Council schedules second public hearing on proposed Palm Pavilion hotel after residents raise traffic and infrastructure concerns

Mayor Bruce Rector and planning staff opened a public hearing on a development agreement for the Palm Pavilion site, where the applicant is seeking allocation of 91 hotel-density units from the city's reserve to permit a 144-room hotel on about 1.06 acres.

Planning consultant Ted Kozak and attorney Katie Cole of Hill Ward Henderson told the council the proposal preserves the historic Palm Pavilion restaurant, proposes a nine‑story hotel capped at 75 feet above design flood elevation, and meets the Beach By Design requirements for the Old Florida district. The team said the site plan would provide 173 parking spaces and internal connectivity between the restaurant and hotel and offered to supply additional detail on a traffic study and internal-capture analysis at the next hearing.

The council took public comment before taking action. More than a dozen residents urged the council to limit density or deny the allocation, citing traffic snarls at the roundabout and causeway, insufficient sewer capacity that had previously caused basement flooding, and the scale of the proposed building. "We're creeping north now," said resident Neil Diamond, arguing the proposal would set a precedent for further northward beachfront development. Theresa Ames, who lives on Bruce Avenue, warned, "To add another 175 cars coming and going is just gonna be a huge mess," and pressed the council for more information about sewer and emergency-service capacity.

Council members said the evening's meeting was not the final opportunity for public input. The vote taken was procedural: council unanimously approved a motion to confirm a second public hearing date on June 4, 2026 at 6 p.m. so that staff and the applicant can provide additional materials and the community can continue to weigh in. The allocation of hotel density units was not decided at the May 21 meeting and will return for further review at the June hearing.

What happens next: Staff and the applicant agreed to provide more detailed traffic, concurrency and internal-capture analyses at the June 4 hearing; additional public comment will be accepted then. The council's June 4 meeting will be the next formal opportunity to speak on the allocation request.