Representatives of VWNA and VIHA met with both developers of Watson Island to learn about their plans.
You can view the slide presentations of the two developers by clicking the underlined language at the bottom of this page. The referenda language and
summaries of those meetings follow:
NORTHSIDE WATSON ISLAND REDEVELOPMENT – Referendum #2
Charter Amendment: Partial Conveyance for Revised Development at 1111 Parrot Jungle Trail on Watson Island
“Shall Miami’s Charter be amended authorizing sale and/or lease of 5.4 acres on Watson Island based upon fair market value of $135,000,000 to Ecoresiliency Miami LLC for residential and commercial uses pursuant to applicable zoning, waiving bidding, and requiring:
· Returning 13 acres to City to construct new public waterfront park at no cost to City;
· Cancelling existing theme park and hotel lease; and
· Contributing $15,000,000 for affordable housing, infrastructure, and other public benefits?
____________
YES
____________
NO
________________
In our meeting with Mr. David Martin, who represents Terra Inc, a partner in the development of the north side of Watson Island, we learned the following:
a. Mr. Martin reports that the current tenant will no longer occupy Watson Island so that Joya Bar will no longer be a nuisance to neighbors.
b. Mr. Martin is going to develop at his cost 13 acres of passive park which will continue to be owned by the City on a 99-year lease instead of a 75-year lease..
c. 5.4 acres may be leased or sold to partnership developer (which includes Mr. Martin) for no less than $135 million. Appraisal will be done. We did not do the calculation as to gain or loss by City with this lump sum payment but will be discussed at community meeting.
d. This 5.4 acre property, located at the eastern most portion of the north side of Watson Island, will be the site of two 40 story condominium buildings with commercial sites to serve the residents. Mr. Martin described these buildings as “tall, skinny” buildings.
e. $15 million dollars will be contributed by the developer for infrastructure improvements and affordable housing off the island.
f. A pedestrian boardwalk will be constructed.
SOUTHSIDE WATSON ISLAND REDEVELOPMENT Referendum #3
Charter Amendment to revise mixed-use leases on Watson Island
“Shall City Charter be amended to revise existing leases at 888 MacArthur Causeway, sell 3.2 acres of leased property to tenant for fair market value of not less than $25,000,000, reduce overall development, extend term 24 years, waive bidding and authorize, at no cost to City:
· $9,000,000 contribution to affordable housing plus infrastructure improvements;
· Timeshare units become condominiums;
· Mixed-uses to include office; and
§ Expanded public waterfront and pedestrian promenade along Biscayne
Bay?
__________
YES
__________
NO
________________
At the meeting with Mr. Nitin Motwani regarding the redevelopment of the south side of Watson Island:.
1. Mr. Motwani explained his purchase of 143 separate properties over several years in order to develop Miami World Center on NE 2nd Avenue.
2. Now partnership between BH3 (Ft Lauderdale) and Merrimac Ventures (Mr Motwani and his brother and mother) came in last year to purchase the rights to develop the project, which date back to the 2001 referendum and RFP, and they are working to update proposed development on south side of Watson Island.
3. In regard to approved existing and changes proposed, Mr. Montani stated:
a. marina – already built and operating
b. Lifestyle hotel – approved – no change
c. luxury hotel – approved – no change
d. residential – changed from time share to fee simple condos
e. retail – reduce – add office (reduce retail from 221,000 sq ft to 99,000 sq ft; add 100,000 sq ft of office = total reduction of 10%)
4. The lease on all this property was 45 yrs with 2 extensions = 75-year lease; Mr. Motwani is seeking 69 yrs with 2 extensions = 99-year lease.
5. Developer will agree to provide community benefits, including paying the city $9 million for infrastructure and affordable housing off of Watson Island. Additional public benefits include the developer committing to an expanded sea wall and hiring/job training of ex-felons and homeless ( as was done successfully re Miami World Center).
6. Property is ~10.8 acres of upland and will be comprised of:
a. ~3.2 acres where the luxury hotel/condo building (535 feet) will be built, which will be sold to developer (rather than leased) for no less than $25 million [to be appraised];
b. The remaining ~7.6 acres under the 99-yr lease containing:
i. ~5.6 acres where the lifestyle hotel, retail/office, maritime museum, fish market, and parking will be built: and
ii. ~2 acres of waterfront promenade
7. In response to questions at meeting, the following was stated:
a. no further public hearing are scheduled prior to referenda on Nov 5 ballot (3 Miami city commission meetings were held on referenda ballot language);
b. lifestyle hotel definition is difficult to pin down but not considered luxury hotel;
c. ferry service to museums etc may be started;
d. site plan for development has been approved; and
e. a community meeting scheduled by the neighborhood associations on the Venetian Causeway will occur wherein Watson Island north and side development will be presented.
f. traffic studies: The last studies we were told were done in approx. 2017. It is agreed that traffic has substantially increased since then. Updated traffic studies are being prepared for both the north and south Watson Island projects. Final approval of both projects is dependent on acceptable traffic studies.
g. Mr. Motwani mentioned that his group considered the minimum $25 million purchase of the 3.2 acre property to be prepaid lease rent based on the 99 year lease. Based on the figures, though, 2 million annual rent +1% of revenue, a $25 million purchase seems to be substantially less than the equivalent rent amount would be if the purchase did not happen. Of course, the city will have the use of this money for the years that it would be collecting rent. There is no remaining property value at the end of the lease going back to the city for this 3.2 acre property. [This is an item meriting more discussion at the community meeting].
h. Mr. Motwani acknowledged that these projects are basically an urbanization of Watson Island which was initially given to the city to be dedicated as a public park. Further, even the park areas planned for the two projects, promenades, etc. are planned to be fully urbanized, paved and covered like Brickell Key and have impervious surfaces.
Presentations by developers of the island called Watson Island across the waterway from the Venetian Causeway. This is one is the northern section of Watson Island, Referendum 2, City of Miami November 5 2024 election.
Please see link to the deck below:
https://terra.outsinc.com/portal/s/17244270402082072917