Sarasota has sent the project back to the drawing board repeatedly.
By Ramon Lopez
Original Air Date: August 18, 2026
Host: The Obsidian is probably the most controversial project in downtown Sarasota. It would be the tallest condo tower, planners sent it back to the drawing board, and the city commission rejected it repeatedly. Now, there’s a lawsuit. Ramon Lopez reports.
Ramon Lopez: The proposed 1260 North Palm Residences, commonly known as The Obsidian, is probably the most controversial real estate development pending for Sarasota.
Matt Kihnke, president of MK Equity Corporation
The developer, Matt Kihnke, heading 1260 Palm Properties LLC, seeks to build downtown Sarasota’s tallest tower on North Palm Avenue. The controversial luxury condo would span 18 stories and house a mere 14 rich residents—one per floor—plus some retail shops downstairs.
The luxury condo has been rejected by the Sarasota City Commission numerous times, most recently two months ago. That’s when the commissioners failed to approve terms of a settlement reached through mediation by a so-called special magistrate.
Ron Shapiro | Photo: Lopez
The dispute went back to the special magistrate for another compromise solution. But Kihnke had the option to sue the city—and perhaps the outspoken lead opponent group, the Bay Plaza Condo Association, led by Ron Shapiro, to boot.
WSLR News has learned that’s exactly what plaintiff Kihnke did on June 3.
But he also kept open the option of reaching an acceptable building plan to all parties, including the city commissioners. This, negotiated through continued magistrate mediation arbitration.
Bay Plaza residents flew banners that read “No obscene Obsidian!” | Photo: Lopez
The plaintiff’s lawsuit is before the 12th Judicial Circuit Court. It alleges that the defendants “departed from the essential requirements of the law,” and the rejection was not supported by ”competent substantial evidence.”
The court then decided to park the lawsuit until the arbitration process runs its course. The next round of arbitration is scheduled for September 4.
Ron Shapiro said, “we’ll have to wait and see how it all plays out. We’re in wait-and-see mode. But I am cautiously optimistic of the final outcome.”
The Obsidian project was first proposed four years ago. Shapiro says, “it’s been a marathon that won’t end soon, and you’re never sure of the final outcome.”
This is Ramon Lopez for WSLR News.
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