North Miami Beach approves site‑plan changes for 2040 NE 163rd Street, converting hotel rooms to residences

The North Miami Beach City Commission on Tuesday approved a modification to the site plan for the mixed‑use development at 2040 Northeast 163rd Street that converts 30 previously approved hotel rooms into residential units, increases the projects unit count and affirms rooftop amenities and additional parking. Mayor Michael Joseph moved to approve the application, which passed by a recorded vote of 6‑1.

The resolution, introduced by staff as R‑2026‑73, covers the projects previously approved floor area and changes since the January 2022 approval. Applicant counsel Steve Warnick, of Day Pitney LLP, told the commission the current request is limited to conversion of the 30 hotel rooms into apartments and does not change the building envelope. "We're converting those 30 hotel rooms to units," Warnick said, and the project retains ground‑floor retail and the previously approved building footprint.

The development as presented will have roughly 374 residential dwelling units in a building whose approved maximum height and floor area were previously modified administratively; the most recent submittal reflects changes approved administratively in 2025 and the current conversion to residential units. Architect Javier Font described the design, including a ninth‑floor amenity level and rooftop terraces that incorporate a pool and a compact recreational court. "All we're doing is changing the use of those 30 hotel rooms to units," Font said.

A principal focus in commission debate was parking. Interim community development director Edward Neng explained the applicant added spaces bringing the proposal to 457 parking spaces (with ADA stalls counted in addition to that total) and that under the calculations the city applied — which staff said reflect the citys pre‑SB‑180 standards — the project meets the minimum parking requirement (391 spaces) for its mix of unit sizes. "They actually have 457 [spaces] in the proposed this evening," Neng said.

Commissioners and members of the public raised concerns about tenant relocation and the adequacy of notice to current commercial tenants on the site; the applicant said tenants have been made aware and that the developer hopes to obtain full building permits and begin construction in the first quarter of next year. Whitney Prudhomme, a resident, asked the developer to commit to clear communication plans for construction impacts, saying such plans should address traffic, parking and small businesses that may need to relocate.

Legal uncertainty over a recent state law — Senate Bill 180 — featured in the discussion. A legal advisor to the commission summarized the citys position: SB 180 can be read to preempt local ordinances that are more restrictive than state standards and may affect recently adopted local parking requirements. "State of Florida has passed a series of very restrictive ordinances that interfere with home rule," the advisor said, and cautioned that while the city could litigate the issue, courts have not uniformly resolved the statutes scope. Staff told commissioners they applied the preemption analysis to avoid exposing the city to a likely legal challenge.

On rooftop uses, staff cited city code provisions that distinguish habitable space from non‑habitable amenities and said the approval includes a condition requiring that covered rooftop structures not become habitable units. Neng said covered structures and mechanical areas need to comply with section 24‑58 of the city code and that the proposed condition would make the amenity uses enforceable.

Vice Mayor McKenzie Fleurimond and other commissioners asked about community benefits and public‑art obligations; staff and the applicant said no community benefit agreement or CRA funding request was part of the original approval and that public art obligations are tied to CRA fund requests under current code. Commissioners expressed interest in pursuing city policy changes to encourage voluntary developer contributions for neighborhood improvements in future proposals.

The commission voted to approve the site plan modification with the conditions described during the hearing. Commissioner Smockler cast the lone dissenting vote. The approval affirms prior conditions from the earlier resolution, removing the hotel use and its variance where noted. The applicant may proceed to the building‑permit stage subject to the conditions in the approval and applicable building‑code reviews.

The commissions next steps on the project include permit review and any required building‑permit conditions; staff said they will continue to work with the applicant on parking, safety measures for rooftop recreational facilities and tenant communications.