Miami-Dade County is facing a legal challenge from Fisher Island Club and the Fisher Island Community Association, who are seeking to prevent the county from acquiring a marine fuel depot through eminent domain. The nearly 10-acre site, recently purchased by Chicago-based HRP Group for $180 million, is targeted by the county as it seeks to maintain fuel supplies for cruise ships at PortMiami. HRP has plans to redevelop the property into luxury condominiums.
The lawsuit, filed in Miami federal court, alleges that the county’s attempt to seize the property violates constitutional protections and eminent domain laws because it serves “governmental convenience” for private cruise lines rather than public necessity. According to James Ferraro, attorney for the club and association, there are other possible locations for a new fuel depot. “It is an antiquated facility that is not compliant with current standards,” Ferraro said. “It’s time for it to go.”
The plaintiffs claim that Miami-Dade officials have bypassed necessary planning steps, including safety analysis and procedural fairness. The complaint points out that the fuel farm, operated by TransMontaigne Partners, is located about 700 feet from residential homes and 2,000 feet from an elementary school on a barrier island without road access. It also alleges that the tanks do not meet current fire codes and are situated in a hurricane flood zone.
HRP acquired the property in October 2025 and allowed TransMontaigne to continue operating until 2027 when an existing lease with Miami-Dade expires. Ferraro commented on this arrangement: “We have been counting days for that lease to terminate,” he said. “We fully expected that facility was going to be phased out.”
HRP specializes in redeveloping contaminated sites and views this location as potentially the last large-scale condominium development opportunity on Fisher Island.
As part of HRP’s agreement with Fisher Island Club and the community association, four acres of the site would be set aside for community improvements. In return, these groups agreed to support necessary entitlements and offer memberships to condo buyers while assisting HRP with government approvals. The association maintains veto power over any sale or transfer of those four acres except under specific circumstances.
Despite these arrangements, the lawsuit claims Miami-Dade excluded Fisher Island representatives from negotiations with HRP regarding future use of the property. In October 2025, county commissioners authorized acquisition of the site by purchase or eminent domain after industry pressure from cruise lines.
With mediation deadlines now expired, Fisher Island entities want a judge to require more thorough analysis before any action proceeds: they argue that any taking must follow a transparent process backed by detailed justification rather than being rushed due to operational concerns at PortMiami.
The complaint frames Miami-Dade’s situation as resulting from years of inadequate planning; officials allegedly failed to plan for their lease’s expiration despite its importance as PortMiami’s primary fuel source—an operation cited as having significant economic impact locally.
After TransMontaigne listed the terminal for sale in 2024 at $200 million—rejecting an offer from Miami-Dade—the lawsuit states that Jimmy Morales, chief operating officer of Miami-Dade County, acknowledged publicly that no effort had been made to find alternative sites. When faced with losing access to the facility after HRP’s purchase was imminent, county staff produced an expedited report identifying nine alternative locations but dismissed them without conducting feasibility studies or environmental reviews.
During public meetings ahead of approving potential eminent domain action last year, some commissioners expressed concern about targeting such a valuable private parcel on Fisher Island without sufficient notice or analysis.
Fisher Island representatives argue this approach violates Florida law because it benefits private cruise operators more than serving public needs. The complaint references official documents indicating alternatives such as using fuel barges from other ports or constructing a modern terminal at PortMiami itself—options previously discussed but not pursued further.
Ferraro stated that if Miami-Dade proceeds with eminent domain action, local taxpayers could face substantial costs due both to purchasing fair market value land and then building replacement facilities: “Taxpayers will get totally burned,” he said. “It is going to cost a lot of money to buy it … and then the county will need to replace the facility. That requires taking the old one down and building a new one. They are going to be spending maybe $500 million.”
