A lawsuit between a private investor group and the county over prime county-owned land in West Palm Beach finally may settle, after a roughly two-year stalemate.
The two sides have been arguing over the property’s price, and what could amount to tens of millions of dollars for the project, known as Transit Village. Even as the legal battle rages, the planned transportation hub remains a key but still unbuilt complex in the burgeoning downtown.
That could soon change.
On June 2, the Palm Beach County commission will decide whether county attorneys should talk with the county administrator about a proposed settlement in the contentious litigation.
The item will be considered just a few days after a Transit Village representative directly asked county commissioners, and Palm Beach County Administrator Joseph Abruzzo, for help resolving the lawsuit, according to an email obtained by The Palm Beach Post.
Transit Village is in contract to buy the county land so it can build a “transit-oriented” development that would feature 1,000 apartments, a hotel and office space. The site is south of Banyan Boulevard, between Clearwater Drive and the CSX railroad tracks running parallel to Tamarind Avenue.
But for the past two years, Transit Village and the county have been locked in lawsuits over the project.
At issue is the price that the private Transit Village investment group should pay for 6 acres of county-owned land in downtown West Palm Beach.
Transit Village wants to pay the original $3.6 million price struck with the county in 2012.
The county says Transit Village needs to cover payments that have to go to the Federal Transit Administration because the county can’t be stuck with any federal bills. These payments require a percentage of the land’s appraised value of $75 million, the county says.
In a May 27 proposed settlement sent to the county, the Transit Village group said it still would only pay $3.6 million price.
But the group did offer this sweetener: Transit Village promised to cover any costs, or indemnify, the county if the FTA in the future wanted money from the property’s sale. The FTA gave the county nearly $3 million in grants to buy the land years ago.
The May 27 email by Transit Village’s Andrew Chesnick asks the commission to review the settlement plan and vote on it as soon as possible.
According to the county commission agenda, a private discussion on the matter between Abruzzo and county lawyers already is set for 1 p.m. on June 2.
In his email Chesnick told Abruzzo and commissioners that the group was at “a critical inflection point.” Chesnick asked for county leaders’ help to close the sale “rather than spending significant time and resources in protracted litigation.”
The email was not sent to any county attorneys handling the lawsuit, including County Attorney David Ottey.
Transit Village bypassing county lawwers to appeal directly to commission
Chesnick’s appeal comes a month after Ottey halted efforts by Commissioner Joel Flores to publicly discuss the lawsuit’s status.
At an April commission meeting, Flores publicly pressed Ottey on details of how the conflict is being settled. Abruzzo chimed in that he wanted to provide an update to the federal government.
Ottey shut down both attempts to discuss the matter in the county commission meeting, even reminding Flores that lawsuits aren’t resolved by county commissioners.
“I want the board to make a decision,” Flores told Ottey at one point.
“This is not a decision for the board to make,” Ottey said. “Whatever we do in litigation is based on court rules.”
What is Transit Village?
The Transit Village project would feature nearly 1,000 apartments, including workforce housing, in three high-rise towers. A fourth tower would have hotel rooms and office space. A 275-space parking garage also is planned.
The goal is to boost public transportation by having people either live or work near a hub for boarding trains in downtown West Palm Beach, switching from different bus routes, or between buses and Tri-Rail, Greyhound or Amtrak.
Transit Village has taken on added importance with the explosion of growth in West Palm Beach during the past few years, especially the relocation of businesses and residents to the city in the aftermath of the pandemic.
Transit Village says a deal is a deal
Transit Village first filed a Palm Beach County Circuit Court lawsuit against the county in 2024 after it said the county was demanding millions of dollars more for the land despite the $3.6 million contract price.
The county responded by saying it needed to pay back $3 million in FTA grants, as well as pay the federal government 71% of the property’s current market value, according to court records.
West Palm Beach’s explosive growth means the land now is very valuable and worth about $75 million, the county said.
If a settlement can’t be reached on June 2, a nonbinding arbitration is set before retired Circuit Judge Jeffrey Colbath in July, court records show. And if all else fails, a trial is set for August, court records show.
The Transit Village investment group consists of BH Palm Beach Real Estate Acquisitions, an affiliate of BH Group of Miami, court records said. BH Group is a Miami-based private equity and real estate investment firm.
Other investors are Miami-based Related Group, a prolific developer; Globe Invest Limited; and investor Michael Masanoff, who first put the deal together.
Related Group is not affiliated with Related Ross, a major developer in West Palm Beach led by Miami Dolphins owner and Palm Beach resident Stephen Ross, or his former entity, Related Cos. of New York.
Alexandra Clough is a business writer at The Palm Beach Post. You can reach her at aclough@pbpost.com. X: @acloughpbp. Help support our journalism. Subscribe today.
This article originally appeared on Palm Beach Post: West Palm Beach ‘Transit Village’ lawsuit may finally settle soon
Reporting by Alexandra Clough, Palm Beach Post / Palm Beach Post
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