Palm Beach Daily News

Developer of high-end South End condo in Palm Beach kills controversial zoning request

Town Council offers no support for developer's request to change the zoning code to accommodate new ultra-luxe condo on the South End site of beachfront Ambassador hotel and adjacent building.

A representative of the developer who wants to build a super-luxury condominium complex on the far  South End of Palm Beach told the Town Council Wednesday his client would be happy to abandon a proposed — and controversial — zoning-code “text amendment” that was the focus of the meeting.  

Attorney Harvey Oyer’s statement came after council members made it clear they would not support  the amendment, which was discussed during an informal review-and-feedback session about the in the-works project for the site of The Ambassador hotel. No vote was required of or taken by the  council under the rules governing the session.  

Developers OKO Group and Cain International proposed the amendment, which would have changed zoning rules to allow the company to build three midrise condo buildings without requesting any variances to the zoning code.  

Still in the preliminary stages, the development is being planned for a 4½-acre site now occupied by the oceanfront Ambassador Hotel and an adjacent former co-operative building on the lakefront at  2730 and 2720 S. Ocean Blvd., respectively.  

With underground parking, the development would be the first new condo project to be built on the  South End in more than 15 years.

The two buildings on the oceanfront parcel would rise five stories, while the lakeside building — for years known as The Edgewater House co-op — would have three. In all, there would be fewer than 50  residential units, said Oyer, who described the projects as a “best-in-class” development with deep pocket financial backing, one that would raise the bar for luxury condo living in Palm Beach.

Although renderings of the site plan were displayed at the meeting, the actual architecture of the buildings was not presented in any detail because it has not been finalized, architect Nelo Friejomel of  Spina O’Rourke + Partners told the council. Spina O’Rourke is the “architect of record” and consulting architect for the project, which is being designed by OMA, a prominent international architectural firm.  

Among its many changes, the proposed text amendment would have allowed the condo buildings to have rooftop terraces with private swimming pools for the owners of the penthouse units. The council was told the terraces would feature extensive green space.  

Such rooftop amenities are prohibited in the “high-density” zoning district where the condo would be  built, the South End’s so-called “Condo Row.”

The rooftop terraces were strongly opposed by residents of neighboring condos who spoke during the  meeting or wrote letters of opposition to the text amendment. They also worried that if adopted, the amendment would open a door to future developments that might not be welcome on the South End  or in character with the neighborhood.

Image
 Aerial rendering of a coastal development with three modern rectangular buildings.
A concept rendering shows the layout of a three-building condominium project. The rendering does not reflect the still-to-be-finalized architecture of the three buildings.

Oyer said representatives of OKO Group had held outreach meetings over many months to gain input  from residents of the three condo buildings that directly border the site.  

“We were encouraged to discuss a text amendment, which is what we are here to do,” Oyer told the council about 20 minutes into the hour-long discussion, although he did not say who exactly had done the encouraging. “But I want to make it very clear that we don’t want to work against our friends and neighbors. We’ve had a great working relationship with them for a year-and-a-half," Oyer said. “If it is their will and  your will that we tear up this paper and go the old-fashioned way with a whole bunch of variances, we  most certainly will do that because we think that our project can stand on its own merits.”  

He later said the project, as currently planned, would require 20 code variances to build.

“Almost everything we have can be accomplished with variances,” Oyer said.

During the discussion, Councilman Lew Crampton said he had helped facilitate the community outreach efforts to the neighboring condos in concert with the Palm Beach Citizens Association, a group representing South End condo buildings.  

“It looks like a great project,” Crampton said, “but there’s a long way to go to approval.”

For more than two years, Palm Beach leaders have been working on a major overhaul of the town’s commercial and residential zoning codes, a process that could be completed as early as this fall.  

Some council members — and residents who spoke in opposition to the amendment — questioned  whether it would be prudent to even consider making a zoning change while the code-reform project  is underway.  

“It’s not that I don’t like the project. I think it’s beautiful,” Council Member Julie Araskog said, directly addressing Oyer. “But I don’t agree with (implementing the amendment) because we have a code process.” She added: “It’s just premature.”

Oyer said the text amendment would have accommodated and encouraged better-quality redevelopment along other parts of the town’s beachfront in light of new state rules governing the  condition and maintenance of aging condo and co-operative buildings.  

Council member Ted Cooney agreed with Oyer that the redevelopment of aging condominium  buildings on the South End was inevitable.

“But,” Cooney said, “I think the more appropriate path for (guiding that redevelopment) is that we  should have a community-based approach with input from that neighborhood (to) come up with good  rules to encourage the kind of development in that area that is appropriate and consistent.” 

The zoning amendment, Cooney added, would certainly serve the needs of Oyer’s client “but it may not be the best holistic approach for the whole neighborhood.”  

At the end of the meeting, Oyer said he hoped the council would remain open to the idea of allowing the development to have rooftop terraces, which he said had become standard for today's ultra-high end condo buildings.  

“We would love to put pools on the roof,” he said.

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Aerial view of a coastal highway flanked by modern buildings.

A joint venture between developer and owner Vlad Doronin’s Miami-based OKO Group and London based private-equity firm Cain International paid a recorded $147.6 million for The Ambassador and the building on the other side of South Ocean Boulevard in October 2022.

Doronin founded OKO Group and owns the Aman brand, often promoted as the world's leading luxury brand of resorts, according to OKO Group’s website. There are Aman-branded properties  worldwide, which are described on the website as “a distinguished collection of resorts, hotels and private residences.”

The condo project in Palm Beach, however, would not be affiliated with the Aman brand, according to a spokesman for the project.

After the meeting, the development team released a statement to the Palm Beach Daily News:

“OKO  Group and Cain International appreciate the feedback received from the Palm Beach Town Council.  We share the council’s belief that an ultra-luxury, low-density residential development will enhance the surrounding neighborhood while reducing impacts on the community. Our team will follow the council’s input in determining the right path forward as we further develop our plans.”

This article has been sourced from Palm Beach Daily News. You can read the full article here.