SUBJECT/RECOMMENDATION:
Title
Provide direction on the proposed Development Agreement between MHG Palm Pavilion Hotel, LP, Sixth Flag Planted LLC and the City of Clearwater for property located at 10 Bay Esplanade and 18 Bay Esplanade, providing for the allocation of 91 units from the Hotel Density Reserve under Beach by Design, and confirm a second public hearing in City Council Chambers before City Council on June 4, 2026 at 6:00 p.m., or as soon thereafter as may be heard. (HDA2026-03001)
Body
SUMMARY:
Site Location and Existing Conditions:
The subject property is a 1.06-acre parcel operating as a restaurant and hotel with frontage along Bay Esplanade and Kendall Street. (241 feet and 291 feet, respectively) It is located within the Tourist (T) District and the Old Florida District of Beach by Design with an underlying future land use designation of Resort Facilities High (RFH).
The surrounding area is characterized by a mix of uses including overnight accommodations (hotels), retail, outdoor recreation and entertainment, restaurants, and attached dwellings with heights ranging from one to eight stories. There is a one-story service station adjacent to the site and a one-story City Fire Station 46 located across Bay Esplanade at the northwest corner of Bay Esplanade and Mandalay Avenue. Mandalay Avenue to the east has largely been improved according to Beach by Design.
Site History:
The subject property consists of two portions developed in 1926. The west portion contains an existing 7,895-square-foot restaurant, while the east portion contains 30 overnight accommodation units. The restaurant is proposed to be preserved, whereas the existing hotel on the east portion is proposed to be demolished.
Although the overall size of the development site has not changed, the two previously separate parcels have been consolidated into a single condominium plat consisting of two ownership parcels.
The two portions of the site have distinct regulatory histories, summarized below:
West portion of the site (10 Bay Esplanade):
On February 19, 2019, the Community Development Board (CDB) approved a Level Two Flexible Development application (FLD2018-11028) for proposed roof replacement over an existing restaurant deck seaward of the Coastal Construction Control Line (CCCL).
East portion of the site (18 Bay Esplanade):
On August 8, 2024, the Community Development Board (CDB) approved a Level Two Flexible Development application (FLD2024-02007) for a termination of status of nonconformity to recognize the nonconforming hotel density of 30 units.
Development Proposal:
The proposal is to remove all the existing site improvements on the 1.06-acre site and to construct a hotel with 144 overnight accommodation units as well as the preservation of the existing restaurant as an accessory to the primary overnight accomodatations use. The underlying Resort Facilities High (RFH) future land use designation allows for 50 overnight accommodations units per acre or 1.2 FAR for nonresidential uses.
To achieve the proposed number of units, the project utilizes 53 units from the property acreage, in addition to the requested 91-unit allocation from the Hotel Density Reserve (Reserve) through Beach by Design.
As stated, the request includes 144 rooms which equates to 136 units per acre. The building will be 75 feet in height as measured from the established design flood elevation to flat roof. The proposal includes a tropical modern architecture, which is consistent with and complements the tropical vernacular envisioned in Beach by Design. The request includes a conceptual site plan and accompanying building elevations (Exhibit B).
The site will be accessed via a two-way driveway from Bay Esplanade and Kendall Street at the south and north sides of the property, respectively, which will provide access to the parking garage component of the development. The primary pedestrian entrance will be located at the south side of the site and a secondary pedestrian entrance will be located at the north side of the site.
In addition to parking, the ground floor of the new building proposes contains an elevator to the lobby and a pedestrian access to the existing restaurant on the west side of the property. The first four floors of the new building will contain a parking garage as well as miscellaneous back-of-house components such as maintenance rooms, trash and laundry facilities. The fifth floor will include an amenity area. The sixth through nineth floors will be devoted entirely to guest rooms
Proposal’s Consistency with the Community Development Code (CDC):
Minimum Lot Area and Width:
Pursuant to CDC Table 2-802, the minimum required lot area and width for an overnight accommodations use is 20,000 square feet and between 100 and 150 feet in lot width, respectively. The subject property is 46,265 square feet in area and the minimum width of the property is approximately 241 feet wide. The site is consistent with these Code provisions.
Minimum Setbacks:
The conceptual site plan depicts a north front setback of 15 feet along Kendall Street, a south front setback of 10 feet along Bay Esplanade, an existing west side setback of zero adjacent to the beach and side setbacks of 5 feet along other property lines. The proposed setbacks and height may be approved as part of a Level Two (FLD) application, subject to meeting the applicable flexibility criteria of the Community Development Code.
