Miami Beach

Clevelander Hotel owners submit plan to turn South Beach landmark into housing development

The proposal calls for an 18-story housing high-rise with 137 residential units and a ground-floor restaurant.

NBC Universal, Inc.

The owners of the Clevelander Hotel and Bar are stirring up controversy in Miami Beach after submitting plans to turn the iconic landmark into a housing development.

The proposal calls for an 18-story affordable housing high-rise, with more than 120 residential units and a ground-floor restaurant. That's shorter than the 30 stories suggested last month. At least 40% of the units would be affordable housing, and the existing art deco-style Clevelander Hotel and Essex buildings will remain.

One of Clevelander's owners spoke to NBC6 in September, explaining their perspective on the plans.

“It provides affordable housing in an area that is drastically underserved, and it creates a new iconic architecture in a neighborhood that wants to transform," said Anthony O'Brien, senior managing director of the Jesta Group.

An 18-story development is reportedly still too large for Commissioner Alex Fernandez, who released a statement saying the project could open the door to overdevelopment in the Art Deco District.

He also argues that not only will the high-rise stick out like a sore thumb in the historic district, but it won’t be affordable enough for the residents in the area.

“This is a slap to the face to its heritage, to its culture, its residents and residents who value historic preservation," Fernandez argued. "There’s nothing affordable about this. You’re talking about housing for people who could make 90 or 90,000 with studios at about $2,100 a month. So, how is that really affordable?”

“I will agree with you that there are affordable rentals that are dramatically lower for people that are impoverished," said Alexander Tachmes, an attorney for the Clevelander. "This is more along the lines of workforce housing.”

Fernandez claims the owners are taking advantage of the state’s Live Local Act, which incentivizes affordable housing and allows developers to bypass local zoning ordinances. Miami Beach Mayor Dan Gelber said he's worried others will follow suit.

"If they can get that done than any other parcel in the area can do exactly the same thing at the same height or higher, which would be the end of Ocean Drive," Gelber said.

The Miami Beach Planning Board on Tuesday will consider proposals aimed at lowering heights allowed for new buildings within a mile of Ocean Drive. Fernandez is a sponsor of the two legislative initiatives and says he will be present Tuesday to address the significant impacts of the Live Local Act and work to protect Miami Beach's unique character.

A planning board is reviewing the submitted proposal for the Clevelander. Any action likely won't happen until commissioners meet in December.

Contact Us