TOWN COUNCIL WORKSHOP REDEVELOPMENT OF THE OCEANFRONT INN PROPERTY JUNE 9, :30 P.M.

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1 TOWN COUNCIL WORKSHOP REDEVELOPMENT OF THE OCEANFRONT INN PROPERTY JUNE 9, :30 P.M. Call to Order and Roll Call: Mayor Jacobson called to order the Town Council Workshop Meeting at 1:32 P.M. Mayor Jacobson in chair, Vice-Mayor Zimmerman, Councilors Millar, Gottlieb and McCrosson. Also present were Town Manager Taylor, Asst. to the Town Mgr./Deputy Clerk Mutchnik, Director of Public Safety Crane, Town Attorney White and Town residents. Pledge of Allegiance: Councilor Millar led the Pledge of allegiance. Mayor Jacobson said that this meeting was not for motions or final decisions. He said that it was for the representatives from the Oceanfront Inn to make their presentations and that the floor would be open for questions at the end of all presentations. Mayor Jacobson said that from the attendance he knew that everyone loved the Town of South Palm Beach. He said that he has had communication with Joe Paloka, Robert Moore and Ron Kollins but that no decisions were ever made. Mayor Jacobson asked the Town Council if they wished to make a statement at this time. There was no response. Presentation by Oceanfront Inn: Maura Ziska, Land Use Attorney, said that she represented the Paloka family. She said that she appreciated the opportunity to give information regarding the Palokas plan for the Palm Beach Oceanfront Inn and to answer any questions. Ms. Ziska said that she wanted to introduce the following people who were present this date: Mr. and Mrs. Paloka, son Peter Paloka and daughter-in-law Michelle Paloka. She said that she also wanted to introduce Co-Counsel Ron Kollins, Robert Moore, Senior Project Consultant, Eugene Lawrence from the Lawrence Group, Dr. Hank Fishkind, an Economist and Susan Danielson, a Traffic Engineer. Ms. Ziska said that the Paloka family who total twenty-two in all live on South Ocean Boulevard. She said that some of the family lives in South Palm Beach and some in Palm Beach. She said that they had operated the Palm Beach Oceanfront Inn for four years, seven days per week. Ms. Ziska said that they were ready at this time to move to a more challenging project that would benefit the Town and the quality of life for the residents of the Town of South Palm Beach. She said that the Paloka family was excited to bring a state of the art condominium resort to our Town. Ms. Ziska said that the barrier island was already home to many internationally recognized and awarded resorts. She said that this project would be a major contribution to the Town of South Palm Beach. Ms. Ziska said that the Palm Beach Oceanfront Inn was the only property that was right for redevelopment in the Town of South Palm Beach. She said that the current hotel was not catering to the residents of the Town of South Palm Beach to the best of its ability. Ms.

