A proposal to redevelop a key parcel in the heart of John’s Pass Village won unanimous approval on its first reading Monday, putting an 87-room hotel, retail space, and a new public park on track for construction within two years.

The Madeira Beach Board of Commissioners voted 5-0 to rezone the 1.457-acre site from John’s Pass Village Activity Center to Planned Development, clearing the way for JPV Hotel Property LLC to move forward with a five-story project that includes 7,550 square feet of retail and restaurant space, a rooftop venue, and a dedicated public park.

Senior planner Kathryn Younkin told commissioners the project falls within the city’s density limits for activity centers, which allow 60 temporary lodging units per acre — capping the site at 87 units. The proposed 126,968 square feet of floor area meets the city’s maximum 2.0 floor-area ratio, and impervious surfaces would cover 84.6% of the site, just under the 85% limit.

To build to five stories, the developer requested several design exceptions, including raising the main roofline to 73 feet and an eastern stair tower to 79 feet — both above the standard 55-foot limit. The plan also calls for a zero-foot front setback and a 6-foot balcony encroachment into the public right-of-way.

In exchange, the developer has agreed to a binding set of public benefits: 92 covered garage spaces open to the public at rates no more than $1 above the city’s standard, a privately financed extension of Pelican Lane with a permanent public access easement, a new green space with public restrooms, resurfacing of Boardwalk Place, and new 10-foot-wide sidewalks.

Architect Tim Clemens told the board the building’s design was intended to break up its scale and blend with the surrounding tourist district through separate bays, varied paint colors, and standing-seam metal roofs rather than reading as a single large structure.

The most debated element of the plan was a proposed closure of a 3,360-square-foot section of Fisherman’s Alley, which raised questions about the city’s privilege fee — a requirement that developers pay fair market value for vacated public land unless they provide an equal or greater public benefit in return. Attorney Brian Aungst, representing the development group, asked the city to waive the fee, pointing to roughly 16,000 square feet of land the developer would dedicate for the Pelican Lane extension and the new public open space.

Local business owners spoke in favor of the closure during public comment. Stephanie Berry, owner of Woody’s Water Sports, estimated her business sees more than 30,000 customers a year, few of whom use Fisherman’s Alley. Dylan Hubbard of Hubbard’s Marina said the alley mainly confuses visitors who take a wrong turn, and that closing it would not harm the area.

Commissioner Housh Ghovaee raised questions about storm resilience and emergency access. Clemens confirmed the ground-floor retail and lobby spaces would be dry floodproofed to withstand lateral and buoyancy forces. Fire Chief Clint Belk said the height was not unprecedented for the area, noting the nearby Ocean Sands towers rise 13 stories, and that the project would be subject to high-rise safety stipulations under National Fire Protection Association regulations and a full review before permits are issued.

Clemens added that trash handling would use enclosed, vented mini-compactors designed to limit odor near the adjacent park, and that Pelican Lane would widen to two lanes near the hotel entrance with space for four staging vehicles to prevent ride-hailing congestion.

Following a recommendation from the planning commission, the developer also agreed to shorten its building permit application window from three years to 24 months.

With no further public comment, commissioners approved the rezoning on first reading. If the project clears its remaining approvals, the development team estimates roughly two years of engineering and construction, targeting a 2028 opening.

The second and final reading, along with a required public hearing, is scheduled for 6 p.m. Wednesday, July 8, in the commission chambers.

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