Developer Russell Galbut pulled the plug on three controversial Live Local Act projects in Miami Beach, a city that’s experiencing an onslaught of development under state laws that preempt local power.
Although Galbut’s decision to scrap his three projects, which would have added nearly 400 residential units to South Beach, came after fierce opposition, he said his decision isn’t a surrender.
“This decision reflects my commitment to collaboration, not my retreat from the need for more housing,” Galbut wrote in a Monday email to City Manager Eric Carpenter as well as vocal Live Local Act critics Miami Beach Commissioner Alex Fernandez and Miami-Dade County Commissioner Vicki Lopez.
The Live Local Act, a state law approved in 2023 and tweaked in subsequent years, allows developers to build bigger buildings than permitted by a site’s zoning as long as they designate at least 40 percent of units as apartments for households earning up to 120 percent of the area median income. The income restrictions have to remain in place for at least 30 years.
Under the law, developers can bypass public hearings and obtain administrative approvals.
Galbut, who heads Crescent Heights and GFO Investments, proposed a 42-story tower with 163 units, 1,700 square feet of commercial space and a 13,400-square-foot private club at 1575 Alton Road. Galbut said that last week he reduced this project to 19 stories and 63 units.
In the smaller proposals, he wanted to build a 28-story, 100-unit building at 740 Alton Road, as well as a 20-story, 120-unit building at 880 71st Street.
The legislation’s proponents say its intent is to make a dent in Florida’s need for workforce and affordable housing. But some South Florida municipalities have decried its tramping on local say on developments and promise to bring taller buildings in traditionally low- and mid-rise areas.
In his letter to the city, Galbut wrote he “always believed” Live Local’s intent is to create needed housing at below-market rates.
“But I also recognize that the conversation surrounding this legislation has moved away from that intention, and I understand the concerns residents have raised about its impact on our community,” he added.
Galbut highlighted his long family history in Miami Beach, writing in his letter that his family’s been in the city for seven generations, and decried its changing fabric.
“That is why it pains me to see longtime businesses closing, storefronts sitting empty, and families increasingly unable to afford to live here,” he wrote.
Galbut told The Real Deal he still believes in Live Local, calling it “the salvation of Miami Beach,” adding he is still pursuing other developments in the city.
He appears to have nixed his projects following conversations with Fernandez and Lopez, with Fernandez announcing Galbut’s decision in a Facebook post.
Miami Beach, known for its Art Deco buildings but also a coveted building ground for developers due to its coastal proximity, has erupted in controversy over several projects, Live Local and others.
Allied Partners wants to redevelop the Savoy Hotel at 425 Ocean Drive with a 38-story building with a hotel, 90 condo units and 60 workforce rental apartments. The Savoy would be partially preserved, and a second structure on the site, the Arlington, will be demolished. The proposal is under the Live Local Act and The Resilience and Safe Structures Act, which allows the demolition of some historic buildings if they don’t comply with flood standards.
Miami Beach is beefing up its fight against Live Local. On Wednesday, commissioners will consider a measure that would open the door to legal action over the state law, potentially in coordination with the city of Miami. Other measures on the agenda would increase the city’s say on projects under the law.
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