2 Ziska said that both Palm Beach and Manalapan had enjoyed the benefits of having great hotels in their neighborhood and the Town of South Palm Beach should also. She said that this project would be good for this community. Ms. Ziska said that the Breakers was great for Palm Beach with their $200,000,000 ten-year renovation. She said that the Ritz Carlton was good for the Town of Manalapan with plans to add twenty-four more rooms and a twenty-eight thousand square foot spa. Ms. Ziska also said that the Four Seasons Hotel was good for Palm Beach and that they were doubling the size of their spa. She said that the Hilton just received preliminary approval to convert into a luxury condominium hotel and it was stated by the Chairman of the Palm Beach Architectural Commission that it would be a major contribution to Palm Beach. Ms. Ziska said that these resorts would serve an integral part in the lives of Palm Beach and Manalapan residents who enjoy their services and amenities. She said that the Palokas building would be called the Palm Beach Picasso although this was a working title. Ms. Ziska said that the building would be one hundred and fifty condominium units, with a European Spa, several restaurants, a three-story Venetian style lobby bar and lounge, roof top gardens, beachfront cabanas, twenty-four hour valet parking, beachfront restaurant and bar and a five star concierge service. She said that all entities would be 100% accessible to the public. Ms. Ziska said that to minimize traffic flow there would not be any conventions or club memberships. She said that the Palokas would donate a brand new Town Hall with a comprehensive emergency operation center to mitigate any impact to the Town of South Palm Beach. Ms. Ziska said that this project would increase tax revenues to the Town. She said that this would also increase property values without any expense and possibly decrease taxes to the residents. Robert Moore, Planning, Building and Zoning Consultant, said that he had worked for twentyfive years for the Town of Palm Beach as their Director of Planning, Zoning and Building. He said that in the early seventies he was a resident in the Town of South Palm Beach and a Council Member from 1972 through 1973 and Mayor. Mr. Moore said that he was the General Manager at the Hawaiian Inn and had a perspective of the hotel that dated back from 1967 to the present time. He said that the building had suffered damage through the past three storms and it is now right for redevelopment. Mr. Moore asked what would be best for the Town of South Palm Beach? He said that there were two hot issues that were on the Town of South Palm Beach s plate presently. Mr. Moore said that he had a discussion with Councilor Millar and one was Fire-Rescue costs and the other was Beach Renourishment. He said that with the expense of Fire-Rescue, this was an area where there was a need to research a project that would bring this Town extra revenue. Mr. Moore said that with Beach Renourishment there was the issue of paying for pumping the sand onto our beaches. He said that back in the 1960 s there was a financial crisis in the Town of South Palm Beach. Mr. Moore said that the water and sewer were in need of upgrading. He said that a decision was made in regard to the property just north of the Hawaiian Inn. Mr. Moore said that property, which was now the Tuscany Condominium, was nowhere near where the permitting was allowed then. He said that the Mayor and Town Council at that time changed the zoning to allow the Tuscany to be built to provide the infrastructure improvements. Mr. Moore said that their ideas plus their familiarity of the present project had occurred prior to this presentation and that this addition would be a great alternative to raising taxes to the residents of the Town of South Palm Beach. Eugene Lawrence, Architect, said that he was familiar with the Town of South Palm Beach. He presented an overview slideshow of the proposed new Picasso Palm Beach property. Mr. 2

3 Lawrence said that parking was of most importance. He said that they were researching employee parking and a training facility to be situated on the mainland. Mr. Lawrence said that the personnel would be bused over to the island, as the Breakers did with their employees. He said that their fire protection system would be installed on several levels at the Hotel and that he had a conversation with Councilor Millar regarding that. Mr. Lawrence said that there would be a central control room where the Fire-Rescue Department would come in when a fire occurred. He said that in regard to hurricane protection there would be a model of the whole facility and put in a wind tunnel at 140 miles per hour and that allowed them to pick the stresses of the building in various locations. Mr. Lawrence said that all the exteriors of the building were designed to take those loads. He said that the storm shutters created for their facility would be 15.4 and any storm surge would go through the building and then immediately out the building. Mr. Lawrence said that they planned to use a filtered water system in the air conditioning system for its efficiency and to make it an environmentally friendly building. He said that it would be a first class resort spa facility on the ocean with a total of one hundred and fifty suites, etc. Susan Danielson, from Kimley-Horn and Associates, said that she had sixteen years experience as a Registered Engineer in the State of Florida. She said that traffic was always an issue. Ms. Danielson said that the proposed site would be thoroughly reviewed. She said that the County of Palm Beach demanded that concurrency standards were met and the Department of Transportation would review the appropriateness of their access. Ms. Danielson said that they had identified three particular areas that would affect travel patterns in the Town of South Palm Beach. She said that the type of unit that was proposed did not have the high occupancy or the high turnover of a regular hotel, which was on the site today. Ms. Danielson said that this type of high end product would have a higher average of vacancy throughout the year. She said that some units would not be rented at all, as per the owner s discretion. Ms. Danielson said that the important issue was that with the unique characteristics of a luxury hotel there was one half the amount of traffic of an equal number of hotel rooms. She said that the present site did allow public access to the beach. Ms. Danielson said that the new facility would not allow outsiders to enter the beach. She said that as a result of that there would be less traffic on A1A. Ms. Danielson said that the present building provided some dangerous roadways. She said that the new facility would have twenty-four hour per day security and a valet service provided. Ms. Danielson said that the development would be thoroughly reviewed by local government officials; there would be minor increase in traffic and that the property would no longer be used for public beach access. Hank Fishkind, President, Fishkind & Assoc., which was an Economic and Fiscal Analysis Consulting Firm, said that he had over twenty years experience in the State of Florida. He said that he evaluated the economic and fiscal impacts of the current building, which were fifty-eight units of the older hotel property. Mr. Fishkind said that it had a taxable value of approximately $3,000,000 and that almost pays for the services rendered to it by the Town of South Palm Beach. He said that the Town provided a small subsidy to the hotel. Mr. Fishkind said that if the Town Council would move on the redevelopment of the property it would cause a very substantial improvement to that fiscal balance. He said that the taxable value of the completed building would be over $335,000,000 and would generate more than $2,000,000 of Ad Valorem revenues alone at the current millage rate for the Town of South Palm Beach. Mr. Fishkind said 3

