The Miami City Commission has greenlit the $29 million sale of a 3.2-acre parcel on Watson Island, a significant piece of undeveloped waterfront property. The decision, made in a 4-1 vote, allows developers to proceed with plans for luxury condominiums. An added safeguard ensures the city receives a portion of any future resale profits exceeding the initial sale price.
Key Takeaways
- Miami City Commission approved the $29 million sale of 3.2 acres on Watson Island.
- The sale includes a $9 million public benefits contribution, totaling $38 million.
- A new safeguard requires developers to pay the city 10% of any resale profit above $38 million.
- One commissioner voted against the sale, citing concerns about the land’s valuation and potential for greater public benefit.
- The deal’s valuation is complicated by an existing long-term lease, which the sale effectively buys out.
The Watson Island Deal
The commission’s approval marks the culmination of discussions surrounding the sale of one of the city’s largest undeveloped waterfront tracts. Developers plan to construct luxury condominiums on the site. The deal was finalized in the final meeting of the year for outgoing Mayor Francis Suarez and Commissioner Joe Carollo.
A Contentious Vote
Commissioner Ralph Rosado was the sole dissenting vote, advocating for a deferral to allow for another independent appraisal and further negotiation of public benefits. He emphasized the historic nature of the deal and the importance of ensuring the city received the best possible terms. Despite his concerns, the majority of the commission moved forward, incorporating an additional protective measure.
Safeguarding City Interests
An amendment, proposed by Commissioner Miguel Angel Gabela, was added to the agreement. This provision stipulates that if the developers sell the land to a third party for a profit, they must pay the city 10% of the sale price, minus the $38 million already paid to the city. This aims to protect the city from significant financial losses if the property’s value escalates rapidly after the sale.
Addressing Valuation Concerns
The sale’s valuation had been a point of contention, particularly after a previous appraisal suggested the land could be worth between $257 million and $342 million. However, city officials and the developer, BH3 Merrimac, explained that an existing long-term lease significantly impacts the land’s market value. This lease, established over 20 years ago, was described as poorly structured and not in the city’s favor. The $29 million sale price effectively represents the buyout of this lease, transferring ownership to the developer. Experts consulted by the Miami Herald corroborated that the $29 million figure is reasonable given these complex underlying circumstances.
Voter Mandate
The sale aligns with a referendum passed by voters in November 2024, which authorized the land sale at a fair market value, with a minimum price set at $25 million.
Sources
- Miami approves $29 million Watson Island land sale, Miami Herald.