1663-33 Art Deco/Preservation THU JUL 16 1992 ED: FINAL
SECTION: NEIGHBORS MB PAGE: 18 LENGTH: 32 .52" LONG
ILLUST: photo: Leonard Beach Hotel (Thomas KRAMER) , Thomas
KRAMER; color photo: Thomas KRAMER; map: Leonard Beach Hotel
SOURCE: BONNIE WESTON Herald Staff Writer
DATELINE:
MEMO: NEWS FEATURE
MAKING HIS POINTE
A German developer is attempting something no one has been able to do --
bringing the most southern part of South Beach back to life. With property
purchases of $20 million, he ' s ready to start . . .
Developer Kay Statz describes his first meeting with Thomas Kramer as
"typical" Miami Beach -- typical for a chance encounter that led to a $20
million investment in the city' s most rundown district.
In early January, Statz met a friend for lunch on Ocean Drive. Kramer
walked by. The friend, who had recently met Kramer, hailed him and introduced
him to Statz .
"We got to talking, " said Statz, president of a Beach development
company. "I 'm German. He ' s German. We ' re much the same age. The next day, we
were out checking property. "
Kramer did more than check. He launched a spending spree.
In the past six months, he ' s spent $20 million buying property in South
Pointe, the city' s shabby southern tip. Kramer' s investments include nearly an
entire block on Ocean Drive between First and Biscayne streets, 16
condominiums in South Pointe Towers, 14 oceanfront acres next door, and the
Ocean Haven and Leonard Beach hotels.
"I liked what I saw, " said Kramer, 35 . He spent another $5 million on a
house and a vacant lot on Indian Creek Drive.
Now Miami Beach is watching to see if the international commodities
trader, who acknowledges he has no experience as a developer, can do what the
city and seasoned developers haven' t done: Make South Pointe happen.
Miami Beach has been trying since 1973, the year South Pointe was
designated a redevelopment district. This gave city officials the power to buy
property needed for development through condemnation and sell bonds to pay for
millions in structural improvements to spur private development.
The results have been mixed and controversial. The new City Commission
has promised to come up with a new approach.
The original plan called for the entire district to be flattened and
rebuilt as a tropical Venice, complete with winding canals . A public-private
partnership to develop the city marina made headway, but dissolved in legal
battles settled by the city for about $5 million last year.
The Beach has also spent about $6 million condemning property to launch
a private townhouse project that was supposed to break ground two years ago.
That has yet to happen. In 1989 , plans for a public parking garage were
shelved when the Marriott Corp. said it wanted the site as part of a massive
resort development.
After lots of talk and more delay, the resort plan fizzled.
When Kramer saw South Pointe for the first time this year, he didn' t
see a high-rise resort or an American Venice. He saw Portofino, the tiny,
carefully preserved and immensely popular gem of the Italian Riviera.
Miami Beach lacks the Italian city' s dramatic cliffs and mountain
backdrop, but Kramer said it has Portofino' s key ingredients: intense light,
ocean on three sides, and an intimate, small-town feel at the center of a
cosmopolitan community.
He ' s bought most of his land through his company, the Portofino Group,
and has borrowed the Portofino name for his South Pointe development.
Beyond that, Kramer' s plan is vague. But he promises this: no high-rises
and no slash-and-burn development. He wants to mix old and new buildings and
fill them with stores, restaurants and cafes at street level, and with hotel
rooms and apartments above.
Kramer said the project will take between five and 10 years to complete.
The budget is in the hundreds of millions. So far, he said he ' s spending his
own money. He will need outside investors, but declined to say more about his
past or his future.
He said previous newspaper stories painted an unfair portrait of several
of his business dealings in Europe and New York, spooking Europeans ready to
invest in the project.
For the most part, South Pointe ' s usually skeptical landowners and
residents are reacting to Kramer' s quiet invasion with unusual calm.
After years of promises but little action from developers seeking the
city' s assistance, they say they care less about how Kramer plans to proceed
or his scant development experience than what he ' s already doing.
He' s paid cash for their property. He ' s bulldozing ruined buildings. He
hasn't asked for money or favors from the city. And he ' s starting by restoring
and expanding landmark hotels.
"To his everlasting credit, Mr. Kramer has not asked for one cent
from the public, which I find remarkable, " said George Lowander, a South
Pointe activist who sold an apartment building to Kramer. "He' s torn down some
eyesores. If he never develops anything, we ' re ahead. "
Herman Rubin, who lives in South Pointe Towers and serves with
Lowander on the city' s South Pointe Advisory Board, fiercely opposed
Marriott ' s resort proposal.
"I see no reason to fight Mr. Kramer, " Rubin said. "He' s a quiet
neighbor. And if he follows through, great. If he doesn' t, I see no loss. "
Kramer' s first visible project will be a $4 million remake of the
Ocean Haven Hotel, a 1939 Art Deco structure at 155 Ocean Dr.
Statz , now vice president of Kramer' s Portofino Group, is overseeing the
project. He said work will start immediately if architectural plans are
approved by the city this week.
The plans call for a complete overhaul of the building, but little
structural change. The ground floor will include a cafe along Ocean Drive and
a full restaurant facing the beach. The two will be linked by an open
courtyard making the beach visible from the street.
There will also be offices, conference rooms, but fewer hotel rooms --
60 instead of 84 . And most of the third-floor rooms will have spiral
staircases leading to rooftop terraces.
If the city has no objections, work will begin immediately, Statz said.
Next up is a remake of the Leonard Beach Hotel, just a block south at 54 Ocean
Dr. He said that plan, still being drafted, calls for largely new
construction, but the hotel ' s 1928 facade and indoor courtyard will be
restored.
"Thomas is not a developer, but I think anyone can now see that if
he' s going to do something, he does it, " Statz said. "No bull. No second
thoughts . It ' s a nice feeling. "
Kramer paid a courtesy call on Miami Beach City Manager Roger Carlton
about two months ago and showed him a sketch of his ideas.
"The Portofino concept he showed me was very, very positive, " Carlton
said. "Lower rise, but upscale. Filling out the details comes next. "
ADDED TERMS: mb south beach sobe
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