The City Commission voted 4-1 to authorize formal negotiations and permit the city manager to sign a letter of intent (LOI) related to the possible sale of the Ocean Palm Golf Course, after hearing a presentation from the tenant-proponent and extensive public comment.

What the buyers proposed: Jay Livingston, attorney for Ocean Palm Golf Club LLC, told the commission the prospective owners have updated the LOI to reference the average appraisal value, include a deed restriction that would be terminable only by unanimous commission consent, and address drainage easements needed for an already-issued stormwater permit. The buyers said they have a permit in hand from the St. Johns River Water Management District for course renovation and irrigation work and proposed a phased build-out that the presenter estimated would cost about $6,000,000 overall.

Key factual points
- Vote and motion: The Commission voted 4-1 to enter formal negotiations and to authorize the city manager to sign the LOI; Commissioner Cunningham cast the lone vote against entering negotiations.
- Permit and site work: The buyer’s team said a revised permit sequence (St. Johns River Water Management District) is in hand and that the renovation plan includes expanded wet detention ponds, irrigation pond and higher-level water-quality treatment required for discharges to the outstanding Florida waterway.
- Financing and timeline: The buyers reported they have invested roughly $200,000 in engineering/architectural and permitting work and described a 28-week target schedule to reach construction milestones once acquisition occurs; they said fee ownership may be required by lenders to secure financing.
- Easements and maintenance: Because the city currently owns the land, the consultants said drainage easements have not been recorded; if the sale proceeds, the buyer would record easements or the city would reserve easements at closing to preserve existing off-site drainage and ongoing permit obligations.

Public response and council concerns
Dozens of residents spoke during public comment with competing views. Some neighbors urged selling to a local buyer who promised to reinvest and upgrade the course, arguing the city has repeatedly lost money while operating the property. Others urged the city not to sell the 40-acre parcel, requesting that the city consider alternate uses (parks, stormwater storage, reuse reservoir) or retain control to protect long-term public interests.

Commission questions and staff notes
Commissioners and staff discussed protections to ensure the buyer meets benchmarks after purchasing fee title. City legal staff explained options that can be written into a purchase-and-sale agreement or deed restriction — for example, a reversion clause that returns title to the city if contractual benchmarks are not met within a defined period. The city attorney cautioned that overly stringent deed restrictions can complicate financing because lenders may be reluctant to extend loans on highly encumbered property; the commission discussed escrowed purchase funds or performance-based reversion language as possible middle-ground protections.

Formal action and next steps
Motion text recorded at the meeting: authorization to enter formal negotiations and authorize the city manager to sign the letter of intent (mover/second not specified in the transcript). The motion passed 4-1 in a roll call vote. Staff said, if direction stands, attorneys and staff will negotiate a purchase-and-sale agreement and return a draft for commission approval before any closing. The sale would include discussions about recorded drainage easements, maintenance responsibilities required by the water-management permit, and whether to structure escrowed protections or reversionary remedies in the purchase documents.

Authority references on the record
The buyers cited their St. Johns River Water Management District permit sequence and noted the Clean Water/river quality standards that apply to local discharges. Appraisals and deed-restriction language were referenced on the record; appraisers reportedly discounted value because of the intended deed restrictions.

Ending note
The committee’s vote authorized staff to negotiate but did not commit the city to sell the property; commissioners and the public stressed the need for clear performance protections and easements to preserve public drainage interests if a sale proceeds.