A proposed $1 billion redevelopment of the historic Raleigh Hotel in Miami Beach is moving forward, but not without controversy. The project, led by New York investor Khaled Nasser and Nahla Capital, has sparked a dispute over the height of a planned luxury condominium tower and its potential impact on a neighboring hotel.

On Tuesday, the Miami Beach Planning Board voted 5-1 to approve a request for an additional 66,000 square feet of development space for the project at 1775 Collins Ave. The approval marks another milestone for the redevelopment, although the proposed increase in tower height remains subject to further review.

The redevelopment plan aims to restore the long-vacant Raleigh Hotel while combining it with the neighboring Richmond and South Seas hotels into a three-acre oceanfront luxury resort. The project would feature approximately 80 hotel rooms, a 52-unit luxury condominium tower, restaurants, retail spaces, landscaped gardens, and premium amenities overlooking the Atlantic Ocean.

While the condo tower has previously been approved at a height of 175 feet, the developer is seeking permission to construct it at the city's maximum allowable height of 200 feet.

The proposal has drawn opposition from the neighboring Shelborne By Proper hotel, whose owners argue that the taller building would cast significant shadows over the hotel's pool area during the winter tourism season. They contend that reduced sunlight could negatively affect the guest experience at one of Miami Beach's premier luxury destinations.

Both properties are located along the prestigious oceanfront stretch often referred to as "Billionaires' Beach," an area known for its collection of upscale hotels and luxury developments.

During the Planning Board meeting, board members reviewed architectural renderings of the proposed tower and expressed concerns about its overall scale. However, they determined that questions related to the building's height and compatibility with the historic district fall under the jurisdiction of the city's Historic Preservation Board rather than the Planning Board.

Developer Khaled Nasser defended the proposal, describing the redevelopment as an opportunity to revive one of Miami Beach's most iconic historic properties. He said the project would preserve aging Art Deco buildings, stimulate economic activity, and generate additional tax revenue while revitalizing the neighborhood.