4 that it would offer the Town the opportunity to greatly enhance its fiscal position and to allow the Town to finance a range of services on behalf of the Town of South Palm Beach. Ron Kollins said that he would not be making any presentation this day. He said also that Robert Moore and Michele Paloka would not be speaking. Mr. Kollins said that they would be taking any questions at this time. Mayor Jacobson said that the Council Members would speak first and then the residents from the community. He said that everyone must speak into the microphone for recording purposes. Mayor Jacobson asked what the new footprint would be in comparison to what was there at the present time? Mr. Lawrence said that the existing footprint had a two-story building that went from the north side from west to east. He said that the main building was in the second half on the ocean front side and the pool went forward to the east. Mayor Jacobson said at the present time the hotel was sitting on the top of a dune. He asked if they were planning to remain on top of that dune? Mr. Lawrence said yes. Mayor Jacobson said that it was important and that everyone should be aware of that. He said that no reference was made in regard to the height of the new building and the rendering did not display what existing structures would be on either side. Mr. Lawrence said that the information would be provided. Councilor McCrosson said that was the narrowest lot in the Town of South Palm Beach. He asked how far would they be to the property line, north and south? Mr. Moore said that he would not be asking for any variances and that they would be complying with all code requirements. Councilor McCrosson said that the beach in that area was very narrow and with the height of the new building what did that do for the residents north and south where there would be no sun on the beach. Mr. Lawrence said that the sun came in from the southeast up to noon and set in the southwest. He said that the shade of the new building would block the Tuscany to the north. Mr. Collins said that this Workshop was to obtain a better handle on the issues and concerns from the Town Council and the residents in the Town of South Palm Beach. He said that they could do a shadow study if necessary. Councilor McCrosson inquired how the lighting of the new hotel would affect turtle nesting. 4

5 Mr. Kollins said that they would comply with the Department of Environmental Protection requirements regarding that issue. He said that they had very strict lighting requirements for that very purpose and would satisfy that with a lighting plan. Councilor Gottlieb asked why there would be two pools, one in the front and one on the ocean? He said that he was concerned regarding the density and height of the completed building. Councilor Gottlieb said that he realized that the building was equal to the dune. Mr. Lawrence said that he did not usually put pools on the ocean because in the wintertime with the winds coming off the water it was not comfortable. He said that they wanted to offer both experiences. Mr. Lawrence said that they retained a coastal engineer and that they would submit this project to the Department of Environmental Protection in Tallahassee for their approval also. Vice-Mayor Zimmerman said that at the present time the Town of South Palm Beach s Planning Committee was working on a Comprehensive Plan and had already held their first meeting where the residents explained what they expected in Town of South Palm Beach in the future. He said that any decisions made had to be based on what this Planning Committee and Evaluation and Appraisal Reports decided. Mr. Kollins said that he agreed with that. He said that before there was a vote there was still a lot of homework to be done. Mr. Kollins said that he would meet with every condominium association in the Town individually. He said that he wanted to receive suggestions from every resident possible and that he encouraged them to call him regarding any questions. Vice-Mayor Zimmerman said that the traffic study did not appear to be a definite decision. He said that most of the issues presented this day had to be approved by other authorities before they became final. Vice-Mayor Zimmerman said that this presentation seemed premature. Mr. Kollins said that the way to start the process was to get some feedback first. He said that when the applications were to be filed, they required a variety of approvals from the County. Councilor Millar said that he thanked Robert Moore for paying him a compliment. He said that the height of sixteen stories was his concern. Councilor Millar said that Town of Palm Beach aerial ladders would not work with that height. He said that the fire system planned for the new facility would probably be the best. Councilor Millar inquired if the new Town Hall would be fourteen or sixteen stories high. Mr. Kollins asked if Councilor Millar could see through a five-story building better than a taller building? Councilor Millar said that as a frequent beach goer, he was aware that some of the present buildings blocked the sun certain times of the day already and that their new facility would even block out more sun. He asked what would happen to the property value of the individual condominiums in the Town of South Palm Beach if their new building were built? 5

