Boca Raton council postpones vote on long-term hospice lease after questions about terms, investments and executive pay

The Boca Raton City Council on June 9 postponed consideration of an ordinance that would extend a lease for a hospice facility at 1531 West Palmetto Park Road after council members and residents pressed staff and the applicant for more detail.

City staff said the amendment would extend the lease's initial term to June 12, 2044, allow up to four additional 10-year renewal periods and require the lessee to document $1,000,000 in capital improvements between June 12, 2024, and June 11, 2044 before a further extension could be approved. Staff noted the parcel was deeded for hospice or similar public uses and that the current lease has a nominal annual rent of $1.

“We want to make sure that this facility... will be here for a very long time to come,” said Steve Matheson, attorney for the hospice organization, describing decades of service and investments in the facility. He asked the council to approve the change so the organization could plan and continue its work for donors and patients.

During the public hearing and ensuing council discussion, several members and speakers pressed staff and the applicant on two main points: whether the proposed language removed the city's prior contract right to terminate at renewal and whether the $1-per-year lease and a $1,000,000 investment requirement over many years represents appropriate public value for a parcel appraised in 2025 at about $7.5 million. Councilmember Perlman highlighted press reports alleging large executive salaries at the hospice operator and said the combination of those reports and the lease terms raised public concern.

“I've done some research on this company,” the councilmember said, citing a published report that named an executive's past compensation as being in the high six figures. Several public commenters urged the council to seek a higher payment or stronger investment guarantees for the property rather than approving long-term renewals now.

Staff and the applicant defended the organization's community role and said the $1,000,000 condition and other contractual limits were intended to protect the city while allowing the nonprofit to continue services. Deputy Mayor Michelle Grau said she had recently visited the facility and observed water damage and stains that suggested more investment may be needed.

Given those concerns, Mayor Thompson moved — and the council agreed — to postpone the ordinance. The motion, adopted by unanimous consent, directed staff to work with the applicant to consider revisions, including the possible reinsertion of a city termination clause on renewals and clearer, enforceable improvement commitments. The council asked that the item return only after staff and the applicant reach a position ready for re-noticing and another public hearing.

Next steps: the ordinance will be re-noticed for a future meeting after staff and the applicant confer and any revised terms are prepared for council review.