A legal dispute has emerged between Pebb Capital and the city of Miami Beach over the redevelopment of the Bancroft Hotel and an adjacent retail complex into a mixed-use project under Florida’s Live Local Act. The developer alleges that city officials are unlawfully blocking their plan, which includes 249 apartments—40 percent designated as workforce housing—and 38 hotel rooms.
The complaint, filed in Miami-Dade County Circuit Court, states that Miami Beach is violating the Live Local Act. This law enables developers to bypass local zoning laws for high-density projects with workforce housing units for tenants earning up to 120 percent of the area median income. It also allows developers to proceed through an administrative process rather than public approvals.
Todd Rosenberg, who leads Boca Raton-based Pebb Capital, manages the development entity. The project is a partnership with Maxwelle Real Estate Group, led by Richard Weisfisch, and Russell Galbut, principal at Crescent Heights and GFO Investments.
Records show Rosenberg’s group bought the Bancroft Hotel and Ocean Steps from a Galbut-affiliated entity for $47 million in 2021.
A spokesperson for Miami Beach did not respond to requests for comment.
“Like many municipalities, the city of Miami Beach doesn’t like to be preempted,” said Thomas Robertson, attorney for Rosenberg’s entity. “They are doing everything they can to stall it, stop it and prevent it.”
Russell Galbut stated that since the law was enacted in 2023, Miami Beach has approved only one out of twelve Live Local project applications. In comparison, he said that neighboring Miami has approved 61 such projects. “Everything in the city of Miami Beach languishes somewhat,” Galbut said. “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 the redevelopment plan and preventing city officials from imposing additional rules on Live Local projects.
The proposed redevelopment would transform a locally designated historic site on 1.2 acres into a mixed-use tower meeting state requirements for workforce housing. Previously, plans focused on converting Bancroft and Ocean Steps into luxury offices.
According to the lawsuit, planning staff refused to accept the application because they consider Bancroft and Ocean Steps as one unified site—requiring consent from neighboring condo owners at 1500 Collins Avenue—a requirement disputed by Rosenberg’s group.
The Live Local Act obligates cities to administratively approve qualifying multifamily or mixed-use developments on commercial or industrial land while preempting local restrictions on height, density, floor-to-area ratio, and public zoning board reviews.
Some municipalities and residents across South Florida have opposed projects under this law due to concerns about infrastructure impact. In Surfside, residents—including Mayor Charles Burkett—oppose an 11-story residential-hotel proposal submitted under Live Local provisions. Burkett said earlier this month: “I think the Florida politicians that decided to destroy the fabric and composition of small towns by this developer-driven initiative is outrageous.”
