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West Palm Beach staff propose $9.5 million buyout to regain control of Salvation Army site
Summary
CRA staff told commissioners they negotiated a non-binding $9.5 million counteroffer, accepted by the Salvation Army, to buy out the group's 71-year lease at 600 North Rosemary; the CRA would need to adjust its budget and the final agreement must return to the city commission for approval.
City staff on Tuesday outlined a path to regain full control of a roughly three-acre parcel at 600 North Rosemary that is currently leased to the Salvation Army under a 71-year agreement from 1997. Chris Rugg, executive director of the West Palm Beach Community Redevelopment Agency, said two appraisals produced compensating values and the city "counter offered" $9.5 million; Rugg said the Salvation Army accepted that non-binding counteroffer.
The parcel sits in the historic Northwest neighborhood and is currently restricted by the lease to community-center uses; staff told the board the site could be developed up to eight stories and would likely produce greater long-term tax revenue if repurposed. Rugg said the city's appraiser valued the combined fee-simple and leasehold interests such that a $9.5 million buyout for the remaining lease term is supportable compared with a stated fee-simple estimate of about $22 million.
Why it matters: commissioners repeatedly said the property's location and size make it an important long-term public asset.…
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