Image via Blue Water Drones
BH3 Management and Merrimac Ventures, two of South Florida’s leading development firms, have teamed up to execute the City of Miami’s long-held vision of a thriving destination on Watson Island. The joint venture will draw upon their deep local roots and collective expertise to bring to life 10.7 acres of land on the island, which is one of the most vital properties in South Florida, situated along Biscayne Bay midway between Downtown Miami and Miami Beach.
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15 years ago, the city of Miami and Turkish developer Mehmet Bayraktar's Flagstone Property Group struck a deal to the tune of a 99-year lease to allow Flagstone to develop the Island Gardens property on Watson Island. Last week, city commissioners unanimously voted 5-0 to issue a notice of default to Flagstone Property Group. The city of Miami grew frustrated after the development proposed by Flagstone, which would include 2 hotels, 221,000 SF of retail and restaurant space and a megayacht marina was never built and only the megayacht marina was completed in 2015. The project was approved by Miami voters in 2001 and had expected costs over $1 billion. Flagstone Property Group claims that they can cure any defaults and may sue the city. They also claim that terminating the lease would lead to losses over $100 million. During 15 year period, Flagstone Property Group paid only $6.3 million in rent. Mayor Tomas Regalado could veto the vote and has suggested commissioners bring in a third-party to determine if Flagstone is actually in default.
Mehmet Bayraktar
Activists continue to press and challenge as Flagstone Property Group, developers of the Island Gardens project on Watson Island, have once again filed for modifications to the 2007 MUSP approved plans. Flagstone is aiming to replace the proposed seven-story parking garage with a two level garage with one level that is below grade. Updated plans were submitted for review on September 19. Island Gardens will feature a superyacht marina that can accommodate up to 550 feet, 2 luxury hotels, condos, and a retail and entertainment promenade with over 221,000 SF of retail and green space. The marina will be the first of its kind in North America and will be able to house of to 50 superyachts matched with full-service amenities for the marina including a clubhouse, on-site customs, etc. Some oppose Flagstone's right to their lease of the land, which was approved pending they would be able to complete the project but doubts have arisen as the property has sat virtually unchanged over the last decade aside from the launch of a sales center and The Deck at Island Gardens. Flagstone Property Group had initially intended to deliver Island Gardens in 2018. Read our initial profile on the Island Gardens project from July 2016.