Ocean Breeze update
On Monday, the Boca Raton City Council will discuss the possible sale of the western golf course for residential development. To the disappointment of Boca Teeca residents, the council likely will discuss that potential transaction and not much more.
Boca Teeca would like the council to focus on a deal in which the city would sell the course on Glades Road west of the Florida Turnpike to Lennar, which then would convey to the city the Ocean Breeze course that is part of Boca Teeca north of Yamato Road and east of Interstate 95. Lennar would like to develop the Ocean Breeze site, which Wells Fargo owns. Such a sale/swap still might happen, but at this point it isn’t the council’s priority.
I spoke this week to all five council members. Mike Mullaugh and Robert Weinroth believe that the council first should decide whether to sell the western course, seek the best deal and then debate Ocean Breeze. Jeremy Rodgers, who is on record as supporting a city-owned course at Ocean Breeze, said he would give Lennar preference on the western course “within reason” if doing so could lead to a swap that benefits the city. “I have some reservations.”
Mayor Susan Haynie said of the Lennar sale/swap, “I would like to get my arms around it, but I’m not sure how.” Though Haynie said, “I presume that there’s a consensus to sell (the western course,)” Scott Singer said, “I don’t know about that. I want to look at all options.” All the offers and letters of intent on the western course are unsolicited.
The biggest unknown is the value of the two properties. The offers for the roughly 200-acre western course range from $31.2 million (Compson) to $46 million (CalAtlantic.) The projected number of units ranges from 400 to 1,000.
Since the golf course actually is in the county, not the city, any sale price would depend on what the county would approve for development. So city staff, after consulting with county staff, will have to estimate what the county reasonably would allow. It would be foolish to negotiate with a company that has unrealistic expectations. No council member believes that projections of 1,000 units (CC Residential) and 950 units (Related) are realistic. Haynie considers the “sweet spot” to be about 500 units “based on conversations with developers.”
It would have been difficult enough for the council just to sift out the best offer on the western course. Then Haynie pivoted from her wish to get Boca Raton out of the golf course business and declared her interest in the city acquiring Ocean Breeze—if it makes sense—for what she calls “a golf facility.” That could mean the current 27-hole layout, 18 holes with a training center or something else.
So how does one value those 200 acres? Their sale price in 1982 was nearly $7 million. Last January, a Wells Fargo subsidiary bought the property for $4 million.
But a deed restriction limits use of the land to a golf course/recreation unless a majority of units—one vote per unit—agree to lift it. That covenant could make the land worth very little. Also, Ocean Breeze would come with costs: to upgrade the course, which has been closed, to widen Northwest Second Avenue and to rehab or demolish a hotel on the site. Weinroth pegs the price at between $8 million and $10 million.
As I have noted, the best business deal for the city would be to get the most money for the western course—if the council wishes to sell it—and then worry about Ocean Breeze. If a swap becomes the priority, Lennar immediately would have an advantage over the other companies and leverage over the city. But roughly 3,000 people/voters live in Boca Teeca, and they have been furiously contacting the council. “We get lots of emails,” Mike Mullaugh said, “about how great a swap would be.”
Great? That’s hard to say. Complicated? For sure.
Even if the council agreed on acquiring Ocean Breeze, what would the city do with the property? Weinroth said a 27-hole course “is not commercially viable.” The western course, which also is 27 holes, lost nearly a quarter-million dollars last year. Mullaugh would like to see a survey about possible use by those who live in Boca Raton. “What’s the demand? If we got (Ocean Breeze,) I would like to see it doing something for city residents.”
For the council to consider a swap, Haynie said, “The onus is on Lennar. How do we get the most fiscally sound deal?” Rodgers said, “The ball is in Lennar’s court.” Rodgers suggested one scenario in which Lennar would develop the land covering nine holes, with 18 kept for golf. Rodgers also said, however, that if there’s no agreement on the value of Ocean Breeze, “That’s a show-stopper.”
The other player is the Greater Boca Raton Beach & Park District. Haynie told me that she had discussed Ocean Breeze three weeks ago with Art Koski, the district’s interim director. Board members have expressed interest in the district collaborating on Ocean Breeze. According to Haynie, Koski wants to “make it happen,” perhaps with the city issuing a bond for the sale and renovation with the district making the payments.
Nothing likely would happen soon. Sale of city land involves many steps, including review by the planning and zoning board. No sale would be final until the county commission approved a development application.
Weinroth said the onus is on Boca Teeca. “They have to come to a decision.” There is no master association, and Weinroth said the council has heard “no consensus” from Boca Teeca about what the residents want. “Do they want us to just buy it, leave it alone and cut the grass?”
Weinroth notes that Boca Teeca blocked Clint Moore Road from running through the community and opposed the widening of Northwest Second Avenue, but now wants the city’s help in preventing development of Ocean Breeze. Said Weinroth, “I think we need to deal with the one thing we have control over,” which is the western course.
City vs. Beach & Park District breakthrough
Speaking of the beach and park district, after many months of acrimony between Boca Raton and the district, there is a breakthrough.
City Manager Leif Ahnell will recommend at Tuesday’s meeting that the council approve a 10-year agreement on beach renourishment and dredging of the Boca Raton Inlet. Under the deal, the city and district each would pay half of what Ahnell’s memo to the council says would be $28 million for all related projects. The deal does not cover operations at Gumbo Limbo Nature Center.
The city and district acknowledge that the $28 million figure could be higher, but the agreement allows for flexibility if that happens. Mayor Haynie said Ahnell and the district’s Art Koski worked out the agreement.
There remains the issue of the master agreement covering parks. Still, the deal on beach renourishment raises hope of resolving that issue, too.
Delray budget
Delray Beach officially has a budget.
The city commission approved the 2016-17 spending plan Tuesday night. Mayor Cary Glickstein and commissioners Al Jacquet and Jordana Jarjura voted for the budget, while Mitch Katz and Shelly Petrolia cast symbolic votes against it. They wanted a lower tax rate. The vote came after an odd discussion about whether to buy or lease firefighting equipment.
On Monday night, the Boca Raton city council will approve the new budget. Like Delray Beach, Boca is devoting more money to public safety. Unlike Delray Beach, the vote probably will be unanimous.
Delray police and fire pension
If Delray Beach’s budget issue got resolved Tuesday night, the city’s fire-police pension issue did not.
As of the meeting, the Florida Division of Retirement had not opined on the city’s plan to switch from a combined board with representation that favors the police and fire unions to separate boards, more evenly weighted between the city and the unions, and changes to improve investment decisions. The city’s lawyer wrote to Tallahassee on Aug. 1, asking if the state objected.
The delay displeased all the commissioners. Mayor Cary Glickstein said the law firm, hired because it specializes in pensions, “is fully responsible for not paying attention to this. . .At no time did (the lawyer) advise the city that terms we agreed on over a long, arduous process may not be enforceable.”
One thing did become clear Tuesday night. Police union representatives spoke against the changes, even though the union had agreed to them during collective bargaining. Glickstein had suspected union “maneuvering” to block the deal, which the firefighters union supports.
If the commission doesn’t ratify the new pension deals by Oct. 1, Delray Beach could lose $1.3 million from a state program that allocates money to public safety pension programs. That loss would hurt not just Delray Beach but the police officers and firefighters who are in the pension plan. The police union’s opposition seems self-defeating.
If there’s still no word from Tallahassee next week, the commission will hold a special meeting and vote on the pension changes. More to come.
