Two proposed towers that blend condominiums with hotel-style short-term rentals have pushed the Sarasota City Commission to order its planning staff to write the city's first rules for condo-hotel buildings, a hybrid model common in Miami and Las Vegas but not previously addressed in Sarasota's zoning code.

At its Monday, July 20 meeting, commissioners directed Senior Planner Brianna Dobbs and her team to develop a policy framework defining what a condo-hotel is and how it should be regulated. Vice Mayor Kathy Kelley Ohlrich urged staff to move fast.

"It seems pretty wise that we would direct you to do this, and actually, it would seem wise for us to ask you to expedite it," Ohlrich said at the July 20 meeting, as reported by the Your Observer.

No deadline has been set for the completed framework.

Why it matters

The city's zoning code does not define "condo-hotel" or "apartment-hotel." Without a definition, planning staff currently classify these projects as hotels or motels. That classification exempts them from residential density caps, meaning developers can pack more units into a building than a standard condo would allow without participating in the city's density bonus programs.

Two projects forced the issue:

Saravela, an 18-story, 282-unit luxury tower proposed by Chicago-based GSP Development for the 400 block of North Tamiami Trail. The project originally offered owners a three-day minimum rental period. After staff objections, GSP agreed to the city-wide seven-day minimum for vacation rentals. Developer Larry Debb told the Your Observer that all rentals will be managed through a centralized in-house program; individual owners cannot rent units independently.

The Well Sarasota, at Mound Street and South Palm Avenue, developed by Miami-based Unilog Group. Originally proposed as a 66-unit condo with five affordable housing units, the project was redesigned as 28 traditional condominiums and 72 hotel/condo units. Unilog's Patrick Giannini did not respond to the Your Observer's questions about the building's management structure.

Resident raises Miami cautionary tale

Rosemary District resident David Lough, a board member of the Downtown Sarasota Condominium Association, warned commissioners about Miami's Club at Brickell Bay, a 43-story, 643-unit condo tower where a majority of owners rent units as hotel rooms. The building has been plagued by noise, illicit activity, and a condo association dominated by absentee investor-owners, Lough told commissioners.

Still, Lough acknowledged the model's appeal. He told commissioners at the July 20 meeting that the city is "catching this relatively early" and that he applauds developers looking for creative niches. He urged the city to research how other cities govern similar developments before finalizing its own rules.

What comes next

The Commission has not set a public hearing date or deadline for the new policy. Residents can monitor upcoming City Commission agendas at sarasotafl.gov for updates on when the framework returns for discussion.