Three years after handing over Primeland to the developer, the Fort Lauderdale commissioner asks him to prove he has the money to build the food hall, cultural center and arts park he has promised.
At a public meeting Tuesday, developer Jeff John had not proven that funding was in place.
The committee agreed to declare that John and his company will make FTL a one-stop by default on the contract. He now has 30 days to “fix” the default by proving that he has money.
If he misses the deadline, Mayor Dean Trantalis told the South Florida Sun Sentinel he would recommend the committee end the agreement.
Located in Flagler Village, in the 300 block of North Andrews Avenue, the land remains in the fenced Limbo from the public.
John, the owner of clubs and restaurants known as the leading figure in nightlife around town, has land rights for up to 100 years under a comprehensive contract.
The Fort Lauderdale commissioner approved the controversial plan in March 2022, but was waiting for the $140 million project to break in.
Warning against the lack of progress, Trantaris requested several weeks ago that John would come directly to the committee meeting with evidence that he was funding the project.
John stood on the podium on Tuesday to assure the committee members that the funding was in place.
“I’m here to let you know that I have a signed commitment to the full funding of this project,” he said.
“Did you bring it today?” asked Trantaris.
John had no documents in his hand to show it. He also refused to name the lender.
“We haven’t seen the iPad.”
Assistant City Manager Susan Glant told the John Commission that city staff had allowed them to “see” the updated financial commitments on the iPad on November 25th.
“We weren’t given that hard copy, but we were able to see it on his iPad,” Grant said.
Deputy Mayor John Herbst, a finance and accounting expert, was surprised. “We haven’t seen the iPad,” Herbst said. “We get a copy of the thing and call people to check.”
Herbst asked Grant why the city was not given a hard copy of its financial commitment.
“I think the commitment is confidential,” she replied.
“I don’t think that’s consistent with our comprehensive agreement,” Herbst said. “There’s no secret about what we’re doing.”
Who is the lender?
Herbst asks John which company is lending him money.
John said it was a global company, but declined the company’s name. John told the committee he signed the document to borrow $140 million, but the money has not yet been transferred to the account.
“We are about to close trades in the next 30-45 days,” John said.
John was accompanied by a man who said he was helping with fundraising. The man told the commissioner he had the document he was looking for, but he was not allowed to release it.
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“I’m working with the New York financial company that secured this,” the man said. “I work with (John), one of the owners of the company I work with.”
Initially, the man said he worked with a London-based company known as BCG to secure $140 million in funding in the early stages of the project.
Herbst asked if it meant a Boston consulting group.
“Um, hold it for a second,” the man said as he pulled out the phone. “Give me a second. Sorry, it’s BGC London. It’s a source of funding abroad. But they specialize in urban projects.”
Herbst drilled.
“I’m not yet used to who’s funding,” he said. “So we have a BGC Group, previously a BGC partner and formerly a Canter Fitzgerald. We want to make sure we’re talking about the same company. We want to record our work with the BGC Group.
The man had a five-word response: “I need to check it.”
Herbst was shaking with the answer.
“If I owed $140 million from someone, I know who’s giving it to me,” he said. “I’m funding for my livelihood. I work with companies that are capital funding. I know who’s giving me money.
John spoke. “Yes,” he said. “But I’m not comfortable with being on the record.”
Herbst replied: “I just want a name.”
John told Herbst: “They are global companies.”
On Wednesday, the Sun Sentinel contacted city officials and John requested the man’s name and title. City officials said they didn’t know, and John didn’t answer the text and calls.
“You’re empty-handed.”
During Tuesday’s meeting, Trantalis greeted John and grilled why he showed up without paperwork.
“You knew we were going to talk about this today, right?” Trantalis said. “Why don’t you have the documentation again, rather than postponing it? I’m going to make a decision today. We’ve been talking about this for a while. You’re empty-handed. Why don’t you get it?”
The comprehensive agreement came into effect on November 1, 2022. Under the contract, an FTL was required to provide evidence of financial commitment from the lender within 90 days of that date.
City officials said.
The city was provided with letters from Truist and Banyan Development in 2023, but was a non-committal letter that only showed its interest in providing financial support for the project.
After hearing the discussion, Commissioner Ben Sorensen proposed termination of the contract.
“I can’t see anything that demonstrates moving forward,” he said. “I hope I did it, but I don’t.”
Commissioner Steve Glassman argued that the project was worth savings.
“This committee is not ok saying they want to scrap this project,” he said. “After all these years, I think it’s shame, tragedy and loss for the district and it’s going to be a loss for the neighborhood. I hope this works. I really want to see this project.”
Under the terms of the agreement, the developer will not have to pay the city any license fees until the following year when the project obtains the certificate of occupancy. You don’t need to pay in the first year. In your second year you will need to pay $250,000, with $500,000 in your third year and $750,000 in your fourth year. $1 million in the fifth year. $1.25 million in the sixth year. $1.5 million in the seventh year. At that point, the payments will be $1.5 million, which increases annually based on the consumer price index, but below 3%.
“Smoke and mirror”
Several residents spoke at the meeting, urging the city to cancel the contract.
“It’s all smoke and mirrors,” Anne Hilmer told the commissioner. “This is another example of another bad P3 deal (public-private partnership) in the city. The land will not be usable for more than three years. In the future, more protection measures will need to be built in P3 contracts as this one will stink.”
Sister Robin Merrill, an activist who led several protests in the months after the contract was approved, also spoke.
“I think we need to say game over,” she said. “Time has passed.”
Mark Dickerman also urged the committee to leave.
“Let’s turn it into a park and get away from this deal,” he said. “I think it’s a raw deal. I think we need to end the contract. There’s something here that doesn’t smell.”
