T
erra and Turnberry's convention center hotel project in Miami Beach is set to receive a $75 million taxpayer infusion for its joint venture. Despite securing over $500 million in private financing for the Grand Hyatt-branded development at 17th Street and Convention Center Drive, the partners need to fill a funding gap due to increased construction costs. The city of Miami Beach and Terra officials told county commissioners that the project's construction cost has ballooned from around $400 million to over $600 million due to pandemic-related delays, higher labor wages, and rising material costs.

    Miami-Dade County commissioners unanimously approved the grant through the Miami Beach Redevelopment Agency for the 17-story, 800-key hotel. The project will connect to the renovated Miami Beach Convention Center. Terra's CEO David Martin stated that they have invested $20 million preparing the site and expect the hotel to generate property taxes equivalent to the grant amount.

    Commissioner Eileen Higgins, whose district includes Miami Beach, expressed reluctance in sponsoring the grant allocation but acknowledged its long-term economic benefits for the county and tourism revenue generation. Following the vote, Terra announced that their joint venture has obtained necessary building permits and is shovel-ready, with construction expected to accelerate once the $75 million grant is allocated.

    The hotel will feature 12 floors of guest rooms, two floors of meeting spaces, a pool deck on the fifth floor, and ground-floor retail space. The project was initially approved by Miami Beach voters in 2018 for land adjacent to the convention center, which underwent a $600 million renovation.