321 Ocean Enrique Norten and Greenberg Traurig

8/11/2019 321 Ocean Enrique Norten and Greenberg Traurig

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MIAMI MIRROR TRUE REFLECTIONS

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There is no such thing as historicpreservation. Historical Preservation Board member

321 OCEAN ENRIQUE NORTEN AND GREENBERG TRAURIG

18 August 2014

By David Arthur Walters

MIAMI MIRROR

The bubbly days of condominium development are back in the Miami area, ground zero of the

last real estate crash. There is plenty of money to burn in the money laundry capital; the power

elite could care less where the money comes from as long as the lions share gets into their

pockets. The phenomenal condominium market recovery is a frothy indicator of yet another

correction to come as developers and their financiers strive to mitigate risk, fund construction

from deposits, and cash out quickly.

Condominium prices have recovered to outrageous heights. For example, there is a

construction boom of luxury castles in the air on that southern end of South Beach known asSouth of Fifth or South Pointe. The usual suspects, meaning the local old cronies, i.e. big

developers and their political bureau at city hall, are feasting again.

Alas that get-rich-quick condominium development on chic South Beach, in marked contrast to

hotel development that requires long-term capitalization to be written off slowly, reduces

potential tourist expenditures and hotel and tourist tax collections available to all residents.


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Condos built instead of hotels as well as hotels converted to condos detract from economic

factors that drive the local tour business.

There are a few new kids on the block who formed connections to the good old guard: The

youngsters behind Aria Development Group from New York are developing the last available

beachfront property in a special section of South Beachs historic district. The project on that

property, situated at 321 Ocean Drive, has been dubbed 321 Ocean Enrique Norten. The

newcomers threatened to sell the property to a hotel, pack up their carpetbags and leave if

they did not get their way; to wit, additional height for their condominium projectthe

penthouse at $25 million would more than pay for the alleged $18 million construction cost.

321 Ocean Enrique Norten under construction

An historic Art Deco structure known as the Simone Hotel previously stood on the property.The usual albeit absurd strategy to subvert history, employed successful by developers with the

right connections to city hall, is to get a historic building declared unsafe and torn down; have

the city certify ex post facto that the destruction of the building, which so happened to be

historic, was appropriate; and then get the citys approval to erect a new structure which has

little or nothing at all to do with history, by arguing that it fulfills historical guidelines.

Frank Del Vecchio, Tom Murphy, Developers applauding Commissioner Ed Tobin


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Frank Del Vecchio, an attorney who lives in the condo building on the south side of the 321

Ocean Drive development, spearheaded an anti-tourist, pro-condominium lobby that obtained

a spot zoning amendment to exceed the height limitation previously adamantly set for the

special historic beachfront district, on the pretext that a hotel would be too damn noisy for him

and his neighbors. Just by coincidence, the fronts of the apartments in his building at 301 OceanDrive face a large and lovely park, with front lanaisviews of the beach at a slant, so he and his

neighbors believe they will not be disturbed by the monstrous condominium building on the

other side. The folks on the other side, at 345 Ocean Drive, have the fronts of their units

overshadowed by the monstrous new structure, diminishing the light and modest views they

thought they had paid for. I estimate that the buildings on both sides will suffer an adverse

impact to their properties, not to mention properties nearby. Sadly, the old folks have been

fooled by ambitious youngsters, and are in for some big surprises if they live long enough.

Del Vecchio claimed that the young developers are nice kids, not your usual greedy developers.

The city administration and commission agreed, and the developers had good reason to

roundly applaud Vice Mayor Ed Tobin on the scene.

Tom Murphy, Chairman and CEO of Coastal Construction Group, the centuries-old company

that built over 50 hotels and excellently remodeled the famous Ritz Carlton Di Lido Hotel in

South Beach in 2002, testified, as a long-time resident of Miami Beach and contractor, in favor

of the spot zoning allowing the height increase for condominiums only. An advertisement for

Coastal quotes him saying that, at Coastal, Its not just business, its personal. Coastal got the

contract at an alleged value of $18 milliondo not believe values accepted by the citys

building department. The well connected Cervera Real Estate Company stepped in as marketingpartner for the developers.

Jennifer Cervera and Enrique Norten selling 321 Ocean Enrique Norten

Enrique Norten is the Mexican starchitect, unlicensed as an architect in Florida, wheeled in to

design and to promote the condominium development of two glass boxes squeezed in

between two old low-rise condominium buildings. Who needs to get licensed when one can


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design buildings and rent a local architects license? Nortenslower condo box up front hides

the sinful height of the projectsrear end on the beach. That is, if you are standing in front of

the development, on the sidewalk across the street; otherwise, from other perspectives, the

volume and height of the complex is unsightly; if one stands a little to the side on the street, the

hulking structure is quite obvious.

