A developer has filed a lawsuit against the city of Miami Beach, claiming that officials are unlawfully blocking a plan to redevelop the Bancroft Hotel and the adjacent Ocean Steps retail complex into a mixed-use project under Florida’s Live Local Act. The complaint, submitted last month in Miami-Dade County Circuit Court, argues that Miami Beach is violating state law by preventing the proposed development at 1501 Collins Avenue.
The Live Local Act allows developers to bypass local zoning laws for high-density projects that include workforce housing for tenants earning up to 120 percent of the area median income. The law also permits developers to proceed through an administrative process rather than seeking public approvals.
The entity behind the redevelopment is managed by Todd Rosenberg of Boca Raton-based Pebb Capital. Partners in the venture include Maxwelle Real Estate Group, led by Richard Weisfisch, and Russell Galbut, principal of Crescent Heights and GFO Investments—both active in other Miami Beach developments. According to records, Rosenberg’s group purchased the properties from an entity affiliated with Galbut for $47 million in 2021.
Miami Beach officials did not respond to requests for comment on the lawsuit.
“Like many municipalities, the city of Miami Beach doesn’t like to be preempted,” said Thomas Robertson, attorney for Rosenberg’s group. “They are doing everything they can to stall it, stop it and prevent it.”
Russell Galbut noted that since the Live Local Act was enacted in 2023, Miami Beach has approved only one out of 12 project applications under its provisions. By comparison, he said, “the city of Miami…has approved 61 Live Local projects.” He added: “Everything in the city of Miami Beach languishes somewhat. I think Live Local allows us to deal with the serious issue of affordability. Miami Beach has lost residents because we have no housing and no affordability.”
The lawsuit seeks a court order requiring approval of their redevelopment plan and preventing city officials from imposing rules specifically targeting Live Local projects. The joint venture plans to turn the historic 1.2-acre site into a mixed-use tower with 249 apartments—40 percent designated as workforce housing—and 38 hotel rooms. This represents a shift from earlier plans for luxury offices at the site.
According to the complaint, planning staff refused to accept their application under arguments that consent from neighboring condo owners at 1500 Collins Avenue was required since both parcels function as a unified development site. The developer disputes this requirement.
Under Live Local rules, cities must administratively approve qualifying multifamily or mixed-use projects on commercial or industrial land without applying local limits on height or density or requiring public zoning board reviews.
Some municipalities and residents across South Florida have raised concerns about how these larger developments could impact local infrastructure. In Surfside, residents and Mayor Charles Burkett oppose an 11-story residential and hotel project proposed under Live Local regulations.
“I think the Florida politicians that decided to destroy the fabric and composition of small towns by this developer-driven initiative is outrageous,” Burkett said earlier this month.
