A legal dispute has emerged between developer 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 lawsuit, filed last month in Miami-Dade County Circuit Court, alleges that city officials are unlawfully blocking the proposed development, which would include 249 apartments—40 percent of which are designated for workforce housing—and 38 hotel rooms.
The Live Local Act, enacted in 2023, allows developers to bypass local zoning laws and public approvals if their projects provide workforce housing for tenants earning up to 120 percent of the area median income. Instead, qualifying projects go through an administrative entitlement process. The law also preempts local restrictions on height, density, floor-to-area ratio, and review by public zoning boards.
Todd Rosenberg leads the developer entity managing the project. Pebb Capital is working with Maxwelle Real Estate Group, led by Richard Weisfisch, and Russell Galbut, principal at Crescent Heights and GFO Investments. In 2021, Rosenberg’s group purchased the Bancroft Hotel and Ocean Steps from a Galbut-affiliated entity for $47 million.
A spokesperson for Miami Beach did not respond to requests for comment regarding the litigation.
Thomas Robertson, attorney for Rosenberg’s entity, said: “Like many municipalities, the city of Miami Beach doesn’t like to be preempted. They are doing everything they can to stall it, stop it and prevent it.”
Russell Galbut noted that since the law was passed only one out of twelve Live Local project applications has been approved in Miami Beach. He contrasted this with neighboring Miami’s approval of 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.”
Rosenberg’s group is seeking a court order requiring Miami Beach to approve its plan and preventing officials from imposing additional rules on Live Local developments. Previously, Pebb Capital and its partners had considered turning Bancroft Hotel and Ocean Steps into a luxury office project before shifting focus due to the new state law.
According to court filings, planning staff in Miami Beach refused to accept the joint venture’s application under Live Local. Staff argued that consent from adjacent condo owners at 1500 Collins Avenue was necessary because both parcels function as a unified development site—a requirement disputed by Rosenberg’s entity.
The Live Local Act has generated debate among municipalities and residents across South Florida over concerns about infrastructure strain caused by larger developments. In Surfside, some residents—including Mayor Charles Burkett—oppose an 11-story residential and hotel project proposed under Live Local guidelines. Burkett stated 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.”
