Coral Reef at Key Biscayne has been housing guests in its 51 units for 59 years.

Now, a prominent Miami developer wants to improve the look of that area at 303 Galen Drive, a building some have called an eyesore, especially in relation to the nearby Ritz-Carlton.

Walter Defortuna, the brother of Edgardo Defortuna, President, CEO and founder of Fortune International Group, a well-known Miami-based full- service real estate firm, said he has an agreement in place to buy the three-floor (including the garage level) apartment hotel.

“I need a few guarantees from the city before moving forward,” Walter said.

Defortuna will make a presentation at Tuesday night’s Village Council meeting (item 7E) in which he will show renderings and potential plans to build within the existing code (height) limits and maintain the 51-unit density.

“(The building) is not in good shape; my argument is that it should be knocked down,” he told Islander News on Monday. “I know people don’t want density and there is a good debate about that. This is my point of view. I’ve lived in Key Biscayne 45 years, I’m a resident. My family lives here, my friends live here. I don’t think any of us want more density, more traffic.

“All I’m asking is permission to rebuild (with) the same 51 units; the density is already there. (The code) is tricky. If a hurricane were to knock it down, you could rebuild it. (In this case), what would the end result be? … A better building there.”

Short-term tenants comprise the bulk of the Coral Reef rentals, so a few monthly renters might be affected but they would have plenty of time to find other locations.

“(We) just finished buying Beach Haus on Sunrise (rental building); we fixed it, it had a lot of issues,” Defortuna said. “But, it had quite a few (condo) owners. We had to buy 19 units, and we started 10 years ago. The only reason we got that done (in a relatively short time) was because of the pandemic.”

Defortuna also mentioned the noticeable flooding at Coral Reef, around Galen and Sunrise Drive, after hard rains.

He said his project would include improving the drainage, especially in the parking area, and create a way for the landscape to retain water, similar to what David Martin’s Terra Group (and co-buyer Edgardo Defortuna) is doing at the former Silver Sands lot for that new condo (which also is designed not to increase density with its 56 units).

“It certainly will help the neighborhood,” Walter said of the Coral Reef project, which was purchased by the existing owner for $3 million some 30 years ago, he added.

He said all buildings in Miami-Dade County, when they reach that 50- or 60-year re-certification inspection, likely fail the first time “because they were built (within the parameters of) old codes.”

Defortuna pointed out that the existing property “pays only $26,000 in property tax to the Village each year. Upon redevelopment, the property would pay $550,000 more in taxes to the Village each year.”

So, in this case, “What’s the alternative?” he asked.

“I’m not making an argument because it’s convenient to me but, in the end, you’d have a much better building and a better tax revenue for the city,” he said.