Little Havana Redevelopment Perspectives

Our first site visit was to Little Havana, where we met with Mauricio Villasuso, a real estate broker, and Jose Hernandez, a retired developer and longtime owner of buildings in the area. They presented us with two very different perspectives on the future of Little Havana’s redevelopment opportunities.

Mr. Villasuso was very well-versed in regulatory matters, particularly in zoning. He had a strong understanding of the requirements and potential benefits that would be present in the area if the local government approves new zoning. The proposed up-zoning’s major significance would be the raising of T-4 zones to T-5-L or T-5-R, which would legally permit a maximum of 5 stories. Mr. Villasuso pointed out that a typical Little Havana lot of 7,000sf would only permit the building of 11 units, which given average unit sizes, would yield a three-story building. Raising the zoning would allow increments in building heights, and especially density; this change would strongly benefit the rental apartment market, and would not compete with the downtown Brickell target market. 

Mr. Villasuso sees an opportunity, due to the influence of the downtown Brickell area, recent strong demand, and mentioned the Midtown transformation over the past years. Current vacancy in the area is very low, and most of the area is residential low-income, Section 8 and some commercial historic sites. Up to an extent, that is true, and there has been some potential in the area, specifically in the corridor that is close to the  Miami river, and in some pockets of Little Havana, where new affordable housing projects and some commercial retail have been developed successfully.

However, the area faces many challenges, which are preventing the area from ever becoming a sustainable redevelopment opportunity. The local government has done little to improve the real ailments of the area, such crime, gangs and drugs. Therefore, not much is being done, despite the perception of a “great redevelopment potential zone.” Little Havana is a multi-cultural area, which was once predominately populated by  Cubans in the 70’s, and has since come to accommodate a variety of Central and Latin Americans,  as well as the low-income population that were once in the Midtown area. Little Havana is very fragmented in terms of ownership, and no large track parcels of land or existing buildings are easy to put together; this makes any redevelopment effort particularly difficult.  Furthermore, there is not much interest by current owners in participating in any changes.

Where Mr. Villasuso sees opportunity, Mr. Jose Hernandez is skeptical. He does not foresee a transformation in the area in the very near future. He strongly believes that it will take years, if not at least a decade, before there are any significant changes. From a developer’s perspective, the numbers do not add up; the potential cost of redeveloping the area at this time, and the high amount of risk involved do not make it a worthwhile investment. The whole discussion was a great reminder that there is always more than one perspective on an area; where one person sees great potential, another says play it safe and do not take a risk. While sometimes the riskier projects may yield a strong profit someday, a sensible developer will take the time to analyze all the factors and make an informed decision.

The Miami Herald carried an article on the proposed up-zoning for Little Havana, which shed more light for me on both the opportunities and opposition to the decision. Proponents of the movement suggest that this will inject life into an area that is pocked with vacant lots and dilapidated buildings. They mention that the implementation of Miami21 regulations have actually become stricter in this area than they originally were; because of this, building owners are hesitant to make repairs and renovations on their properties, as it may require further expenses to bring the buildings to the new code. They believe that the raising of the zones would allow developers to improve the area. However, some residents and opponents feel that this is a situation that would allow developers to take advantage of a poor area, and that this movement would lead to the gentrification of a “unique area.” Some of those interviewed expressed a feeling that the local government was avoiding their participation, mentioning that the all the signs for the community hearing in the matter were in English, in a predominately Spanish-speaking section of the city. One activist suggested that even if the upzoning created new potential in the area, the long-rooted culture of Little Havana would be undermined. This article illuminated the additional obstacles that can be present in an attempted development: many locals are very protective of their neighborhood, in any area, and may provide another barrier for a project’s success.