PANAMA CITY — The City Commission approved a budget amendment of $400,000 on Tuesday to settle a civil dispute stemming from a loan to finance a low-income apartment complex.
Of the total amount, $378,975 will go to the Paces Foundation with the remaining $21,024 going to Linda Powell through attorney Albert Stopka III.
The case dates back to 1988 when Powell’s ex-husband, Glenn, received an $800,000 loan through the Community Development Block Grant program in order to develop property at Sherman Avenue and 11th Street, which became the 92 unit apartment complex Panama Commons, which had a ground breaking in 2010 and opened in 2011.
--- CRA APPROVES MARIE HOTEL PLAN»»
That CDBG grant mandated the full amount be paid back and when that payment was delinquent a lien was placed on the property. The city then accepted a payment of $556,000, paid by Powell and the Paces Foundation. Powell protested the payment in an earlier meeting.
Paces Foundation was the developer of Panama Commons.
City Manager Jeff Brown relayed that Powell said she was under duress when she agreed to the loan with Paces.
The City Commission voted unanimously to approve the amendment without discussion.
Attorney Bob Hughes argued the city got into trouble by dispending hundreds of thousands of dollars and that it could still find itself in future binds if the practice continues.
“This seems to operate in the shadows,” Hughes said.
But Michael Johnson, director of the city’s CDBG program, said he has no idea what Hughes is talking about. He added that CDBG grants operate differently now, only offered to homeowners or first time home buyers. A lien is still placed on a property but if grantees abide by the rules the liens depreciate.
“We don’t just give money to people,” he said.
--- CRA APPROVES MARIE HOTEL PLAN»»
In other business, the commission: Allowed boat builder Glasstream to waive $33,800 in code enforcement fees related to its building at 1143 E. 15th St. Glasstream failed to obtain a construction permit before the building was constructed. A.L. Kirkland of Glasstream said the company added 25 employees and is looking to add more with a new building. The commission waived all but $308 of the fees for the reason of economic development.
- Denied a proposal from James Morris to de-annex from the city at 1301 E. 11th St. The commission cited state law that prohibits Morris from leaving the city if he received utilities, police and fire services, which he did not deny.
- Discussed the possibility of buying property at 430 W. Fifth St., a 4.8 acre tract at the corner of Fifth and Beach Drive, directly on the water, from SE Property Holdings, who is offering the land to the city for $3.2 million with the condition that it is used for public use.
- Approved the annexation of 1920 W. 27th St. into the city.
- Approved state Department of Transportation road closures for the U.S. 98 and 23rd Street flyover project, including the permanent closure of Alabama Street.
- Approved removing three streets from the previous paving list to meet the budgeted cost of $400,000.
- Approved the purchase of a pump out boat for $87,500. A grant covers 75 percent of the purchase price.
- Approved vacating a right of way in a townhouse and storage development at Cactus Avenue and Business Hwy 98.
- Approved a bid to Royal American for $759,718 for the 19th Street drainage improvements.