Miami voters approve plan for redevelopment of downtown Hyatt and Knight Center
Miami voters have approved a plan to allow Hyatt Hotels Corp. to replace its downtown Regency hotel and the James L. Knight Center, a 40-year-old complex on city land near the mouth of the Miami River, with three skyscrapers.
Now, the hotel company and city officials are expected to negotiate a 99-year lease extension that would allow the construction of Miami Riverbridge, a three-tower complex with hotel rooms, apartments and meeting space. It’s expected to be a $1.5 billion redevelopment of a city-owned property at 400 SE Second Ave.
Hyatt has leased the property since 1979, an agreement that is set to expire in 2027. Under the terms, Hyatt would in 2027 have the option of renewing the lease for another 45 years. City law requires voter approval of long-term leases of public waterfront land.
On Tuesday, voters authorized city officials to skip the normally required bidding process and amend the lease, extending it for 99 years for three skyscrapers that will alter Miami’s skyline and add about 480 feet of beautified space to the Miami Riverwalk. The existing building, completed in 1982, will be replaced with a three-tower complex with hotel rooms, apartments and about 190,000 square feet of meeting space.
The new meeting space will replace the 4,500-seat auditorium that typically hosts concerts and graduation ceremonies. A “skybridge” with a restaurant is planned to connect two of the three towers, which will rise from one pedestal covering a large circular driveway that designers say will alleviate traffic in the area. Two of the towers are planned to be 61 stories tall. A third would rise more than 1,000 feet.
Hyatt, working with Gencom and Arquitectonica, proposed to privately finance a plan to build 615 hotel rooms, 1,500 market-rate apartments, meeting space and a public riverfront promenade. Hyatt’s annual rent will increase from $250,000 to the greater of $2.5 million or 2.5% of gross revenue. The developers are required to contribute $25 million to the city for affordable housing.
“Miami residents have cast their votes, and we’re thrilled with the overwhelming support we’ve earned,” the developers said in a statement. “Our plans for a privately funded world-class development and transformed riverfront have been embraced by the community, and we look forward to finalizing our lease with the city of Miami.”
Hyatt has sought a lease extension to facilitate a redevelopment for years. Previous plans proposed in 2017 and 2018 stalled and commissioners never put them on the ballot.
Downtown resident associations supported the plan, though some residents feared the redevelopment would worsen traffic in the area, echoing the concerns of the lone Miami commissioner who voted against putting the question on the ballot, Joe Carollo. The Downtown Development Authority and Miami River Commission also endorsed the plan.
Campaign finance records show that through Nov. 3, Hyatt spent $1.1 million on political advertising and outreach. They hired multiple consultants, including a former Miami commissioner who was once jailed for fraud, Humberto “Bert” Hernandez, to do community engagement and Spanish-language media placement. Hernandez’s company, H.E.H. & Associates, was paid about $233,500 through Nov. 3, according to records. That’s about 19% of Hyatt’s political spending.
The highest-paid consultant on the team was Plantation-based MDW Communications, which was paid about $275,600 to handle direct mail operations. Other consultants included Barbara Hardemon, a local campaign veteran and part of a family with a long political history that includes nephew and Miami-Dade Commissioner Keon Hardemon; Jesse Manzano-Plaza, a longtime consultant who is among Mayor Francis Suarez’s top political advisers, and Christian Ulvert, who is a frequent consultant to Miami-Dade Mayor Daniella Levine Cava with experience in local and state campaigns.