News

By Margie Plunkett
    
Despite years of budget scrimping, Lantana Council went on a spending spree in December, approving a $1.2 million waterfront land purchase and $38,735 in beach pavilion renovations.
    The bank-owned Intracoastal property to be acquired at 106-122 North Lake Drive was foreclosed on in 2008, but last traded hands in 2006 for $5.3 million.
    “In an effort to provide the long-term benefits of protecting the public’s access to the waterfront, acquiring appropriate properties is necessary,” according to a Lantana staff memo on the purchase.
    “With the bridge being closed and the opportunity to purchase a property at 15 to 20 percent of what it sold for five years ago, I think it’s a good move to purchase it at this time,” said Mayor David Stewart.
    Council doesn’t know what it will do with the property, which is described as vacant with a dock on the west bank of the Intracoastal, north of Ocean Avenue and the Old Village Point.
    Mayor Stewart, however, compared the opportunity to the historic $4,000 Lion’s Club purchase in the 1940s that ultimately provided Lantana with a beach.
    Whether the acquisition, funded from budget reserves, is foresight or folly was a matter of perspective at the Dec. 12 council meeting.
    “You need to spend your money wisely,” said resident Jane Hand. “You would be wise to spend your money on the waterfront. It’s wise to look ahead.”
    On the other hand, deep budget cuts forced by economic contraction slowed maintenance on town structures, halted employee raises and even meant the elimination of July Fourth fireworks in recent years, resident Joe Farrell reminded council, urging it to rethink the move.
    “Why do we have long-range plans to buy property for the future? What are we going to do with it? What are we going to do when we take it off the tax roll,” he asked.
    The total 2011 tax bill for the two properties is $32,986, according to town documents.
    The money could be better spent, he said, perhaps even toward buying the $10 million Cenacle property for public use — as council had earlier attempted a few years ago before a potential deal disintegrated.
    Council member Tom Deringer pointed to home prices that have drastically and persistently dropped over the last several years. While the price might seem attractive compared with $5 million, maybe next year the property could be had for $500,000, he said.
    “I disagree. I don’t think it’s the time to spend taxpayers’ money, take it out of reserve,” said Deringer, who along with council member Philip Aridas voted against the purchase. “We’re still in a recession. We’ve been nickeling and dime-ing everything to death.”
    The asking price of the property was $1.9 million, but an appraisal ahead of the deal rated it at $1.5 million, according to Lantana documents.  In addition, the Palm Beach County Property Appraiser listed the total 2011 market value of the two lots at a combined $1.5 million.
    Before finalizing the deal, the town will investigate to make sure no environmental issues exist, according to the staff memo.
    
Separately, council approved spending $38,735 on beach pavilion renovations, including work on the beach pavilion Lantana reacquired as part of the Dune Deck Café lease. The project would be funded with money left over from the second phase of construction on the new seawall.
    About $18,000 would be used on the beach pavilion and would include demolition of walls, a new sink that meets the requirements of the Americans with Disabilities Act, hurricane shutters and an aluminum safety rail, among other things.
    The balance of the funds would be spent on other beach projects, for sidewalk repair and relocation and adding picnic structures, according to a staff memo.