The Miami City Commission has approved the sale of a parcel on the southwest side of Watson Island, allowing Merrimac Ventures, led by the Motwani family, and BH3 to move forward with plans for a mixed-use development that includes condominiums.
The decision was met with opposition from residents, who voiced concerns about the process and the terms of the sale, describing it as a “bad deal” and urging commissioners to delay the vote.
“Residents have previously taken legal action against the city over Watson Island and voted to ensure any sale would reflect fair market value,” said Miami resident Gilbert Palacios. “While responsible development is welcome, this deal is not in the best interest of the city, its residents, or its workforce.”
Commissioner Ralph Rosado cast the only dissenting vote, advocating for the city to bring in Cushman & Wakefield to conduct an independent appraisal of the property.
“I want to be certain we’ve secured the best possible outcome for the city, and I don’t feel we’re there yet,” Rosado said. “There is potential to negotiate a deal that better serves our residents and taxpayers. Not only could we seek greater public benefits, but I’m also concerned about the possibility that the purchaser may quickly resell the property, which could have significant implications.”
Rosado’s motion was unsuccessful, and the commission voted in favor of the sale. The decision came after several deferrals, including one at a meeting in November.
The controversy centers around an appraisal cited by the Miami Herald, which valued the land between $257 million and $342 million. However, the developers argue that the value is significantly reduced by an existing long-term lease on the property.
It has been over a year since 64 percent of Miami voters authorized the sale of approximately 3.2 acres at 888 MacArthur Causeway to IG Luxury, the joint venture of BH3 and Merrimac.
The current sale price for the land is set at $29 million. Under the terms, the developers will also contribute $9 million toward affordable housing and infrastructure projects. Additionally, the city is expected to negotiate the removal of deed restrictions from the state for $4 million. (Voters also approved a separate referendum to sell land on the east side of the island to Terra and ESJ Capital Partners.)
The approved changes will permit the development of roughly 100 condominium units in place of the previously authorized timeshare units. The developers will continue to lease more than seven acres of adjacent land that remains under city ownership.
In 2023, BH3 and Merrimac partnered to take over the lease from the previous developer, Mehmet Bayraktar’s Flagstone Property Group. Flagstone’s project was delayed for years due to legal disputes with the city, and although voters approved the original deal in 2001, only a portion of the development was completed.
At the same meeting, commissioners postponed a final vote on a proposal that would allow developers to double allowable density in certain neighborhoods, beginning with Edgewater.
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