FORT PIERCE, Fla. — Harbert Reality Services, an Alabama-based company, could become the "lead developer" for Fort Pierce’s King’s Landing Project after commissioners received a letter from the company on the same day it weighed the development’s future Tuesday night.
Developers Audubon Development want to turn the H.D. King Power Plant to 116 residential units, 106 condos, 10 townhomes, 140 room home, a 179-space parking garage and space for restaurant and retail space. But, the city of Fort Pierce said it’s defaulted on its agreement with the City of Fort Pierce and the Fort Pierce Redevelopment Agency over missed construction and building permit deadlines.
City staff said the developer presented the contract change to the city, which include a new schedule for construction and a $1.1 million payment paid over four installments over a dispute over debris cleaning. The payment, which the developer requested, is about 2% of the city’s budget.
Commissioner Michael Broderick said he's upset with the developer over the agreement. He expressed his displeasure throughout the meeting and said he believes the numbers created by the developer are fabricated.
"Candidly guys, that billing is nonsense," Broderick said. "You know it. I know it. It’s a compilation invoice for $1 Million simply is irresponsible and it’s insulting that was presented to Fort Pierce for the basis to pay that money with five line items on it."
He said his opinion on the deal changed once he received a letter from Herbert Reality Services because he said he believes the company had the ability to finish the project based off his experience in commercial reality.
"Harbert had the funding capability. There's no question about that," Commissioner Broderick said. "They have the execution prowess. In other words, they have all the components to make this work in theory."
He, then, made the argument to avoid years of litigation with Audubon Development while the land remains undeveloped.
After the meeting was underway, documents were added to the agenda showing Audubon Development entered into a an agreement with Harbert Reality Services in May 2024. It shows Audubon would have a general partnership in the agreement at 45% while Herbert Reality Services would receive 55% of the general partnership.
WPTV reached out to Harbert Reality Services late Tuesday night and didn’t hear back by publication.
The letter showing an undisclosed lead developer didn’t make a difference to Commissioner Arnold Gaines.
“I walked in here and I was an absolute not," he said. "That was my vote…I'm going to be honest with you, the day of a hearing doesn’t change how I feel."
Gaines and other commissioners and Mayor Linda Hudson said they should have had the letter earlier explaining Harbert’s involvement in the project.
"This is ridiculous," Commissioner Curtis Johnson Jr. said. "Because there have been times up until this that we’ve gotten nothing back and forth…The disrespect to not get this stuff to end hour is disrespectful.”
He said he consistently pushed for documentation showing Audubon Development’s financing for the project, which was never presented.
“I had two meetings with [city] staff,” Johnson Jr. said. “…and crickets the first Wednesday after that Nothing came in. Just the other day, Wednesday, memorandums somewhat start flowing back and forth and I’m like ‘Where are the finances? I haven’t seen the capability or award or sometype of letter from a financial institution…whatever the cost might be,”
He also said he was frustrated by Audubon Development's bill since the city refunded developers about $200,000 in clean-up costs at a prior meeting.
Audubon Development won the request for proposal in 2019 from the city to develop the site. It argues the city misrepresented the property's readiness for development in a response from their lawyers to the default notice.
It argues the city had multiple title defects and encumbrances, which weren’t disclosed. It also argues demolition debris was buried underneath the site, which had to be removed. Attorneys for Audubon Development said it found entire portions of the power plant buried underground. It said the city failed to disclose this issue.
Lawyers for Audubon Development said it spent more than $1.5 million over 22 months to excavate the site. Those attorneys also said the city hasn't reimbursed the developer for those issues and slowed down the project through planning and zoning delays.
The new agreement would require Audubon Development to apply for building permit(s) or DPCR approval for construction of Phase 2 no later than November 26, 2025. Then it must build by September 30, 2026.
It also requires the city to submit materials for permits for Phase 3 by June 23, 2027. Then build no later than March 27, 2029. The change would become the second change to the building timeline since 2019.
The new agreement would also require the developer to provide monthly written progress updates to Fort Pierce's City Commission and its Redevelopment Agency. This must include information regarding the Marriott franchise approval, design process, construction timeline and progress. The developer will also have to make presentations in front of the commission and redevelopment agency quarterly.
By the end, the commission voted to give Audubon Development and Harbert Reality Services 45 days to agree to a joint venture while presenting a resolution for building schedules and possible payments.