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THE FUTURE OF HOUSING DENSITY ON LONGBOAT KEY

An Analysis by the Longboat Key Revitalization Task Force January 9, 2017
Executive Summary
Since its incorporation in 1955, the residents and elected officials of
Longboat Key have been resistant to densely populating the island. The density
referendum scheduled for March 14 seems simple: either a yes or no vote for 180
new residential condominium units at the Colony Beach and Tennis Resort
property.
While more density at the Colony is an issue of its own, it is not the only
concern. A yes vote will open a Pandoras Box for future development.
A yes vote would approve a change in the Colony property from tourism
use to mixed use (tourism plus residential).
Whats more, by approving 180 residential units, Longboat Keys voters
unwittingly will indicate a willingness to overturn 60 years of strict density control
the very issue Longboats voters believe is their exclusive purview. Even a
single yes vote in the March referendum sends the wrong signal to developers.
The proposed Colony developer argues that the financial viability of the
project is enhanced by the income resulting from the sale of the 180 new
residential units. However, at least 47 other nonconforming properties on Longboat
Key can make the same argument.
For example, one non-conforming property on the Key has approximately
400 units on more than 40 acres. Using the same density as proposed in the March
14 referendum, that property could ask for approximately 450 additional units.
Over time, every aging property on the Key could make the same financial
and density argument as is being made now, and developers will lead the way.
Background
As early as 1956, then Mayor Howard Ridyard urged the Town Commission
to establish zoning codes to limit density on Longboat Key, according to Frank
Cunninghams The Key to Longboat.
In 1974, the Town Commission enacted tougher zoning codes to limit
Longboats population to 20,000 by year 2000.
In the early1980s, Longboat Key residents and the Town Commission
became concerned about rampant over-development and increasing density,
according to the late Ralph Hunters From Calusas to Condominiums.
The town modified its Comprehensive Plan and in March 1984 voters
approved new density restrictions of six units per acre. Existing properties with
density greater than six units per acre were grandfathered (legal but non-

conforming) and all future requests for additional density would require approval
of the towns voters.
The argument about density has always been the same: We dont want
Longboat to look like Miami Beach.
The accompanying chart shows the long-term results of the 1984
referendum.

The results of the referendum are clear. Data from the Longboat Key
Federation of Condominumums show 4,233 units built from 1960 through 1983,
and 1,702 units built from 1984 through 2001 (the numbers shown here include
data only from the condominium federation).
The March 1984 referendum grandfathered existing properties with density
greater than six units per acre, meaning that about 3,350 units are in the nonconforming category.
Density defined
Different municipalities define density in different ways. Longboat Keys
density is based on units (living units or residences) per acre with additional

restrictions based on building height, footprint, open space and setback from
property lines.
Tourism, residential designations
Some properties on Longboat Key are zoned as residential, some as tourism,
and a few have units in both categories. Some condominium units zoned residential
are allowed to be used for tourism (hotel rooms for rent) under strict regulations,
such as minimum stays of one month and limited to two rentals per year.
Units zoned as tourism have different restrictions. In some cases, they may
be rented daily, but allow renters to occupy the unit for a maximum of 29
consecutive days (to ensure the unit is being used as a tourism unit and not as a
long-term residence typical for a condominium).
Since the late 1970s, debate on the Key about the benefits of tourism versus
residential versus commercial have been popular topics. Some argue that the Key
should only be residential. Others argue that the Key needs some commercial
activity for the convenience of residents (grocery store, restaurants, hardware store,
etc.). Others argue that tourism is important because many current residents first
came to the Key as tourists and eventually bought property on the Key.
Historically, thanks to the will of the residents, the support of the Planning
and Zoning Department and the actions of the Town Commission, the Key
maintained a balance of residential, tourism and commercial.
In the early 2000s, things began to change.
Older tourist units were sold to developers who converted the properties to
condominiums (for example, the Holiday Inn became the Positano Condominium).
Residents realized that the loss of tourism units made it more difficult for local
commercial activities, particularly restaurants, to remain profitable during offseason.
To partially offset the loss of tourist units, in 2008, voters approved creation
of a pool of 250 new tourism units, which may be applied for, to restore the
traditional mix of residential and tourism units on the Key.
Recently 85 units were allocated to the new Zota Hotel (the former Hilton
Beachfront Resort). The remaining 165 units in the pool are still available.
The arguments for and against tourism units have evolved, and because of
the Internet, are now more nuanced. Some residents argue that while tourism units
attract year-round occupants who support the local businesses, those occupants
also add to in-season traffic woes.
The counter argument is that by supporting local businesses, including
medical services, restaurants and entertainment opportunities, there is less need to
drive to the mainland and therefore residents can avoid peak traffic woes by
remaining on the Key.

