uses in the Royal Poinciana Plaza (the C-PC District) and along Royal Poinciana Way, Bradley Place, Sunrise and Sunset Avenues, and North County Road (C -TS District). As can be seen in Table 13, the average size of businesses in this area has not increased appre- ciably since 1979. For example, in the CTS portion of this area, the average was 2,109 in 1979 and 2,113 in 2009. In the C -PC District it was 2,842 in 1979 and 2,711 in 2009. However, we have less confidence in the data for this portion of the C-TS district than other areas of the Town because only 59% of the businesses with BTRs include square footage information for 2009. Nevertheless, while there does not appear to have been a significant change in size of businesses j in this area, there has been a marked shift in the character of the Royal Poinciana Plaza from retail /service orientation to more of an office complex. A listing of retail and service businesses of 4,000 square feet or more located in the Royal Poinciana commercial area in 1979 and 2009 is provided in Table 14. Table 13 NUMBER AND SIZE OF BUSINESSES BY ZONING DISTRICT ROYAL POINCIANA COMMERCIAL AREA 1979 AND 2009 C 1'S DISTRICT 1979 2009 GLA SF Number Percent Number Percent 2,000 & Less 64 69.6% 34 81.0% 2,001 — 3,999 19 20.6% 3 7.1% 4 & Over 9 9.8% 5 11.9% TOTAL 92 1 100.0% 42 100.0% AVERAGE 2,109 2,113 C -PC DISTRICT 2,000 & Less 10 58.8% 23 62.2% 2,001 — 3 3 17.6% 6 16.2% 4,000 & Over 4 23,5% 10 21.6% TOTAL 17 1 39 100.0% AVERAGE 2,842 2,711 (1) Parts do not add to 100.0 due to internal rounding. Source: 1979 Commercial District Study, Adley Associates, Inc., 1980 Business tax receipts, Town of Palm Beach, 2010 LaRue Planning & Management Services, Inc 18 of 27 Table 14 ROYAL POINCIANA COMMERCIAL AREA is BUSINESSES OF 4,000 AND MORE SQUARE FEET Y TYPE AND SQUARE FOOTAGE 1979 and 2009 1979 BUSINESS NAME GLA (sfl TYPE ADDRESS C -PC DISTRICT Sara Fredericks 10,286 Merchant Royal Poinciana Plaza Stanley Nelson Boutique 4,679 Interior Deco. Royal Poinciana Plaza Cappriccio 4,679 Restaurant Royal Poinciana Plaza C-TS DISTRICT Publix 32,000 Supermarket 265 Sunset Avenue Restaurant Pappagallo 4,725 Restaurant 107 Bradley Place Maurice 4,642 Restaurant Bradley Place Testa's 4,125 Restaurant 223 Royal Poinciana Wa Ohara's 4,125 Restaurant 128 North County Rd. 200 C -PC DISTRICT Alley Maass Rogers & Lindsay Pa 12,256 Law Firm Royal Poinciana Plaza Island Hospitality Mgt Inc 10,000 Adm. Office Palm Beach Grill 6,515 Restaurant Royal Poinciana Plaza Innkeepers USA Trust 5,620 Adm, Office Royal Poinciana Plaza Brown Harris Stevens Of Palm Beach 5,125 Real Estate Royal Poinciana Plaza Suntrust South Florida NA 5,020 Bank Royal Poinciana Plaza Island Dermatology Laser & 5,000 Medical 50 Cocoanut Row Anti -Aging j Michael R McCarty's 4,648 Restaurant 50 Cocoanut Row Sotheby's International 4,100 Real Estate Royal Poinciana Plaza Murphy Reid LLP 4,062 Law Firm Royal Poinciana Plaza C -TS DISTRICT Publix 32,000 Supermarket 265 Sunset Avenue Caterer, Palm Ballroom (vacant) 14,000 Nightclub, 235 Sunrise Restaurant Bank of America 7,700 Bank 140 North County Rd. Echo 4,585 Restaurant 230 Sunrise Island Hotel, Inc, 4,360 Unclassified 235 Sunrise 251 PB 4200 Restaurant 251 Sunrise Source: 1979 Commercial District Study, Adeey Associates, Inc., 1980 Business tax receipts, Town of Palm Beach, 2010 LaRue Planning & Management Services, Inc 19 of 27 V. APPROVALS OF SPECIAL EXCEPTIONS 1990 & 2009 FOR BUSINESSES OVER 2,000 SF The Town provided a handwritten list of 191 special exceptions, each involving more than 2,000 square feet of commercial floor area, that were approved by Town Council during the years 1990 through 2009. Data for the Palm House (formerly the Heart of Palm Beach Hotel) was available but was excluded because hotels were not included in the 1979 -80 study. Of the 191 businesses, 161 contained sufficient data for analysis. It should be noted that, according to the Town's Zoning Administrator, no application for a special exception to the 2,000 square foot limitation has been denied since at least 1995. As can be seen in Table 15, the average approval involved 5,956 square feet. The largest number of approvals was at the lower end of the spectrum. A little less than half (46.6 1 /6) involved floor area of less than 4,000 square feet and more than 70% of the approvals involved less than 6,000 square feet. i Table 15 APPROVALS BUSINESSES IN EXCESS OF 2,000 SQUARE FEET TOWN OF PALM REACH, FLORIDA 1990-2009 TOTAL SQUARE FEET 958,895 NUMBER OF APPROVALS 161 AVERAGE SF PER APPROVAL 5,956 Percent