Major Miami Beach Real-Estate Projects Nixed by Voters

But a little more than half of Miami Beach residents voted thumbs down on three separate referendums that would have allowed the developments to proceed.

Mr. Ross now would have to vastly restructure his development so that it meets current zoning rules and other laws. The two office projects, which would have been built on city-owned land leased to private developers, can’t go forward without voter approval.

Representatives for Mr. Ross declined to comment. A representative for the political committee that backed the measure said in an email: “While we are disappointed with the outcome, we know North Beach deserves an economic engine, not an eyesore. We appreciate the tremendous support we received from thousands who backed a real vision for a better North Beach and still believe there’s a brighter future ahead.”

Don Peebles III, Mr. Peebles Jr.’s son and partner, said they remain bullish on Miami Beach, where they have been based since the pandemic began.

“We’re continuing to assess opportunities as they become available,” said Mr. Peebles III.

A representative for Mr. Sternlicht said he declined to comment.

Daniel Ciraldo, executive director of Miami Design Preservation League, said the voters signaled they aren’t ready to approve projects that could significantly change the character of Miami Beach, which is famous for its art deco architecture and lower-rise buildings. Mr. Ross’s plan to construct two high-rise towers on the sand almost twice as tall as the zoning allowed, for example, would affect the experience at the beach, he said.

“We feel it’s important to maintain that low-scale beauty that Miami Beach is famous for,” said Mr. Ciraldo.

Development has increased quite a bit in Miami Beach over the past few years, including Starwood’s new global headquarters and 57 Ocean, a luxury condo tower on the sand developed by Brazilian entrepreneur Jose Isaac Peres.

Entities tied to Mr. Ross spent more than $1 million in support of his new project, according to people familiar with the matter. His plan was to build two Frank Ghery-designed towers in place of the Deauville, which was closed in 2017 after an electrical fire. The structure was built in 1957 and hosted a Beatles performance on “The Ed Sullivan Show.”

The project was slated to reach a height of 375 feet, well above the current zoning allowance of 200 feet, and featured an Equinox hotel and about 125 condo units. When voters rejected the measure to expand the floor-area ratio for the project, it effectively killed Mr. Ross’s plan.

Even though the project is on hold, the hotel, which had been run into disrepair by the family who bought it in 2004 for $4 million, was imploded on Sunday. The nearly 4-acre site will now sit empty until new plans for the site are approved.

Miami-Dade County Mayor Daniella Levine Cava and Miami Beach Mayor Dan Gelber were among those who supported the measure for the Related project. The area where the site is located has been designated a special community redevelopment area, which means a larger portion of tax proceeds would stay with the city of Miami Beach rather than going to the larger Miami-Dade County.

“It’s a lost opportunity,” said Mr. Gelber, who hoped to use the proceeds to build workforce housing and reinvest in the community. “I think it would be terrible if in 20 or 30 years this were still a desolate lot, draining the economic vitality of the area.”

He predicts a third option will emerge for the site that will strike the right compromise. “I don’t think people have given up. We have to come up with a better version and explain it better,” he said.

Some opponents of the development said the plan didn’t adequately preserve or replicate the original structure. Kristen Rosen Gonzalez, the sole commissioner who opposed the measure, said she was pitched on a “Deauville Bar” inside the hotel portion of the project that would have paid homage to the original building by running Beatles videos.

“His bar sounded tacky,” said Ms. Rosen Gonzalez. “It was a terrible idea, and he was immovable, and he lost. Tuesday was a resounding win for historic preservation on Miami Beach.”

Not all new Miami Beach projects have been rebuffed, and those not going before voters often face an easier path. New York developer

Michael Shvo,

for example, secured approval last week from the Miami Beach Historic Preservation Board for one of his office developments. He has a total of three office projects in the works, two of them from the ground up. He is also redeveloping the historic Raleigh Hotel and two neighboring ones into one larger complex of almost 3 acres.

“If you work with the local groups, both the community and the officials, you end up with support for something that everybody wants to see built,” said Mr. Shvo.

Write to Deborah Acosta at [email protected]