Local architect Luis Revueltas name is on the permit. Nortensdesign is certainly not novel or

original, especially not in comparison to his amazing designs elsewhereyes, he designs hotels.

Various Enrique Norten designs

Various Luis Revuelta Designs

Local starchitect Luis Revuelta could have done the trick and even better, and has the lobbying

experience and the Florida license to do it, but for reasons unknown at this time he is playing

second fiddle to Norten, sealing his designs. Norten is in demand in South Florida. He also


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designs for Jorge Perez, a whale among local developers, who is back from the brink of

bankruptcy, and is erecting colossal condominiums three blocks south of 321 Ocean Drive.

Greenberg Traurig, the prestigious Miami law firm infamous for its lobbying arms

misconductThe Firm takes care to investigate and discharge its renegade lawyers after they

are caught red-handedwas retained by the developers to write a perfunctory legal opinion to

justify the foregone conclusion, the spot zoning of the property. High Rise Power Lawyer Lucia

Dougherty led the lobbying.

Richard Lorber, the city planning director, was suitably impressed by the prestige and

sophistication of all those involved. Gary Held, a city attorney, found the legal opinion

persuasive given the circumstances at the time, including what appears to be the institutional

blindness of the people seriously concerned with these sort of issues, including the rent-seekers

and their sycophantic attorneys, and the city officials naturally disposed to please all the above

in the absence of a clamor from the populace, most of whom could care less about whathappens with a piece of property in particular if it is not next door, or simply trust the

professionals to do the right thing. Here the clamor came from a few in favor of the

development because of the Big Hotel Noise Scare raised in favor of the project, to be discussed

last in this series. Activists often march against their own interests in a democracy.

All that is not to say that systemic corruption the city is infamous for was not at play. There is

no proof of criminal corruption; evidence of that is difficult to obtain because neither side

engaged in corrupt bargaining is inclined to complain about it, and who else would know?

Beginning with the facts, Greenberg Traurig charted 12 oceanfront properties within thesubject zone, along threeblocks of Ocean Drive, or four blocks counting by the numbers, 101

thru 465 Ocean Drive. In a specious attempt to show that the spot zoning intended for the

benefit of their client was not spot zoning, but instead would beneficially affect existing

property owners, the lobbying lawyers counted approximately 1,030 landowners affected,

meaning owners of residential condos.

The estimate of condo owners was exaggerated by counting 115 condo-hotel units at the Hilton

Bentley as residential condos; according to Hilton Concierge Antonio Azeveda, there are only 10

condo residences at the Hilton Bentley, the rest being guest rooms. The estimate was also

exaggerated by the fact that a large number of condos in the area are rented out short term to

transients by their owners; the lawyers do not say how many of the owners they counted took

homestead exemptions for tax purposes, something many owners do illegally although they do

not actually reside in the state.


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Another fact left unmentioned by the pettifoggers, and a very important one, indeed, is that, in

actuality, the only vacant and available lot to be affected by the spot zoning over the next

century would be their clients 321 Ocean Drive , which would of course be effected

immediately, all to their benefit. None of the existing condo owners or their successors would

be affected; or benefited for that matter, unless they could profit by the sale for the utterdestruction of their own homes, which is highly unlikely to be permitted over the next 30 years.

The new zoning disallows adding floors to existing buildings to reach the 25 increase in allowed

height, from 75 to 100. An excuse for building higher at 321 Ocean Drive is that the spot

zoning would mandate a wider berth or side setback of 15 for new tall buildings instead of the

current 7.5 for thatportion of the pedestal over 35 high,of which there would only be one

affected, really, their clients 321 Ocean Drive.

By the way, never mind the fact that several of the tall buildings said to be affected by the

new side setback requirements because it would protect them from new construction ofneighbors, have many of their sides are on public streets and parks hence are not in danger of

being crowded. Adverse affects were not mentioned.

For the new zoning to have any impact on the existing buildings, one or more of the buildings,

would have to be torn down and the new rules applied. Five buildings that actually contribute

to the Art Deco history of the special section of the historic district would have to be declared

unsafe and demolished, and some absurd justification given ex post facto for an unhistorical

structure to be erected as if it complied with history, as has now been done at 321 Ocean Drive.

In any case, the advantage of the height far outweighs the loss of width in value forcondominiums, allowing the occupants of the top floors spectacular viewsthe penthouse

alone is valued at $25 million, more than the construction cost of the entire complex.

