Lighthouse Point, Fla. commissioners say they will not sign a developer’s agreement with the owner of the Lighthouse Point Yacht Club owner until his financing is secured. When demolition of the old clubhouse starts, Paterson Projects President Terry Paterson says he wants to build a 43,000 sq. ft. clubhouse, 22 luxury townhomes and make major upgrades to other amenities on the site. Paterson told commissioners last week that he was negotiating a $50 million loan that will close in two weeks. Mayor Kyle Van Buskirk says, “When he shows us that loan, I will hand him the permits.”
The long-sought developer’s agreement with the owner of the Lighthouse Point Yacht Club in Lighthouse Point, Fla. remains unsigned and is holding up construction on the 12-acre site, The New Pelican reported.
Last week, commissioners heard from Paterson Projects President Terry Paterson that he was negotiating a $50 million loan that will close in two weeks, The New Pelican reported. Until his financing is secured, commissioners have said the city will not sign the agreement which has been passed around among the planning and zoning board, the city commission and Paterson for the last three years.
One sticking point is the 27-month time frame Paterson has to complete the redevelopment of the property, which goes into effect when demolition of the old clubhouse begins, The New Pelican reported. Paterson intends to build a 43,000 sq. ft. clubhouse, 22 luxury townhomes and make major upgrades to other amenities on the site. He purchased it in July 2017 for $16 million.
But Paterson did obtain a permit early in August to build a concrete wall on the Northeast 27 Court border of his property and construction has begun, The New Pelican reported. Commissioner Mike Long questioned the permit, saying, “I thought no permits until we had all the signatures [on the developer’s agreement].”
Mayor Kyle Van Buskirk, who signs such permits, said he did so because “it is in the best interest of the neighbors, club members and residents to build the wall. We had an almost signed agreement at the time, and then there were changes, but seemed the thing to do. My goal is to do the best for the city.”
To which Long responded, “Nice. But did you overstep the boundaries?”
Paterson’s original loan went into default in April, The New Pelican reported.
Commission President Jason Joffe raised concerns about Paterson’s financial state. “He’s sitting on a foreclosure . . . I question the future of the club,” Joffe said. “We could have a financial liability.”
Paterson stated, “The new lender is ready to close. My attorney is working on it. I got a better deal. I am very happy about it.”
Also at issue is the asbestos abatement at the clubhouse that began in August, closing the facility to its members, The New Pelican reported. Paterson started the work without a permit and the city’s building official has shut down the project.
An outdoor area has been set up to serve beverages, food trucks are on site and Paterson has some employees in the building, The New Pelican reported.
He has also obtained temporary permits to do repairs on the club, to install a tent and to tear up some pavement and two tennis courts.
The asbestos removal proved to be a bigger job than anticipated, Paterson said. “I pleaded to let me demo it . . . It was unsafe and the A/C is failing.”
At the meeting, Long continued to accuse Paterson of violating the developer’s agreement and the mayor said he would not sign the agreement until “Terry says his financial problems are behind him.” But he added “in the end, the decision has to be what is best for the residents. When he shows us that loan, I will hand him the permits.”
At this point, all work on the property has ceased until Paterson proves his financial viability.
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