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Bills Threatening Miami Beach Buildings Are Back

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Last May, preservationists across Florida breathed a sigh of relief when a bill seeking to gut protections for historic coastal buildings died in the Florida House after passing the Senate. But similar proposals are back for this year’s legislative session in Tallahassee, sending local leaders scrambling once again.

On Monday, the Senate version of the bill passed its first committee hearing — a 6-2 vote of the Community Affairs committee — despite a parade of speakers saying they feared the language would let developers strip away the unique character of tourist destinations like Miami Beach, St. Augustine and Key West. At the legislation’s core is a notion that old buildings near Florida’s coast ought to be demolished if a local building official deems them unsafe or if they don’t meet federal standards that call for flood-resistant materials and elevated structures in vulnerable areas. Preservationists say few historic buildings conform to those rules.

Both the Senate bill and its companion bill in the House would exempt single-family homes, as well as structures that are individually listed in the National Register of Historic Places. In Miami Beach, that includes the Fontainebleau, Cadillac and Ocean Spray hotels. But historic hotels along Collins Avenue in the Mid-Beach and North Beach neighborhoods would not receive similar protections under either proposal. Among them are Art Deco buildings like the Faena, Sherry Frontenac, Casablanca and Carillon.

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The Senate bill sponsor, Bryan Avila, a Republican from west Miami-Dade, acknowledged during Monday’s hearing that the idea is controversial. His proposal would kneecap Miami Beach’s Historic Preservation Board, which is empowered to block demolition of historic buildings and, if a building is knocked down, dictate what can go in its place.

Avila reiterated arguments he made for similar legislation he filed last year. He painted Miami Beach as a community that has gone too far in its historic protections, upsetting what he described as a “very delicate dance” between preserving history and maintaining property rights. About 2,600 buildings in Miami Beach are part of locally designated historic districts.

HOUSE BILL WOULD SOFTEN THE BLOW

Rep. Spencer Roach, R-North Fort Myers, has filed a companion to Avila’s bill in the Florida House with language that would soften the legislation’s impacts. Last year, Roach abandoned a similar bill amid fierce opposition from local governments but vowed to bring it back in 2024. While Avila’s bill would affect buildings within a half-mile of the coast, Roach’s proposal is limited to properties at least partially east of the state’s coastal construction control line, a boundary that hugs the coast and is meant to restrict construction near beaches. Roach’s bill, which has not yet faced a hearing, would also exempt buildings in nationally designated historic districts established before 2000 — meaning the Miami Beach Architectural District, an area that stretches from Ocean Drive at Sixth Street to Collins Avenue at 22nd Street, would be protected.

‘BAD, BUT LESS BAD’

Facing questioning Monday from Sen. Jason Pizzo, D-Hollywood, Avila pledged to revise his bill to make it more like the House version.

“I am committed to going in that direction and working with the House sponsor to adopt that language,” he said. Avila did not respond to an inquiry from the Miami Herald on whether he would adopt the entire House bill or parts of it. The House bill is “bad, but less bad than [the Senate] one,” said Daniel Ciraldo, executive director of the Miami Design Preservation League, which advocates for historic preservation in Miami Beach. “They’re trying to undo decades of good urban planning and community consensus building,” Ciraldo said. “We’re basically trying to explain why Miami Beach should still exist.”

Miami Beach City Commissioner Alex Fernandez said at Monday’s hearing that the city has worked cooperatively with owners of historic buildings to revitalize Art Deco gems, pointing to a $500 million renovation of The Raleigh and an $85 million makeover for The Shelborne.

The proposed legislation, Fernandez said, would only encourage owners to let their properties fall into disarray in order to incur unsafe structure violations and make it easier to knock buildings down. In Key West, Mayor Teri Johnston said she hopes the city will ultimately be removed from the legislation. Last year, language added to Avila’s proposal exempted “areas of critical state concern,” which includes Key West and much of the Florida Keys.

‘WHAT HAPPENED TO PROPERTY RIGHTS?’

Lawmakers supporting the bills say property owners should have more freedom to develop than Miami Beach and other cities with strict historic protections allow.

“What happened to property rights?” Sen. Dennis Baxley, R-Lady Lake, said at Monday’s hearing. “Everybody else has a claim to somebody’s property but the person that owns it, apparently. I don’t share that viewpoint.”