More than one-third or 5 of the 12 properties in the zone, 2 of them luxury hotels, already

stand at 100 or more since that was allowed before height restrictions were legislated to

protect the rest of the zone from that height. The tall buildings are well maintained and/or

recently rehabilitated.

Greenberg Traurig counter-intuitively identifies the five highest buildings already standing as

the beneficiariesof the new zoning!

As noted below [the chart], five of the twelve parcels within the affected area would be

eligible to benefit from the proposed zoning change.

The five parcels eligible to benefit designated on the table provided, are those beachfront lots

upon which structures are already 100 feet or more, including two hotels, have a total of 1,030


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condo units: namely, the Royal Atlantic at 465 Ocean Drive; the Presidential at 401 Ocean Drive;

the Ocean Point at 345 Ocean Drive; the Marriott Hotel at 161 Ocean Drive; and the Hilton

Bentley at 101 Ocean Drive.

The legal opinion concludes that not only will 1,030 supposed residents will be affected, they

will also be benefited, not by the additional height, but by additional 7.5side setbacks on the

sides for a total of 15 setback on the sides for theportion of the pedestal of the taller buildings

that is over 35 high; and not by preservation of the historical character of the beachfront

rezoned, but by preservation of its so-called residential character, ignoring the tourist

destination character that drives the local economy, and the conversion of residential space

into luxury dwellings that the persons for whom Miami Beach was a poor or middle-class

persons paradisecould only afford in their wildest dreams.

Tellingly, Instead of calling the buildings luxury condominium buildings, the word-spinners who

drafted and defended the zoning amendment claim the zoning will merely allowapartmentbuildings to catch up to the height of hotels and condo hotels, which is exactly what the

existing zoning was intended to prevent. Again, according to Greenberg Traurig, every

apartment dweller is benefited: Approximately 1,030 residents living within the area

affected by the proposed zoning change will benefitfrom the increased side setbacks and the

preserved residential character of the neighborhood that the proposed zoning change could

provide.

A walk along the area is more instructive than the poppycock of the lobbyists.

Marriot Hotel abuts park (left) to Hilton Bentley Hotel abuts street (right), low Ocean House is in between

The Hilton Bentley at 101 Ocean Drive will derive no potential benefit from the new zoning

from the new side setbacks requirements for development of the properties adjacent to the

south and north. 1st

Street abuts the hotel property to the south, and on the north side of that

street can be found the Nicky Beach club. Incidental to the Big Hotel Noise Scare that would


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limit the new zoning to so-called residential buildings, most of the loud music is generated by

Nicky Beach, and not by the fine dining room on the ground floor of the Hilton Bentley.

To the north of the Hilton Bentley lies a large enclave of luxury condominiums called Ocean

House, comprising new structures and the recently remodeled historic Sea Crest Apartments,

running from 121 to 135 Ocean Drive. Michael Vertz, Realtor Associate of Douglas Elliman Real

Estate, which has an office at 135 Ocean Drive, said there were only three or so Ocean House

condominium units left for sale, one just being sold for $29 million. It is far more likely that a

50-year, extreme-high-water event will place these low-lying structures under six or seven-feet

of water than they would be torn down so taller structures could be built on them in such a way

that the already tall Hilton Bentley could be said to benefit from the new zoning. These

properties, incidentally, contribute to the historical style the city supposedly wants preserved,

and the new zoning prohibits its application to contributing structures exist.

Ocean view of Hilton, Ocean House, Marriot

Street view of Marriot on park, Ocean house, Hilton next to Ocean House

To the north of that condo complex is the tall Marriott Hotel identified by the lobbying lawyers

as a beneficiary of the spot zoning; it too would derive no benefit from the zoning until

Doomsday takes out that complex, for a large city park abuts it on the north. The low and


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narrow condominium, the Ocean Park Condominium at 301, is on the north border of the park,

to the north of which the real and only beneficiary of the spot zoning, 321 Ocean Enrique

Norten, is being crammed into two low rises, much to the detriment of the one on the north.

To the north of 321 is the Atlantic Gardens Condo at 325, and then the Ocean Walk Condo at

335. It is possible that the old low-rise barracks-like buildings on either side of the favored

project at 321 could be razed if not preserved as relics, in which case 321 would benefit by the

new side setbacks, but not by the increased height made possible by the zoning amendment.

