The City of Miami's most valuable property asset has dodged a controversial sale — at least for a few more weeks.
Watson Island, the site of Miami Children's Museum and Jungle Island in the middle of Biscayne Bay, has been at the heart of a contentious back-and-forth between developers looking to build luxury condos and hotel space, and the city that owns the property.
Commissioners were poised Thursday to sell the land to BH3 Management for $29 million plus a $9 million payment for affordable housing and infrastructure improvements. The sale was deferred at the 11th hour, however, after some commissioners questioned if the city was getting its money's worth.
"The most valuable piece of land the City of Miami has, by far, is Watson Island," said Commissioner Joe Carollo from the dais. " I don't want to stop this development. I want them to go forward and make their money, but I want to make sure that the city's getting a fair shake for the future."
The proposed sale comes after the city previously negotiated to extend a 75-year lease on the south side of the property and allow developers to build luxury condos. Miami voters approved a referendum in 2024 allowing for the sale or lease of the property and the construction of additional buildings for fair market value.
The city commissioned two appraisals for the 3.2-acre parcel from separate firms. The firms concluded that the value of the lease was approximately $29 million on the higher end, which is the figure the city went with. But the appraisers also noted that the value of the land is between $100 million and $340 million "fee simple," meaning full ownership rights without restriction.
The city administration said it cannot sell the land "fee simple," so it must go with the value of the lease — which City Manager Art Noriega asserts is a good deal for the city.
" We've spent 20-plus years with this property in the condition it's in.” Noriega said. “We're on the precipice of being finally being able to realize this development opportunity ... when both of the sides of the island up to this point have been way underserved and way underutilized in terms of city assets,"
But the majority of the commission was not convinced. Commissioners voted 4-1 to defer the vote until the Dec. 11 commission meeting, with only Chairwoman Christine King opposed. Commissioners asked for more time and a more detailed calculation of how much money the city would get in property tax revenues from the new owners.
A representative for the developers said they've been negotiating this sale with the city for nearly a full year, and fears another year of negotiations if the city has to redo the deal.