The developer was seeking a state-guided settlement for the 18-story luxury tower project.
By Ramon Lopez
Original Air Date: May 6, 2026
Host: Three times was not the charm for the developer of what could be the tallest tower in downtown. Matt Kihnke requested the City of Sarasota to participate in a state settlement process, under which he submitted a modified proposal for his Obsidian luxury tower. But the Sarasota City Commission rejected Kihnke again, as Ramon Lopez reports.
Ramon Lopez: The Sarasota city commissioners, for the second time, blocked plans for the 1260 North Palm Residences, also known as The Obsidian. The tally was 4-1, with Commissioner Liz Alpert dissenting. But the vote on Monday may not be the final word on one of the most contested luxury condo projects proposed for downtown Sarasota.
Matt Kihnke, president of MK Equity Corporation
The developer, Matt Kihnke, seeks to build downtown Sarasota’s tallest tower on North Palm Avenue. The controversial 327-foot luxury condo would span 18 stories, have a mere fourteen rich residents and some retail shops on the ground floor. The 0.28-acre site currently has a row of street-level businesses and fronts the 100-unit Bay Plaza condo whose residents lead the effort to block what they call “the obscene Obsidian.”
Having first rejected the Obsidian project a year ago, the five city commissioners this go-around considered terms of a settlement reached through mediation before a so-called special magistrate.
The developer and city officials hammered out an alternative blueprint for the major real estate project, which they hoped would be acceptable by everyone affected. But Obsidian opponents did not have a say in the compromise move.
The law allows local governments to reject the proposed terms after considering the special magistrate’s recommendations. And that’s exactly what it did.
The proposed building would tower over adjacent properties like the Bay Plaza
This, after five hours of testimony from city development services officials, Robert Lincoln, Kihnke’s lawyer, others supporting the project and 22 opponents of it, led by Ron Shapiro. He’s president of the Bay Plaza Condo Association.
Because the commissioners rejected the settlement, the dispute could go back to the special magistrate. Depending on what happens next, the developer could also challenge the city’s denial in civil court. There was no immediate word on Kihnke’s next step.
While the condo’s height has been a nagging issue for many, the settlement agreement did not lower the tower. Instead, it proposed changes at the street level.
Opponents argued that the changes did not address the reasons the commissioners denied the project last year. They include compatibility, scale, pedestrian experience and retail frontage.
We hear from Ron Shapiro.
Ron Shapiro
Ron Shapiro: The changes being offered by the highly flawed FLUEDRA process and settlement do not come close to addressing the major reasons for your rejection last May. You, the commissioners, should not be goaded into approving a project because of the potential threat of litigation by a developer. As you know, litigation works both ways.
Proving the project would not only be dangerous for the people near 1260 North Palm, it would also set a dangerous precedent for the City of Sarasota. It would encourage other developers to intimidate the city through the threat of litigation to ignore the building and zoning codes to do whatever they want. I strongly believe that what you decide today will be a landmark decision for Sarasota. It’s up to the five of you. What do you want your legacy to be?
RL: As the hearing dragged on, Robert Lincoln said that the opponents’ arguments were without merit.
Robert Lincoln: Testimony in front of you today comes down to political statements from laypeople giving opinions on expert matters.
Rendering of the Obsidian, which would have been the tallest tower in downtown Sarasota if it was approved any of the three times it was proposed
RL: Lincoln also said Kihnke was willing to make further concessions to close the deal. And the commissioners explored whether additional conditions could make the settlement more appealing.
But Commissioner Jen Ahearn-Koch made the motion to reject the settlement, saying the Obsidian condo would still be incompatible with the area.
Jen Ahearn-Koch: The big issues of compatibility—the major issues of compatibility that are a problem—its intensity, density, scale, building size, mass, bulk, height, orientation, lot coverage, lot size, configuration, buffers, setbacks, traffic circulation patterns and other factors of compatibility—could they be mitigated or improved? I asked the question, “Couldn’t you have greater setbacks and could you have less height?” The answer is “no.”
RL: WSLR News spoke to Ron Shapiro after the Obsidian nay vote. Although elated by the win, he warned that the Obsidian War is probably not over.
Obsidian opponents, in red shirts, packed the city hall chambers Monday. | Photo: Lopez
RS: This was round three of the people versus The Obsidian, and I won’t be surprised at all if there’s a round four. I think they’re not going to give up. It’s been a three-and-a-half-year fight.
RL: This is Ramon Lopez for WSLR News.
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