6 Mr. Kollins said that although he was not a Property Appraiser he had been in the business for many years, and he felt it would significantly enhance all the property values. He said that they would consult an expert to discuss that further. Councilor Millar said that their presentation was well prepared and good. He said that the residents of the Town of South Palm Beach looked for respect. Councilor Millar said that he did research and learned that Mr. Kollins was a great lawyer. He said that the Town of South Palm Beach was a unique Town and not as large as other municipalities in the area. Councilor Millar said that we were more like a mom and pop town. Mr. Kollins said that he wanted everyone present today to keep an open mind regarding the issues and that they would do the best they could. Mayor Jacobson said that the Town had a great deal of pride and that they would all work together on this matter. He said that he would like to open the microphone up to the audience at this time. Councilor McCrosson inquired if an independent company was doing the traffic study. Mr. Kollins said that they were required by the County to do their own study. He said that the County of Palm Beach independently reviewed it. Councilor Gottlieb said that he would like to see a responsible and uniform development that would fit into the Town of South Palm Beach. Councilor Millar inquired as to the statement of building a brand new Town Hall, what exactly was meant. Mr. Kollins said that if the Town wanted it they would build a new state-of-art Town Hall, as a contribution to the Town. Mayor Jacobson asked based upon what? Mr. Kollins said that he heard someone in the audience say bribery. He said that every town or city often asked what were they going to receive. Mr. Collins said that they were prepared to offer something. Public Comments: Joan McManus, Mayfair House, said that the Ritz Carlton, Four Seasons and the Hilton all functioned under six-storied heights. She said that the Town of South Palm Beach used to be zoned higher but they changed the laws to keep the Town at the present state. Ms. McManus said that in regard to the new facility, it would be 192,000 square feet, which was eight times the size of a current building. She said that would overshadow everything. Ms. McManus said that with regard to the two pools at the new facility and their sun exposure, the residents exposure to the sun should be considered first. She said that the Ambassador Hotel did not receive any 6

7 money this year for rentals and that it was all out of pocket. Ms. McManus said that with the spa and restaurant outside traffic would create a great intensity of traffic on A1A. She said that she did not think the proposal of a new large luxury hotel was professional and in actuality was ludicrous. Ms. McManus said that this could open the door for the condominiums to remodel to much larger buildings. She said that she was disappointed with Mr. Moore with whom she was familiar and that this proposal would not fly in Palm Beach. Dr. David Sousa, President, Horizon West, said that he had owned his property since 1978 and had happily lived there full-time since 1999 because of the smaller buildings. He said that he spoke on behalf of his condominium association and other associations in the Town. Dr. Sousa said that his building had a private easement to the beach between the hotel and Horizon East. He said that with any new renovations to the hotel there would be disruption to the residents of his condominium. Dr. Sousa said that the new facility would be twice as high as any other building in the Town, which would be an eyesore on the skyline. He said that he agreed that it would cast a long shadow on the beach and, therefore, he hoped that the six-story limit would be enforced. Dr. Sousa said that with the restoration project on A1A by the Department of Transportation, it would affect the width of the road and the larger hotel facility would create a safety hazard for pedestrians, cars and bicycles. He said that in regard to parking, he already had an issue at the present time with hotel patrons parking at his limited parking spaced condominium. Dr. Sousa said that he feared that the Horizon condominiums would become the overflow parking lots for that project. He said that the current proposal should be cut back to reflect the current codes. Dr. Sousa said that the tax revenues were very appealing but that he wondered how much the Town was really going to receive. Sam Fasal, Mayfair House, said that when a delivery truck would arrive at the present hotel, a flagman had to stop traffic on A1A so that the truck could enter the driveway with great difficulty. He said that with a larger facility with much more business and activities and the large trailer trucks, A1A traffic would be very much affected. Joseph Loebig, Horizon East, showed photographs of the present hotel with its pool location offseason. He said that it could be seen that the hotel guests were on Horizon East and West s beach. Mr. Lobig said that it was also a hot spot in relation to beach erosion. He said that if there would be any kind of new renovation to the hotel, their pool should be backed off the beach. Dr. Joe Flagello, Palmsea, said that he had been a resident in the Town of South Palm Beach for five years. He said that now that he was on the Planning and Zoning Board, the Oceanfront Inn was going to make his job very interesting for the next couple of months. Dr. Flagello said that the Planning and Zoning Board were undertaking a Comprehensive Plan and Evaluation and Appraisal Report at the present time and that all the procedures mentioned today may not happen. He said that those situations were still under development and could change. Dr. Flagello said that there should be no decisions made as yet and everyone should keep an open mind. He said that there were advantages and disadvantages. With the terrific turnout at this meeting, residents should come to other meetings and give their input in regard to the development of the Town of South Palm Beach. Dr. Flagello said that working together would accomplish a lot more. 7

