Hyatt and Gencom can move forward with plans for a major redevelopment project on 4 acres of city-owned land along the Miami River.
The Miami City Commission last week unanimously approved extending an existing ground lease with Hyatt from 45 years to 99 years. That would allow the Chicago-based hospitality conglomerate and its partner, Gencom, to replace the James L. Knight Center and an adjoining 615-room hotel at 400 Southeast Second Avenue.
The joint venture is planning Miami Riverbridge, a mixed-use project with three towers and a new event space spanning more than 100,000 square feet. Hyatt and Gencom are planning a $1.7 billion investment for a total of 3.3 million square feet of new commercial real estate.
In November, 64 percent of Miami voters approved the project, but Hyatt and Gencom still had to negotiate terms for the lease extension with the city.
Executives for Hyatt and Gencom, a Miami-based hotel developer led by founder and principal Karim Alibhai, claim the proposed mixed-use development could generate $1.5 billion in new revenue through city taxes, fees and ground rent. The next step is finalizing construction plans with the city in the coming year, Hyatt’s James Francque and Gencom’s Phil Keb said in a statement.
Under the new lease agreement, the joint venture will pay the city $1 million in base rent, which will grow by 25 percent annually for the following four years. The development team also agreed to a slate of public benefits, including a $25 million contribution to the city’s affordable housing fund, a $10 million investment in traffic improvements and $15 million worth of new public spaces, including a 480-foot riverwalk.
Designed by Miami-based Arquitectonica, Miami Riverbridge would entail two 61-story towers and a 1,049-foot high-rise. The two smaller buildings will house 682 apartments and a new 615-room Hyatt Regency with 264 service branded apartments. The taller tower will have 860 apartments.
The three buildings will sit atop a podium that will house 12,000 square feet of retail and food and beverage uses, 20,000 square feet of coworking space and 1,100 parking spaces.
Hyatt has been trying to redevelop the James L. Knight Center site for nearly five years. Two previous ballot proposals in 2017 and 2018 were rejected by the Miami City Commission.