City staff instructed to develop condo-hotel policy

The arrival of development proposals for hybrid condominium/short-term rental/hotel uses in Sarasota has left the city’s planning staff in a conundrum. That’s because the zoning code within the Downtown and Urban Mixed-Use zone districts do not contemplate that kind of mixed use. 

At its July 20 meeting, city planning staff members asked for, and received, instruction by the City Commission to develop a policy for the trend, which is already in practice in highly desired resort cities such as Miami, Orlando and Las Vegas. 

The planned 282-unit Saravela at the 400 block of North Tamiami Trail was the first to bring the concept here when GSP Development announced plans to permit its condo owners to rent their units for a minimum of three days. GSP Development later acquiesced to staff demands to conform to the city-wide seven-day minimum for vacation rentals. 

During that process a development at Mound Street and South Palm Avenue, originally named 777 South Palm by Miami developer Unilog Group, rebranded itself The Well Sarasota. It returned to the city’s development review process as a mix of privately owned hotel rooms and condominiums within a single building. 

The Well Sarasota morphed from a 66-unit condominium that included five affordable housing units to 28 traditional condominiums and 72 hotel/condos.

Image courtesy of Adache Group Architects

The problem? Condos and hotels are both permitted uses in the downtown zone districts, but there is no regulation regarding the pairing of the two. And, as a hotel, density restrictions on condominiums do not apply. Also, some worry a large number of vacation rentals in a single building concentrate the challenges single-family neighborhoods face with transient occupancy in one location. 

“The zoning code does not currently define condo-hotel or apartment-hotel, creating uncertainty regarding the classification of developments that incorporate characteristics of both residential dwelling units and transient lodging establishments,” Sarasota Senior Planner Brianna Dobbs told commissioners. “As currently interpreted, these projects are being classified as hotels or motels and not subject to the residential density limitations, which may allow for developments with residential characteristics to exceed the base density without having to participate in one of the city's density bonus programs.”

Rosemary District resident and Downtown Sarasota Condominium Association board member David Lough, who first sounded the alarm over Saravela’s three-day rental plans, raised another possible issue. He told commissioners about The Club at Brickell Bay, a 43-story, 643-unit condo tower dubbed “Animal House” highlighted in a recent article by the Miami Herald. 

There, a majority of condo owners offer their units as hotel rooms, inviting a variety of illicit activities, according to the article, such as “Loud music. Guests passed out on sofas by the front desk. Sex in the jacuzzi. Sex workers in the hallways. Porn shoots on balconies. Long waits for malfunctioning elevators packed like sardine cans. The pervasive aroma of weed. The daily presence of police. The turmoil is described by the tormented people who live there, backed up by incident reports.”

The Club at Brickell Bay’s condo association, according to the article, is made up of five absentee owners who rent their units and are not inclined to police guest activities. The article also alleges citations regarding behavior in the building are dismissed by City Hall.

Unlike Miami’s Animal House, Larry Debb, principal of GSP Development, told the Observer that Saravela’s vacation rental management will be in-house and owners will not be permitted to individually rent their units. 

“Saravela is designed to operate very differently from individually managed short-term rentals,” Debb told the Observer in an email. “Owners who choose to rent their residence must do so through a centralized professional management program. Reservations, guest coordination, operational oversight, security and quality standards are all managed through a unified management framework designed to maintain consistent standards and provide a luxury-level experience throughout the property. 

“That centralized approach makes it easier to apply those same standards throughout the building, helping preserve the quality and character of the community.”

Founding Partner of Odin Endeavors and Chief Operating Officer of Unilog Group Patrick Giannini did not respond to questions regarding the management structure of The Well Sarasota.

“The good news is we're catching this relatively early here,” Lough said to commissioners. “I get it that developers are looking for creative niches, and I kind of applaud that.”

Lough urged the city not rush into a policy but to rather take the time to research how other cities are governing similar developments, adding, “There is a lot to understand."

Vice Mayor Kathy Kelley Ohlrich suggested staff take a more aggressive approach.

“It seems pretty wise that we would direct you to do this, and actually, it would seem wise for us to ask you to expedite it,” she said.