The plan was to build an eight-story, 210-room hotel on the parcel. The request for proposal notice went out after the Miami Department of Off-Street Parking decided not to develop the property itself.

When Playhouse Developers missed the construction start deadline, the ground lease was terminated. Now the theater is asking the state for a lease on the entire corner property at 3500 Main Highway and Charles Street.

The hotel backers allege the theater is attempting a land grab and may challenge the move in court. Nevertheless, a spokesperson for the Florida Department of State, which oversees the land, expects the ground lease with the theater to go forward.

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