Miami Commission Explores Historic Theater Valuation and Renovation Agreement

The City of Miami Commission convened on July 24, 2025, to discuss several key agenda items, primarily focusing on the valuation and future of a historic theater property. The meeting highlighted the ongoing negotiations regarding the property, which is approximately 99 years old and carries significant financial liabilities.

The discussion began with an update on the status of the agreement concerning the theater, which is reportedly 80% complete. City officials expressed optimism about finalizing the agreement by the next meeting in September. Commissioner Correa emphasized the need for a comprehensive valuation of the property to ensure the commission can make informed decisions. The valuation will consider both the cash flow and the asset's historical significance.

Commissioner Pardo raised concerns about the property’s current liabilities, estimated at around $50 million, and the limitations on development due to its historic designation. He suggested that the only real value lies in transferable development rights (TDDs) and transferable development rights (TDRs), which could be factored into the valuation.

The conversation also touched on the importance of ensuring that any funds allocated for the restoration of the theater are secured and dedicated to the project. Pardo commended the Gusman family for their generous donation of the property to the city and expressed confidence in the credibility of the involved parties.

Further discussions included the necessity of obtaining certified appraisals from reputable firms to assess the property’s value accurately. Pardo insisted on two distinct appraisals: one reflecting the historical limitations and another estimating the potential for future development, should the building be lost due to unforeseen circumstances.

Commissioners also discussed the need for contractual guarantees to ensure that the city benefits from any future profits generated from the property, particularly if it is developed beyond its current use. The importance of financial assurances for the refurbishment costs was highlighted, with estimates ranging from $40 million to $50 million.

The meeting concluded with a commitment to gather more detailed information and appraisals before the next session, ensuring that all commissioners are well-informed about the financial implications and potential future of the historic theater. The city aims to proceed with transparency and protect its financial interests while preserving the cultural heritage represented by the property.