“I think that with this letter we achieve half of what we set out to do last week, and that is to have Flagstone current on payments to the City of Miami,” Flagstone attorney Alexander Tachmes of Shutts and Bowen, recently wrote to Miami city officials.
The Island Garden Development on Watson Island, which, 9 years ago, received approval to break ground, from the city and residents of Miami, is at a stall. According to reports, the developer, Mehmet Bayraktar, claims that it has become difficult to begin construction, due to the economic meltdown.
Island Garden is a $400 + million waterfront project between the City of Miami and Flagstone Property LLC, intended for public and private use. Island Garden was expected to be a one of a kind destination in South Florida with a mega yacht marina, 2 luxury hotels and residences, expanded retail spaces, dining, entertainment and cultural facilities. A project that was intended to bring tourism dollars, and an estimated 12,500 jobs to the city, now seems like a lost hope.
Mehmet Bayraktar has not paid rent in 6 months, and is in debt to the city for $498,000, according to reports. After negotiations with the city, he was granted more time to come up with the money. However, he is negotiating a reduction to the $83,000 per month rent. The city is concerned that it will not receive the money due. Public documents show that Flagstone is in debt to the tune of $128,442 in outstanding balances, nearly $2.14 million in liens, and more than $913,000 in lawsuits.
Updates: Law firm Shutts & Bowen released the escrowed money after Miami-Dade Circuit Court Judge Pedro Echarte signed an order to exclude the money from a request for garnishment. “We are in receipt of the funds,” Sarnoff said. “This is $500,000 that will start us on the long road to being in the black again.”
The project will not move forward, however, as the developer does not have the money to finance it.