Hollywood doesn’t need this beachfront condo
But we just watched Hurricane Ida’s storm surge ravage the Louisiana coast. Global warming is making storms more powerful. Does Hollywood — which is considering this project out of choice, not necessity — want to allow a tall oceanfront project?
Hollywood City Manager Wazir Ishmael acknowledges that the city doesn’t need the 30-story tower that Related Group wants to build on public beachfront.
But Ishmael clearly wants Related to build that tower because of what the city would get out of the deal.
The site is roughly four acres at 1301 South Ocean Drive that are home to a community center and Harry Berry Park. Related would get a 99-year lease and would build a 347-foot tower with 190 condo or rental units.
In return, Related would build a new, larger community center and a new park. Related would give the city $5 million upfront in rent and a 12.5% cut of new condo sales, estimated at between $18 million and $20 million. The city also would get 0.25% of resales, estimated at between $150,000 and $300,000 a year.
After that first $5 million, Related would make $400,000 a year in lease payments. If the units are rental, Senior Vice President Eric Fordin told the Sun Sentinel Editorial Board, Related would raise that annual payment to match the estimated revenue from condo sales.
There’s more. Related would improve the dune between the tower and the beach. And the project would bring Hollywood an estimated $2 million annually in property tax revenue.
During last week’s city commission meeting, Ishmael said the city could build the park and community center without the project — just not as soon. He hinted, though, that approval could prevent Hollywood from raising its property tax rate — one of the highest in Broward County — or even allow the city to lower it.
“From a financial standpoint,” Ishmael told the commission, “this does make sense.”
Critics, however, argue that the deal would amount to privatizing the beach.
Several speakers last week essentially called the proposal a sellout. They questioned why the community center and park were not included in the 2019 bond program if they are so important.
A city spokeswoman noted that the tower would occupy only about one acre of the site. The rest would be public. Hollywood didn’t include the park and community center in the bond program, she said, because officials determined that the city already had financed many beachside projects and needed to spend more elsewhere.
We understand the opposition to loss of public land and the danger of public-private partnerships like the one Related and the city have proposed. We recently editorialized against such a partnership for 3.5 acres in downtown Fort Lauderdale because it would unfairly favor the developer.
The issue in Hollywood is even trickier. The city was deeded the land in 1974. Under that deed, Hollywood can use the land only for recreation and civic needs.
But the deed also allows “other public and municipal purposes.” What Hollywood would gain from the project, City Attorney Doug Gonzales told the commission, satisfies that condition and meets the requirements under state law for a public-private partnership.
Where opponents see a mostly unspoiled oceanfront refuge, Related’s Vice President Fordin — a Hollywood resident himself — sees “blight.” He added, “This site is not being utilized. It’s dilapidated.”
Fordin began eyeing the site seven years ago. The company made an unsolicited offer in early 2020. City officials were interested. Under state law, they had to put the site out for bid.
Eight developers responded. The city cut the list to four. A group of city officials then ranked the bidders, placing Related first. Other companies offered more money, but Mayor Josh Levy said staff considered which project would most benefit Hollywood.
“We get a larger, state-of-the-art community center with ocean views,” Levy said, “expanded public park, more parking and millions in new revenue to help pay for needed services throughout our city.”
But we just watched Hurricane Ida’s storm surge ravage the Louisiana coast. Global warming is making storms more powerful. Does Hollywood — which is considering this project out of choice, not necessity — want to allow a tall oceanfront project?
Levy said, “Today’s building and engineering requirements are designed to address sea-level rise projections and hurricane conditions.” The tower, he said, would be 515 feet from the water, farther than the condos on each side.
Last week, city officials listed the concessions Related has made during negotiations. The community center and park are bigger. The annual lease payment will be adjusted for inflation. The company will improve boardwalks to increase beach accessibility for the disabled.
But there are two problems. One is that deed restriction. The city seems to be relying on a technicality to allow the project. How sure is Gonzales that the city would win a lawsuit challenging the project?
Then there’s the size of the tower. Though Related lowered its first design by 18 feet, the tower would overwhelm the property even on just that one acre. Any additional design changes, Fordin told the commission, could affect views from neighboring condos.
No speaker last week defended the project. If this deal would be so great for the public, where is the public support?
The city spokeswoman said staff hopes to put a final lease agreement before the commission “in a couple of months.” Absent significant changes, this project appears to be one that the staff may want but that Hollywood doesn’t need.
The Sun Sentinel Editorial Board consists of Editorial Page Editor Steve Bousquet, Deputy Editorial Page Editor Dan Sweeney, and Editor-in-Chief Julie Anderson. Editorials are the opinion of the Board and written by one of its members or a designee. To contact us, email at letters@sun-sentinel.com.