Crackdown

Rendering of the Trump Las Olas hotel/condo project in Fort Lauderdale.

With more hotel chains rolling out hotel/ condos, officials in Hollywood, Pompano Beach and Fort Lauderdale are discussing plans to restrict the length of time investors can live in the condo units. The ostensible reason given for the proposed restrictions is concern that permanent occupancy will lead to infrastructure problems, increased traffic and hurricane evacuation complications, especially in areas where populations have reached maximum capacity.

Charles Brecker, a shareholder in the real estate department of Miami-based Stearns Weaver Miller Weissler Alhadeff & Sitterson P.A., points to what may be the real motivation behind the proposed laws, however: "Retailers in beach communities have a special interest in seeing ordinances restrict the length of stay for condo/hotel occupants. Tourists bring more buying power to beach retailers, especially on rainy days when heading to the beach is not an option."

Under Hollywood's proposed ordinance, a hotel/condo must have at least 200 units. Those units must be rented to at least six different individuals during the year. No renter can stay in a unit longer than six months.

The Fort Lauderdale City Council is considering a similar ordinance to restrict an investors length of stay to a maximum of 90 days.

Brecker expects other beach communities to discuss similar ordinances.

Eugene Kessler, the retiring Turnberry Associates partner who is building Trump Las Olas in Fort Lauderdale, says the cities "just want to collect more taxes. Tourists shop and dine out more," he says. "That is the motivation behind these ordinances."

Tags: Southeast