The Clevelander Hotel Transforms into Affordable Housing Complex in Response to Florida’s Live Local Act

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The iconic Clevelander Hotel, located on Ocean Drive in Miami Beach, is set to undergo a transformative change in response to Florida’s recent Live Local Act. The owners of the hotel, Jesta Group, have announced plans to convert the establishment into a residential complex that includes affordable housing units. This move comes as part of the initiative to promote the creation of affordable housing in the state.

The proposed project, which will be presented to the city of Miami Beach in the coming days, aims to allocate 40% of the units as affordable housing. The development will adhere to the provisions of the Live Local Act, including a maximum height of approximately 30 stories. Anthony O’Brien, senior managing director of Jesta Group, believes that this new legislation provides an opportunity for the hotel to adapt to the changing demands of the community.

As part of the transformation, the project will also incorporate a restaurant on the ground floor, while preserving the historic Art Deco facades of the existing buildings. This change is expected to benefit various parties, including the city and hospitality workers, by offering more housing options within the community.

While the proposal has generated differing opinions, Miami Beach Mayor Dan Gelber has expressed his disagreement, referring to it as the “worst idea in history.” Gelber argues that a 30-story building would alter the iconic image of the city. On the other hand, municipal commissioner Ricky Arriola takes a more positive stance, suggesting that similar projects could contribute to the creation of more affordable housing and the revitalization of Ocean Drive.

The Clevelander Hotel, a South Beach icon, has been a mainstay in the community since its construction in 1938. In the 1980s, it played a significant role in the revitalization of South Beach and has remained a popular meeting point for locals and visitors. The hotel is well-known for its outdoor pool and patio, which have become popular recreational spots in the area. In 2009, it underwent renovations to update its facilities while preserving its historic charm.

In a recent legal dispute with the city, the Clevelander opposed a city initiative to reduce alcohol sales hours to 2 a.m., which was part of broader efforts to modify the lively atmosphere in South Beach. However, the hotel is now embarking on a new phase as it adapts to recent state policies promoting housing affordability. This shift reflects the changing dynamics of Miami Beach, as the area strives to balance its historical legacy with current demands and opportunities.

The Live Local Act, implemented in July, provides $711 million to support the construction of affordable housing. Under this regulation, developers can create residential projects with at least 40% of units designated as affordable housing for families with incomes up to 120% of the area average. In Miami-Dade, this translates to an estimated annual income of around $75,000. Additionally, the act allows for greater density and height in these projects, overcoming local zoning restrictions, with the aim of integrating more workers into the communities they serve. However, this strategy has sparked debates over its impact on historic areas.

The transformation of the Clevelander Hotel into a residential complex marks a significant shift for the South Beach landmark. As the hotel adapts to the changing landscape and embraces affordable housing, it signifies a step towards a more inclusive community that caters to the needs of its residents.