The Miami City Commission has approved the sale of a parcel on Watson Island to developers Merrimac Ventures and BH3, allowing for a mixed-use project that will include condominiums. The land, located on the southwest side of the island, will be sold for $29 million.
The decision was met with opposition from some residents. During the commission meeting, Miami resident Gilbert Palacios stated, “Residents have sued the city because of the issue with Watson Island before, and have taken a vote to ensure the sale of Watson Island is of fair market value. We can use responsible and good development in our city like we have done in the past. … This is a bad deal for the city, a bad deal for residents, a bad deal for workers.”
Commissioner Ralph Rosado was the only member to vote against the sale. He advocated for an independent appraisal by Cushman & Wakefield before proceeding. “At this time, I would like to be confident that we’ve negotiated the best possible deal for the city, and I’m not there at the moment,” Rosado said. “I do think that there is room to make this a better deal that’s more responsive to our residents and our taxpayers. … Not only do I think that there’s room for additional public benefits, but I have concerns about the fact that the purchaser could, in fact … turn around and flip the property, and that has major consequences.” His motion did not pass.
The commission had previously postponed action on this matter as recently as November.
Controversy over the sale centers on an appraisal cited by local media indicating that the land could be worth between $257 million and $342 million. Developers argue that an existing long-term lease reduces its value.
More than a year ago, 64 percent of Miami voters approved selling approximately 3.2 acres at 888 MacArthur Causeway to IG Luxury, a venture between BH3 and Merrimac Ventures. As part of this agreement, developers will contribute $9 million toward affordable housing and infrastructure improvements. The city also plans to negotiate with state officials to release deed restrictions on the land for $4 million.
This transaction enables developers to construct about 100 condominium units instead of timeshare properties previously approved under earlier plans. The remaining seven-plus acres will continue under lease by BH3 and Merrimac while staying under city ownership.
BH3 and Merrimac formed their joint venture in 2023 after taking over from Flagstone Property Group following years of delays and legal disputes related to earlier development efforts on Watson Island.
During Thursday’s meeting, commissioners also delayed a final decision on whether to allow developers increased density in certain neighborhoods such as Edgewater.
