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Developer says partner selection underway; resident tells commission he fears Yacht Club deal lacks momentum
Summary
A developer representative told commissioners a new partner is being chosen under an NDA and target completion for a finalized agreement is near year-end; a nearby resident told the commission he remains concerned about delays and urged checks and balances.
The commission heard an update on the development agreement between the city and Yacht Club Investments LLC and received critical public comment from a nearby resident who said the project has stalled.
City counsel and staff explained the agreement requires an annual review. A representative for the Yacht Club investments said the principal is selecting a new partner and that, because of a nondisclosure agreement, details cannot be released until the transaction is finalized. "Due to an NDA, we're unable to disclose the partner's identity at this time until the deal is finalized," Joseph Gratton said. He added the team expects to finalize the developer agreement and be able to commence demolition and construction near the end of the year if financial negotiations proceed as hoped.
Commissioners raised questions about whether a sale or assignment of development rights would require the commission's consent under paragraph 9 of the agreement; city counsel advised that transfers of development rights or assignments would generally require commission consent but that consent should not be unreasonably withheld.
At the second public-comment period, resident Sammy Salem, who said he lives across from the Yacht Club site, urged the commission to apply "checks and balances" and said he is worried about the developer's reliability. "He hasn't even shown up... I don't think he's acting in good faith," Salem said, recounting litigation and partner disputes he said he found in court records.
Staff and the developer's representative said arbitration and partner discussions are ongoing and that staff will continue to monitor compliance with the development agreement; the developer representative asked for further time under the NDA to complete partner selection and provide financial viability documentation to the city once the deal is consummated.
Next steps: the developer's representative said he will notify the city once the partner selection and financial documentation are available and that the developer will request a follow-up agenda slot to present the full details.
