Jungle Island expansion advances with water/sewer deal

Miami city commissioners have approved a resolution expected to lead to a new water and sewer deal with the county for expansion of Jungle Island, with details on the size of the proposed new uses, including restaurants.

Jungle Island, formerly Parrot Jungle, was a zoological park relaunched as an eco-adventure park on Watson Island.

The City of Miami owns the island and leases about 19.3 acres to ESJ JI Leasehold LLC. The lease and a development agreement with ESJ is for Jungle Island.

At a recent meeting, city commissioners authorized City Manager Art Noriega “to negotiate and execute an Addendum to the Agreement for Water and Sanitary Sewer Facilities, by and between Miami-Dade County Water and Sewer Department and the city for the provision of water and sewer services to a city-owned property leased to ESJ JI Leasehold, LLC.”

The resolution also directs “setting forth the obligations towards the completion of the tenant’s facility located at approximately 1111 MacArthur Causeway at Watson Island; … further authorizing the City Manager to negotiate and execute all other necessary documents, including amendments and modifications to said agreement.”

The city’s Department of Real Estate and Asset Management, which manages the lease with ESJ, requested this latest legislation.

A background memo notes that the county and city entered into an agreement for Jungle Island water and sewer needs dated Feb. 5, 2020.

“The Tenant (ESJ) has revised the scope of work of the project and has requested the City enter into an addendum to the Agreement to reflect such revisions. The County is willing to enter into an Addendum provided that the City abides by any policies or standards of the County which have been revised since the date of the Agreement,” reads the resolution.

The park reopened following a series of renovations after damages by Hurricane Irma. The park features new elevated nature treks, zip lines and more.

A major planned expansion is the construction of a hotel, along with several associated uses.
Authorization to build the hotel had to go to referendum.

In August 2018, city voters approved the Jungle Island hotel off the MacArthur Causeway.

The plan calls for an eight-story hotel with up to 300 guest rooms atop a reconstructed parking garage.

The developer’s application described the hotel linking to the Jungle Island theme park as well as to the city-owned Ichimura Japanese Garden through a signature stairway.

In a draft of a new agreement between the city and county it reads:

“The CITY intends to construct and connect to the COUNTY’S water and sewer systems, 5,484 square feet of full-service restaurant.”

Regardless of the wording, the city itself would not be doing the construction, it would be leaseholder ESJ.

According to the draft, Phase 2 would include:

■9,805 gallons of water for a water park and 3,905 gallons for an animal exhibit area.

■Sewer connections for 46 gallons for the water park and 3,905 gallons for the animal exhibit area.

According to the draft, Phase 3 would include constructing and connecting to the county’s systems:

■300 hotel rooms.

■12,699 square feet of full-service restaurant.

■8,130 square feet of retail.

■2,664 square feet of coffee shop.

■1,966 square feet of bar/cocktail lounge/nightclub.

The combined average daily gallonage for the three phases is 69,326 gallons of water and 59,572 gallons of sewer, with some credits, the draft says.

In July 2021, the city commission voted 4 to 1 in favor of a deal giving the owners of Jungle Island a financial break on money they owed the city, and the move was hoped to help the company get financing for the hotel.

The commission voted to amend a development agreement with ESJ JI Leasehold LLC to pay a portion of a loan given by the city to the original lessee for construction and operation of a hotel at Jungle Island in exchange for the project being completed by 2026.

That will require ESJ to show a certificate of occupancy for the hotel.

The amended agreement will allow ESJ JI Leasehold to pay an $8 million lump sum on the original $13.8 million loan made in April 2000 to prior lessee Parrot Jungle and Gardens of Watson Island LLC, and the remaining balance of $5,821,923 would be reduced by $2 million if paid by Jan. 31, 2028.

The Department of Real Estate and Asset Management recommended the city accept the discounts in an effort to collect a majority of a long-outstanding debt and to enable ESJ to get financing needed to complete construction of the hotel and additional improvements required in the lease.