Miami changes course in riverfront eminent domain taking. Property owner is suing
Last month, a judge ruled the city of Miami could acquire a small lot on the Miami River from a development firm. The city had 20 days to pay a deposit to go forward with the proceedings.
But the city didn’t pay. Now, the 20-day period has elapsed, and South River Warehouse, the owner of the property, is suing the city. The firm filed a lawsuit Wednesday for attorney fees and costs, as well as sanctions against the city.
The filing did not state exactly how much money South River Warehouse is asking for, but it said the firm incurred “hundreds of thousands of dollars in expenses” related to these proceedings.
The court filing calls the city’s actions “a gross abuse of the judicial system.”
READ MORE: Miami is using eminent domain to take a Miami River site. Jury to decide the price
The property is a lot of about a third of an acre on the south side of the Miami River near José Martí Park. It has been at the center of a multi-year legal battle, as the city has attempted to acquire the land to build a park. Property owner South River Warehouse has opposed the taking from the start and rejected the city’s initial offer to buy the land for about $4.5 million.
Currently, the lot sits empty, but Arturo Ortega has said his firm has plans to build a restaurant and water taxi stop on the property.
Commissioner Joe Carollo spearheaded the effort to acquire the lot, which is in his district, through eminent domain. He planned to turn the land into Simón Bolívar Park. Eminent domain allows the government to buy property for public use, even if the owner does not want to sell it. Carollo did not respond to the Herald’s requests for comment.
A statement from the city attorney’s office indicated the city will continue its efforts to acquire the land using a different style of eminent domain taking.
The type of eminent domain the city originally pursued is known as a “quick take.” This process allows the government to expedite the process of taking the property, but it also requires the city to agree to pay before it knows the price.
Ortega previously said the city was writing a “blank check” by pursuing a quick take.
Last month, a judge ruled in favor of the city acquiring the land and set the deposit at around $3.5 million. If the city had paid that deposit, it would have been agreeing to whatever price a jury would later set. The matter then would have gone to trial, the jury would have decided the price and the city would have been on the hook for that amount. Miami had until Monday to submit the deposit.
In July, an internal email obtained by the Herald suggested the city thought the value of the land might be higher than initially expected. City Attorney Victoria Méndez wrote, “since we started the taking phase for the property, the value may have increased from $3 million to anywhere from a realistic $5 million [to even up to $10 million].”
Now, Miami will pursue a “slow take to serve the best interests and goals of the City,” according to the statement. The city did not comment on South River Warehouse’s lawsuit.
Ortega said his firm believes the city has acted in bad faith during these proceedings. “The city got everything it asked for and decided to not take it,” Ortega said. He added that the city should not have pursued the quick take if it did not plan to submit the deposit and go forward with the proceedings.
South River Warehouse’s suit asks for the action to be dismissed and for the firm to be awarded the fees it paid for attorneys and experts throughout the multi-year process.
Ortega said he as far as he knows, the city’s decision not to submit the deposit is unprecedented. He called the decision to change course “unreasonable” and “confusing.”
