Sarasota rejects downtown condo tower for a third time as court fight looms

Sarasota city commissioners have rejected a proposed luxury condominium tower for the third time, leaving a dispute over what would become the city's tallest building likely bound for circuit court. Monday's 3-2 decision followed a special magistrate's recommendation that the commission reverse its previous denials and permit the development.

The project, formerly called The Obsidian, would rise 320 feet at 1260 North Palm Avenue and contain 14 condominium units. Its plans complied with Sarasota's limit of 18 stories, but additional space between floors would make it substantially taller than neighboring buildings. Height, design and compatibility with the surrounding downtown neighborhood have driven opposition since plans reached City Hall in late 2022.

About 45 opponents attended Monday's meeting, wearing custom red shirts opposing the Palm Avenue tower. Residents have spent three years attending commission meetings, holding rallies and retaining attorneys and experts. Much of the resistance has come from Bay Plaza, a neighboring 14-story condominium built in the 1980s beside the quarter-acre development site.

Bay Plaza residents contend that the developer used a zoning loophole to increase the tower's height and waterfront views. They say the building would bring shadows, produce a wind tunnel and change the neighborhood's character. Residents have also told reporters that a corner of the proposed structure would sit within arm's reach of their building. Commissioner Kathy Kelley Ohlrich cited concerns about scale in opposing the proposal.

Developer Matt Kihnke has pursued approval for more than three years, revising plans and assembling engineers, planners and attorneys to respond to concerns about the tower's effects on nearby buildings and pedestrians. After two commission rejections, the developer sought relief through a Florida law intended to settle land-use disputes outside court. The special magistrate largely supported the developer, finding the city's earlier action unreasonable and an unfair burden on the property owner.

Attorneys for both sides pressed their cases Monday. Morgan Bentley, representing opponents, urged commissioners to reject the magistrate's recommendation. Developer attorney Robert Lincoln said another denial would lead to legal action. Commissioners Liz Alpert and Kyle Battie expressed reservations about the project and its impact on Palm Avenue, but also worried about the city's potential financial exposure if it lost in court. Both supported moving the proposal forward.

Mayor Debbie Trice supplied the deciding vote, joining Ohlrich and Commissioner Jen Ahearn-Koch in opposition. It was Trice's final meeting before a replacement commissioner was scheduled to be sworn in Friday, Nov. 6. Trice, who is not seeking re-election, described that part of downtown as "a bit of a jewel box" before voting against the development, drawing a surprised and enthusiastic response from opponents.