(This story, in slightly different form, originally appeared in ALM's Daily Business Review.)
MIAMI-City commissioners have extended a deadline for a developer to sign a lease to build a $640-million project on Watson Island east of Downtown Miami. Locally based Flagstone Group faced a Monday deadline but now has until March 11 to reach an agreement that would give the developer up to three years to begin building on the city-owned land.
Under the proposed agreement, Flagstone is to pay the city $300,000 a month during the first year, $500,000 a month in the second year and $750,000 a month in the third year. In the fourth year, Flagstone will pay the city $1 million a year if it begins construction of a parking garage and a marina for mega-yachts.
Mayor Tomas Regalado presented the proposal to the commissioners on behalf of the developer. The commissioners told the developer, the city manager and the mayor to make some changes and to return in March.
Flagstone is proposing to build Island Gardens, which will include a 135-room five-star hotel, the marina, a 98-unit residential tower and 221,000 square feet of entertainment and dining space. The developer has been unable to secure financing for the project, which has been on the drawing board for more than eight years.
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