Tensions ran high during a Miami Beach commission meeting on Wednesday over the Meruelo family and David Martin’s proposed redevelopment of the Deauville Beach Resort.
The Meruelo family and Terra plan a 120-unit condo and 150-room hotel project on the 3.8-acre oceanfront site at 6701 Collins Avenue. The project, with two condo buildings and the hotel, would be designed by Foster + Partners, Shulman + Associates and ODP as the project architect.
As next steps, commissioners voted in favor of a settlement agreement and development agreement related to the property. The items, along with pending land use changes, will return to the commission May 21 for final reading, potentially capping a yearslong effort to redevelop the site.
The proposed development agreement, approved unanimously on first reading, outlines what could be built: a partial reconstruction of the Deauville, up to 200 hotel rooms, 140 residential units, ground-floor retail and public parking.
The Deauville project’s controversy lies in the developers’ attempt to increase the floor area ratio (FAR) that would allow for a much taller structure on the site. Also, the Meruelos have been criticized for letting the Deauville resort fall into such a state of disrepair that it had to be demolished. Martin’s Terra joined as a 25 percent partner in the property about a year ago.
In the settlement agreement that the commission unanimously approved, the owners of the Deauville would pay about $6.3 million in fines owed to the city, including fees for the demolition by neglect, unpaid utility bills and code violations. Half of that, $3.15 million, is already in escrow. The fines will settle litigation between the owners and the city.
Commissioners also unanimously approved a second part to the settlement that will require the developer to make parklike changes to the development site, including lighting, irrigation and a site plan.
The two-part settlement agreement will return to the commission on second reading.
As part of the development agreement, the developers would include public access to the lobby, public beach access pathways, $7.5 million in funds for the Byron Carlisle housing project, $250,000 to design and develop a pocket park, $400,000 in infrastructure funding and more.
The property currently has a floor area ratio, or overall project size, of 3.0 to 3.15. The developer is seeking legislative changes that would allow for an FAR of 5.5, for a project that could span nearly 916,000 square feet. The project would include a partial reconstruction of the Deauville and a proposed height of 380 feet tall. That could equate to 38 stories, if each floor is about 10 feet tall. Commissioners took up these amendments on first reading in March.
The Deauville, built in 1957, was about 185 feet tall and 17 stories. It was demolished in 2022.
During the meeting, some neighboring residents voiced their support for the project, while others said they just want the site to be developed. Still others opposed rewarding the Meruelos with approvals that they said could set a precedent for future projects.
Commissioner David Suarez sparred with some of his fellow commissioners, who asked Martin to disclose how much it will cost to build the project. Martin told the commission the blended cost to build is about $1,500 per square foot. That would equate to up to $1.374 billion if the highest FAR is approved and built.
Suarez requested the city hire an economic real estate consultant to determine the value of the FAR increase and comprehensive land amendment that the developer would receive, if approved on second reading next month.
“Let me ask everyone in this room … How do you know that this agreement is a fair deal to the residents of Miami Beach? Let’s be clear at this point, we’re selling zoning,” Suarez said. We’re now in the business of selling FAR and height to developers, which, by the way, I’m totally against. And if we’re going to be in the business of selling FAR and height to the highest bidder, Wouldn’t it seem prudent to know exactly what the best deal is?”
Martin said he would build only condos on the site if he and the Meruelos don’t secure their approvals. “We need the FAR to be able to replicate or build a hotel,” Martin said.
A previous effort led by billionaire developer Steve Ross to develop the property into a Frank Gehry-designed project failed to garner voter support via a referendum in 2022. Ross had no plans to include a reconstruction of the former historic structure. A vote is no longer required due to a change in state law in 2023.
Commissioner Alex Fernandez said he believed that voters rejected Ross’ plan “in large part because there was no homage to the Deauville.”
“We begged Stephen Ross, ‘Do something to honor the Deauville,’” Fernandez said. “And he flat out told the community, ‘Absolutely not.’”
Read more
Development
South Florida
Miami Beach commission grants initial approval of Deauville redevelopment
Development
South Florida
Deauville redevelopment secures Miami Beach planning board’s blessing
Development
South Florida
Meruelo family, David Martin propose big plans for Deauville Miami Beach site
