The Fort Walton Beach City Council voted last Tuesday to reject a proposed lease agreement with Gibson Properties, Inc. for a 0.25-acre parcel at 208 Ferry Road SE, ending a year-long negotiation process.

• The decision marks a reversal from the council’s unanimous approval in August 2023 to move forward with a lease agreement, which aimed to transform the space into a community event area. 

The property, currently used for public parking, is located behind Parlor Donuts and adjacent to the city’s public library. The adjacent property at 212 Ferry Road has also been leased by the city as a parking lot.

City Manager Jeff Peters explained that negotiations stalled due to disagreements over insurance coverage and usage restrictions. The proposed restrictions reportedly included prohibitions on concerts, movies, flea markets, and farmers markets on the property without written approval from the owners.

• The proposed lease terms included a five-year agreement with an option to cancel after 42 months with 120 days’ notice. The lease rate was set at $1,000 per month with 4% annual increases.

Growth Management Director Christopher Frassetti said last year that the goal was to create a flexible community space to support the many festivals and events held along Ferry Road, which has become a hub for activities like the Mardi Gras parade and Ciclovia in recent years.

Concept plans were developed with JDF Architecture showing how the space could include areas for food trucks, outdoor seating, shade structures, an event platform, and open lawn.

Councilman Nic Allegretto expressed concerns about the restrictive nature of the proposed agreement and commented on the current condition of the property:

• “Those lease terms are absolutely incredible…and incredibly bad,” Allegretto said. He then addressed the property’s current state: “That property is not in a great state. There’s often trash and debris and things of that nature. It is derelict as far as I’m concerned.”

He expressed disappointment that the project wouldn’t move forward as initially planned: “I was really looking forward to this idea of making this a little area where everybody could hang out and bring more business to our downtown community. But something, one way or the other, has got to be done with that property, whether the city gets to lease it or not.”

• The city had planned to invest up to $100,000 in improvements, including synthetic turf, trees, irrigation, benches, and picnic tables. Funding for the lease and improvements was to come from the Community Redevelopment Agency budget.

Councilman Travis Smith supported the decision to reject the lease, stating, “Sometimes you’ve got to walk away from a deal.”