Watson Island developers plan two hotels, residences, more
Two Miami developers are teaming up to update a 20-year-old vision and revive 10.8 acres of city-owned land on the south side of Watson Island with reduced density and more open, walkable space for the public, including a 1,000-foot waterfront promenade along the bay.
This November, city residents will be asked to approve Watson Harbour, a mixed-use development consisting of two hotels, residences, retail, offices, dining and expansive public spaces. The project, led by BH3 Management and Merrimac Ventures, aims to activate one of the most vital waterfront properties that sits on the shores of Biscayne Bay, nestled midway between downtown and Miami Beach.
“The property had a previous RFP from roughly 23 years ago that, for various reasons, had starts and stops. The mega-yacht marina was delivered, which provided tremendous value there. But in our view, the upland is an amazing, underutilized opportunity that was always intended for great open public space,” Greg Freedman, co-CEO of BH3 Management, told Miami Today.
In 2001, city residents approved a master development plan for the 10.8-acre Flagstone Island Gardens site at 888 MacArthur Causeway. The plans were amended in 2020 and a mega-yacht marina and waterfront restaurant were built there, now called Yacht Haven Grande Miami at Island Gardens.
In 2023, BH3 and Merrimac acquired the lease from Flagstone Island Gardens and the partners have been working on plans to redesign the project to meet current market demand.
“Since we’ve come in, we’ve been hard at work updating and reimagining the highest and best uses for that property. That’s the plan we’ve put forward and are bringing to referendum. Twenty-three years ago, the City of Miami was quite different than it is today, both in terms of usability and walkability and what visitors, customers and local users expect and how they interact,” Mr. Freedman said.
Under the master development agreement, the site was approved for 500 guest rooms in two hotels, 105 timeshare units and up to 221,000 square feet of retail, a parking garage and maritime uses.
The proposed referendum revises the existing lease, with the city selling 3.2 acres of leased property to BH3 for a fair market value of no less than $25 million, extends the term by 24 years and changes the form of ownership from timeshares to condominiums. It also seeks approval to use portions of the lease space for co-working offices or similar uses.
“This project was previously approved at referendum. We opted to refresh it and make it a 2024 project,” Mr. Freedman said. “There are two separate and distinct hotels. One of them had 105 timeshares on top. When we’re successful with the referendum in November, those timeshare units will become condominiums.”
“In between was about 260,000 square feet of retail and maritime use and we are actually looking to reduce that by over 10% and instead of having all retail and maritime use to incorporate office space because Miami has evolved and we believe that people truly appreciate the idea of live, work, play,” he continued.
“What we also found was a unique opportunity to open the space up because the way it was previously approved in design, it was very dense in the middle of the two hotel towers and we thought there was an opportunity to reduce density, where less is more, and that would allow us to create some more public space. That’s what we’re designing now. We are not increasing height. We are not increasing units. We are decreasing density and increasing public spaces, things that we believe are more in line with what the city of Miami residents want,” Mr. Freedman said.
The two towers were approved for different heights. The “lifestyle” tower is approved for 375 feet and the “luxury” tower is approved for 535 feet.
The deal comes with a community benefits package that includes a $9 million contribution to affordable housing and infrastructure improvements as well as an expanded public waterfront and a 2.2-acre pedestrian promenade along Biscayne Bay at no cost to the city.
“We sometimes gloss over the fact that it’s 2.2 acres along the bay,” Nitin Motwani, managing partner of Merrimac Ventures, told Miami Today.
“That’s 1,000 feet of water frontage that people can walk, ride a bike, push a stroller and just hang out. We think it’s an amazing opportunity because it allows the public free waterfront access with incredible views.”
“The community benefits agreement is something we’re really proud of,” Mr. Motwani continued. “That’s something we started with Miami World Center over seven years ago and that has continued to expand. We have been working with Commissioner [Christine] King’s office on that specifically.
In addition, we’ve been working with Commissioner [Damian] Pardo’s office on ways we can enhance resiliency.”
