What’s next for plan to turn the Clevelander into housing? Here’s where it stands
When the owners of the Clevelander Hotel and Bar made the bombshell announcement earlier this month that they intended to convert their business to a high-end restaurant and residential project as tall as 30 stories, they said they would give architectural plans to the city of Miami Beach “in the coming days.”
But nearly three weeks later, no plans have been submitted under Florida’s Live Local Act aimed at incentivizing affordable and workforce housing. And the Clevelander owners and city officials don’t seem to be seeing eye to eye.
Last Wednesday, representatives for the hotel and bar’s owners, Montreal-based developer Jesta Group, met with city planning staff in search of guidance on what type of proposal might be acceptable to the city. Prominent local architect Kobi Karp was there with the Clevelander team, according to a city memo.
But the Clevelander didn’t present any plans or renderings, the memo says. City officials were reluctant to give feedback without more details.
“Based on the meeting, an application does NOT appear to be imminent,” Deputy City Attorney Nick Kallergis said in an email Friday to City Attorney Rafael Paz. “Staff was surprised when they asked for feedback, given that they gave us no concrete information about what the project would be.”
An attorney for the Clevelander, Alexander Tachmes, told the Miami Herald the owners of the famed Ocean Drive party spot are hoping for a “collaborative process” with the city.
While a Sept. 7 press release said they planned to submit the project under the provisions of the Live Local Act, which would let them bypass various zoning and public hearing requirements, Tachmes now says the Clevelander’s “preference” is to negotiate changes to the city code and avoid the Live Local process entirely.
“This does not have to be a Live Local project,” Tachmes said. “If the city does not want to cooperate with us, then we have no choice but to proceed under Live Local.”
City may still control floor-area ratio
Cooperation, it seems, would mean an agreement by the city to increase the allowable floor-area ratio (FAR) — a method of regulating building size — at the site of the Clevelander and adjacent Essex House, also owned by Jesta.
The Clevelander owners have said they could build up to 30 stories tall under the Live Local Act. The legislation lets developers build as high as local zoning within one mile allows in mixed-use districts, as long as they agree to make 40% of residential units affordable for 30 years to people making up to 120% of the area median income. The area median in Miami-Dade County is $74,700 and 120% of that is $89,640.
But there is ambiguity in the legislation over whether cities still control FAR. The Clevelander would likely be hard-pressed to build its desired project without a FAR increase, which must be approved by the City Commission.
A bill passed by the Florida Legislature this year prevents such development matters from being decided by voters, putting an end to the type of development referendums that have been common in Miami Beach in recent years.
“It was very clear as part of the conversation that they were looking for guidance, input, feedback, and support from City staff regarding their desire to seek additional height and additional FAR,” Kallergis said in the email to Paz. “However, staff was not able to provide such guidance because 1) staff had no plan or proposal to react to, and 2) we have not yet received any policy direction from the Commission regarding a potential increase in height or FAR.”
‘Worst idea ever’ or ‘unique opportunity’?
Miami Beach elected officials have broadly condemned the idea of a residential tower on Ocean Drive, saying it would destroy the character of the iconic row of hotels and bars where building heights are limited to 50 feet. They have mulled their options to fight against the Clevelander plan and any future Live Local projects, floating the idea of legal action or lowering allowable heights across South Beach.
Mayor Dan Gelber has called the Clevelander proposal the “worst idea ever.”
But the Clevelander owners have painted this as an opportunity for the city, after years of complaints about the raucous atmosphere on Ocean Drive and failed attempts to move last call for alcohol sales from 5 a.m. to 2 a.m.
“If you really want the change, this is the opportunity to do that,” Tachmes said. “It’s important for the city to take a breath and not immediately dismiss the project, as some people have done, and view it as a unique urban planning opportunity.”
Tachmes said he believes parts of the proposal have been “misconstrued,” stressing that the historic structure of the Clevelander would be restored, not demolished.
A new residential tower would replace the adjacent Essex House building and feature luxury condos, he said, while the existing Clevelander building would be renovated and likely house the “affordable” rental units.
The project would feature a maximum of 137 units, according to Clevelander representatives. The rental units could go for more than $2,100 per month for studios based on median income limits in Miami-Dade County.
Clevelander representatives told city officials they would be open to a project “substantially below” 30 stories, Tachmes said. He declined to share specifics and said details of their proposal, other than a partial rendering shared in a press release earlier this month, are not available.
Still, Tachmes rebuffed suggestions by some city officials that their announcement was a “bluff.”
“It’s not,” he said. “We’re going to move ahead, one way or the other.”
This story was originally published September 26, 2023 at 1:57 PM.
