Delray Beach commissioners reject developer27s $320,000 buyout in lieu of two workforce units

The Delray Beach City Commission on June 2 voted to deny a developer27s request to pay $320,000 in lieu of constructing two workforce housing units tied to a nine-unit project on West Atlantic Avenue.

The request, presented by attorney Jeffrey Lynn and developer Frank Belgiani, sought city approval to accept $160,000 per unit in place of constructing one low-income and one moderate-income workforce unit that were conditions of a prior 2023 site plan approval. Lynn said the change was driven by construction costs — roughly $900,000 to $1 million per unit in current estimates — and that the payment would allow the project to move forward to permitting.

The city27s planner reviewed the development incentives and explained alternatives available to the developer: record the workforce housing covenant and build the two on-site units, provide off-site units under an approved plan, submit a site-plan amendment to reduce unit count, or pay into the housing trust fund. Staff said the buyout would place $320,000 into the city27s housing trust for programs such as down-payment assistance or other housing initiatives.

Commissioners pressed the developer on whether $320,000 represented commensurate value for two workforce units and on enforceability and long-term affordability. "The exception was given to provide two units," Commissioner Cassell said, arguing that the payment would not deliver equivalent housing and that the city should pursue on-site or meaningful off-site solutions. Vice Mayor Burns and Commissioner Malikica echoed that view and favored options that yield actual affordable units rather than a relatively small buyout.

With those concerns and a direction from staff that off-site construction or a restrictive covenant were available options, the commission voted to deny resolution 81-26. The denial requires the developer to return with a revised approach — either to provide the required units on-site, propose a credible off-site replacement, reduce density, or otherwise amend the project.

Mayor Thomas F. Carney Jr. called for the developer to explore alternatives and encouraged follow-up with staff. Planning staff said the covenant is typically recorded at permitting and described the city's tools for ensuring affordability compliance should on-site units be provided.

The commission27s denial preserves the performance standard tied to the 2023 approval and underscores the city27s insistence that density incentives produce durable, on-the-ground workforce housing or an off-site solution of comparable community benefit.

The developer was thanked for coming before the commission and told staff and commissioners they would return with revised options.