Failed $11M Land Deal Costs Doral Almost Twice The Original Price After Six Years

Six years after mishandling the purchase of a vacant property for $10.7 million, the City of Doral will now pay the landowner nearly double that amount.

On Wednesday, March 12, the Doral City Council approved a settlement agreement with Doral 10, a company managed by Lizbeth Arencibia of Hialeah Gardens, agreeing to pay $21 million to resolve a civil lawsuit filed in 2019 in Miami federal court. This settlement includes $17 million to acquire the 9.6-acre property, with the remaining funds covering Doral 10’s losses from being unable to use the land and attorney fees, according to Raul Gastesi, a private lawyer representing the city.

Arencibia is the daughter of the late Lowell Dunn, a prominent developer whose family owns large amounts of land in northwest Miami-Dade County. The 9.6-acre parcel is located between Northwest 102nd and 104th Avenue, just north of 68th Street.

“The market has changed significantly since the lawsuit was filed,” Gastesi told the city council. “We weren’t doing well in court. Doral 10 hasn’t been able to develop the property or do anything with it due to contamination that they claim we caused.”

Doral 10’s attorney, Alejandro Brito, did not respond to requests for comment. Initially, Doral 10 sought $30 million in damages when the company first filed the lawsuit in Miami-Dade Circuit Court. The case was transferred to federal court, where the city won a dismissal in 2020. However, the decision was overturned on appeal in 2023.

The lawsuit also named three contractors—JVA Engineering Contractor, EE&G Environmental Services, and BBC Engineering—as defendants. However, Doral 10 voluntarily dismissed the charges against the firms, which had been hired by the city.

Between January and May 2019, the city and its contractors used the property as a staging area for a road project without Doral 10’s consent, according to the complaint. The city allegedly made false statements to JVA and Miami-Dade County’s environmental permitting department, claiming they had obtained permission from the property owner.

Doral 10 also accused JVA of taking clean fill from the vacant land to recycle contaminated soil excavated during the roadway project, and then depositing the contaminated soil mixed with clean fill onto Doral 10’s property.

After four months of using the site as a staging area without informing Doral 10, city officials notified the property owner that environmental remediation would cost at least $2.8 million. In response, Doral officials chose to terminate the agreement to purchase the land, which had been intended for use as a park.

Gastesi warned the city council of a bleak outcome if the case went to trial.

“I would recommend buying the land rather than paying the damages,” Gastesi said. “The court is likely to rule against Doral.”

Source: The Real Deal