Key Biscayne taxpayers will carry the financial burden of a $225,000 settlement due to a mistake made by the Village’s Building, Zoning and Planning Department, but village officials are highlighting a silver lining: the long-awaited flood insurance savings of approximately $1 million for local property owners will be realized without further delay.
The issue relates to 19/21 Harbor Drive, the former site of the Oasis Cafe, famously known as a Key Biscayne landmark until its destruction by fire in May 2021. Currently, the structure houses the Flour & Weirdoughs bakery.
During a Village Council meeting on June 10, BZP Director Jeremy Gauger briefed officials about the ongoing saga surrounding the property and the out-of-court settlement.
The Village had initially approved renovations for the uniquely-shaped building and issued a certificate of occupancy in 2019. However, a subsequent audit by the Florida Department of Environmental Protection uncovered that the building did not meet the National Flood Insurance Program’s regulations.
As a result, the Village Council agreed to settle with the building’s current and former owners, agreeing to split the $270,000 cost of necessary flood barrier installations. This arrangement will see the Village responsible for 75% of the cost, amounting to $225,000.
Although this financial hit could be significant for taxpayers, officials are assuring the community that the amount will be covered under the Village’s “errors and omissions” insurance policy. Furthermore, resolving the flood protection compliance issue at this building is expected to enhance the community’s flood risk rating, which will in turn lead to a 10% average reduction in flood insurance costs for all residents.
“We estimate it would amount to roughly $1 million in cumulative annual savings for Village residents,” Gauger stated during the meeting.
This building marks the final one among approximately ten properties in Key Biscayne that failed to adhere to flood protection requirements, according to Village Manager Steve Williamson. By addressing these concerns, taxpayers will ultimately benefit from the Village’s long-term risk reduction program.
Williamson described the resolution of this issue as a victory for the Village, the state, and Flour & Weirdoughs, which will not be forced to cease operations for repairs as a result of the settlement.
Solving the flooding issues surrounding the property has proven to be complex. Gauger explained that the plan involves constructing a sea wall that will serve as a flood barrier around most of the site, which lies at the entrance to the Harbor Plaza shopping center that includes the 7-Eleven.
The complication emerged when the Village split the property into two distinct buildings during renovations, but state audit officials considered it as one entity with significant flood risks.
“This decision was made in good faith, prioritizing the need for a business to open and operate,” Gauger clarified.
Had the flooding compliance issue remained unresolved, the building would have been ineligible for flood insurance, jeopardizing its future operations.
In 2024, Sully Holdings II LLC, the previous ownership group of both the Oasis and Flour & Weirdoughs, sold the building to Key Biscayne Social Club LLC for $3.8 million, and both parties are integral to the settlement agreement.
Efforts to reach the Key Biscayne Social Club LLC for their comments on the matter were unsuccessful, as phone and email inquiries went unanswered.
Sully Holdings II LLC, owned by Carlos Flores, also shares responsibilities in the settlement; however, a contact was not provided on the filed paperwork.
Council Member Ed London voiced concerns over the settlement, emphasizing that compliance responsibility lies with property owners rather than the Village.
Meanwhile, Village Attorney Chad Friedman advocated for the settlement, arguing it was a more financially sensible option than engaging in litigation, which would likely result in attorney fees surpassing the Village’s portion of the settlement.
Council Member Frank Caplan expressed support for the settlement, commenting that it holds no precedent, indicating its unique circumstances.
This incident has stirred discussions on accountability, financial implications for taxpayers, and ongoing flood management efforts within the community, emphasizing the balance between regulation, community needs, and economic realities.
image source from：https://kbindependent.org/2025/06/17/silver-lining-touted-after-villages-225k-flood-control-error-at-local-bakery-site/
