Kaufman Presses City Manager For Answers Ahead Of Higgs Beach Transfer Talks
Commissioner seeks details on grant restrictions, Salute lease limits, FAA-related field obligations and long-term costs before city negotiates interlocal conveyance.
City Commissioner Sam Kaufman on Monday asked city Manager Brian Barroso to provide detailed legal and financial clarifications before the City Commission considers whether to move forward with negotiations on a proposed interlocal agreement that could transfer Higgs Beach property from Monroe County to the City of Key West.
No response was given. Barroso has been openly hostile towards Kaufman since he was hired as city manager.
In an email sent in advance of the commission’s March 5 meeting, Kaufman said the proposed conveyance carries long-term “financial, legal, and operational implications” and urged transparency and “full information” before any decision is made.
Kaufman’s questions target four areas: potential historic designations and development restrictions affecting Higgs Beach; grant-related limits that may affect the Salute! On The Beach lease; obligations tied to an interlocal agreement involving the Hawk Missile Site and an FAA-related recreational field; and whether the city’s cost-benefit projections fully account for expenses and downturn scenarios.
The agenda item, listed as Item 36, authorizes the city manager to negotiate an interlocal agreement with Monroe County for the potential conveyance of certain real property at Higgs Beach, with a requirement that staff report back to the City Commission.
Kaufman said he reviewed a draft interlocal agreement and a cost-benefit analysis and asked Barroso for a summary of any federal, state or local historic designation status tied to Higgs Beach, along with an explanation of what development, redevelopment or change-of-use restrictions apply. He also asked whether any prior grants, including Land and Water Conservation Fund funding, impose perpetual encumbrances that could limit future options.
On the Salute lease, Kaufman noted the draft agreement states the city would assume existing leases, including the restaurant’s lease at 1000 Atlantic Blvd. He asked what federal or grant-based restrictions, if any, affect the lease’s rent structure or percentage-of-sales provisions, and whether any earlier grant limitations on restaurant operations or rent remain in effect. He also asked whether a conveyance would trigger a compliance review or potential repayment obligations.
Kaufman’s third set of questions focuses on the Hawk Missile Site/Higgs Beach interlocal agreement and its first amendment, including how the transfer might affect Monroe County’s obligation to coordinate with the Federal Aviation Administration regarding a 100-by-300-foot recreational field referenced in the agreement. He also asked whether the transfer would shift risk or financial responsibility to the city if an FAA parcel is not conveyed.
On fiscal sustainability, Kaufman questioned whether the city has evaluated revenue strategies beyond current leases and tourist development tax-related funding, and whether projected five-year revenues and recurring costs fully incorporate insurance, liability, pension or staffing expenses. He also asked whether staff modeled downside scenarios if lease revenues or related allocations decline.
Kaufman said getting answers in advance would help commissioners evaluate both legal constraints and long-term fiscal impacts of a transfer “of this magnitude.”
It might be the single most stupid thing ever done by a Key West City Commission.
Ever.
And if don’t believe me? Google Duck Tours Key West.