Judge Denies Motion to Dismiss Bal Harbour Shops’ Live Local Act Lawsuit

A Miami-Dade judge has rejected a motion to dismiss a lawsuit filed by Bal Harbour Shops, LLC, aimed at compelling the village of Bal Harbour to approve a controversial redevelopment plan. The plan involves constructing three high-rise towers, with hundreds of residential units and hotel rooms, on top of the luxury shopping center.

On September 18, Circuit Judge Charles Johnson denied the village’s attempt to dismiss the amended complaint, granting village officials 20 days to respond. The lawsuit revolves around Bal Harbour Shops’ application under Florida’s Live Local Act, which supports high-density development if at least 40% of the residential units are designated for affordable housing.

Village Manager Jorge M. Gonzalez commented that it was still “too early” to determine whether the Live Local Act application conflicts with prior agreements made with the shopping center. The village, represented by attorneys Etan Mark and Jordan S. Nadel, believes a conflict exists and remains hopeful the claims will ultimately be rejected.

Bal Harbour Shops’ attorney, John Shubin, expressed confidence in the project’s compliance with the Live Local Act, designed to alleviate Miami’s housing affordability crisis. He emphasized that the proposed development aligns with the law’s letter and spirit.

Under the Live Local Act, passed in 2023, developers are entitled to the highest allowable density if 40% of the units are affordable. The application process is streamlined and free from public hearings. In January, Bal Harbour Shops filed its redevelopment plans, which include 600 residential units, 40% of which are reserved for workforce housing, and a 70-room hotel.

However, Bal Harbor Shops sued the municipality after the village raised concerns over density. The lawsuit also argues that the new zoning codes, introduced by the village in April, should not apply retroactively to the project. The updated zoning codes require apartments to be at least 600 square feet and prohibit separating affordable and market-rate units.

In its motion to dismiss, the village contended that the application violates a 2017 development agreement that allowed Bal Harbour Shops to expand its retail space, parking, and other features. The village also argued that the application was not formally denied, meaning the shopping center hasn’t exhausted all administrative options.