Related Companies proposal for Deauville site would create Oceanside FAR overlay, spark debate over adjacent parcels

Stephen Ross, developer with Related Companies, and project counsel presented a proposal to create an Oceanside FAR overlay for the Deauville hotel block in North Beach that would allow increased intensity on that large site and two adjacent small lots to the north and south.

The proposal would amend the comprehensive plan and the City’s land-development regulations to allow a maximum FAR up to 4.5 for qualifying parcels within an overlay (subject to meeting size and public-benefit benchmarks) and a maximum height of roughly 375 feet for eligible development. Ross said the plan envisions two towers separated by a broad landscaped plaza, an Equinox hotel, and public beach access on the Deauville property. Neeson Kasdan, counsel for the applicant, presented an economic-impact estimate showing an annual TIF benefit to the North Beach CRA in the millions and a net-present-value benefit to the CRA over the life of the district.

Why it matters: committee members and multiple public speakers framed the proposal as a potential catalytic investment for North Beach but also warned it could create unintended consequences for nearby historic properties and smaller vacant lots. Opponents and nearby property owners asked for safeguards to prevent disproportionate windfalls to adjacent owners or demolition pressure on historic buildings.

Key points from the presentation and committee discussion - Project concept: Related Companies’ principal Stephen Ross said the plan would replace the current Deauville assembly with two landmark buildings separated by more than 200 feet of open space and landscaping and would include a high-end lifestyle hotel (Equinox) and residential uses. Ross said Frank Gehry is the project architect and emphasized design and public benefits, including perpetual public beach access from the property. - Overlay mechanics: The proposal as transmitted to the committee would allow higher FAR and greater height only within the overlay; parcels below a specified lot-size threshold would qualify for a lesser increase (to FAR 3.0). The Deauville assemblage (a large lot of roughly 166,000 sq. ft. on Collins Avenue) is the only site that meets the larger-site threshold in the draft text; planning staff and the applicant said that is intentional to incentivize redevelopment of a single large site as a catalyst. - Adjacent lots: Two vacant parcels immediately north and south of the Deauville block are included in the proposed overlay as drafted. Owners of those lots and of the adjacent Sherry Frontenac hotel asked the committee to treat all affected owners the same and to either expand the overlay boundaries to include the full Sherry Frontenac ownership or to narrow the overlay to exclude the smaller adjacent lots. The planning director and planning staff warned that including the Sherry Frontenac site “as drafted” could create technical difficulties (setbacks, lot geometry) and that the administration recommended limiting the overlay to the Deauville assemblage plus the two small adjacent vacant parcels rather than including the full Sherry Frontenac holdings. - Density, height and other numeric clarifications: The administration said the overlay could increase FAR on qualifying lots up to 4.5; the draft also reduces residential density to a maximum of 75 units per acre when the incentives are used (a reduction from higher densities that have existed on smaller lots). The Deauville assemblage is roughly 166,000 sq. ft.; a 4.5 FAR on that site would permit roughly the scale described in the presentation. The City’s planning director noted that setbacks and other development regulations will constrain how much of the theoretical FAR could actually be built on the narrow adjacent parcels. - Process and timing: Because the project team requested a ballot question (and because the candidate application is on a tight schedule), staff transmitted the planning-board materials and the committee discussed forwarding an ordinance to the full commission for potential placement on the November ballot. Committee members asked for additional, concrete public-benefit commitments (traffic and infrastructure analyses, workforce-housing proposals, guarantees on public access, and community mitigation measures) before the measure is placed before voters.

Voices from the public and affected owners - Michael Larkin, attorney for the north and south vacant-lot owners, urged parity: he asked the committee to remove the 50,000-sq.-ft. threshold that would make the Deauville assemblage the only site eligible for the full set of incentives and argued the current draft gives a bargaining advantage to the future Deauville owner. - Ira Sussman and Charlie Porchetto, owners and representatives of the Sherry Frontenac and the north lot, said they support revitalization but asked either to be included on fair terms or to see a structure requiring shared public-benefit obligations if they are to participate in increased FAR. - The Related Companies team and Stephen Ross urged the committee to permit a single large catalytic project; they argued the size of the Deauville site is what enables a high-quality, low-density (in units/acre) redevelopment and the public benefits the applicant proposes.

Committee response and next steps - Several commissioners expressed support for revitalizing North Beach and for seeking catalytic private investment, but also emphasized the need for more detail on traffic, infrastructure, public benefits, and protections for historic resources. - The committee considered the administration’s recommendation (limit higher incentives to the large Deauville assemblage and the two adjacent vacant lots, and not to include the entire Sherry Frontenac ownership) and then discussed options for narrowing or slightly adjusting overlay boundaries to protect nearby historic properties.

Where it stands now - The committee moved the overlay ordinance as recommended by the administration (transmit to the full commission for consideration and potential placement on the November ballot). The transcript records a motion to move the item and a second; a final roll-call vote on the motion was not recorded in the committee transcript provided. Committee members directed staff and the applicant to provide additional detail on public benefits, traffic/infrastructure analysis, workforce-housing options, and measures to avoid unintended demolition pressure on historic properties prior to final commission action.

Ending note: The proposal would change the city’s land-development rules for a focused area of North Beach and will require additional analysis and negotiated public-benefit commitments before the full commission and, if advanced, before voters in November. The committee repeatedly noted the need to avoid unintended consequences for neighboring historic buildings and to provide voters a clear statement of trade-offs and benefits.