Two deals to remake Watson Island face city votes

The transformative sale of a parcel on Watson Island’s north side is on the verge of closing, ushering in luxury residences, 13 acres of public greenspace overlooking Biscayne Bay and millions in community benefits.

The Miami City Commission is voting today (2/27) on a major land deal that would reshape Watson Island with a high-end residential project while delivering significant public benefits. The development, led by Ecoresiliency Miami LLC, a joint venture between Terra Group and ESJ Capital, includes a $135 million purchase agreement for 5.4 acres of the 18.7-acre site to build two condo towers, with the remaining 13.3 acres returned to the city as a public waterfront park.

The project stems from a years-long effort to repurpose city-owned land on Watson Island originally approved for an eco-adventure resort and hotel.

In 2018, voters backed ESJ Capital’s plan for a 300-room hotel at 1111 Parrot Jungle Trail, and in 2021, the city commission authorized the necessary agreements and land use changes. As market conditions shifted, ESJ pivoted to a residential project, partnering with Terra Group to propose the current development.

In November 2024, 59% of voters approved a charter amendment allowing the land sale, paving the way for the project on Watson Island’s north side.

The agreement that commissioners are considering today would lock in the sale and outline key financial terms, public benefits and development conditions.

In addition to the $135 million purchase price, the city would receive $10 million at closing, annual payments totaling $1.17 billion over 99 years (with a net present value of $110.9 million), $37 million to build the public park and $34.6 million in community benefits, including $15 million for affordable housing and infrastructure.

The residential project would be completed in two phases. Phase one includes the first condo tower with parking and accessory uses, while phase two would build the second tower.

Up to 25,000 square feet of retail and commercial space would be built either within Phase 1 or Phase 2, at the developers’ discretion. The full project encompasses 1.2 million sellable square feet, comprising 400 to 600 units, and is expected to take 30 to 32 months to complete. Construction on the public park is to begin within 18 months, followed by the residential towers.

The public park, covering 10.9 acres of uplands and 2.4 acres of submerged land, would be designed, funded and built by the developers with a $37 million allowance, with any unused funds returned to the city. It is to focus on biodiversity education and include both active and passive recreation areas. As part of the agreement, the developers will also construct a harbormaster facility and public restrooms.

The developers have agreed to long-term financial commitments, including paying $1 million yearly per phase (with a 3% yearly increase) to maintain the park, starting five years after the completion of each condo tower.

They are also to contribute $17.7 million to pay off a federal HUD loan tied to the original Jungle Island theme park, $700,000 for public marine facilities and $700,000 for upgrades to the Ichimura Miami-Japan Garden next door. Additionally, they will fund $500,000 for a master plan of Watson Island, including new pedestrian paths.

The agreement also mandates the developers to hire former inmates through partnerships with local nonprofits, allocate 5% of construction work to small, disadvantaged subcontractors in Miami and develop a community outreach plan to ensure local participation in the project.

The Parrot Jungle project is one of two voter-approved developments set to reshape Watson Island. In the November 2024 election, 62% of voters also supported extending the lease and updating development plans for the 10.8-acre Flagstone Island Gardens site on the island’s south side at 888 MacArthur Causeway.

Originally approved in 2002 and later amended in 2020, the site includes the Yacht Haven Grande Miami marina and was previously entitled for hotels, timeshares and retail. In 2023, BH3 Management and Merrimac Ventures acquired the lease from Flagstone Island Gardens and introduced plans for Watson Harbour, a reimagined mixed-use development featuring two hotels, condos, retail, offices and expansive public spaces, including a 1,000-foot waterfront promenade along Biscayne Bay.

The November 2024 referendum allows the lease to extend from 75 years to 99, and replaces 105 timeshare units with condos and permits co-working office space. While maintaining the originally approved tower heights – 375 feet and 535 feet – the plan reduces overall density in favor of additional open space. The deal also comes with a community benefits package that includes a $9 million contribution to affordable housing and infrastructure improvements.

Commissioners are also to vote today on an amended master development agreement and lease for the site, authorizing the city manager to negotiate updated terms that align with the referendum.