Miami voters approved two ballot measures tied to selling city-owned land to different development groups so they can build more condos on Miami’s Watson Island.
In exchange, the city will receive public benefits in the form of park space and a baywalk.
The referendums waive competitive bidding and allow the city manager to negotiate the sales of property on Watson Island, which is off the MacArthur Causeway that connects Miami to Miami Beach.
Nearly 62 percent of city of Miami voters approved charter amendment 1 to redevelop Jungle Island. Ecoresiliency Miami, a joint venture between ESJ Capital Partners and David Martin’s Terra would make a $15 million contribution to affordable housing, infrastructure improvements and an expanded public waterfront. With charter amendment 2, BH3, led by Greg Freedman and Daniel Lebensohn, and Merrimac will make a $9 million contribution.
Ecoresiliency Miami will pay $135 million for 5.4 acres that are currently part of the 13.3-acre Jungle Island property at 1111 Parrot Jungle Trail in Miami.
ESJ Capital Partners owns the Jungle Island lease, and brought on Terra for this latest proposal. Ecoresiliency Miami is proposing 600 luxury condos on the 5.4 acres. Terra and ESJ would return more than 13 acres of land to the city, including much of the waterfront Jungle Island theme park, to become a public park paid for by the developers.
ESJ, an Aventura-based firm led by CEO Arnaud Sitbon, secured voter approval in 2018 that amended the city charter to allow it to modify its lease so that ESJ could build a 130-foot, 300-room hotel, new attractions at Jungle Island, and a retail, restaurant and meeting space expansion. ESJ never built the hotel, and is now moving forward with condos instead.
In July, the Miami City Commission unanimously passed two resolutions approving the ballot question wording.
To develop and sell condos, the developers need to first own their land.
That’s also why, in referendum 2, BH3 Management and the Motwani family’s Merrimac Ventures proposed acquiring 3.2 acres — part of their leased property — for a fair market value of at least $25 million. Almost 64 percent of voters approved the referendum.
The ballot measure allows the developers to build about 100 condos instead of previously approved timeshare units, as well as add office space. The city is also expected to revise and extend the lease by 24 years to a total of 99 years for additional property anchored at 888 MacArthur Causeway.
Last year, BH3 and Merrimac formed a joint venture to take over the lease for about 10.5 acres on the west side of the island. The former developer, Mehmet Bayraktar’s Flagstone Property Group, was tangled in years of delays and litigation with the city of Miami. Voters approved Bayraktar’s deal via a referendum in 2001, but his firm only completed a portion of the then-planned project.
In all, BH3 and Merrimac’s Watson Harbour would include two hotels, retail, offices, condos, restaurants and public spaces.