Square Footage Number By Bracket Cumulative 2,001 to 2,999 46 28.6% 28.6% 3,000 to 3,999 29 18.0% 36.6% 4,000 to 4,999 26 16.1% 62.7% 5,000 to 5,999 13 8.1% 70.8% 6,000 to 6,999 12 7.5% 78.3% 7,000 to 7,999 6 3.7% 82.0% 8,000 to 8,999 5 3.1% 85.1% 9,000 to 9,999 4 2.5% 87.6% 10,000 to 12,999 12 7.5% 95.1% 13,000 SF or more 8 5.0% (1) TOTAL 161 (1) (1) Parts do not add to 100.0 due to internal rounding. Source: Town of Palm Beach, 2010 LaRue Planning & Management Services, Inc. 20 of 27 The establishments with the greatest amount of floor space were two retail stores, Saks Fifth 40 Avenue and Neiman Marcus. Both were approved in 1998 and are located on Worth Avenue east of South County road. These involved 48,661 and 49,917 square feet, respectively. While retail/service uses are by far the most prevalent in the list of approved special exceptions, banks and financial institutions consistently involve the greater floor areas. In fact, if the two largest retail approvals cited above are excluded, all retail /services, offices, and restaurants average in the range of 4,000 to 5,000 square feet, whereas banks and financial institutions together average 8,994 square feet, almost twice that of the average of all other uses (4,527). Table 16 SPECIAL EXCEPTION APPROVALS BUSINESSES IN EXCESS OF 2,000 SQUARE FEET BY TYPE OF US TOWN OF PALM BEACH, FLORIDA � 1990 ® 2009 Type of Use # Avg. SF Large (SF) Banks 24 8,545 19,852 and 22,185 Financial 9 10,188 16,088 Offices 29 4,760 20,730 Restaurants 31 4,409 7,074 Retail/Services 64 8 e 5, 33 48,661 & 49,917 House of Worship 2 4,072 3,820 & 4,323 TOTAL 159 5, Source: Town of Palm Beach,2010 LaRue Planning & Management Services, Inc i i 21 of 27 i i Most of the special exception approvals were for businesses located in the C -TS District, followed by the C -WA District. The average square footage was the lowest in the C -TS, followed by the C -WA District, with the highest average occurring in the C -OPI District. There were an inconsequential number of approvals in the C -PC District and none in the C -B District. Whereas a slim majority of approvals in the C -TS and C -WA Districts involved less than 4,000 square feet, less than half of the approvals in the C -OPI District involved less than 8,000 square feet. Table 17 SPECIAL EXCEPTION APPROVALS BUSINESSES IN EXCESS OF 2,000 SQUARE FEET BY ZONING DISTRICT TOWN OF PALM BEACH, FLORIDA 1990 —2009 Zoning # Avg. SF Adjusted Avg. & Basis for Adjustment C -TS 81 4,950 Excludes Publix, 52% < 4,000 sf; 85% < 6,000 sf C- WA 56 6,405 52% < 4,000 sf; 68% <6,000 sf; 80% < 8,000 sf C -OPI 21 9,013 10% < 4,000 sf; 19% <6,000 sf; 48% < 8,000 sf C -PC 2 NA Approvals were for 3,000 sf and 4,648 sf TOTAL 160 Source: Town of Palm Beach, 2010 LaRue Planning & Management Services, I 22 of 27 I. OTHER RELEVANT FACTORS AND CHANGES SINCE 1 Since the 1979 -80 Commercial District Study was conducted and the "Town- Serving" provisions were incorporated into the Town's Zoning Code, eight new shopping malls have been constructed in Palm Beach County. These include: The Gardens Mail City Place Legacy Place Downtown at the Gardens Town Center at Boca Raton Mizner Park The Mall at Wellington Green Boynton Mall While a number of these include some retail outlets that are located in the Town of Palm Beach, two — The Gardens Mall and Town Center at Boca Raton — are high -end malls that cater to the same type of customer as shops in the Town of Palm Beach, particularly those on Worth Avenue. As such, they represent competition for customers living outside the Town who, in the past, had no alter- native other than Palm Beach in order to patronize such high -end retailers. High -end tenants in these malls that could be expected to be competition to Worth Avenue merchants include: The Gardens Mall Town Center at Boca Raton Gucci Neiman Marcus Hamilton Jewelers Cartier Toumeau Tiffany & Company Nordstrom Louis Vuitton Louis Vuitton Michael Kors Lilly Pulitzer Lilly Pulitzer Brooks Brothers Ralph Lauren The advent of such competition could reduce the extent to which Worth Avenue shops attract residents of, and visitors to, areas outside of the Town of Palm Beach. In fact, these high -end malls pose competition to residents and visitors staying in the Town of Palm Beach as well. Despite its beauty, history and charm, Worth Avenue must compete with the newer malls' climate- controlled facilities. The Avenue's exposure to the elements is, in today's world, a potential drawback. Larger establishments like Neiman Marcus and The Esplanade may work to minimize the