Others argue that the traditional model of specific tourism units attracting
future property owners is no longer as important as in the past. For example, the
Colony, by the time it is rebuilt in any form, will have been closed for more than
10 years, and the Hilton for three years, but property values on the Key have
continued to increase.
The Mid-Florida MLS Historic Sales Price Trend data show the average
residential property sales price on the Key in 2010 (the last year the Colony was
open) was $697,466, and in 2016 the average was $976,715. Overall economic
factors and each propertys individual characteristics appear to be more influential
than the existence, or lack thereof, of any particular tourism property.
Factors that now make any of these arguments more difficult to evaluate are
the Internet and its accompanying non-traditional rental services and hotel
rooms, such as Airbnb and VRBO (Vacation rental by owner).
Airbnb is now considered the largest hotel chain in the world, with more
than two million rooms for rent. A Dec. 29 Airbnb search of units for rent on
Longboat Key shows more than 300 units, including more than 225 single-family
homes.
A similar search of VRBO shows more than 4,539 listings on Longboat Key,
with 1,918 being condominiums and 2,207 listed on the website by the owner (not
a rental agent or association).
Recent history of density control
In 2013, the Legislature passed new regulations prohibiting local
governments from using referenda to control density. The town of Longboat Key
objected, and after reconsidering, lawmakers, with the backing of Gov. Rick Scott,
unanimously exempted Longboat Key from the law.
The towns attorney, in a letter to the Town Commission, stated, The
referendum protections of the Town Charter are unquestionably preserved.
Longboat Key remains unique in its ability to control density through referendum,
and its history of doing so aggressively.
The Vision Plan
From the town of Longboat Keys Vision Plan:
The core values are to create and reinforce a welcoming community and
government atmosphere with a common-sense approach to managing the mix of
resident, visitor and commercial uses of Longboat Key. The Town has promoted a
low- to mid-rise profile that is protected by the towns regulations to guard against
the development of a condo canyon
There is strong support for the vision of Keeping Longboat Longboat.
[The agreement] clearly means protecting the natural environment, maintaining a

small town feel, preventing significant increases in density, maintaining a lowmidrise style skyline and keeping basic retail amenities for residents.
Voters should ask, What has changed that allows, without debate, a
referendum for adding non-zoned density?
The March 14 referendum
A yes vote on March 14 automatically and, without islandwide debate by
citizens, would attach permanently the right to ask for up to 180 residential units to
the Colony property in perpetuity.
The question is, do Longboats voters understand that more than 60 years of
controlled density is at stake, and the character of the entire Key could change
permanently?
It is true that the applicant must still gain approval of all the density issues
(height, setback, footprint and so on). But the voters will have already forfeited
their ability to control density on the Key if the referendum is approved.
The ensuing arguments will not be based on more density because a yes
vote answers that question. It says voters approve increased residential density. The
only arguments remaining will be: How tall? How big? How many? How close to
GMD?
The Colony density referendum asks for 180 new residential condominium
units (in addition to the existing grandfathered 237 tourism units). The 180
residential units are advertised as high-end with prices in the millions of dollars per
unit. Recent condominium units built on the Key and selling in the millions of
dollars feature three to five bedrooms per unit and more than 3,000 square feet
under air.

The above rendering illustrates the multiple structures required for the
proposed mixed-use development. If a typical tourism unit accommodates four
people, and a typical luxury condominium unit accommodates six people, the
March referendum, if approved, would open the door for more than 2,000 tourists
and owners (237 x 4 tourists + 180 x 6 owners and guests = 2,028). Those 2,000
will also require hotel staff, maintenance and cleaning personnel, suppliers of food,
beverage, laundry services and the like.
Pandoras Box
While more density at the Colony is an issue of its own, that issue is not the
only concern. The argument that the only viable financial model must be based on
more density can be used by any or all the other 47 nonconforming properties on
the Key, all of which were built before 1984.
As one of the Unicorp attorneys recently stated to the town commissioners:
You also have the obligation to treat [the developer] equally as you have done for
others.
If the referendum passes and the project is eventually approved, it may not
be all the other property owners on the Key who ask for similar new densities. It
may be a long line of developers who just want to be treated equally.