Fast-Growing West Palm Beach Moves To Pause Waterfront Development
West Palm Beach is taking action that could pause new development approvals along a piece of its downtown waterfront — where developers are positioning themselves to redevelop a swath of aging buildings — amid public outcry for transparency.
The West Palm Beach City Commission approved an ordinance on its first read last week, pausing projects that require zoning changes along six blocks of South Flagler Drive and between Southern Boulevard and Monroe Drive. The measure needs to be approved on a second reading to take effect.
Commissioners said they want to give staff time to bring in an expert to conduct a zoning analysis, redevelopment testing and economic analysis before creating new zoning regulations.
It would not affect developments filed prior to the measure, but it does cover seven properties that developers have closed in on in recent months.
Two of the properties are the 45-year-old Flagler Yacht Club Condominium at 3701 S. Flagler Drive and the 55-year-old Portofino South Condominium at 3800 Washington Road, the South Florida Business Journal reported.
Beko Equities, a joint venture between Miami-based developer Immocorp and Hong Kong-based alternative asset manager O.D. Kobo, wants to complete a condo buyout of both buildings for about $430M, The Real Deal reported. No plans have been made public yet.
Another site named in the ordinance is the 45-year-old Southbridge Condo at 3915 S. Flagler Drive. Related Ross, led by billionaire and Miami Dolphins owner Stephen Ross, purchased 71% of the units in the complex for $38M at the beginning of the year.
Immocorp and Related Ross did not immediately respond to requests for comment.
Other sites subject to the moratorium include the Harbor Towers & Marina Condo, an apartment building on Flagler Drive and another apartment building on Washington Road.
Pausing development, which would halt any approvals that require rezonings through Jan. 20, could lead to stricter regulations for high-rise developments including height limits and density caps, which is what happened to the city's north end last year after residents called for a way to slow down developers, The Palm Beach Post reported.
"We needed additional safeguards to protect against development," said Christina Lambert, a former commissioner for West Palm Beach and a candidate for mayor. "When new applications keep moving under old rules while new regulations are still being written, the community loses ground that it can't get back."
The decision comes as West Palm Beach residents are growing increasingly worried over the rapid changes happening to the city, spearheaded by Ross, who pledged to spend $10B to turn the city into the "Wall Street of the South."
The company has more than $1B worth of projects under construction, including luxury condo towers South Flagler House and the office buildings at 10 and 15 CityPlace, which landed South Florida's largest-ever construction loan last year, a total of $772M.
Over the first half of July, residents have been attending city meetings in "Save West Palm Beach" shirts as they express their concerns over the rapid development happening in the area.
The city commission appointed Related Ross Executive Vice President Jordan Rathlev to the city's Downtown Development Authority last week, prompting more pushback from residents.
Rathlev is the second board member with an affiliation to Ross after the 2024 appointment of Bernardo Neto, the general manager of The Ben Hotel, which Related purchased in March.
"Frankly, I don't think you have the nerve to say no to Stephen Ross," resident Alan Levine said at the city commission meeting last week.
Commissioner Stephen Sylvester said the new measure was created in "direct response" to the concerns residents have raised about overdevelopment and feeling left out of decisions.
"Hopefully, this is only the beginning of a broader plan for how we want our neighborhoods to look," he said. "One that doesn't rely on granting an ever-increasing number of variances with each new project."
