The Miami courthouse redevelopment proposal could transform downtown Miami through a 70-story residential tower designed to help preserve the city’s historic 1928 courthouse. Developer Russell Galbut says the project would bring new residents, restaurants and shops to Flagler Street while generating funding to maintain the aging landmark. His plan comes after repeated attempts to sell the courthouse failed to attract a single bidder.
The proposal would place a narrow apartment tower directly beside the historic courthouse, extending so close to the original structure that it would stand over the building’s existing steps. Galbut believes this approach could give the property a new economic purpose while protecting its historic character. The courthouse once hosted prominent legal proceedings, including the trial of notorious gangster Al Capone.
Galbut submitted his proposal to Miami-Dade Mayor Daniella Levine Cava, offering a financing model that would direct county property taxes generated by the new tower toward maintaining the historic courthouse for decades. The developer argues that the older building cannot cover its own operating and preservation costs through rental income alone. He told the Miami Herald that connecting it to an economically productive property could provide a lasting source of funding.
Miami-Dade officials had previously rejected a similar proposal from Galbut, describing the arrangement as an unfavorable deal for the county. However, the situation has changed since the county began trying to sell the courthouse through an online auction. The lack of bids has renewed questions about how the historic property can be preserved without placing a long-term financial burden on taxpayers.
Failed Auction Raises New Questions
Miami-Dade initially scheduled the courthouse auction to close in late July on GovDeals. When no bidders came forward, officials extended the deadline until late August. The second deadline also passed without an offer, leading to further extensions.
The auction was most recently scheduled to close on October 2 before the county extended it through October 25. Even if a bidder emerges, purchasing the courthouse would not be automatic. The Levine Cava administration would still need to negotiate the final terms and obtain approval from the Miami-Dade County Commission.
Galbut hopes his new proposal will allow him to negotiate directly with the mayor rather than continue through the auction process. His plan offers a redevelopment strategy that combines a new residential building with the preservation and reuse of the existing courthouse.
However, Galbut is not the only developer interested in the property. Miami-Dade also provided the Miami Herald with a competing proposal submitted by developer Moishe Mana on September 18.
Mana’s proposal, submitted through Fortuna Group Enterprises, offers $5 million for the courthouse property. That amount is substantially below the county’s stated minimum auction bid of $35 million. Unlike Galbut’s proposal, Mana’s plan does not outline a new tower or additional construction on the site.
Instead, Mana proposes investing private capital to turn the existing courthouse into a cultural and creative destination. The redevelopment would include art galleries, design studios, fashion showrooms and spaces for lectures and other cultural events.
The proposal describes a place where artists, designers, educators and entrepreneurs could exhibit their work, collaborate and connect with new audiences. The plan would focus on reusing the existing building rather than adding a major residential development. Mana was not immediately available for comment when the Miami Herald sought a response.
Galbut Proposes a Mixed-Use Historic Landmark
Galbut’s proposal also includes plans to give the old courthouse a new purpose. Under his vision, the ground floor would feature restaurants and cafés, while upper floors would accommodate hotel rooms and office space. A speakeasy-style bar would occupy the former county jail area near the top of the building.
The developer also wants to illuminate the pyramid at the top of the courthouse tower again. The feature reflects the building’s longstanding nickname, Cielito Lindo, and would help preserve a recognizable part of downtown Miami’s architectural identity.
Although the existing 28-story courthouse could generate income through new uses, Galbut argues that the revenue would not cover the costs of maintaining and restoring the structure. Older buildings often require substantial investment to address aging systems, structural needs and historic preservation requirements.
The proposed 70-story residential tower would therefore serve two purposes. It would provide apartments and commercial activity while creating a potential source of funding for the historic property. According to Galbut, the development’s financial returns and proposed tax arrangement would make long-term preservation possible.
The developer’s proposal would require Miami-Dade to direct the county property taxes generated by the new tower exclusively toward maintaining the existing courthouse. Under this arrangement, those funds would not go toward the county’s general budget, which supports services such as police, jails, parks and public transportation.
Other property taxes associated with the new tower would remain payable as usual. These include taxes owed to the city of Miami, the school board and relevant state agencies. Galbut would also pay the full county property taxes on the existing land and historic building.
In addition, the proposal commits Galbut to paying $35 million to acquire the property from Miami-Dade. The proposed purchase price matches the minimum amount previously established for the county’s auction, although the wider financial arrangement would still require negotiations and official approval.
How the Tower Would Connect to the Courthouse
The proposed residential tower would be approximately 70 feet wide and extend from Northwest First Street toward the back entrance of the existing courthouse. Its narrow design would allow the developer to add substantial residential space within a limited downtown footprint.
However, the construction would require changes to part of the courthouse’s northern entrance area. Galbut’s plans call for removing the façade around that entrance, along with the existing courthouse steps, during construction. These elements would then be replaced as part of an enclosed ground-floor area connecting the historic structure and the new tower.
The resulting complex would combine apartments with restaurants, cafés and shops in the former courthouse. Residents and visitors would use the connected entrance area, creating a shared space between the residential development and the historic building.
Galbut says the project could help bring more activity to Flagler Street, an area of downtown Miami that often becomes quieter after regular business hours. Adding residents who live in the neighborhood throughout the year could support local restaurants and retailers while encouraging more pedestrian activity.
The proposal also reflects a wider challenge facing historic properties in major cities. Preserving an important building can require substantial funding, yet the structure may not generate enough income to pay for its own upkeep. Developers sometimes seek to combine historic preservation with new construction to create a financial model that supports both.
Galbut argues that his approach has been used in other cities to preserve aging buildings when local governments cannot afford to cover maintenance costs indefinitely. However, the Miami proposal would require officials to weigh the potential preservation benefits against the public revenue that would be redirected under the proposed tax arrangement.
What the Proposal Could Mean for Downtown Miami
The future of the 1928 courthouse remains uncertain as Miami-Dade considers its options for the property. The competing proposals offer two distinct approaches: Galbut wants to combine the historic building with a major residential development, while Mana proposes a cultural destination centered on the existing structure.
Both plans would give the courthouse a new use, but their financial structures and potential effects on downtown would differ. Galbut’s project could add hundreds of apartments, depending on the final design, while also introducing new retail and hospitality uses. Mana’s proposal focuses on creative businesses, cultural programming and private investment in the existing building.
The county must also consider the financial implications of each option. Galbut’s proposed tax arrangement could help cover preservation expenses, but it would redirect county tax revenue that would otherwise support public services. The purchase price, redevelopment costs, preservation requirements and final agreement would all be important factors in any decision.
The courthouse’s historic significance adds another layer to the process. Any major redevelopment would need to account for the building’s protected status and the effect of construction on its existing architectural features. The proposed removal and replacement of the northern entrance area and steps could therefore become important issues during further review.
For downtown Miami, the project raises questions about how to balance new housing, commercial activity, historic preservation and public finances. A successful redevelopment could bring more people to Flagler Street and create new destinations within the courthouse. At the same time, the details of the financing arrangement and the treatment of the historic structure would shape the project’s long-term impact.
For now, neither proposal represents a completed deal. Miami-Dade must determine whether to continue with the auction, negotiate with one of the developers or explore another approach. The outcome will help determine how the historic courthouse is preserved and what role the property will play in Miami’s changing downtown landscape.
