On Friday, the leaseholders of Flagler Beach’s city-owned Ocean Palm Golf Club filed a brief letter of intent to purchase the 37-acre property on South Central Avenue, which the city purchased 12 years ago for $490,000 at auction. The letter was anticipated by the City Commission. However, it also required the leaseholder to demonstrate that he could fulfill his commitments to transform the land into a functional, aesthetically pleasing golf course by meeting a series of milestones. The letter omitted such milestones.
According to the letter, a price has not yet been proposed or negotiated, but it is anticipated to be done so in a fair amount of time. This year, the city ordered three appraisals. Their respective figures were $794, 810,000, and 800,000. The sale price, if there is one, would be approximately $800,000.
Residents of the surrounding area and golf course patrons have been opposing the possible purchase of the land. They have expressed worries about the existing state of the course breaching the lease, the city losing control of the facility, and a projected 20,000 square foot clubhouse. Ryan received some respite last month when the City Commission agreed to allow him to finish the course while he prepared his milestones, construction designs, and letter of intent for submission.
Ryan desired a resolution within seven months. In anticipation of the kind of proposals he would present, the city granted him a month. Month after month, the shutdown can be prolonged. In order to begin repairing the grounds, Ryan requested a longer closure. That was seen by the commission to be placing the cart before the horse. Ryan’s finance ideas were among the plans it wanted to see first. The paperwork that were turned in on Friday did not contain those plans. Ryan’s lawyer, Jay Livingston of Palm Coast, stated that he was not permitted to comment on the situation until more talks with the city were completed.
Attorney Scott Spradley, a City Commissioner, stated, “I hope this is just a beginning point.” I thought that before a sale was approved, we would see a plan with milestones—significant milestones of improvement. That’s my mental attitude. I just speak for myself.
However, given the public’s and some commissioners’ worries, the golf course’s history, and its years of neglect, I believe it is crucial to set milestones before selling this property to reassure the city that this is the correct course for this city. Since there were no such goals in the original letter of intent, Spradley expressed hope that the tenant would reconsider and that more conversations regarding milestones would take place.
The possible sale has not been placed up for bid by the city. The subject has been brought up a few times, and Spradley was scheduled to speak with City Attorney Drew Smith about it shortly.Spradley stated, “I don’t see why the city should proceed with a single bidder on something like this.” I’m not sure if that’s the intention. I shall investigate the efforts that have been or will be taken to find interested parties.
Rick Belhumeur, the commissioner, is more optimistic about a sale. Belhumeur stated today that we have no business continuing to manage our municipal golf facility when we are clearly unable to do so. After more than ten years as the golf course’s owners, it’s time to stop losing money. Let it go; use the proceeds from the sale to directly fund stormwater projects where they may have the greatest impact. He was talking about the money the city spent when it first bought the site, including thousands of dollars annually for lawn care, repairs for the two roofs on the two buildings there, and irrigation system costs, among other things, before the present leaseholder took over.
According to him, the LOI must contain an additional deed restriction mandating that the owner maintain all city stormwater infrastructure located on the site. The ponds on the property would be included in the sale, although they are a component of the drainage system. It’s not clear if the buyer would be in charge of maintaining the ponds or if the city would have easements. In my opinion, that is crucial—very crucial. Belhumeur stated that there must be a black-and-white aspect to it.
The city paid $490,000 to purchase a 34-acre section of the course, and in 2022, it spent $459,000 in cash to create a 3-acre enclave and driving range. Since 2015, the course’s two leaseholders have failed to meet the city’s expectations and commitments to the citizens.
Following a significant decline in course conditions, the city terminated its lease with the prior leaseholders. Although the city has been more lenient toward the current leaseholder, those conditions have not significantly improved since, leading some locals to point out the unfair treatment.
The lease-holder, Jeffrey Ryan, who runs Ocean Palms Golf Club LLC (with ansto Palm), is only expected to pay the city $3,100 in rent on the golf course this year. The city receives six times that amount from golf cart registration fees.Ryan works under Leisure Holdings LLC as well. Tanuj Seoni, a company principal, signed the letter of intent. He lives on the Palm Coast with Ryan.
“OPGC, which stands for Ocean Palms Golf Club, intends to use the property for a golf course and clubhouse to provide valuable and high-quality recreation, dining, and social gathering options for the residents and visitors in Flagler Beach,” the letter states. While a new clubhouse is constructed and the grounds are remodeled and resodded with Seashore Paspalum, the course will stay closed.
Golf simulators, a fitness center, a restaurant, a bar, and an indoor putting lab and short game practice area will all be part of that complex.
A 20,000 square foot building with a 15,000 square foot footprint is planned, along with a 100-space parking lot (the second story, or mezzanine, would be 5,000 square feet). Although the site will remain the same, the building’s size has been reduced from its initial plan of 30,000 square feet.
A chronologyLivingston included with the letter of intent projects that the renovation would be accomplished in 28 weeks, or a little more than half a year, construction of the new clubhouse included.
The deed conveying the Property from Seller to Buyer shall contain a restriction limiting the use of the Property to a golf course, a golf clubhouse, a clubhouse restaurant, and related golf recreational uses as described in the new clubhouse site plan, the letter of intent reads.
City commissioners have pledged that any negotiations with Ryan and his company will be conducted in the open with ample room for public participation and no surprises.