The bills’ backers also say the changes are crucial to ensuring building safety and resiliency against flooding near Florida’s coast. Last year, Avila argued it was necessary to replace older buildings with new structures that meet FEMA rules for flood- and storm-surge resistance to obtain insurance under the National Flood Insurance Program.

Opponents say they’re skeptical and that they believe powerful — and secretive — interests may be behind the effort. Last year, a group called A Resilient Future Florida hired a lobbying firm to push for the bills, according to public records. One of the firm’s lobbyists, Gov. Ron DeSantis’ former chief of staff Adrian Lukis, sent a draft of the legislation to staffers for Avila and Roach, according to records obtained by reporter Jason Garcia.

But it’s unclear who is funding the group, which donated $40,000 late last year to several political committees supporting Republican lawmakers. It was incorporated last March by Tallahassee elections attorney Natalie Kato and lists two Jacksonville residents, Joey McKinnon and Casey Hendershot, as its officers. Reached by phone, McKinnon and Hendershot declined to talk about their roles in the group or what it does, referring questions to Kato. Kato did not respond to a request for comment. This year, records show the group has again retained Lukis to lobby on the legislation. Lukis did not respond to a request for comment.

 

Source:  Miami Herald

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Miami Beach South Of Fifth Projects Could Score More Density

In Miami Beach’s South of Fifth neighborhood, more density is the carrot. And three hotel owners are the rabbits.

And at least one of those hospitality landlords, an affiliate of Miami-based Key International, is eyeing that carrot.

The Miami Beach City Commission on Wednesday approved a measure that would encourage South of Fifth hotel owners to redevelop their properties into condominiums or multifamily projects. By agreeing to convert their land from transient uses such as hotels, hostels and short-term rentals to residential use, the owners would get an increase in the allowable floor area ratio, or FAR, to 2.75 from 2.0, according to a city memo.

Key International owns the Marriott Stanton South Beach at 161 Ocean Drive, through its affiliate Komar Investments, records show. The Key International affiliate is interested in exploring possible redevelopment of the 224-room hotel and taking advantage of the density bonus, said Christopher Penelas, an attorney for the hotel owner.

The legislation, sponsored by Miami Beach city commissioner Alex Fernandez, was mandated by Miami Beach residents. In November, 66 percent of voters approved a referendum directing the city to enact the legislation.

In order to receive the density bonus, property owners must pledge that any new projects will not allow rentals shorter than six months.

 

Source:  The Real Deal

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Miami Beach Imposes Regulations For Fractional Ownership Homes

Companies offering fractional ownership of luxury properties in Miami Beach will have to follow new city regulations.

The Miami Beach City Commission on Friday unanimously approved an ordinance that requires condominiums and single-family homes that are owned by investors that buy shares of a property to abide by the city’s law that bans short-term rentals in some neighborhoods.

The fractional ownership ordinance largely targets Pacaso, a San Francisco-based tech company that allows investors to purchase as little as a one-eighth interest in second homes.

In Miami Beach, Pacaso is offering investment opportunities in a condominium and two single-family homes on the Venetian Islands and on Alton Road, according to the company’s website. The minimum investment for the three properties ranges from $385,000 to $867,000.

The new ordinance requires Pacaso and similar firms to have a local manager, available 24 hours a day, for each fractional ownership property in Miami Beach, as well as to comply with a code of conduct. Fractional ownership property managers will also be required to sign affidavits that condos and houses will not be rented on a short-term basis.

City staff worked with the fractional ownership industry to draft the ordinance, Miami Beach commissioner Alex Fernandez said at the commission meeting. Fernandez sponsored the measure.

“We can’t prohibit [fractional ownership,]” Fernandez said. “But this is what we can do.”

In a statement, Pacaso CEO Austin Allison said his company will adhere to the new ordinance.

Pacaso expanded into South Florida in 2021. The company sets up limited liability companies for joint ownership and collects maintenance fees from clients. Pacaso manages more than $200 million of real estate and has annualized revenue of $330 million, according to a press release.

Miami Beach has some of the toughest short-term rental restrictions in South Florida that come with hefty fines for owners who violate the city’s regulations. Sometimes, the city’s crackdown has led to favorable outcomes for property owners. In 2021, the city settled a lawsuit brought by an affiliate of Miami-based Safe Harbor Equity, which owns a four-bedroom house at 3098 Alton Road. Safe Harbor sued the city over short-term rental fines assessed on the property.

Miami Beach agreed to pay Safe Harbor $250,000, as well as waive about $200,000 in fines.

 

Source:  The Real Deal

 

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