loss of local patrons who might otherwise be drawn to the newer climate- controlled malls outside of the Town. 23 of 27 lle CONCLUSIONS AND RECOMMENDATIONS CONCLUSIONS The following address each of the issues required to be addressed as set forth on page 3 of the Scope of Services. l 1. relevancy of the "Town- Serving" concept and continued need for a "Town- Serving" provision. i We believe the data and analysis contained in this report indicates that the "Town- Serving" concept is still relevant and useful, however less so and perhaps in a different context, than was perceived to be the case at its inception. The Town's commercial sector continues to be characterized by small establishments. Fully 78% of the businesses contain less than 2,000 square feet of gross leasable area and 89% contain less than 4,000 square feet. Despite the C-TS District being the subject of the greatest number of special exception approvals, there has been only a slight increase in the average size of establishments in this district. While smaller businesses continue to be the rule rather than the exception in the C-TS District, and this may be due somewhat to the "Town- serving" provision, it is also due at least in part to the inclusion of office uses in the 2009 inventory. Overall, office- type uses in tend to be smaller than other uses in the C-TS District, and office uses were not included in the 1979 inventory. Office uses account for about one -third of the uses in the C-TS District for which data is available. While small shops still dominate the Worth Avenue Zoning District, it has undergone j significant change, particularly with the addition of more and much larger anchor estab- lishments than was the case in 1979. The most notable examples are Neiman Marcus and the enlarged Saks Fifth Avenue, each with almost 50,000 square feet. With these, the 100 block of Worth Avenue is not of the same character as the area further west. Looking at the C-OPI District, it appears clear to us that the current character of the District as well as the history of special exception approvals indicate that the "Town - Serving" concept has little relevance in the C-OPI District. The uses that predominate in this area are primarily financial institutions and professional offices. While they may rely on the aura of a Palm Beach address, the nature of modern banks and financial institutions in particular rely less and less on physical visitation by its customers, thereby possibly minimizing the potential effects of such businesses on the Town. The history of special exception approvals also indicates that the Town recognizes this characteristic, as the average square footage of such approvals is considerably higher than in other districts. 24 of 27 i 2. Ramifications of eliminating the "Town-Serving" provision. C -OPI & C -D Districts: We do not believe that eliminating the "Town- Serving" provi- sion in the C -OPI or C -B Districts will have any significant effect upon the Town. This is primarily because of the nature of the businesses located in these districts, specifically as described above. Further, there are already certain limitations in place in these districts on the size and /or appearance of structures in these districts that will inhibit an increase in the size of structures, although it would allow some increase in the size of businesses within them. C -WA District: Eliminating the "Town- Serving" provision in the C -WA District could result in some increases in the size of businesses, but we find it difficult to envision, after the approval of Saks Fifth Avenue and Neiman Marcus, that any business could not demonstrate that it would meet the "Town- Serving" requirements. Further, with the advent of the Gardens Mall and Town Center at Boca Raton in particular, larger retail estab- lishments in the Town are likely to attract fewer persons from areas outside the Town than may have been the case in 1979 because of the increased availability of more conveniently located high -end retail establishments in competing malls. These factors give credence to the possibility that the "Town- Serving" provision may no longer be necessary or effective in the C -WA District. I I C -TS District: With regard to the CTS District, we believe that, despite some approvals - Serving" provision remains valuable, although it of larger establishments, the "Town would appear that the threshold could be raised to 4,000 square feet without undue effect. A little over half the special exception approvals have been for uses less than 4,000 square feet. In fact, 