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Commission advances sale of downtown lot to Publix on first reading, with 15-year supermarket-use covenant

West Palm Beach City Commission · March 3, 2026
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Summary

On first reading the commission approved an ordinance to sell 0.79 acres at 202'206 N. Sapodilla Ave. to Publix for $3,526,684, including a 15-year recorded restrictive covenant ensuring supermarket use, environmental mitigation estimates and workforce/small-business participation commitments.

Deputy City Attorney Nancy Ercek outlined a proposed ordinance to authorize sale of city property at 202'206 North Sapodilla Avenue to Publix Supermarkets for development of a larger full-service downtown store. Ercek said the parcel is roughly 0.79 acres and that the negotiated purchase price is $3,526,684.

Ercek described key negotiated terms: a recorded restrictive covenant requiring supermarket use for at least 15 years (Publix agreed to extend the originally negotiated 10-year term to 15 years), vertical construction to commence within 180 days of permit issuance, a 15% local-workforce hire requirement for construction and an 18% small-business participation goal among contractors and subcontractors. She also reported a Phase I environmental review that identified soil and groundwater contaminants (including arsenic and polycyclic aromatic hydrocarbons) and an estimated remediation/matrix midpoint cost of about $676,920.

Ercek said the city code requires at least two appraisals for properties of this value and that the purchase price was set to meet appraisal requirements after accounting for environmental mitigation. Commissioners asked about disparities between appraisals; Ercek and staff said one appraisal had been updated after mitigation information, while the other predated the final environmental report and both were averaged per city practice.

Commissioner Fox moved to approve ordinance 51-66-26 on first reading and schedule a second reading for March 16, 2026; the motion passed unanimously.