FORT PIERCE — The clock is ticking for developers of King's Landing.
They've got six months to come up with $15 million to keep the downtown mixed-use project moving forward. But along with that deadline extension, they got something else Sept. 14 from the City Commission: A stern and not-so-subtle reminder that they're already in breach of their legal contract, and the city is running out of patience.
The commission, with Arnold Gaines and Chris Dzadovsky dissenting, voted to grant Live Oak Contracting the time it requested to raise key financing, for the proposed hotel and restaurant portion of the $155 million project. But commissioners let it be known they're not happy with yet another delay in the project that already has gone through seven years and two contractors.
Live Oak had asked the city to either give it time to raise the needed capital or to lend it the money. The loan was a non-starter.
Live Oak is in default of its agreement with the city for missing certain deadlines, commissioners and Live Oak Development Manager Bill Ware all agreed. That's why the agreement for a six-month extension was approved with the requirement that the city attorney draft a document recognizing the contractor's delinquency.
"Legal counsel has to get this straightened out," Mayor Linda Hudson said.
Marriott has approved plans for a Tribute Portfolio hotel, with the level of service Fort Pierce wants, according to Joe Collier, president of Mainsail Lodging & Development, but that makes financing challenging, too.
"If we wanted to build a Four Points (by Sheraton) or a Residence Inn, we could make that happen. But construction costs have changed, interest rates have changed and the world has changed a little bit over the past three years.
"We're not looking for a handout from the city," Collier said, pointing out that the city of Fort Myers "had to help us" complete the financing for a hotel there. "We're looking for the city (of Fort Pierce) to be our partner."
Dzadovsky was adamant about reclaiming the 4.75 acres — which still is owned by Audubon Development, the developer selected by the city in 2019.
"This property was worth $2.5 million when we started this and it's probably worth $8 million today," Dzadovsky said. "This is public property. They're in material breach (of the agreements) and we need to stop this now."
Dzadovsky's motion failed for lack of a second.
For his part, Broderick predicted a legal entanglement and about a 10-year "turnaround" for King's Landing if the city were to take back the land now: three years of litigation, with an uncertain outcome; two years for the city to develop a new request for proposals; two years of permitting; and two years of construction.
"The city of Fort Pierce does not want to wait 10 years for this property to be producing," Broderick said.
Broderick called for the six-month extension coupled with putting the default on the record legally.
More: What's the fate of King's Landing?
More: King's Landing in jeopardy. Project is short $15 million
Developers expressed optimism after the meeting that the financing could be accomplished and King's Landing could continue.
"We just have to look at (the financing) a little differently for different sets of investors — institutional investors versus family offices," Collier said. "Every deal has a different dynamic.
"We want to see local participation in the deal," he said. "We want to see something happen."
Arnie Rosenberg is TCPalm's Watchdog Editor. Reach him at [email protected].
This article originally appeared on Treasure Coast Newspapers: Florida city gives developers time to raise $15 million for project