LTC 245-2013 Watson Island Proposed Development ID MIAMI BEACH _
OFFICE OF THE CITY MANAGER
NO. LTC# 245-2013 LETTEf f6L #MN ON
CITY (JLEi�_K`3`3 CUFF IL-1
TO: Mayor Matti Herrera Bower and M bers of a City Commission
FROM: Jimmy L. Morales, City Manager
DATE: July 16, 2013
SUBJECT: WATSON ISLAND PROPOSED EVELOPMENT
The purpose of this LTC is to inform you of the recent proposed development of Watson
Island.
BACKGROUND
In 2001 the City of Miami ("Miami") issued a Request for Proposal (RFP) for the
development of the northwest sector of Watson Island. Among the proposers, Miami chose
Flagstone Island Gardens ("Flagstone") for the development. On September 13, 2001
Miami approved Resolution 01-972, which authorized a referendum on whether the
electorate was in favor of leasing city-owned land to Flagstone for the development known
as the Island Gardens project. The referendum passed.
In 2004 the Miami Commission approved the Island Gardens Major Use Special Permit
(MUSP), which consisted of 500 hotel rooms, 105 fractional ownership units and 221,000
square feet of retail.
Concurrent with the approval of the MUSP, the Miami Downtown Development Authority
("DDA") applied for a change to the allocation of development rights within the Downtown
Development of Regional Impact(DRI)so that 605 hotel rooms and approximately 225,000
square feet of retail was allocated to the Island Gardens project on Watson Island. The
Miami Commission approved the change to the DRI. The DRI boundaries generally include
the Miami Central Business District, Brickell and Omni. In the nine years since the approval
of the MUSP and amendment to the DRI, the Island Gardens project has not commenced.
PROPOSED DEVELOPMENT
Last month, Miami approved a lease extension allowing Flagstone more time to begin
construction. Thereafter, Related Group of Florida and the Related Companies("Related"),
represented by Jorge Perez and Stephen Ross respectively, executed a letter of intent to
join the project.
According to the Miami Herald, "Related is pitching dramatic changes to the 12-year-old
redevelopment plans. Among them: increasing the amount of retail space from about
220,000 to 500,000 square feet; increasing the number of hotel beds from 605 to 705; and
adding 100,000 square feet of new convention.center space to tiny Watson Island."
LTC—Watson Island Proposed Development
July 16,2013
Page 2 of 2
COMMUNITY AND ADMINISTRATION ACTION
Upon discovering the details of the proposed development, members of the community and
the administration began discussing possible ways to voice the City of Miami Beach's
concerns over the project. Among the issues raised at community meetings and
conferences was the lack of transparency Miami has observed in vetting the proposed
development.
On June 21, 2013, the City Manager and members of his staff attended'a DDA meeting
which was supposed to discuss the Watson Island development. Unbeknownst to the City
Manager, and several members of the DDA board, the item had been removed from the
DDA agenda prior to the meeting. While some discussion did take place, no substantive
action was taken, nor any opinions given.
The Administration further worked with the City Attorney's Office in order to have ready a
legal analysis of the proposed development. Also,the Administration has contacted several
DDA board members as well as the City of Miami Beach's state lobbyists in order to prepare
a strategy to best present the City of Miami Beach's position on this matter once it is given to
the Administration by the City Commission.
Additionally,various community and neighborhood groups have formed a coalition united to
oppose the proposed development. Members of the City Manager's staff attended an
organizational meeting to provide an update. It is anticipated that members of this coalition
will be present at the next City Commission meeting to further discuss these issues.
CONCLUSION
Although the City Commission has not had the opportunity to provide direction to the
Administration on this matter, several commissioners have placed the item on tomorrow's
agenda for discussion. The actions taken to date by the Manager and his staff have been in
preparation for that meeting.
JLM/JMJ
F:\cmgr\$ALL\JMJ\LTC re Watson Island Proposed Development.doc