Miami-Dade County has struck a deal to purchase a prime parcel of Fisher Island real estate for $400 million, handing a Chicago-based developer a stunning $220 million profit just eight months after it bought the property for $180 million. The agreement has ignited accusations of incompetence and waste, with community leaders questioning how taxpayers ended up funding what amounts to a massive payoff to a private firm.
The property at 1 Fisher Island Drive sits atop a Depression-era fuel depot that supplies Miami's cruise line industry, the busiest cruise port in the world. When TransMontaigne Partners put the land on the market last May, HRP Group moved quickly, purchasing it in September with announced plans to build $2 billion in luxury condominiums. But the terms of sale required HRP to demolish the fuel facility and handle environmental cleanup before construction could begin.
County officials panicked. Losing the depot would cripple the cruise industry and potentially cost hundreds of thousands of regional jobs, they feared. The nearest alternative fueling terminal sits 22 miles away at Port Everglades in Fort Lauderdale, and cruise giants like Royal Caribbean and Carnival could easily relocate their operations elsewhere.
In September, the county commission voted narrowly to pursue legal action halting the sale. County officials explored using eminent domain to seize the property at fair market value. That strategy triggered immediate resistance from Fisher Island residents, whose exclusive enclave is accessible only by ferry or helicopter. The Fisher Island Community Association and Fisher Island Club filed suit in January challenging any eminent domain seizure as unconstitutional.
The county countered with a motion to dismiss in March. Then last week, HRP abruptly agreed to sell the land to Miami-Dade County for $400 million, abandoning its development plans and locking in a staggering profit without pouring concrete or laying a single foundation.
Former congressman and community leader Joe Garcia did not mince words. "The only people that have been screwed here are the citizens of Miami-Dade county," he said. "There are only three explanations for this. Massive incompetence, criminal negligence or corruption. Knowing Miami-Dade county, all three are more than possible at the same time."
Fisher Island residents also reacted with fury. Under HRP's original purchase agreement, the developer was supposed to hand over four acres to the Fisher Island Community Association, a provision that becomes void if the county purchase proceeds. James Ferraro, the association's chairman, issued a sharp statement: "HRP came to Fisher Island promising to clean up a century-old hazard and build a residential community. Instead, they saw a pile of taxpayer cash, sold out our residents, and decided to leave a dangerous fuel farm sitting right next to our homes."
The Fica and Fisher Island Club filed their own lawsuit Thursday morning to block the newly announced county-HRP agreement. County Mayor Daniella Levine Cava declined to comment through a spokesperson. Port of Miami director Hydi Webb also refused to discuss the deal. HRP Group's leadership did not respond to requests for an interview.
Garcia offered a final observation on what the county is paying for what it arguably already needed to keep intact. "You can't have a port without a fuel depot, and everyone involved here knew this was an indispensable asset," he said. "We're paying someone $220m for something that we couldn't have lived without. Anywhere else but Miami-Dade county, that would be a criminal act."
Author James Rodriguez: "This deal reads like a masterclass in negotiating backwards. The county went from legally taking the land to handing a developer a quarter-billion-dollar gift for the same facility they needed to protect all along."
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