Clevelander owner files plans for 18-story tower under state’s affordable housing law

The owner of the historic Clevelander and Essex House in South Beach filed long-awaited plans for an 18-story tower that would be made possible by the state’s new affordable housing law. 

Montreal-based Jesta Group first announced its plan to redevelop the Miami Beach hotels at 1020 and 1001 Ocean Drive in September. Jesta said at the time that under the state’s Live Local Act, the proposed development could be up to 30 stories tall. The announcement sparked immediate criticism from Miami Beach politicians and elected officials, who said a 30-story building would be out of place on Ocean Drive and could set a precedent for redeveloping historic buildings.

Because Florida Senate Bill 102 supersedes local zoning rules regarding height and density, the developer’s application “is to be reviewed at staff level and is not subject to public hearings,” writes Jesta’s attorney, Alexander Tachmes of Shutts & Bowen, in the site plan application submitted to the city on Monday.

Jesta, led by Senior Managing Director Anthony O’Brien, plans a 137-unit residential tower with 55 of the units set aside for affordable housing, according to Tachmes’ letter. The affordable units would be for rent, and the remaining 82 units would be marketed for sale as condos. The ground floor of the planned 18-story, 200-foot tower would be leased to a high-end restaurant. 

Rents for the affordable housing component would be capped at 30 percent of 120 percent of the area median income. In Miami-Dade County, the AMI is $74,700, which means the rent today would not be able to exceed $2,241 a month. 

The rentals would remain affordable for at least 30 years.

Miami-based Kobi Karp Architecture & Interior Design is designing the project. 

Jesta said it would knock down the five-story Clevelander annex building that was built in 2009. The developer plans to connect the project via a pedestrian bridge over Ocean Court and preserve the historic portions of the Clevelander and Essex buildings. The new tower would rise at the rear of the Clevelander building next to the alley, according to the application. 

Jesta acquired the buildings in 2018 for $28.5 million. The Clevelander was originally built in 1938 and designed by Albert Anis. It has 60 hotel rooms, a swimming pool and patio area, sundeck, rooftop terrace, sports bar and restaurant. Together with the 70-key Essex, the properties total nearly an acre of land.

On Tuesday, at the direction of the commission, the Miami Beach Planning Board voted to move forward with creating a review process for Live Local projects.

Board member Tanya Katzoff Bhatt, who referred to the Live Local Act as a “God awful law,” pushed for a temporary moratorium on new projects that fall under it. 

The law doesn’t require or ask cities to inform residents of new project applications, to which Bhatt responded: “Are you f**king kidding me?” 

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Doral, developer reach height compromise on Live Local project

The Clevelander proposal is the first in Miami Beach to potentially take advantage of the Live Local Act. 

Other cities are grappling with how to process these applications and work with developers to potentially lower the height of their proposed projects. In Doral, the city council last week reached a compromise with Apollo Companies that allows the developer to work outside of a moratorium on a 17-acre development called Oasis at Doral. Apollo lowered the height of the tallest buildings to eight stories from 12 stories as part of the agreement.