Indeed, a developer jaundiced by the trend seen in his crystal ball would fain tear down the

Ocean Park, Atlantic Gardens, and Ocean Walk buildings and erect elegant postmodern

structures incorporating the new 321 Ocean Enrique Norten complex. The Ocean Walk Condo

at 335 is designated as a contributing historical building for superficial decorative reasons so it

would have to be declared unsafe and razed; the Atlantic Gardens and Ocean Park are similar in

basic design.

Looking north, 345 Ocean Drive to 321 Ocean Drive (under construction)

Beach view of section including 321 Ocean Drive (under construction)


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Curiously, the county appraiser has the market value of the Ocean Park Condo at 301 Ocean

owned by the community activist who advocated the spot zoning in order to save himself and

his neighbors from the development of a potentially noisy hotel next door at 321 Ocean Drive,

dropping from $478,000 in 2012 to $372,000 in 2013. Is this an error in the midst of rising

values, perhaps a slip presaging the future? Is 301 Ocean a plum in the eye of greedydevelopers and their city hall cronies? Notably, it does not contribute to the history

supposedly being preserved, although the similar Ocean Walk Condo at 335 allegedly does, due

to its faade.

Faade of the contributing buildingat 335 Ocean Drivenote eyelids

Next is the tall building at 345 Ocean Drive. It probably would not benefit from the new spot

zoning, for it is bordered on the north by 4th

Street. On the north side of 4th

Street is another

tall condominium building, the Presidential at 401 Ocean Drive, for which the potential benefit

from the new zoning is negligible.

The President 401 Ocean Drive with 345 Ocean Drive across the 4th

Street to its south

Next to the north is the historic Savoy/Arlington Hotel, low-lying on two properties, from 425 to

455 Ocean Drive, which will most likely be preserved and marketed as an old-style swank hotel

for many more years to come. The Savoy has been plagued by the unrelated financial

difficulties of its previous owners, mortgage foreclosure litigation involving a recent purchaser,

and court challenges by preservationists to its development plans.


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In 2002, the purchaser of the Savoy Arlington Hotels, Arden Savoy Partners LLC, wanted to

wedge a 10-story condo hotel between the two existing buildings, although that height would

not be essential if the hotel area were elongated onto the vacant area in back of the existing

structure. The zoning was vigorously opposed by neighbors, yet was amended to raise the

height from 35 to 75. Craig Spencer, principal in Arden Savoy Partners, was incensed that hewas called a greedy developer and worse. Again, condo sales allow fast-buck developers and

their investors to use deposits for construction and cash out quick on completion if the

economy does not catch them with their pants down.

Beach view of Savoy plan opposed by preservationists 2002, current construction at 321 Ocean Drive

Street view of Savoy plan opposed by preservationists 2002, construction in progress at 321 Ocean Drive

Historic Savoy and Arlington postcards ($5 per day per person in season)

Another plan footed, in 2005, by the British investors concealed behind the foreign entity,

Savoy Hotel Partners LLC, was to double the footage of the old hotels, and to erect a 7-story


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condo hotel on a parking lot situated at 400 Collins Ave. The website for the law firm Bilzin

Sumberg advertises that the firm obtained approvals from the Land Use Commission in March

2006 for the substantial rehabilitation and significant expansion of Savoy/Arlington, which are

in the National Register Historic District in Miami Beach, the improvements to include 3 seven-

story additions along with rooftop additions. In 2010 the law firm successfully lobbied for theamendment of state statutes to create an additional two-year extension of the approvals.

Ocean view of Savoy-Arlington Hotels

Carter N. McDowell, Esq., the so-called Florida Superlawyer and Best Lawyer in America who is

handling the Savoy lobbying for Bilzin Sumberg, did not respond by deadline to multiple

inquiries as to the nature and current status of any current improvement plans.

The point here is that an additional 25 over the 75 already available to the Savoy owne rs

would be of little or no benefit considering the plans once permitted, and it is unlikely that the

owners, whoever they might be, would completely destroy the structures, which contribute tothe history the city intends to preserve, to obtain that additional height by conversion from

hotel to a residential condominium project only to be bound for 30 years to restrictive

covenants.

465 Ocean Drive on park (left) Savoy (right)


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And now, in the matter of 321 Ocean Drive, Greenberg Traurig concluded that, The proposed

zoning change would not constitute spot zoning because any development allowed by the

proposed zoning change would be fully consistent with the City's comprehensive plan and

zoning code, would be compatible with the surrounding neighborhood, and would be wholly

within the public interest.

Example of Art Deco across from the Savoy Hotel with which the 321 Ocean Drive project is incompatible

The citys so-called comprehensive plan and its zoning code has definitely been established and

employed by the power elite to convert or gentrify what was once a poor mans paradise in the

South Pointe or South of Fifth area of South Beach into an luxury enclave of castles in the air

while rendering South Beach housing unaffordable to the working and lower middle class.

