The Palatka City Commission added an emergency item to the agenda and discussed the recent Blue Crab Festival after commissioners and staff reported multiple operational and contractual problems, including gaps in marketing, a promoter who received an advance check, unresolved billing for city services and a written demand from the promoter that staff described as a threat of litigation.

Commissioners recounted that the city had issued a $50,000 check to the promoter and that the city provided police, fire and public‑works services the staff estimated at roughly $35,000–$49,000, depending on the accounting approach; staff said the city had not collected reimbursement for those service costs in the year’s event. The city attorney reported that the promoter had sent a written demand and threatened litigation, and commissioners discussed legal exposure and the need for cautious public statements.

Members debated whether the city should continue to sponsor the festival or seek an RFP process to select a promoter and whether the event should remain a city-sponsored activity or be returned to community organizations. Several commissioners urged that the city not apologize for actions it had taken fully in accordance with signed agreements, while others said at minimum the city should convene a public meeting to gather community input and chart a path for future festivals.

By consensus the commission asked staff to schedule a community meeting so residents, merchants and interested organizations can present proposals and feedback; commissioners said they would then review options and consider an RFP, changes to sponsorship, or a community consortium to run the festival in future years.

The city did not take a final policy action at the meeting; staff and legal counsel were directed to prepare follow‑up materials and a proposed timetable for the commission.