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Palm Beach Gardens council denies PBNAF time extension, approves limited contract cleanup
Summary
The council declined a 90-day extension sought by the Palm Beach North Athletic Foundation for an indoor recreational facility at Plant Drive Park, citing missed milestones and resident opposition, but approved a narrow amendment to the post-construction surety clause in Exhibit B of the agreement.
Vice Mayor Dana Middleton presided over the vote after Mayor Tinsley recused herself and the City Council on Wednesday voted to deny a requested 90-day extension for the Palm Beach North Athletic Foundation's (PBNAF) financing and construction milestones while approving a separate cleanup to section 14 of Exhibit B in the public-private partnership agreement.
City Attorney Max Lohman told the council the item before them was "whether or not you are willing to grant the request for a 90 day extension of time to the financial and construction milestones," and explained the separate amendment to a post-construction surety would still need to be addressed regardless of the extension vote. PBNAF representatives said the foundation had spent roughly $2.6 million to date, had authorized about $18 million in construction contracts and had a building permit ready to go. Investment banker John Balzano said the foundation had secured a tax-exempt term sheet for a $29 million credit facility with a 5.59% rate and estimated annual savings of about $417,000 versus taxable financing.
Residents who spoke at the podium urged the council to enforce the contract's original cure period. "You told us to trust the process, and the process is a signed agreement with 30 days to rectify," said Heather Deitchman Levy, arguing that the city should hold PBNAF to the timeline that was agreed to when the lease was approved. Other speakers detailed prior extensions and expressed concerns about park loss, neighborhood impacts, financing transparency and public safety.
Council members questioned why audited financials required by the agreement had not yet been provided and whether the foundation could obtain short-term conventional financing and later refinance with tax-exempt bonds. PBNAF representatives said audited financials would be provided by the end of the month and that the term sheet was secured May 19.
City Attorney Lohman crafted a motion to approve only the amendment to section 14 of Exhibit B (addressing post-construction surety) and not to approve any additional time extension. The motion carried and the council approved the technical amendment while denying the requested deadline extension.
The decision leaves the original timeline intact; PBNAF representatives said they would continue pursuing financing and other requirements and the council asked staff and the foundation to keep the public and council apprised of progress.
What happens next: Council approved the limited amendment to the agreement but did not extend the foundation's financing or construction deadlines. The council took a short recess before reconvening to continue the agenda.
