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South Florida cities aim to fight housing crisis with controversial free land deals

From Little Havana to West Palm Beach, affordable housing developers benefit

Rolando Escalona; former Miami City Commission member Joe Carollo; Michael Swerdlow; Nir Shoshani

South Florida officials are increasingly turning to a controversial tool to combat the region’s housing crisis: giving away public land to private developers at no cost.

Examples include former Miami City Commissioner Joe Carollo’s no-bid Little Havana deals last year and a recent move to add affordable housing to the up-and-coming luxury enclave West Palm Beach.

Carollo orchestrated the no-bid deal just before resigning from office in December, ceding city-owned parcels worth over $8 million to developers Swerdlow Group, Nir Shoshani and Nuri Dorra, the Miami Herald reported

Carollo framed the move as a vital legacy for a district where residents pay “ridiculous amounts” for housing that is “Third World.” But the lack of a competitive bidding process drew sharp criticism. His successor, Rolando Escalona, labeled the transfers a “land giveaway,” but he allowed the projects to proceed to avoid leaving the lots vacant. 

However, Escalona rerouted $12 million in planned direct subsidies through a public vetting process overseen by a city committee to add accountability.

West Palm Beach also recently gave away a city-owned parcel, the South Florida Business Journal reported. City commissioners recently voted to transfer five parcels along Broadway/U.S. 1 — nearly half a city block — to an affiliate of Trè Bèl Procida Development Group. 

The partnership, backed by former NFL linebacker Jonathan Vilma, received the land for free to anchor a 151-unit project. Like the Little Havana deals, these apartments are strictly reserved for residents earning 30 to 80 percent of the area median income.

Supporters argue these land-for-affordability swaps are necessary to offset soaring construction costs. 

West Palm Beach even upzoned the land to allow seven-story buildings, incentivizing development in the neglected northern end. 

 — Rachel Stone

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