Developer Trims Height Of Proposed Clevelander Redevelopment After Outcry

The owner of the Clevelander South Beach hotel and bar in Miami Beach submitted a proposal Monday to replace the party hot spot with an 18-story residential development, revising its initial plan to build a 30-story tower on the site, which met with public pushback and criticism from elected officials.

Jesta Group, which owns the Clevelander bar at 1020 Ocean Drive and the adjoining Essex Hotel, is planning a 137-unit residential development on the site, with 55 units set aside for workforce housing and the remaining units for sale as high-end condos, the Miami Herald reported. The plan would preserve the facades of the two properties, with the new building rising behind it. 

The Canadian real estate investment firm is planning to win approval for the project through an affordable housing law called the Live Local Act, which went into effect in July and mandates approval, even over local zoning guidelines, for certain projects that set aside at least 40% of their units for workforce housing.

“After several weeks of consultation with key stakeholders and an architectural study of existing building heights throughout the South Beach neighborhood, we have decided to build a project that is far below the maximum height allowed under Live Local,” Anthony O’Brien, senior managing director at Jesta, wrote in an emailed statement. “At 18 stories, the project will be compatible with the many buildings in South Beach that are of equal or greater height.”

The new proposal for a 200-foot-tall tower with a ground-floor restaurant designed by Kobi Karp Architecture comes after Jesta faced a wall of opposition when it revealed plans in early September to build a 30-story building at the site. The revised plans would still be the tallest development along an iconic strip of Ocean Drive filled with low-rise art deco hotels and bars.

Miami Beach politicians and candidates running in a November election were quick to blast the original plan, and officials debated ways to block the project, including floating a plan at a city commission meeting to sue the state in federal court over the provisions of the Live Local Act.  

Among the law’s provisions, meant to spur development of affordable and workforce housing, are rules that effectively increase the maximum allowable height and density of residential projects that include a minimum of 40% of units set aside for people making up to 120% of the area median income, which was $86,760 as of May. 

Buildings along the strip of Ocean Drive where the Clevelander is located are restricted to a maximum height of 50 feet by local zoning regulations, but Live Local would allow Jesta to build a tower as tall as zoning allows within a 1-mile radius. Jesta said in its plan submission to Miami Beach that the law makes the maximum allowable height at the site 519 feet, or 52 stories, according to the Herald. 

The proposal comes as Miami Beach looks to shed its reputation as a destination for partygoers while providing more affordable housing. Miami is the fifth-most-expensive market in the country, with a one-bedroom apartment costing $2,690 per month, according to Zumper. 

Studio apartments at the planned development could be leased for around $2,100 per month under the income restrictions in the Live Local Act. 

O’Brien said the project would “directly address the massive affordable housing crisis in South Florida” and would “deliver exactly what the Mayor and City Commission have been trying to do for years, namely, to replace hotel and nightlife businesses with more residential and community-based retail to create a more balanced neighborhood.”

Despite the revised height, Jesta’s plan is likely to face pushback from local officials. Miami Beach Mayor Dan Gelber told the Herald that the building would lead to the “demise of Ocean Drive as we know it” and said “the only idea worse than this one was the first version.” 

The Miami Beach Planning Board will also consider proposals Tuesday that are aimed at lowering the allowed height of new buildings within a mile of Ocean Drive in response to the Live Local Act and the original Clevelander redevelopment plan, the Herald reported. 

The project will still be subject to review for setback and parking requirements, but if it is approved by planning staff, Jesta could bypass public hearings and seek permits to begin construction.

“We welcome dialogue with community stakeholders regarding our project and look forward to receiving the formal comments of the Planning Department to our application as we move directly to obtaining a building permit,” O’Brien said.