85% of the approvals for retail and service uses (except restaurants) involved no more than 4,000 square feet. While there can be no objective confirmation, we believe the size limitation as applied in the C-TS District may have encouraged some applicants to limit business sizes to less than may have been the case without the "Town- Serving" provision. C -PC District: There have been only two special exception approvals for businesses in excess of 2,000 square feet in the C -PC District since 1990. Therefore, there is little basis for modifying the regulations of this district. In fact, the Town has expressed considerable concern in the past over the possibility of creating "increased development opportunities" in the C -PC District because of the possible effect upon the 1979 agreement between Town and the Royal Poinciana Plaza with regard to the continued existence of the Royal Poinciana Playhouse. Consequently, we recommend retaining the "Town- Serving" provision as it now applies to this district. 26 of 27 3. Are there better alternatives to the "Town- Serving" provision? The current use of gross leasable area allows for a degree of objectivity in determining whether or not a business qualifies as "Town- serving ". For this reason, we cannot recom- mend any alternative approach. We believe that the "Town- Serving" provision is still appropriate and useful in the Town in some instances but that some modification may be warranted. These modifications are incorporated into our recommendations, which follow. RECOMMENDATIONS 1. C-WA District: Eliminate the "Town- Serving" provision in this district. If this is not acceptable, as an alternative we would suggest that the "Town- Serving" provision not apply in the 100 block of Worth Avenue, and that the threshold be increased to uses over 6,000 square feet for the balance of the district. 2. C -TS District: Retain the "Town- Serving" provision but increase the threshold to uses over 4,000 square feet, above which it becomes necessary to prove that the majority of its patrons will be "Townpersons ". 3. C- ®PI and C -D Districts: Eliminate the "Town- Serving" provision in these districts. 4. C-PC District: Retain the "Town- Serving" provision as it now applies in the C -PC District. 5. Exclude short -term occupancy uses (hotels, motels, bed & breakfasts, and time - sharing) in commercial districts and multi - family residential districts from the "Town- Serving" provision. Such uses are by definition "Town- Serving ". The Town's code already limits accessory commercial uses in such uses. For example, Sec. 134 -1906 requires that accessory commercial uses in hotels and condominiums be limited to not more than 15% of the total floor area and requires that such accessory commercial uses be entirely located within the principal building with no outside entrances thereto. 6. The "Town- Serving" provision is now applied to any special exception use. This becomes problematic when applied to a use that is not located in a commercial district or which use is not commercial in nature. For example, in the R -D district houses of worship, non -profit cultural centers and private and public academic schools are special exceptions and are subject to the provision of Sec. 134 -229 that "The proposed use will not attract the principal portion of its customers /clients from off - island locations..." We suggest that the "Town- Serving" special exception criteria should only be applied to commercial enterprises. 26 of 27 7. It appears to us that once a business has proven to the Town Council's satisfaction that it is "Town- Serving" it should not be necessary to prove or certify each year that it continues to qualify. If the information provided initially was adequate, it is entirely likely that the business will be able to substantiate continued compliance. The Town, however, should retain the right to request substantiating documentation by the business if the Town has reason to believe that the business is not continuing to meet the "Town - Serving" criteria. 8. Finally, it should be recognized that the "Town- Serving" concept and the 2,000 square foot limitation is contained in the text of the Future Land Use Element of the Town's Comprehensive Plan which describes the intent and types of uses envisioned as allowable within the Commercial Future Land Use Category. Any change to the "Town- Serving" square foot threshold or to areas and types of uses that may be excluded from this concept will necessitate a text amended to the Comprehensive Plan. f I i I I i I i I i i 27 of 27