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Written by Genevieve Bowen on December 17, 2025
A year after Miami voters backed the plan, the city has signed off on the $29 million Watson Harbour land sale, bringing with it a $9 million public benefits package for affordable housing, infrastructure and other community improvements.
During their Dec. 11 meeting, Miami city commissioners voted 4-1 to approve the sale of 3.2 acres of city-owned land on Watson Island to a joint venture between BH3 Management and Merrimac Ventures, clearing the way for a reimagined mixed-use development that includes condos, hotels, retail and expanded public spaces.
The $29 million deal comes with a $9 million community benefits package aimed at affordable housing and infrastructure improvements, as well as enhancements to waterfront access, arts programming and job training initiatives.
The approval follows a referendum in November 2024, when 62% of Miami voters endorsed the sale and redevelopment of the 10.8-acre Flagstone Island Gardens site at 888 MacArthur Causeway. Under the updated plan, 105 previously approved but unbuilt timeshare units will be converted to about 100 condominiums, while the remaining seven acres will remain under city ownership with long-term leasing agreements.
The project, led by BH3’s Greg Freedman and Merrimac Ventures’ Nitin Motwani, aims to revitalize underutilized waterfront property with a design that prioritizes public open space and pedestrian access. A 2.2-acre promenade along Biscayne Bay will be open to the public at no cost, and the developers have committed to a range of community-oriented amenities, including a maritime and art gallery, small business kiosks, and skills training and employment programs.
The sale and accompanying public benefits agreement stipulate staged contributions of $9 million to the city’s Affordable Housing and Infrastructure Trust Fund, phased with building permits and certificates of occupancy.
Additional commitments include first-source hiring, a requirement that at least 3% of construction jobs be filled by ex-felons, and preferential leasing for small businesses and District Five residents in office and retail spaces.
The Civic Arts Endowment Trust will be replaced by compliance with the city’s Arts in Public Places program, and developers will fund a $250,000 contribution for public art along Biscayne Boulevard.
Despite receiving majority support from voters last year when the project went before the public, the deal has faced recent pushback over the property’s valuation, with some questioning whether the land could be worth far more than the $29 million sale price.
At the Dec. 11 meeting, District Four Commissioner Ralph Rosado cast the lone no vote, citing concerns that the city had not negotiated the best possible deal. He proposed deferring the item until January and engaging Cushman & Wakefield for additional appraisal and negotiations. That motion ultimately failed.
Other commissioners pointed to the constraints shaping the deal, noting the property is subject to a 99-year lease originally approved in 2001 and amended in 2020. District Two Commissioner Damian Pardo, who represents Watson Island, said two independent appraisals and outside experts suggested a $29 million sale was reasonable given the lease limitations, which prevent a buyer from capturing full market value.
Mr. Pardo also highlighted long-term financial benefits, stating the city would gain an estimated $319 million in present-value cash flow over the 99-year lease in addition to future property tax revenues from the condo component.
The deal is part of a broader reshaping of Watson Island. During the November 2024 elections, Miami voters also approved a charter amendment allowing the sale of city-owned land on the island’s north side, clearing the way for a residential redevelopment led by Ecoresiliency Miami LLC, a joint venture between Terra Group and ESJ Capital. In July, the commission approved a $135 million sale for 5.4 acres of the 18.7-acre site to build two condominium towers, with the remaining 13.3 acres returning to the city as a public waterfront park, along with a $34.6 million community benefits package.
The Watson Harbour development is expected to begin construction within 12 to 18 months after final permits are issued, with public spaces and the promenade prioritized in the initial phase.