The Miami City Commission has sanctioned the contentious sale of a municipal plot on Watson Island for $29 million, despite a recent appraisal estimating its worth at up to $342 million.
In a 4 to 1 vote during the final session of the year, the decision, which includes a last-minute clause to safeguard public interests, concluded the terms of Commissioner Joe Carollo and outgoing Mayor Francis Suarez.
Commissioner Ralph Rosado cast the sole dissenting vote, advocating for a postponement until January 2026 to facilitate a new independent appraisal and renegotiate additional benefits for the city. However, the majority dismissed this motion and proceeded with approval.
This deal involves the sale of a 3.2-acre parcel with a prime location on Biscayne Bay, one of the remaining publicly owned undeveloped coastal areas in Miami. Developers BH3 Merrimac are planning to construct luxury condominiums on the site.
According to the Miami Herald, the developers will also contribute an additional $9 million in public benefits, bringing the total to $38 million as part of the agreement.
To address criticism and potential losses, the Commission inserted a safeguard clause requiring developers to pay the city 10% of any future profits if the land is resold. For instance, if the property were to be sold for $100 million, developers would owe the city $6.2 million.
The sale has sparked public controversy, as independent appraisals valued the property between $257 million and $342 million, contingent on development restrictions.
Residents and critics have labeled the agreement a "gift" to developers, arguing that the city might be relinquishing one of its most valuable assets at a price significantly below market value.
Nevertheless, both city officials and BH3 Merrimac argue that the land's value is constrained by a long-term lease established in 2001, significantly diminishing its market price.
Reports indicate that this contract is valued between $27 million and $28.9 million, and the new agreement will allow developers to purchase the city's share of the contract, thus transferring full ownership of the land.
A referendum passed in November 2024 authorized the sale, provided the price was at least $25 million and reflective of fair market value. With this week's vote, Miami authorities have closed an urban development chapter that is likely to continue stirring debate within the city.
Frequently Asked Questions About Miami's Land Sale Controversy
Why did the Miami Commission approve the land sale?
The Miami Commission approved the sale as part of a broader development plan, despite the property's high appraisal value, due to a long-term lease that significantly reduces its market price.
What are the terms of the safeguard clause?
The safeguard clause requires developers to pay the city 10% of any future profits if the land is resold, ensuring the city benefits from potential appreciation in value.
What criticisms have been raised about the sale?
Critics argue the sale price is far below the market value, effectively gifting valuable city assets to developers at a substantial discount.