Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Property Sale topic
No spam. Unsubscribe anytime.
Flagler Beach approves first reading of Ocean Palm Golf Course sale; buyers pledge financing contingent on ordinance
Summary
City commissioners approved on first reading the sale of the Ocean Palm Golf Course after buyer representatives said they were pursuing roughly $6 million in financing and city staff confirmed escrow and a reversionary clause in the declaration that could return the property to the city if terms are violated.
Flagler Beach's commission approved on first reading an ordinance (2025‑28) authorizing the sale of the Ocean Palm Golf Course, concluding a contentious discussion about transparency, financing and protections for the city. The vote passed on a narrow margin, after buyer representatives outlined a financing plan and city staff described contractual protections.
What passed and why it matters: the city had previously approved a purchase and sale agreement and required that a formal ordinance be adopted to complete the sale. The buyer deposited an escrow amount (recorded as $40,000 in the staff report) and told the commission that underwriting and loan commitment depend on the ordinance being adopted; lenders typically start underwriting only after ordinance approval so rates and appraisals are contemporaneous with the loan.
Financing and contingencies: purchaser counsel Jay Livingston told commissioners the underwriting package in process estimated a combined acquisition and site‑development financing of approximately $6,000,000. The purchase contract includes feasibility and financing contingencies; the buyer has a 90‑day financing contingency that begins after the city's ordinance approval. City staff and counsel explained the reversionary clause and first‑right procedures in the event the golf course operation fails or the buyer attempts an unauthorized transfer: under the recorded declaration, certain failures would trigger a reversionary interest and give the city a right to recover the property.
Concerns raised: some commissioners and members of the public asked why the city had not solicited competing bids; staff explained the property was leased and the tenant offered to purchase, so the city did not publicly market the parcel. One commissioner raised concerns about an ethics investigation related to the transaction; the city attorney said the investigation has not yet produced a probable‑cause finding and does not legally bar the commission from proceeding.
Vote: After public comment and responses from buyer counsel, the ordinance passed on a close roll call (3‑2), with commissioners Spradley, Bellhumor and Cooley voting yes and Commissioners Cunningham and Chair Sherman voting no. Because the sale remains subject to the buyer’s financing contingency, the transaction will not close until the buyer secures loan commitments and a closing is scheduled.
