Miami voters have rejected an $80 million Virginia Key redevelopment deal, leaving the future of two city-owned marinas and valuable waterfront land uncertain. Around 65% of voters opposed Referendum 3 on Tuesday, marking the second time in recent years that residents have rejected a long-term lease proposal for the nearly 28-acre property.
The site includes the Marine Stadium and Rickenbacker marinas, along with surrounding waterfront land. The vote puts the proposed redevelopment on hold and sends city officials back to a decision that has remained unresolved for more than a decade.
However, the result does not guarantee that the current Rickenbacker Marina operator, Aabad Melwani, or Gramps Getaway, the bar and restaurant operated by tenant Adam Gersten, will remain at the site permanently. Instead, Miami commissioners must now decide how to manage the property and what type of agreement, if any, should come next.
The Virginia Key vote also leaves several groups interested in the waterfront’s future. Developers behind the rejected proposal have said they intend to keep pursuing the project, while the current marina operator has indicated that he may compete for a new lease.
Virginia Key Faces a New Development Decision
The rejection of Referendum 3 leaves the Miami City Commission with several possible paths. Commissioners could issue a new request for proposals, invite developers to submit fresh plans and eventually send another agreement to voters.
Another option would be for the city to operate both marinas directly. Miami already manages the Marine Stadium Marina, but Rickenbacker Marina currently has a private operator.
The next decision will determine whether the city seeks another private development partner or takes greater control of the waterfront facilities. Either way, the Virginia Key property remains a major issue for local officials because of its size, location and public importance.
Commissioner Damian Pardo told the Miami Herald that he would welcome new proposals. He described the rejection as an opportunity to start again and said he wanted the next process to include substantial community input and strong public benefits.
Pardo also stressed that any future agreement should make sense for the city. His comments suggest that a new proposal would need to address residents’ concerns rather than simply offer a large redevelopment investment.
Commissioner Miguel Angel Gabela said he first needed to speak with the city manager about the next steps. He added that his priority was securing the best possible deal for taxpayers.
Mayor Eileen Higgins’ spokesperson and representatives for the other three city commissioners did not respond to the Herald’s requests for comment or were unavailable on Wednesday.
Virginia Key Developers Refuse to Give Up
The developers behind the rejected agreement, Virginia Key LLC, responded to the referendum result on Tuesday night. In a statement, the group said it would “never give up” pursuing the opportunity to transform the waterfront property.
The statement indicates that the developers may remain involved in future discussions. However, the rejection means their current $80 million proposal did not receive voter approval.
Meanwhile, Melwani celebrated the result through Preserve and Protect Miami, the campaign he led to encourage voters to oppose the deal. His position as the current Rickenbacker Marina operator gives him a direct interest in what happens next.
Gersten, who owns Gramps Getaway, also suggested that he expects to remain involved in the debate over the site’s future. He said the fight was not over and expressed enthusiasm for continuing to build a Virginia Key and a Miami that belongs to local residents.
The statements from the developers, marina operator and restaurant owner show that the referendum has not ended the competition over the waterfront. Instead, the next stage could bring renewed proposals and another public debate about how the land should be used.
Virginia Key’s Long History of Failed Proposals
The current dispute dates back to 2015, when Miami first issued a request for proposals to find a new tenant to take over the property and redevelop it.
At the time, Melwani’s lease for Rickenbacker Marina was approaching its expiration. He had taken over the agreement from his father, who originally leased the marina in 1983.
The first winning bid came from RCI Marine Group. Its proposal included $100 million in redevelopment and marina improvements. However, the selection did not move forward after two unsuccessful bidders, New Rickenbacker LLC, led by Melwani, and Suntex, filed complaints.
City commissioners eventually rejected all the bids and restarted the process. In 2017, the city invited developers to submit new proposals for the Virginia Key property.
Virginia Key LLC received the highest ranking from the selection committee. Melwani’s team came second but challenged the bidding process in court. The company ultimately lost that lawsuit, adding further delays to an already complicated process.
The legal disputes and disagreements over the selection process kept the waterfront redevelopment from moving ahead. What began as an effort to secure a new marina lease had become a prolonged dispute involving developers, the city and the existing operator.
Legal Battles Delayed Virginia Key Redevelopment
In November 2020, the City Commission rejected all submitted proposals. It also declined to award the project to Virginia Key LLC or send the agreement to voters.
Virginia Key LLC challenged that decision in court. The following year, however, the commission pursued a competing proposal from Melwani’s team and sent that plan to voters. Residents rejected it in 2021.
The legal dispute continued. In 2023, a judge ruled that the city had acted “arbitrarily and capriciously” by rejecting all bids and then favoring a bidder that had ranked lower in the selection process.
Miami appealed the ruling, but the decision was upheld in 2025. That outcome led the commission to place the latest referendum on the November ballot this year.
The Virginia Key redevelopment process has therefore involved several rounds of proposals, rejected bids, lawsuits and voter decisions. Each attempt has faced a different obstacle, leaving the property without a long-term redevelopment agreement.
Throughout this period, Melwani remained the holdover tenant at Rickenbacker Marina. He has continued operating under a month-to-month lease while the city worked through the competing proposals and legal challenges.
Virginia Key Operator Open to a New Bid
Despite the referendum result, Melwani has not ruled out participating in another bidding process. Speaking with the Miami Herald on Wednesday, he said he would be willing to compete for a new lease if commissioners decide to accept fresh proposals.
He also called for public input and a fair process. In his view, any future decision should consider the area’s ecology, public access and affordability, alongside other community concerns.
Melwani said it was in everyone’s interest for the city to take a comprehensive approach. He argued that decisions about the waterfront should account for more than the financial terms of a lease.
These issues could become central to the next round of discussions about Virginia Key. Residents have now rejected two long-term lease proposals in recent years, putting pressure on city officials to consider what local communities want from the property.
A future request for proposals could give developers another opportunity to compete. It could also allow the city to set different expectations for public benefits, environmental considerations and access to the waterfront.
However, commissioners have not yet announced a final direction. The next steps will depend on discussions with the city manager and decisions by the City Commission.
What Happens Next for Virginia Key?
The rejection of the $80 million proposal leaves Miami with an important choice. The city can begin another search for a private operator or consider managing both marinas itself.
A new bidding process could attract Virginia Key LLC, Melwani’s team and other interested developers. However, another proposal would still need to address the concerns that contributed to the latest referendum defeat.
Direct city management would represent a different approach. Miami already operates the Marine Stadium Marina, but taking responsibility for both facilities would require the city to consider the financial and operational demands of managing the larger site.
The future of Gramps Getaway and the current Rickenbacker Marina operation also remains uncertain. The referendum did not give the existing operator a permanent lease or settle who will control the property in the long term.
For now, Virginia Key remains at the center of a debate over development, public access and the use of city-owned waterfront land. The latest vote has stopped the proposed agreement, but it has not resolved the wider question of how the marinas should be managed.
The next stage will depend on whether commissioners choose a new competitive process or direct city operation. Whatever path they select, the history of rejected proposals and legal disputes makes community involvement an important part of any future decision.