Politicians who have campaigned for office with a promise to arrest this discriminatory trend

have proven themselves liars once in office.

Simone Hotel destroyed, 321 Ocean Enrique Norten being erected in its placewhat history?

City of Miami Beach voters, who are apathetic in the interludes between arrests of corrupt

officials and disinclined to pay attention to anything that does not immediately personally

affect them, recently removed the longstanding regime that approved the zoning amendment,

not because of the zoning, but because the most recent arrest scandal was an opportune

pretext for changing the guard over real estate development; i.e. exchanging one set of

developers and plans for another. Some of the arrogant officials had been around so long that


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They believed they were the city personified, that they owned the plan and code that They

interpreted for rent-seekers; They liked to think that They were as well the whole of the public

whose interests They inadequately represented. The jury is out on the new faux opposition

regime, but at least one skeptic believes the move is merely a rotation around the usual spoils

of office reaped in the main by their privileged class, the vested interests and power elite. Theworld is very small at the apex of the domination pyramid. Religion worships the absolute

power that bestial politics distributes along hierarchical lines.

Character of historic neighborhood being destroyed directly across Ocean Drive from Beach House

Notwithstanding Greenberg Traurigs concluding statement that, the proposed zoning change

includes a number of provisions that ensure that private benefit is not placed before the public

interest, it is clear to anyone of average vision and acute foresight that the zoning amendment

is spot zoning designed for the sole benefit of 321 Ocean Enrique Nortens developers,

investors, lawyers, architects, contractor, real estate broker, and the few wealthy purchasers

who may be permanent, year-round residents.

Greenberg Traurig twice mentioned the potential adverse impact a hotel might have, as

opposed to a residential condominium complex, but it did not pronounce the word noise nor

dwell on that impact in detail, for studies of code compliance records will show that the

number of complaints are as high if not higher in the multiple-family apartment buildings in

South Beach than in the hotel area. The developers simply raised the Big Hotel Noise Scare,

threatening, like little boys, to sell the property to hotel interests and leave town if they werenot permitted to get rich quick on a high condo building with spectacular views.

In any event, what impact would passionately badmouthing hotels have on The Firms potential

hotel development business? Of course criminal defense attorneys are not criminals, and land

use lawyers are not greedy developers,but the association sullies their reputations.


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Tellingly, the hotel lobby did not bother to oppose the spot zoning because it did not threaten

hotel interests in this small district of the historical zone; three hotels already stood in the

district, and it was highly improbable that the eight residential complexes standing would be

converted into hotels because the opposite, the conversion of hotels into condos, is the cash-

raising trend. 321 Ocean Drive, the one available spot on the beach to be affected by the zoningamendment, for the sole benefit of the developers and investors, was not worth fighting over.

Cooperation among hypothetically conflicting interests is called for to make far more fast bucks

elsewhere, according to the universal formula M-C-M. Beware: do not get caught with the C

whose inflated value is bound to crash any day. Of course the city and the tourist trade would

be deprived of some revenue from visitors without yet another hotel to house tourists, and all

but the inordinately wealthy would be deprived of an opportunity to enjoy another spot on the

beach; but the fact that hotel interests were not directly and adversely affected by the spot

zoning allowed the developers and their political bureau at city hall to put it over on the public

as if it were in the public interest because a few people clamored that they would be botheredby hotel noise.

Greenberg Traurig, citing a few cases to casuistically cloak its opinion with an appearance of

principled propriety, did not need to make a direct reference to hotel noise in its legal opinion

or to attract negative attention by dwelling at length on adverse impacts. To that end a dozen

members of the public, led by Frank Del Vecchio, an ardent supporter of the present regime,

had already been enlisted to make a racket about its possibility. The prestigious law firm

misconstrued the facts on the ground because it did not have all the facts , maam, and was

unbound by professional ethics to get all the facts for its legal opinion; wherefore it engaged in

boilerplate casuistic stretching to rationalize the spot zoning as if it were not just that, alluding

to but not explicitly stating that a court would hold that it had a rational basisor legitimate

public purpose.

The rational basiswas left to city attorney Gary Held to rationalize. His legal memorandum

gave an approving nod to Greenberg Traurigs fee-biased legal opinion. We shall consider that

memorandum next. Gary Held is no slouch, and generally provides well-balanced opinions even

though his opinions on one side or the other may be distasteful to his hydra-headed client.

Sample of South of Fifth Air Castles

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321 Ocean Enrique Norten and Greenberg Traurig

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