Developer Files $200M Lawsuit Against Aventura

MIAMI—Privé Developers and BH3 Management, developers of Privé at Island Estates condominium project on an island in Aventura, have filed a $200 million lawsuit against the City of Aventura. The developers want to assure construction can begin on schedule and residences can be delivered to buyers on time, after recently inking $75 million in sales in 75 days.

“We had no choice but to go to court to have our development rights enforced— rights which we have had indisputably for 40 years,” says Gary Cohen, a principal of Privé. “Unfortunately, the kind of action we're taking is necessary and not uncommon when developing waterfront property in South Florida.”

Privé received approval from the City to construct a two-building, 16-story condominium community with 160 residences. It's located on an eight-acre island in the Intracoastal Waterway next to Williams Island.

“The key issue here is the City of Aventura has repeatedly approved our project, but is arbitrarily, and without any logical explanation, refusing to stand by its own actions and process all of the approvals we have already been given to build,” says Daniel Lebensohn of BH3. “We fully expect the court will enforce those approvals and our rights to build…”

The Privé location, known as the North Island, connects by bridge to a second island, known as the South Island. South Island is home to a community of 21 single-family homes called Island Estates that Cohen developed in 1998. Cohen claims long-established rights that pre-date the incorporation of Aventura to build multifamily units on the North Island. In fact, he argues, the entitlements allow for significantly higher buildings and more than twice the number of units than Privé's current design.

“The resolution relates to the South Island only,” says Cohen. “There's nothing in that resolution that required us to install the second sidewalk as a condition for building on the North Island, nor is there a timeline requirement. It is on its face a South Island detail, but in the interest of being a good neighbor and not delaying construction of Privé, we agreed to do it.”

Last summer, Cohen obtained a permit and started installing the second sidewalk.  After paving a sidewalk in front of 12 homes, the three remaining Island Estates homeowners filed suit to stop construction in front of their homes, claiming the sidewalk would invite trespassers onto their property.

“This contention is very circumspect owing to the nature of the private gated island community,” says Cohen.  A judge issued an order to temporarily pause the installation pending more fact finding. Since that ruling, the city has refused to allow Privé's construction to start.

“The sidewalk we have installed already has more linear feet, with greater contiguity and sits in front of more homes than the original sidewalk right across the street, which was blessed by the City back in 1998,” says Cohen.  “A well-respected, independent traffic expert conducted a study and confirms that to be true.”

As Cohen sees it, he has fulfilled the city's demands on the second sidewalk and should be allowed to move forward. He says the city's inconsistent position further supports the lack of resolve and the fact that the agenda of a few has “misguidedly jeopardized the city as a whole, leading to this very serious lawsuit.”

“We know sidewalks are not the real issue here,” says Lebensohn. “South Island's counsel has even admitted as much, citing the blocking of the development of the North Island as the real motivation for its lawsuit. It is clear these homeowners' petty actions and abuse of the system are only meant to try and stop our project altogether, and the City of Aventura, for whatever reason, is enabling their efforts. This has got to stop and will be stopped.”

The City of Aventura could not immediately be reached for comment. We will update this story if we receive further news.