Court Rejects Challenge To Virginia Key Marina Referendum Ahead Of November Vote

A Miami-Dade Circuit Court judge has rejected a legal challenge seeking to block a November referendum on the proposed redevelopment of the Rickenbacker and Marine Stadium marinas on Virginia Key. The ruling clears the way for City of Miami voters to consider a proposed lease covering approximately 27.62 acres of city-owned waterfront property, where Virginia Key, LLC, a joint venture between RCI Group and Suntex Marinas, is proposing approximately $80 million in privately funded improvements.

The proposed redevelopment would encompass the existing Rickenbacker and Marine Stadium marinas and include boat storage, restaurants, retail space, and public parking. Under the ballot proposal, Virginia Key, LLC would enter into an initial 45-year lease with two 15-year renewal options.

Credit: Virginia Key, LLC

The agreement calls for minimum annual guaranteed rent of $2.2 million with escalations, totaling approximately $203.98 million over the initial lease term, in addition to six percent of gross revenues. The approximately $80 million redevelopment would be privately funded.

Virginia Key, LLC was selected as the top-ranked development team through a City of Miami Request for Proposals process more than nine years ago. Rickenbacker Marina has operated on the city-owned property since 1983 under a ground lease that expired in 2016.

The latest lawsuit was brought by Rickenbacker Marina, Inc., its affiliate Biscayne Marine Partners, LLC, and Adam Gersten against the City of Miami and the Miami-Dade Supervisor of Elections. The plaintiffs sought to have the referendum declared unlawful and invalid and prevent the question from appearing on the November ballot.

The lawsuit challenged multiple aspects of the proposed agreement, including whether the ballot language was misleading, whether appraisals established fair market value, and whether the proposed lease materially departed from the original procurement. The plaintiffs also sought an injunction preventing the referendum from moving forward.

“Today, the residents of Miami won,” said Robert W. Christoph Jr., president of RCI Group. “For too long, the current operator has fought to preserve the status quo to its own benefit. This lawsuit was another attempt to stand in the way of change and deny Miami residents the opportunity to decide the future of property that belongs to them. The court’s decision allows that choice to remain where it belongs—in the hands of Miami voters.”

Judge Walsh of the 11th Judicial Circuit ruled in favor of the City of Miami, allowing the referendum to remain on the November ballot. The decision does not approve the proposed lease or redevelopment, but permits City of Miami voters to determine whether the agreement should proceed.

“The courts have spoken again and reaffirmed that the City of Miami voters deserve to decide the future of the Rickenbacker Marina,” said David Filler with Suntex Marinas. “While nearly a decade has been spent in litigation with the City, there has been little meaningful reinvestment in the future of the marina. It’s time for the City of Miami to realize a world-class marina through private investment that will generate hundreds of new jobs, millions of dollars in new revenue for the City, and a public space open and welcoming to all the residents of Miami.”

The referendum is scheduled for November 3. Voters will be asked whether the City should lease the approximately 27.62-acre Virginia Key property to Virginia Key, LLC under the proposed financial and redevelopment terms.

Subscribe to YIMBY’s daily e-mail



Follow YIMBYgram for real-time photo updates
Like YIMBY on Facebook
Follow YIMBY’s Twitter for the latest in YIMBYnews