Maximum Height:
Section B of the Design Guidelines within Beach by Design specifically addresses height. The proposal provides for a building 75 feet in height as measured from the design flood elevation where a height of up to 100 feet is permitted as prescribed by the CDC (subject to meeting the applicable flexibility criteria of the CDC and approved as part of a Level Two Flexible Development application) and as limited by any applicable Beach by Design requirements.The height of the proposed building is consistent with the guidelines of Beach by Design.
Minimum Off-Street Parking:
The 144-room overnight accommodations use requires a minimum of 173 off-street parking spaces. A parking garage located on the first four levels of the building will provide 173 spaces. This is consistent with the applicable Sections of the CDC.
Landscaping:
While a formal landscape plan is not required to be submitted for review at this time, the conceptual landscape areas depicted on the site plan show that adequate spaces for foundation landscaping will be provided along all street frontages. Since no perimeter landscape buffers are required in the Tourist (T) District, the proposed landscape areas meet or exceed what is required. It is noted, however, that flexibility may be requested/necessary as part of a Comprehensive Landscape Program which would be reviewed at time of formal site plan approval.
Proposal’s Consistency with Beach by Design:
Design Guidelines:
A review of the provided architectural elevations and massing study was conducted and the proposed building does appear to be generally consistent with the applicable Design Guidelines established in Beach by Design. However, a more formal review of these Guidelines will need to be conducted as part of the final site plan approval process.
Hotel Density Reserve:
The project has been reviewed for compliance with those criteria established within Beach by Design concerning the allocation of hotel rooms from the Reserve. The project appears to be generally consistent with those criteria, including that the development complies with the Metropolitan Planning Organization’s (MPO) countywide approach to the application of traffic concurrency management for transportation facilities. The submitted Traffic Impact Study concludes that traffic operations at nearby intersections and on adjacent roadways would continue at acceptable levels of service. Staff believes that the proposal meets the intent of Beach by Design and approval of the request.
Standards for Development Agreements:
CDC Section 4-606 sets forth the procedures and criteria for reviewing development agreements. Specifically, development agreements shall be consistent with Clearwater 2045, the city’s Comprehensive Plan. The proposal furthers the goals, objectives and policies of the Comprehensive Plan as provided below.
Goal QP 3: Support the on-going transformation of the Downtown and Clearwater Beach Activity Centers as high intensity, walkable, and attractive regional centers for living, working, shopping, and entertainment.
Objective QP 3.3: Continue to use Beach by Design: A Preliminary Design for Clearwater Beach and Design Guidelines (Beach by Design) to guide development, redevelopment, and placemaking on Clearwater Beach.
Policy QP 3.3.4: Continue to utilize the Hotel Density Reserve allocation as established in Beach by Design to facilitate hotel development on Clearwater Beach
The proposal is in compliance with the standards for development agreements, is consistent with the Comprehensive Plan and furthers the vision of beach redevelopment set forth in Beach by Design. The proposed Development Agreement will be in effect for a period not to exceed ten years, meets the criteria for the allocation of rooms from the Hotel Density Reserve under Beach by Design and includes the following main provisions:
• Includes conceptual site plans, architectural drawings, elevations and perspectives in Exhibit B that appear to be generally consistent with the applicable Design Guidelines established in Beach by Design;
• Requires the developer to obtain site plan approval within one year of approval, commence vertical construction within four years from the date of site plan approval, and obtain a certificate of occupancy within six years from the date of site plan approval;
• Requires the return of any hotel unit obtained from the Hotel Density Reserve that is not constructed;
• Prohibits the conversion of any hotel unit allocated from the Hotel Density Reserve to a residential use and requires the recording of a covenant restricting use of such hotel units to overnight accommodations usage; and
• Requires a legally enforceable mandatory evacuation/closure covenant that the hotel will be closed as soon as practicable after a hurricane watch that includes Clearwater Beach is posted by the National Hurricane Center.
Changes to Development Agreements:
Pursuant to Section 4-606.I, CDC, a Development Agreement may be amended by mutual consent of the parties, provided the notice and public hearing requirements of Section 4-206 are followed. Revisions to conceptual site plans and/or architectural elevations attached as exhibits to this Development Agreement shall be governed by the provisions of the CDC, Section 4-406. Minor revisions to such plans may be approved by the Community Development Coordinator. Other revisions not specified as minor shall require an amendment to this Development Agreement.
Summary and Recommendation:
The proposal appears to be generally consistent with applicable components of the Community Development Code and Beach by Design and the city’s Comprehensive Plan. Staff is supportive of the request.