“Wanting a higher ROI is not considered a hardship,” said Mayor Adrian Petrila in May.
Commissioners also questioned whether it made sense to allocate such a large share of the city’s limited temporary lodging units to one project, especially outside the areas where officials believe smaller projects could better support the city’s long-term goals.
Following the denial, Sungold LLC filed a “Request for Relief” under Florida Statute 70.51, arguing the city’s denials imposed “unreasonable or unfair burdens” on the use of the property.
The request triggered a dispute resolution process under state law.
A special magistrate facilitated a mediation in October, which produced a recommendation intended to address the city’s concerns while also allowing a revised version of the project to move forward.
As a result of the mediation, the developer agreed to remove watersports rentals, drop the parking garage in favor of street parking, reduce the number of hotel rooms from 104 to 100, and relocate a pool to eliminate the need for the setback variance.
The recommendation also included “sound governors” to monitor noise from the first floor and roof areas, along with “attractive pavers” for the promenade surrounding the site.
Under the Florida statute, the commission had three options during its January 27th meeting: approve the recommendation, modify it with conditions, or deny it outright.
Commissioners chose denial.
Even with a scaled-back concept, commissioners echoed the same two issues that drove the May 2025 denial: compatibility with the Bayou Residential District’s purpose and committing a major share of the city’s remaining temporary lodging units to a single project.