The would-be tallest tower in downtown Sarasota was rejected by the city commission again.
By Ramon Lopez
Original Air Date: Nov. 5, 2026
Host: For the third time, the City of Sarasota Commission rejected a controversial plan to build the tallest tower yet in downtown. The matter is now likely to head to court. Ramon Lopez reports.
Ramon Lopez: The Obsidian downtown luxury condo project was first proposed four years ago. But no concrete has been poured to date. This, because the Sarasota City Commission previously rejected the massive real estate development a total of two times.
Rendering of the Obsidian, which would have been the tallest tower in downtown Sarasota if it was approved any of the times it was proposed. | Rendering courtesy Obsidian
Make that three. The five city commissioners on Monday voted three to two to again reject it. But the project isn’t expected to go away, as the matter is likely headed to circuit court.
The Obsidian, now named 1260 North Palm Residences, is probably the most controversial real estate development pending for Sarasota.
The developer, Matt Kihnke, seeks to build downtown Sarasota’s tallest tower on North Palm Avenue. The controversial condo would span 18 stories and house a mere 14 rich residents—one per floor—plus some retail shops downstairs.
During a protest two years ago, Bay Plaza residents flew banners. | Photo: Werner
The commissioners ruled on the results of a second round of mediation before a so-called special magistrate. But it failed to produce a compromise condo design acceptable by the opposing parties.
Kihnke had already sued the city and the outspoken lead opponent group, the Bay Plaza Condo Association, led by Ron Shapiro. The 12th Judicial Circuit Court parked the lawsuit until the arbitration process ran its course, which it now has. We can now expect Kihnke to again press his legal case. Shapiro said a counter lawsuit will follow.
Nearly 50 opponents filled the commission chambers on Monday to oppose the “Obscene Obsidian” luxury condo development They were led by Shapiro who said nothing has changed to his group’s satisfaction, and the same should be the case for the city.
Ron Shapiro | Photo: Ramon Lopez
Ron Shapiro: This magistrate seems to think that the only viable option for development on this one-quarter-acre lot, 1260 North Palm, with limited access, is this 330-foot skyscraper. And he thinks you, the commissioners, should approve it even though it doesn’t address any of the major reasons cited in your May 25 and May 26 rejections. You, the commissioners, have rejected this project twice for a number of justifiable reasons. This reco from the magistrate is no different. This project will set an important precedent for the city. The legacy of the commission will be shaped by your vote—especially for you, Madame Mayor, whose last commission meeting is today—so we urge you to do the right thing, to carry out the will of the people who elected you and to deny this project for the third time.
RL: Commissioners Kathy Kelley Ohlrich and Jen Ahearn-Koch were quite clear on their continued opposition to the project.
Obsidian opponents, in red shirts, packed the city hall chambers on multiple occasions. | Photo: Ramon Lopez
Kathy Kelley Ohlrich: To me, this is a matter of compatibility—lack of. The building is, to me, totally out of scale. We’ve been shown today there are ways that things could change—and clearly they can be changed—that would mitigate the adjustments, so I am supporting the motion.
Jen Ahearn-Koch: I have nothing to add except that we voted, and I stated the standards for review the last two times, and nothing has changed for me.
RL: Commissioners Liz Alpert and Kyle Battie voted to move the project forward, concerned about the possibility of a costly legal battle.
The proposed building would tower over adjacent properties like the Bay Plaza. | Rendering courtesy Obsidian
Liz Alpert: My concern is that, by rejecting this, we’re opening up the city to multiple millions of dollars in damages. I worry about taking on that financial risk.
Kyle Battie: Looking at where we are—where our exposure is, legally—to the commission, at this point, we could be in hot water when it comes to millions of dollars.
RL: The swing vote came down to Mayor Debbie Trice. She is leaving the city commission within days. It seemed she was going to favor the project, but…
Debbie Trice: My apologies to the Bay Plaza people. You are a small subset of the city. I have to be concerned about the entire population of the city. I’m weighing the pros and cons of legal action, and I really do not want to jeopardize the financial stability that affects all of the population of the city. At the same time, that section of downtown is a bit of a jewel box. Would hate to have a development there for the benefit of the city overall. We want to keep that area of downtown a jewel box.
RL: This is Ramon Lopez for WSLR News.
WSLR News aims to keep the local community informed with our 1/2 hour local news show, quarterly newspaper and social media feeds. The local news broadcast airs on Tuesdays and Thursdays at 6pm.
It's drive week!
Your gift keeps 96.5 on the air. Be one of the people who make it happen.
Donate Now