Coral Gables commissioners unanimously approved a 30-year development agreement with the University of Miami on Tuesday, Sept. 29. The deal clears the way for up to 10.5 million square feet of new construction and a future hospital on the 241-acre campus.

The commission passed six ordinances on second and final reading that amend the city's development agreement with UM, its comprehensive plan and its zoning code, as first reported by the South Florida Business Journal.

The deal raises the campus floor area ratio to 1.0 from 0.7. That expands the maximum allowed development by about 54% from the previous cap of 6.8 million square feet. UM can now enroll up to 17,500 students, a 35% increase from the prior limit of 13,000.

The vote was decisive.

Commissioner Richard Lara called the deal a "no-brainer." Vice Mayor Rhonda Anderson called it a "historic day."

In exchange, the university will transfer a 5.52-acre parcel bounded by Ponce de Leon Boulevard, Carillo Street and Granada Boulevard to the city for a new public park dubbed Centennial Park. Officials described it as Coral Gables' largest public park. The parcel, known as the Lee Lincoln property, is tied to approval of the broader agreement rather than being an unconditional transfer.

UM will also make annual payments to the city starting at $1.025 million and increasing 4% each year over the 30-year term.

The amended agreement adds hospital use to the campus multi-use zone. That change would allow UM to build a hospital on a parking lot between the University Metrorail station and the Watsco Center arena. The university said in a July 2026 statement to the Miami Hurricane that the agreement "establishes the parameters that will govern future growth and development of the University of Miami's Coral Gables Campus over the course of the next 30 years."

Allowable retail in the multi-use portion of campus was boosted to 20% from 15% of all floor space. The multi-use area was extended southwest to Red Road and northeast to the Mahoney-Pearson Parking Garage, including the Central Energy Plant building. Three university-owned properties at 1530 Levante Ave. and 5827 and 5855 Ponce de Leon Blvd. were shifted from commercial to university land-use and zoning designations.

The six-item package had passed 4-0 on first reading Aug. 25, with Commissioner Ariel Fernandez absent. The Planning and Zoning Board previously recommended the package 6-1.

Castro's ethics push

Commissioner Melissa Castro placed a separate resolution on the Sept. 29 agenda directing the city attorney to seek an independent ethics review of Mayor Vince Lago's professional relationship with Hammer Commercial Construction and any current or recent Hammer relationship with UM. The resolution asks whether Lago faces disclosure, recusal or voting requirements tied to the UM deal.

The resolution expressly states that a professional or business relationship alone does not establish an ethics violation and makes no finding that Lago or anyone else violated the law.

Lago denied any conflict, saying he is a Hammer employee with no stock, equity or ownership interest in the company, according to Florida Politics. He said Hammer is not party to the development agreement, played no role in its preparation and would receive no money through it.

The resolution identifies the Miami-Dade Commission on Ethics and Public Trust and, where appropriate, the Florida Commission on Ethics as possible reviewing bodies. It cites a 2018 city attorney opinion that considered Lago's previous employment with BDI Construction, which performed UM work, and advised recusal under certain circumstances.

Whether the commission voted on Castro's resolution remains unclear. City records list the item as "Agenda Ready" with no final action recorded as of publication.

Castro and Lago have clashed frequently on the commission since Castro and outgoing Commissioner Fernandez won upset victories in 2023 over candidates Lago supported. Castro is seeking reelection Nov. 3 against Nestor Menendez, whom Lago publicly backed from the dais on Sept. 15. Castro faces a separate pending state ethics case; the Florida Commission on Ethics found probable cause in January to believe her permit-expediting business created a prohibited conflicting contractual relationship, though no final determination has been made.