Nearly 50 developers have pre-registered as possible bidders on a plan to turn a parcel on Watson Island, an 80-acre artificial island adjacent to the Port of Miami cruise ship turning basin, into a mixed-use, multimillion-dollar commercial project replete with a mega-yacht marina, in addition to acceptable uses for retail, entertainment and hotel space.

"The response has been fantastic," Meredith J. Nation, business development supervisor in the city's Department of Real Estate and Economic Development, tells GlobeSt.com.

Respondents interested in the project include a virtual who's who from the South Florida real estate development community.

Among the bidders are Aztec Group Inc., Bermello, Ajamil & Partners Inc, Cobb Partners Ltd., Florida East Coast Development and Tibor Hollo, Laquer Corporate Realty Group Inc., LNR Corp., Spillis Candela & Partners, Stadler Real Estate Corp., Steiner+Associates Inc. and Swerdlow Real Estate Group Inc.

The project also is attracting the interests of out-of-state developers such as Gulfstar Capital Group, Millennium Partners and Tishman Urban Development Corp., all based in New York; International Marina Group, Dallas; and Swire Properties Inc., a subsidiary of Hong Kong-based Swire Group Inc.

Although personally interested in the island's development, Ezra Katz, Aztec Group chairman and chief executive officer, tells GlobeSt.com he doesn't expect to submit a bid on behalf of his company. He is interested in the site's development because of the positive effect in the community.

"Anything that will improve what is there will be good for economic development," Katz says. "Certainly the contemplated RFP will materially enhance not only the visibility of Watson Island but will positively impact both the hospitality and the tourism industries by creating a significant number of jobs."

Bids are due June 20 on the request-for-proposal the city issued last February and published across the city's Internet site on the World Wide Web (http://www.ci.miami.fl.us/). "Proposals will not be accepted from respondents who don't appear on our official list," Nation says.

Published terms require the following:

--Respondents must project annual lease payments in the form of minimum annual guaranteed rent plus a percentage of gross revenue.

--The contract provides a 45-year initial lease term and two 15-year renewable options, with the developer charged with all leasing, maintenance and management obligations.

--City charter rules require approval of the lease at a municipal general election--probably the first Tuesday in November of this year.

Replete with 1,100 linear feet of bay frontage, the proposed development site covers 10.8 acres of property on the artificial island and 13.4 acres of submerged land. Once approved, the successful bidder must also apply for a major-use special permit, which allows a floor-area ratio of 1.72 or 300 hotel units per acre.

The proposed contract would dovetail with an estimated $60 million in public-private investment taking place throughout the 80-acre island. For instance, the Miami Children's Museum is building a 55,000-sf Youth Museum on an adjoining parcel.

Owners of the Parrott Jungle in South Miami also are developing a relocation site on 16 acres at the northeast side of the MacArthur Causeway.

Instant Insights /

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