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The Miami City Commission approved the controversial sale of a municipal lot on Watson Island for 29 million dollars, despite a recent appraisal valuing the property at up to 342 million.
The agreement, which includes a last-minute clause to protect public interests, was approved in a 4 to 1 vote during the last session of the year, which also marked the end of the term for commissioner Joe Carollo and outgoing mayor Francis Suarez.
The only dissenting vote came from Commissioner Ralph Rosado, who requested to postpone the decision until January 2026 to conduct a new independent appraisal and renegotiate additional benefits for the city. However, the majority of commissioners rejected the motion and proceeded with the approval.
The agreement involves the sale of a 3.2-acre plot of land facing Biscayne Bay, one of the last undeveloped public properties in the coastal area of Miami, where developers BH3 Merrimac plan to build luxury condominiums.
Miami Herald reported that, as part of the deal, the developers will also pay an additional 9 million dollars in public benefits, raising the total amount to 38 million.
To mitigate criticism and potential losses, the Commission included a safeguard clause that requires developers to pay the city 10% of any future profits if they resell the land. For example, if the property were resold for 100 million, the developers would have to pay 6.2 million dollars to the city.
The operation takes place within a context of public controversy, following independent appraisals that estimated the value of the land between 257 and 342 million, depending on the development restrictions.
Residents and critics have described the agreement as a "gift" to the developers, arguing that the city may be giving up one of its most valuable assets at a price well below market value.
However, both the municipal administration and BH3 Merrimac maintain that the value of the land is limited by a long-term lease in effect since 2001, which drastically reduces its market value.
According to reports, the contract is valued between 27 and 28.9 million, and the new agreement will allow the developers to purchase their share of the contract from the city, thereby transferring full ownership of the land.
The referendum approved in November 2024 had authorized the sale, provided that the price was at least 25 million and reflected the fair market value. With this week's vote, the authorities in Miami closed an urban planning chapter that promises to continue generating debate in the city.
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