BIRTH OF THE PRESERVATION MOVEMENT
3.20. ECONOMIC DEVELOPMENT
Progress was coming to fruition, but stagnant property values, lagging imagery of crime and vice, and the declining tourism due to negative publicity required a diversification of solutions to return the city to it’s former glory as “America’s Playground”. Through the success of Ocean Drive Developers’ Conference, smaller Art Deco and Mediterranean Revival buildings across Miami Beach, particularly in South Beach, were being converted to
condominiums targeting a young professional demographic.148 Prices were competitive, and the city began to actively seek out investors willing to put up personal capital for
improvements, since banks still had reservations from previous redlining enforcements.149 The
144 Rafael Lorente, “Designing a plan for the future,” Miami Herald, September 16, 1993.
145 Mim Swartz, “Fun, faded, fanciful Art Deco of Miami Beach,” Chicago Tribune, February 5, 1989.
146 Stofik, 175.
147 Peter Freiberg, “Miami Beach: pushing and planning for more protection,” Preservation News, May 1, 1992.
148 Leslie Kaufman, “Tony Goldman, SoHo Pioneer, Dies at 68,” The New York Times, September 15, 2012.
149 Don Meginley was an example of an investor who had previous experience in historic rehabilitations in Boston’s South End and came to South Beach after learning about the Art Deco district through a national preservation magazine advertisement. Though bank regulations reduced
tide was turning for the first time in Miami Beach’s pro-development past to recognize historic preservation as the key to its future.
The weather, architecture, and walkability attracted many northern young professionals, especially from increasingly expensive Manhattan, to create a new life in Miami Beach.150 The buildings were getting the restoration that MDPL approved of, but the current residents were becoming gradually displaced. The city manager recognized the patterns of gentrification early in its transformation and stated, “If anyone will suffer, it will be low-income individuals who used to rent a one-bedroom apartment for $128 including utilities.”151 A second Ocean Drive Developers’ Conference in January 1986 coincided with the annual Art Deco Weekend, just nine months after the original meeting. Changes
architecturally and socioeconomically were remarkable and historic preservation regulations followed as the economic and tourism renaissance substantiated its significance.
Two influential developers had a remarkable impact on preserving the built
environment of Miami Beach: Gerry Sanchez and Tony Goldman.152 Both understood historic restoration and the development opportunities in creating economic value where it was previously unappreciated. Sanchez was a Cuban immigrant who studied accounting and law at the City University of New York before turning his ambitions to real estate.153 Responsible for the restoration work on the New York Public Library, Trinity Church, and the U.S.
Embassy in Warsaw, his operations expanded from Brooklyn to offices throughout New York, New Jersey and San Francisco. After returning to Miami for his retirement, he decided to get involved in the rebirth of South Beach. He purchased eight hotels, two parking lots, and a block along Espanola Way, totaling $15 million in real estate acquisitions.154
his plans, the mayor invited him to talk upon his arrival to ensure expedited execution of his plans; Dory Owens, “Developers rush for Beach’s gold,” Miami Herald, December 20, 1984.
150 Robert Sherrill, “ Can Miami save itself,” The New York Times, July 19, 1987.
151 Stofik, 140; Dory Owens, “Beach seeks new blood: Kendall yuppies,” Miami Herald, February 4, 1985.
152 Barry Bearak, “Art Deco Revival,” LA Times, February 14, 1988.
153 Debbie Sontag, “For South Beach, he’s the man with the golden touch,” Miami Herald, July 13, 1986.
154 He sought architecturally significant buildings from his experience in historic restorations and purchased among others, the Waldorf Towers, the Clevelander, and the Breakwater; Stofik, 142.
Figure 3.61: Gerry Sanchez speaking at Ocean Figure 3.62: Art Deco District Drive Developers’ Conference, January 1986 tour, by MDPL, 1998
Unlike Sanchez, Goldman was born to a prominent manufacturing family of Manhattan, but similarly was skilled in foreseeing undervalued assets in compromised neighborhoods, particularly communities on the cusp on an artistic edge. 155 South Beach provided him the opportunity to perfect a formula that he had replicated in the Upper West Side, SoHo of Manhattan, and nearby Coconut Grove. He purchased three hotels, but renovation was slowed due to lack of financing options. New ownership was a successful start, but city officials still needed to provide additional incentives. The livability factors of neighborhoods were becoming impossible to maintain, as cultural tourism became a progressively commercialized tool, rather than solely a mechanism for revitalization.156
Aside from the displacement of elderly residents, affordable housing still remains an issue across Miami Beach.157 Grant money was available for rehabilitation efforts, but a three-month maximum on the rent subsidy prevented long-term stability.158 Once these regulations expired, the low-income housing could be rented or sold at market fair pricing.
The MBCDC became instrumental in proving housing assistance through historic
155 Debbie Sontag, “Renaissance Man,” Philadelphia Inquirer Sunday Magazine, May 21, 2000.
156 Fitch, 40-1
157 Miami Beach currently has 4,744 affordable housing units as of 2017 with a subset of 2,613 units utilizing Section 8 vouchers. “The City receives funds from the U.S. Department of Housing & Community Development (HUD) and the State Housing Initiative Program (SHIP) annually for a variety of programs including Public Services and Capital Improvements. However for the past several years these amounts have been declining.“ The total number of housing units in Miami Beach 68,388, which allows less than 7% for affordable units. “Environmental Scan,” City of Miami Beach, 2016, 5, 127.
158 Rick Jervis, “The Beach’s needy hang on to their hopes,” Miami Herald, November 10, 1996.
rehabilitation by utilizing grant money, county funds, and loans.159 Those who couldn’t afford Miami Beach had to move westward across Biscyane Bay. No homeless shelters existed, and advocates estimated that at least four hundred homeless people were living across the island.160 Historic preservation was viewed by some as the force enabling displacement and gentrification.