In February 1926 William Matheson entered into an agreement with D. P. Davis (a land developer, not related to Waters Davis) to develop and re-sell the northern half of Key Biscayne, including all of what is now Crandon Park and about half the present Village of Key Biscayne.
Davis had experience with turning submerged or partially submerged land into prime real estate, having created the Davis Islands in Tampa and Davis Shores near St. Augustine.
Later in 1926, the City of Coral Gables incorporated with Key Biscayne, which was included in its boundaries.
There were dreams of a bridge to the island, making Key Biscayne the seaside resort for Coral Gables, as Miami Beach had become for Miami.

Obstacles to the project arose.
In March 1926 the U.S. government auctioned off some lots on Key Biscayne that had been retained when the rest of the island was transferred to the State of Florida.
The Mathesons wanted to have clear title to all of their land, and determined to outbid other interested parties for it.
They ended up paying US$58,055 for a total of 6.84 acres (2.77 ha) of land, a record price per acre for the auction of U.S. government land up to that date.
On September 18, 1926, the Great Miami Hurricane crossed over Key Biscayne on its way to Miami.
Although no lives were lost on the island, most of the buildings were destroyed or badly damaged.
Many of the plantings were lost, including half of the coconut trees.
The Mathesons rushed to restore their plantation, replanting and buying new equipment to replace what was lost.
They soon had 30,000 coconut trees replanted on 900 acres (364 ha).
D. P. Davis could not meet his contract; he declared bankruptcy and disappeared en route to Europe by ship.

The Florida Land Boom was over.
There was no bridge built and no development on Key Biscayne for the next two decades.
William Matheson died in 1930, leaving the island to his children.
In 1939, the U.S. Navy approved a proposal to develop Virginia Key as an air base and sea port.
There was talk of putting an air base on the north end of Key Biscayne.

In 1940 William Matheson's heirs donated 808.8 acres (327.3 ha) of land (including two miles (3.2 km) of beach on the Atlantic Ocean) on the northern end of Key Biscayne to Dade County to be used as a public park (later named Crandon Park).
The county commissioner who negotiated the gift, Charles H. Crandon, had offered to have the county build a causeway to Key Biscayne in exchange for the land donation.
As planning for the air and sea complex on Virginia Key was proceeding, construction on a causeway to Virginia Key started in 1941.

The Attack on Pearl Harbor and the entry of the United States into World War II stopped all work on the causeway and the development of Virginia Key.
After the war, Crandon pushed on with the development project.
He got financier Ed Ball to buy six million (U.S.) dollars worth of bonds financing construction of the causeway.
The causeway was named for Eddie Rickenbacker, World War I flying ace, and founder and president of the Miami-based Eastern Air Lines.
Starting in 1951, the Mackle Construction Company offered new homes on the island for US$9,540, with just US$500 down.
A U.S. Post Office contract branch was opened, the Community Church started holding services, and the Key Biscayne Elementary School opened in 1952.
In February 1926 William Matheson entered into an agreement with D. P. Davis (a land developer, not related to Waters Davis) to develop and re-sell the northern half of Key Biscayne, including all of what is now Crandon Park and about half the present Village of Key Biscayne. Davis had experience with turning submerged or partially submerged land into prime real estate, having created the Davis Islands in Tampa and Davis Shores near St. Augustine. Later in 1926, the City of Coral Gables incorporated with Key Biscayne, which was included in its boundaries. There were dreams of a bridge to the island, making Key Biscayne the seaside resort for Coral Gables, as Miami Beach had become for Miami.
Obstacles to the project arose. In March 1926 the U.S. government auctioned off some lots on Key Biscayne that had been retained when the rest of the island was transferred to the State of Florida. The Mathesons wanted to have clear title to all of their land, and determined to outbid other interested parties for it. They ended up paying US$58,055 for a total of 6.84 acres (2.77 ha) of land, a record price per acre for the auction of U.S. government land up to that date. On September 18, 1926, the Great Miami Hurricane crossed over Key Biscayne on its way to Miami. Although no lives were lost on the island, most of the buildings were destroyed or badly damaged. Many of the plantings were lost, including half of the coconut trees. The Mathesons rushed to restore their plantation, replanting and buying new equipment to replace what was lost. They soon had 30,000 coconut trees replanted on 900 acres (364 ha). D. P. Davis could not meet his contract; he declared bankruptcy and disappeared en route to Europe by ship.
The Florida Land Boom was over. There was no bridge built and no development on Key Biscayne for the next two decades. William Matheson died in 1930, leaving the island to his children. In 1939, the U.S. Navy approved a proposal to develop Virginia Key as an air base and sea port. There was talk of putting an air base on the north end of Key Biscayne.
In 1940 William Matheson's heirs donated 808.8 acres (327.3 ha) of land (including two miles (3.2 km) of beach on the Atlantic Ocean) on the northern end of Key Biscayne to Dade County to be used as a public park (later named Crandon Park). The county commissioner who negotiated the gift, Charles H. Crandon, had offered to have the county build a causeway to Key Biscayne in exchange for the land donation. As planning for the air and sea complex on Virginia Key was proceeding, construction on a causeway to Virginia Key started in 1941.
The Attack on Pearl Harbor and the entry of the United States into World War II stopped all work on the causeway and the development of Virginia Key. After the war, Crandon pushed on with the development project. He got financier Ed Ball to buy six million (U.S.) dollars worth of bonds financing construction of the causeway. The causeway was named for Eddie Rickenbacker, World War I flying ace, and founder and president of the Miami-based Eastern Air Lines. Starting in 1951, the Mackle Construction Company offered new homes on the island for US$9,540, with just US$500 down. A U.S. Post Office contract branch was opened, the Community Church started holding services, and the Key Biscayne Elementary School opened in 1952.
Key Biscayne