South Florida cities are increasingly turning to a controversial strategy to combat their escalating housing crisis: gifting public land to private developers at no cost. This approach, seen in both Miami’s Little Havana and West Palm Beach, aims to create affordable housing but has drawn criticism for its lack of competitive bidding.
Key Takeaways
- Cities are offering public land for free to developers to build affordable housing.
- Deals have faced criticism due to the absence of competitive bidding processes.
- Supporters argue these land-for-affordability swaps are essential to offset high construction costs.
Little Havana Land Deals
In Little Havana, former Miami City Commissioner Joe Carollo orchestrated no-bid deals just before his resignation, transferring city-owned parcels valued at over $8 million to developers Swerdlow Group, Nir Shoshani, and Nuri Dorra. Carollo defended the move as a necessary step to address the exorbitant housing costs in the district, which he described as "Third World."
However, the lack of a competitive bidding process sparked significant backlash. Carollo’s successor, Rolando Escalona, labeled the transfers a "land giveaway." Despite his reservations, Escalona allowed the projects to move forward to prevent the lots from remaining vacant. To introduce more accountability, Escalona redirected $12 million in planned direct subsidies through a city committee vetting process.
West Palm Beach Initiative
West Palm Beach has also adopted a similar strategy, recently transferring a city-owned parcel to an affiliate of Trè Bèl Procida Development Group. This land, comprising nearly half a city block along Broadway/U.S. 1, was given away for free to facilitate a 151-unit project. The apartments are designated exclusively for residents earning between 30 and 80 percent of the area median income.
The partnership behind this project is backed by former NFL linebacker Jonathan Vilma. To further incentivize development in the area, West Palm Beach also upzoned the land, permitting the construction of seven-story buildings.
Sources
- South Florida Housing Crisis Met With Free Land Deals, The Real Deal.