8 Murray Fox, President, Dune Deck, and the Town of South Palm Beach Condominium Association, said that he thanked the Oceanfront Inn for their very informative presentation. He said that their representatives were here to find out whether the Town Council would approve the additional height variance and that they do deserve an answer. Mr. Fox said that he would hate to see high-rises in the Town of South Palm Beach. He said that the Oceanfront Inn representatives should take away from today s meeting a sense that the Town Council and residents were very much against creating a fifteen-story building but would support a facility within the Town s standards. Louise Braunstein, Horizon East, said that she had been a resident of the Town of South Palm Beach for thirty-two years. She said that this Town had a small town feeling and very special programs and that they did not want a bunch of strangers coming and going throughout the Town. Ms. Braunstein said that the beach would also be very much affected by the amount of people. She said that she would welcome a small hotel with a new roof and felt that other residents would patronize a new smaller facility also. A new resident said that after renting for two years here she purchased a condominium. She said that her view was the Police Station. She said that she liked progress and that she thought that the hotel personnel were trying to build a state of the art building to bring pride and money to this Town. She said that the same lack of view with the present hotel would be the same as with the new facility. She also said that this change would upgrade the environment of the Town of South Palm Beach and bring revenue into this Town. Mr. Kollins said that this meeting process was a very positive approach. He said that the issues brought up this date would be dealt with accordingly. Mr. Kollins said that changes did cause disturbance and hopefully some of these facts would be mitigated somewhat. He said that the Paloka family were not new to this area, twenty-two people strong being present, and were not carpetbaggers. Mr. Kollins said that he also represented the Ritz Carlton Hotel and the Four Seasons Hotel and he learned how a good, close and positive relationship could be with a property. He said that Mayor Bill Benjamin of the Town of Manalapan would relay how positive the relationship between them and the Ritz Carlton. Mr. Kollins said that if this project did go through, the relationship was gtbetween the hotel and the Town of South Palm Beach would be as popular as with the other hotels. He said that this was not the time to debate certain issues but rather to learn what all the issues were and to meet again to work more closely together. Mr. Kollins said that he thanked everyone for their participation on behalf of the Paloka family. Patricia Schulmayr, Southgate, said that she had lived in the Town of South Palm Beach for twenty-one years. She asked if they were knocking down the whole building and starting over or were they intending to build on top of what was presently there? Mr. Kollins said that the present building would be knocked down. Ms. Schulmayr said if that were the case, the coastal line would have to be moved back. 8

9 Mr. Kollins said that they would meet code and obtain the appropriate permitting from the Department of Environmental Protection. Ms. Schulmayr said that the Town of South Palm Beach with the assistance of the County of Palm Beach was under a plan for beach restoration and, therefore, that would be a large consideration. Mayor Jacobson adjourned the meeting at 3:00 P.M. Vanessa M. Mutchnik, Deputy Clerk Maurice J. Jacobson, Mayor 9