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Shoma Group's $8.3 Million Construction Dilemma: What It Means for Local Homeowners
In the bustling environment of North Bay Village, Shoma Group's ambitious 24-story mixed-use project, Shoma Bay, is now facing significant financial hurdles. The municipality has mandated the company to pay over $8.3 million in construction fees to obtain a master permit required for their developments.
This hefty fee comprises approximately $5.18 million in previously waived workforce housing and community contribution fees, plus an additional $3.14 million due for other outstanding obligations. The payments can be spread out over three installments until 2027, with the first $4.14 million due on April 30, 2025. A crucial focus from village officials, particularly from Commissioner Richard Chervony, is to ensure that Shoma pays its dues, as they failed to start construction per the timeline initially outlined.
Financial Pressures: A Developer's Perspective
Shoma Group's developer, Masoud Shojaee, insists that the project is still moving forward, stating that the foundation is being laid, despite delays attributed to miscommunication with village staff and environmental departments. However, he expressed his concern regarding financial constraints, emphasizing that the current market conditions do not support exorbitant fees as units are marketed at $1,000 per square foot, far from the preferable $2,000 range.
A Need for Communication and Collaboration
The crux of this situation hinges on transparency and timely communication. Mayor Rachel Streitfeld pointed out a problematic gap in dialogue between Shoma Group and municipal authorities. Clearer communication could have potentially alleviated some of the financial strains faced by the developer and fostered a more collaborative approach to the project's progression.
What’s Next for Shoma Group?
As Shoma Group navigates these financial obstacles, they have the option to alleviate some of the financial burdens by adding more workforce housing units to the project—specifically, an additional 34 units could significantly reduce their fees. This flexibility presents an opportunity not just for Shoma Group but could ultimately benefit local homeowners by increasing housing availability in the community.
As future developments unfold, it will be essential for local residents to stay updated and involved in discussions about North Bay Village’s growth and its implications on the housing market. Communication from both the municipality and developers could pave the way for more successful projects.
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