Leading up to November, the team says it will meet with neighborhood organizations, businesses and community members to campaign for the project.
“We are doing what we traditionally do, which is our neighborhood outreach and helping voters understand this 23-year challenge for the city. We’re hoping to turn it into a reality and something that will make us all very proud,” Mr. Motwani said.
If voters approve the project, the team expects it will be 12 to 18 months before the start of construction, with the public spaces and promenade being a priority in the phasing.
Elvis Cruz
September 1, 2024 at 9:52 pm
All of Watson Island was originally zoned public park. Park land should be considered sacred ground, to be protected and preserved. Shame on the City of Miami for once again whoring itself out to developers.
Richard R-P
September 10, 2024 at 1:39 pm
100%
Lori Dick
October 2, 2024 at 2:47 pm
Park land should remain Park land. The City of Miami does not need any more high cost housing with the increased traffic.
Haydee
October 3, 2024 at 7:48 pm
I agree with comments. In addition, how accurate is that market price of $25 million for 3 acres of waterfront property? A house in a waterfront property not even 1/2 acre is several millions. It sounds to me like another giveaway like Melreese.
I’m voting NO
Nancy lee
October 8, 2024 at 11:57 am
Vote no no no Watson Island and Parrot Jungle.
Since when has the city ever made a good deal for the citizens. The developers and their lobbyists see the Commissioners as sitting ducks, they even give them a script with talking points to convince us.
May
October 13, 2024 at 2:30 pm
I vote no. We already have enough seawalls, condos, restaurants and retail stores.
Just go to Bayside, coconut grove, Fischer Island and the Miami River.
That’s plenty of all that already.
Seawalls are not good for the environment.
We need more fish to grow and they cannot by a seawall.
With hotels and condos the traffic will be terrible.
May
October 14, 2024 at 3:49 pm
I would vote No!
This is public property. Not for private residences.
The traffic will be way worse.
We need it turned into a park for the people.
Brian W Maloney
October 20, 2024 at 5:55 am
I guess we don’t honor a dead man’s wish anymore…just steal everything!
Sylvia Gammill
October 20, 2024 at 9:33 pm
I agree with others here, there are enough condos in Miami and no need for more offices. The public wants parks to be able to enjoy the beauty that surrounds us. Not every last parcel needs to be developed.
Callie Moss
October 23, 2024 at 8:48 am
The City of Miami and surrounding communities are already over developed by developers playing an expensive game of monopoly. Plans that start out promising gold in the end to ordinary citizens with remain in these area’s that are being priced out of their homes for pennies on the dollar with huge buildings blocking in local single family housing. A resident for 74 years change is good but this is ridiculously out of control. The island is man made so make it an affordable fun island for the local taxpayers which will support and not another for the ultra rich mega yacht owners. Have tried to shop the Design District or Coconut Grove’s MayFair/ Bayshore Drive Condos ( top 4.1 million) lately with it high-end stores (Rolex, Cartier and Gucci) and luxurious residential hotel style lobbies accessible living accommodations. Just saying you don’t ask how much you can’t afford it and I’ve lived 5 to 8 minutes from it all since 1972 can barely afford Winn Dixie. Vote No.
Paul
October 31, 2024 at 11:51 am
Miami and North Miami are gridlocked. If your spouse is having a heart attack, you can see the hospital from your high rise window but you can’t get there, timely.
Public parkland, once traded away, is gone forever.
Too many loose ends to these deals, big enough to sail a yacht through.
I will be voting NO.
Paul Joyce
28 year high-rise condo owner in Aventoture (perhaps, the worst traffic of all Dade)
Fmr Park Commissioner, Milton MA
Lázaro Quintero
November 3, 2024 at 12:49 pm
The thing is that from my understanding they already have approval from the city of miami to build condos in Watson island , how and when was it approved, what they are debating is what the developer gives the city in return, we need to stop all private development and make sure that it stays as public land with zero approval for development.