Opa-locka City Place: The $532 Million Project With 1,500 Homes

The city of Opa-locka has taken the first step toward negotiating one of the largest real estate projects in its history: a mixed-use district valued at about $532 million, with homes, retail, a hotel, a school and new services for the community.

The project would be called Opa-locka City Place and would be developed by DBJ&L International and MRK Partners, a company that specializes in affordable housing.

But note: the development has not been approved yet. So far, the city has only authorized negotiations to begin.

What is the Opa-locka CRA?

The Community Redevelopment Agency, known as the CRA, is the city's public agency in charge of revitalizing areas that need investment, housing, infrastructure and commercial activity.

The Opa-locka CRA was created in 2010 and covers an area of about 514 acres. Its role includes promoting mixed-use projects, supporting housing construction (especially affordable housing) and attracting public and private investment.

In this case, the CRA authorized negotiations to hand over six city-owned properties through a ground lease: a long-term land lease. That means the developers could build and operate the project, while the city would keep ownership of the land.

Where would the first phase go?

The six parcels sit near Opa-locka's historic City Hall and total about 1.5 acres. The addresses are:

• 241 Opa-locka Boulevard
• 291 Opa-locka Boulevard
• 391 Opa-locka Boulevard
• 240 Bahman Avenue
• 861 Salih Street
• 879 Fisherman Street

These public parcels would be the starting point of a much larger transformation that could span more than 16 acres of the city's downtown.

What would be built first?

The proposed first phase would include:

• 225 apartments.
• A 35,000-square-foot grocery store.
• A 15,000-square-foot daycare center.
• A 100-room hotel.
• 50,000 square feet of flexible commercial space.

The mix aims to be more than an apartment complex. The proposal would combine housing with everyday services, retail and lodging in an area that has received less real estate investment than other parts of Miami-Dade.

The full plan calls for 1,500 homes

If every phase moves forward, Opa-locka City Place would cover more than 16 acres and include approximately:

• 1,500 homes.
• 275,000 square feet of retail.
• An elementary school.
• A hotel.
• A parking garage.
• Affordable housing.

However, it has not yet been disclosed how many of the 1,500 homes would be priced as affordable or what the requirements to qualify would be. That will be one of the most important points in the negotiations.

What could it mean for Opa-locka?

The project could bring new housing, a grocery store, childcare and commercial activity to downtown Opa-locka. It could also raise property values and generate new revenue to fund improvements within the CRA area.

But its size also raises important questions:

• How many homes will actually be affordable for current residents?
• What concrete benefits will the community receive?
• How long will the ground lease last?
• What obligations will the developers take on?

The financial terms, ground lease payments, infrastructure improvements and community commitments still have to be negotiated.

The project still needs another approval

The CRA's decision is not final approval of Opa-locka City Place. The vote only allows the city to negotiate with DBJ&L International and MRK Partners.

Any final agreement will have to go back to the CRA board for a new vote. Until then, the $532 million, the 1,500 homes and the rest of the development remain a proposal.

Conclusion

Opa-locka has an important opportunity to transform its downtown without selling its public land. Now the real discussion is how to turn an investment of this size into real benefits for the people who already live there.

Will Opa-locka City Place be the transformation the city needs, or a project too big for its community?

Cover photo: historic Opa-locka City Hall, by Tamanoeconomico, Wikimedia Commons, license CC BY-SA 4.0.