For years, the bulk of what was to be City Center has sat vacant. But, that could soon change if a developer is able to finalize his purchase of the 21 acres near U.S. 1 at Walton Road.
David Garfinkle, of Hollywood, Fla.-based Biscayne Atlantic, has received the Securities Exchange Commission’s blessing to purchase the property for $750,000, a steal considering the land is valued at more than $5 million.
However, according to court records, the developer would be required to pay all back taxes and assessments on the property, which would increase the overall price tag considerably.
In all, an estimated $24 million in back taxes and assessments have accrued on the property. The city might be asked to forgive some of or all that burden to secure the purchase and future construction of the site.
The property has been languishing for years in the hands of the SEC after the federal agency seized it from the then-developer.
Lin “Lilly” Zhong had purchased the property and was expected to form a partnership with the city to bring life to the area. To fund the endeavor, Zhong enticed foreign investors through the EB-5 program, which provides access to green cards in exchange for investing in U.S. projects.
Instead of using the investment funds to build as promised, the SEC determined that Zhong was lining her own pockets with the funds, buying a yacht and other opulent baubles.
In March, City Manager Russ Blackburn assured the City Council, sitting as the Community Redevelopment Agency, that Garfinkle’s portfolio of South Florida projects is in line with the vision the city has for City Center – hotels, apartments and retail.
Blackburn said in March that he feels “good about (Garfinkle’s) ability to deliver” on the city’s vision.
Though Blackburn said in March he expected the SEC court to rule favorably on the sales agreement with Garfinkle, the court did not approve the sale until August.
In the interim, however, Garfinkle has met with city staff to discuss plans for the project and has continued to do so.
According to the terms of the sale, Biscayne Atlantic has 180 days to inspect the property and decide whether or not to walk away.
