Lynn Haven approves $1.25 million settlement in Phoenix Construction suit after public objections

The Lynn Haven City Commission voted to approve Resolution 2026-07-568, authorizing a mediated settlement in case number 2023-1405-CA, Phoenix Construction Services Inc. v. City of Lynn Haven and Vicki Gaynor.

City Attorney Rob Jackson told commissioners the settlement terms and related amendments to the half-cent infrastructure surtax design-build contract were in the meeting packet and that the agreements had been negotiated among all parties. Jackson noted the documents include language clarifying that Vicki Gaynor is released from the suit.

Several members of the public urged the commission to reconsider or clarify parts of the settlement. Johnny Bashir said the commission had ignored prior legal advice and warned that the agreement effectively awards a long-term, no-bid opportunity for projects under the $300,000 threshold; he urged commissioners not to commit the city to an open-ended arrangement. Bernie Thompson and James Finch also addressed the commission; Finch acknowledged the settlement and said he planned to donate his lawyer fees back to the city for parks and schools.

Mayor (presiding) clarified the $1,250,000 figure is split between the city and the municipal insurance carrier, meaning each will bear roughly half the cost. The mayor said, “Had this gone forward in court, Mr. Finch could have been liable for a much larger sum,” and expressed regret for prior wrongdoing that affected Finch.

After public comment the commission called the roll and approved the resolution by recorded vote.

What happens next: staff indicated they will bring a budget amendment at the next meeting to allocate funds to cover the settlement cost as required; no additional action was announced at tonight’s meeting.