Steve Ross’ plan to redevelop oceanfront Deauville into Frank Gehry-designed project heads to Miami Beach voters

After securing the blessing of the majority of the Miami Beach City Commission, billionaire developer Stephen Ross’ proposal to build a two-tower residential and hotel complex on the site of the historic Deauville Beach Resort is heading to voters Nov. 8.

Miami Beach Commissioner Kristen Rosen Gonzalez was the sole ‘no’ vote on the three resolutions tied to the Deauville redevelopment at Wednesday’s commission meeting.

Residents in November will be asked to approve dramatically increasing the allowable size of a development for specific properties between 65th and 69th streets in North Beach, which includes the Deauville at 6701 Collins Avenue. If approved, the resolutions would then return to the commission for second reading on Dec. 7.

Ross, founder and chairman of New York-based Related Companies and owner of the Miami Dolphins, enlisted famed architect Frank Gehry to design the proposed two-tower building. Gehry, who is 93, and Ross, 82, each spoke in person on Wednesday, and recounted their childhood ties to the neighborhood.

“Four of my father’s brothers and sisters worked here and lived here,” Gehry said. And Ross grew up in North Beach.

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The developer is seeking a floor area ratio (FAR) increase from 3.0 to 4.5, which increases the size of a future project on the 3.8-acre property. Ross has said he plans to build an Equinox-branded 175-key hotel and 150-unit luxury condo development, separated by a 200-foot-wide garden. The buildings would be up to 375 feet tall. A model and preliminary renderings show the residential building would be taller than the hotel.

Ross’ Related entered into a deal to purchase the oceanfront Deauville from the Meruelo family, which has been accused of letting the property fall into disrepair to the point where the historic structure could not be saved. A full demolition is expected in September or October.

Ross and Related have declined to disclose their purchase price for the property, which was rumored to be asking half a billion dollars.

Ross’ proposal to buy the property is contingent on securing the proposed zoning changes. At Wednesday’s meeting, Ross’ attorney, former Miami Beach Mayor Neisen Kasdin, said the developer would provide an additional $12 million in public benefits, which could be used for affordable or workforce housing.

Rosen Gonzalez asked Ross for $25 million, prompting him to get up and respond to her directly.

“When you’re [building] a world class project, this is going to cost a lot more money, and it’s going to have a lot more impact, and therefore there’s only how many dollars you can pay extra,” Ross said. “If you go by numbers, what you typically charge for FAR it’s not going to work in this case … it’s just not another building. So you can negotiate. We’re not interested. We’re interested in providing the best building in this community that will have the biggest impact in this community.”

Rosen Gonzalez pushed back against the claim that Ross and Related would be doing the city a favor by buying the property from the Meruelos and redeveloping it into a Gehry-designed complex. Miami Beach Mayor Dan Gelber, who brought the initial proposal to the commission in May, has praised Ross’ plan, as have other commissioners.

“We are generating a tremendous amount of potential future wealth for the Related [Companies],” Rosen Gonzalez said.

In Miami Beach, properties that are designated historic, like the Deauville, are protected from demolition, unless the structure is declared unsafe. An engineering report submitted late last year by the Meruelos, who owe the city millions of dollars in fines, kick-started the demolition process.

By allowing the Meruelos to profit from the sale of the property and not be forced to rebuild the building, the city is “possibly creating a precedent we cannot reverse in historic preservation,” Rosen Gonzalez said, asking other commissioners if the laws in Miami Beach matter.

Commissioner Alex Fernandez said he took “great offense” to North Beach being widely referred to as a “slum” and “blighted.”

“Through gross negligence we are losing history in Miami Beach because of them,” Fernandez said, referring to the Meruelos.

“The owner of this property is still the Meruelos,” Rosen Gonzalez added. “They have circumvented every single one of our laws. If we allow this, why wouldn’t the Fontainebleau do this? Why wouldn’t the Eden Roc?”

The alternative is to be stuck with an empty property for “potentially decades,” commissioner Ricky Arriola said, adding that the commission can “sit up here and grandstand for the audience” but that they have the opportunity to turn a bad situation into an amazing one.

“In some ways it feels like we’re rewarding the bad actors,” commissioner Steven Meiner said.

With the purchase of the Deauville, Ross/Related would also be buying the parking garage that the Meruelos own at 6625 Indian Creek Drive, which Kasdin implied would house parking for the oceanfront property, eliminating the need for a parking pedestal to be included in the Deauville redevelopment.

If approved, the developer agreement with the city would specify that Ross/Related is the developer and Gehry is the architect. Once a developer agreement is finalized, the city would receive a check for the public benefits. Ross said he would not flip the purchase contract to another buyer, and emphasized that he will develop the project if the zoning changes are approved and he closes on the acquisition.

The resolution would also affect the neighboring property owners, increasing their FAR to 3.0 from 2.25, covering certain properties from 6605 to 6757 Collins Avenue.