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Dempsey Vanderbilt Presentation to City Commission 5.26.21•MIAMI BEACH CITY COMMISSION •PROPOSED TEXT AMENDMENTS TO RM-3 OCEANFRONT GROUND FLOOR AND ROOFTOP ADDITIONS IN THE ARCHITECTURAL DISTRICT, •Presentation by Bradley Gould, Esq. of GrayRobinson, P.A. on behalf of Setai Hotel Acquisition, LLC (Dempsey-Vanderbilt Hotel) May 26, 2021 •www.gray-robinson.com •Boca Raton | Fort Lauderdale | Fort Myers | Gainesville | Jacksonville | Key West •Lakeland | Melbourne | Miami | Naples | Orlando | Tallahassee | Tampa | Washington D.C. | West Palm Beach SETAI HOTEL ACQUISTION LLC (SHA) •Purchased Dempsey Vanderbilt Hotel •Own/Control 88 units in Hotel •No Units in New Tower •Purchased Units to Operate Hotel •Reasonable Investment Backed Expectation to Operate Hotel with Ocean Views •2 Dempsey Vanderbilt Hotel •Brainchild of Jack Dempsey –World Heavy Weight Boxing Champion •Designed by renowned architect Henry Hohauser •Built in 1937 •Beacon of Art Deco Design in South Beach •Iconic Oceanfront Address •Stunning Ocean Views •Important Attribute/Feature •Rental Rates/Revenue •4 OCEAN VIEW CORRIDOR •Hotel Rooms Have Ocean Views •Across/Through Seagull Hotel Property •Ocean View Corridor Since 1948 •Protected by 142-246(d) •Property Right •3 Section 142-246(d) (2007-3589) •Protects Established & Existing View Corridors •Limits Ground Additions to 5 floors or 50 feet •Prohibits Additions if: •Substantially Reduces Existing or Established View Corridors •Creates Property Right in View Corridor Fontainebleau Hotel Corp. v. Forty-Five Twenty-Five, I •Misconception of the law •No common law right to air, light and view across the adjacent property unless by contract or statute. •The Court explained that if “public policy demands that a landowner in the Miami Beach area refrain from constructing buildings on his premises that will cast a shadow on the adjoining premises, an amendment of its ….zoning ordinance … is the means by which such purpose should be achieved.” Id. at 360 PROPOSED TEXT AMENDMENT •Eliminates Protection of Established & Existing View Corridor •Solely for Benefit of Proposed Bvlgari Hotel Development •Enhance and Enlarge Bulgari Hotel Development •Increase Height & Width of Addition •Create Additional Ocean Views •Still Renovate •Only Impacts Dempsey Vanderbilt Hotel •Eliminates View Corridor as Protected Property Right •Eliminates Ocean View Corridor/Ocean Views BVLGARI HOTEL DEVELOPMENT •BHI Purchased Property Subject to Restriction/View Corridor •No Right to Enhanced Development •No Hardship •Have Ocean Views •Seek More Ocean Views •Admit Impact Dempsey Vanderbilt Hotel •Admit 6 Units Lose Ocean View Corridor (12 to 14 Units) STAFF REPORT/MANAGER’S MEMORANDUM •Acknowledges for Bulgari Hotel Development •Drafted by Bulgari Hotel •Analysis Grossly Inadequate •Fails to Mention/Analyze: 1. Elimination of Protection of View Corridor 2. Detrimental Affect on Dempsey Vanderbilt Hotel 3. Taking Dempsey Vanderbilt/ SHA’s View Corridor for Bulgari Hotel 4. Substantive 5. Payment to City VIOLATION OF SUBSTANTIVE DUE PROCESS •Arbitrary, Capricious, Unreasonable and Improper Motives •Vanderbilt’s Property Rights vs. Enhanced/Enlarged Development •Taking Dempsey Vanderbilt’s Property Rights to Enhance Bulgari Development •Sole Benefit of Bulgari Hotel vs Sole Detriment of Dempsey Vanderbilt •Contract Zoning •Spot Zoning •Payment to City Taking of Property Rights •City is Taking Dempsey Vanderbilt/SHA's Property Rights •Purchase Included View Corridor •Reasonable Investment Backed Expectation Bert J. Harris Private Property Rights Act •Triggers Bert J. Harris Private Property Rights Act •Government Action •Applied to Dempsey Vanderbilt Hotel’s Property •Inordinately Burdens •Established Use ILLEGAL SPOT ZONING •Staff Report Identifies BHI as Applicant for Text Amendments •Sole Purpose to: •Allow Enhanced/Enlarged Development of Seagull •Allow Development Contrary to Existing Regulations •Intended to Apply Only to Seagull Hotel Property •Provides Preferential Treatment to Seagull Hotel Property •Negatively Affects Only Dempsey Vanderbilt Hotel