City says Miami Freedom Park is ‘on notice’ for unpaid $12.5M owed for stadium deal
The city of Miami is withholding the master permit for Miami Freedom Park, the site of the future Inter Miami soccer stadium, until the developers pay the remainder of the $25 million that they agreed to contribute toward park improvements and a public promenade.
Records show the city sent invoices totaling $12.5 million to a Miami Freedom Park official on Jan. 8.
According to Assistant City Manager Asael Marrero, the payment was due two days later on Jan. 10 when the city issued a permit for the next phase of construction, allowing crews to begin building vertically.
“As a condition of issuing that invoice, we put them on notice: ‘Look, this is due now, so we’re giving you the invoice so that in good faith, you can go ahead and make that payment. And by the way, we’re going to be withholding any future permits unless this condition is met,’” Marrero said in an interview.
For now, Marrero said, the city will withhold the master permit, which he called “the most important permit in this particular development.”
Iris Escarrá, an attorney for Miami Freedom Park, did not directly answer questions about when the developers intend to pay the remaining $12.5 million or if the developers agree with the city’s position that the payment was due at the time the Jan. 10 permit was issued.
“Miami Freedom Park is complying and will continue to comply with all of our lease requirements when due in the ordinary course of business,” Escarrá said in a statement to the Miami Herald.
The stadium will be the permanent home for Inter Miami, the city’s MLS team, which is owned by retired footballer David Beckham and businessmen Jorge and Jose Mas.
In 2022, the city awarded the Mas brothers and Beckham a 99-year lease to develop Miami Freedom Park. The $1 billion development will include a 25,000-seat stadium that will host Inter Miami games, a 750-room hotel, retail village and office park.
Miami Freedom Park is being constructed on city-owned land at the site of the former Melreese golf course. The project is privately funded, with the help of an $8 million infrastructure grant from the state.
Miami politicos gathered at the site this week for Mayor Francis Suarez’s final State of the City address. Miami Freedom Park is a marquee project for the mayor. Suarez helped negotiate the deal, which he said will generate $2 billion in revenue for the city over the lifetime of the lease.
Suarez on Wednesday called it “the best sports deal in America.” As part of the deal, Miami Freedom Park agreed to pay a combined $25 million in public benefits: $5 million for the Baywalk-Riverwalk project and $20 million for park improvements.
According to the city, Miami Freedom Park paid the first 50% last year: $2.5 million for the Baywalk-Riverwalk on Nov. 8 and $10 million for parks on Dec. 26.
Emails show the city approved an “early start” for the developers on Jan. 3, giving them permission to begin vertical construction — building upwards — before they had the permit in hand.
Then, a week later on Jan. 10, the city issued the vertical permit, which should have triggered the $12.5 million payment from Miami Freedom Park, according to the city.
Marrero said that, in accordance with the development agreement for Miami Freedom Park, the city has to do “everything that is within our resources to expedite the permitting process.” However, he said that stipulation is “not unique” to this particular development.
Because of that, Marrero said it was understood “that an early start was going to be required” for Miami Freedom Park. He said that while the city generally tries to avoid approving an early start, it is “not uncommon in our world.”
Miami Freedom Park is slated to be completed in time for the 2026 MLS season.
This story was originally published January 17, 2025 at 5:00 AM.
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