Clevelander to submit plans for redevelopment under new affordable housing act

MIAMI BEACH, Fla. – Ocean Drive may have a whole new look in the coming years. The owners of the famed Clevelander Hotel and Bar have announced plans to transform the property into affordable housing under Florida’s newly enacted Live Local Act.

According to an email sent to Local 10 News, the Jesta Group, owners of the Clevelander and adjoining Essex House hotel properties, have plans to meet with the city of Miami Beach to submit architectural plans for this project under the act, which went into effect on July 1.

The act is a statewide workforce housing program designed to increase the availability of affordable housing opportunities. Under the act, the Clevelander redevelopment project’s maximum density would be 150 residential units per acre and would be 30 stories high. 40 percent of the building would be reserved for affordable rentals.

Additionally, the owners said in an email, affordable housing units rental pricing would not exceed 30 percent of 120 percent of adjusted median income for Miami-Dade County and would be guaranteed to stay affordable for 30 years.

For years, the Miami Beach Mayor and Commission have been attempting to change the business model of South Beach in order to reduce its supposed dependency on nightlife tourism. Until now, there has been no forum for dialogue with the Mayor’s office regarding reasonable and effective tools that would make it financially feasible to revamp the Clevelander’s current business model.

Jesta Group, Property Owner

“It’s pretty outrageous and insulting to the city. I think shame on them. I know what we’re asking for. They don’t have to tell me what we’re asking for. We’re not asking to tear up ocean drive and put up 30 story buildings everywhere. We have worked on work force housing but we’re not doing it at the expense of our most cherished historic areas ” said Dan Gelber, Miami Beach Mayor.

According to a media release, the new development will transform the Clevelander from its current use as a hotel and bar with outdoor entertainment until 5 a.m. into a residential development with hotel services and a high-end restaurant on its ground floor.


About the Authors

Veronica Crespo writes for Local10.com and also oversees the Español section of the website. Born and raised in Miami, she graduated from the University of Miami, where she studied broadcast journalism and Spanish.

Christian De La Rosa joined Local 10 News in April 2017 after spending time as a reporter and anchor in Atlanta, San Diego, Orlando and Panama City Beach.

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