Hyatt and Gencom could move forward with plans for a major redevelopment project on 4 acres of city-owned land along the Miami River.

The Miami City Council last week unanimously approved an extension of Hyatt’s existing land lease from 45 to 99 years. That will allow the Chicago-based hotel group and its partner Gencom to replace the James L. Knight Center and a 615-room hotel adjacent at 400 SE Second Avenue.

The joint venture is planning Miami Riverbridge, a mixed-use project with three towers and a new event space of more than 100,000 square feet. Hyatt and Gencom plan to invest $1.7 billion in 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 need to negotiate with the city over the terms of the lease extension.

Executives at Hyatt and Gencom, a Miami 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 rents. Hyatt’s James Francque and Gencom’s Phil Keb said in a statement that the next step is to finalize construction plans with the city for the coming year.

Under the new lease agreement, the joint venture will pay the city a base rent of $1 million, with rent increases of 25 percent each year for the next four years. The development team also agreed to a host of public benefits, including a $25 million contribution to the city’s affordable housing fund, a $10 million investment in transit improvements and $15 million in new public spaces, including a 480-foot riverside walk.

Designed by Miami-based Arquitectonica, the Miami River Bridge includes two 61-story towers and a 1,049-foot high-rise. Two smaller buildings will house 682 apartments, along with a new 615-room Hyatt hotel and 264 service-branded apartments. The taller tower will have 860 apartments.

The three buildings will sit atop a podium that will accommodate 12,000 square feet of retail and dining, 20,000 square feet of co-working space and 1,100 parking spaces.

For nearly five years, Hyatt has been trying to redevelop the James L. Knight Center grounds. Two previous ballot proposals in 2017 and 2018 were rejected by the Miami City Council.

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