The Real Deal Reports on New Lawsuit Challenging Related Ross’ $26 Million Hotel Deal
The Real Deal reports on a new lawsuit challenging Related Ross’ planned $290 million convention center hotel in West Palm Beach, examining the allegations that local officials prioritized the interests of a powerful developer over neighboring residents – rushing through a $26 million sale-leaseback agreement.
The article details the complaint filed by the Grandview Heights Neighborhood Association and West Palm Beach Neighborhood Alliance, which seeks to halt the project after Palm Beach County approved the transaction without providing sufficient public notice or adequate time to review the terms of the deal.
Under the agreement, Palm Beach County would purchase the Related Ross-owned property for $26 million and lease it back to the developer for an initial 33 years, with extensions potentially stretching to 97 years. Related Ross would pay approximately $1.1 million annually in rent once the hotel is completed, while dodging property taxes under the County’s ownership.
The Real Deal also highlights the circumstances surrounding the September 29 approval, when commissioners voted on the agreement just six days after it appeared on an emergency “add-on” agenda. According to the complaint, the County did not release more than 700 pages of transaction documents until the morning of the vote.
Beyond the financial and procedural questions, the article explores the mounting pressures on Grandview Heights, a historic neighborhood residents describe as a “neighborhood under siege” by unchecked development. Residents detail concerns over construction noise, dust, traffic, and parking shortages, including overflow from Related Ross’ existing convention center hotel.
The article also notes that the coalition of residents – represented by William A. Brewer III – have separately challenged the City’s authorization of the proposed 18-story, 400-room hotel.
Read more here.