A developer seeking to build a 16-story tower in downtown Lake Park is suing the town in federal court, alleging that officials have deliberately stalled the project and tried to push it to another builder.
Attorneys for The Alder at Lake Park LLC filed their complaint in the U.S. Southern District Court on Aug. 27, alleging Lake Park officials promised to greenlight the tower if Alder purchased the historic 918 Park Ave. building, then changed the requirements after it did so.
The complaint also alleges Lake Park officials used the code enforcement department as leverage to try to force Alder to sell, levying fines for alleged violations on its properties. It states that Town Attorney Tom Baird "sought to force Alder to transfer the Properties
to a developer of his choosing."
Baird denied the accusations in a lengthy written statement to The Palm Beach Post and called the lawsuit an act of retaliation against him and the town for performing their civic duties.
The complaint was filed under a U.S. Code that gives federal courts jurisdiction over civil cases involving parties from different states. It notes that Alder's managing partner, Daniel Goldstein, resides in New York.
Developer wants to build 16-story tower in low-lying downtown area
Town records show Alder wants to build The Kelsey on Park on the southeast corner of 10th Street and Park Avenue, just east of the fire station.
It is one of two 16-story developments proposed for the Lake Park's low-lying downtown, with Forest Development also seeking to build one on 10th and Park's northeast corner. Neither project has come to the Town Commission for approval.
The Kelsey and Forest Development's proposed Residences at 10th and Park would be Lake Park's second-tallest buildings, behind the 24-story Nautilus 220 condominium towers about a mile east off U.S. 1 along the Intracoastal Waterway.
Some residents have voiced reservations about placing high-rise towers downtown, saying the 16-story buildings would take away from Lake Park's small-town character, increase traffic and reduce privacy for neighboring homes.
Alder began seeking approval for the Kelsey project in 2022. Its most recent application was for 426 residences, 10,447 square feet of retail space and 867 square feet of professional office space on about 2 acres, town records show.
Alder owns and controls seven contiguous parcels between Park Avenue and Foresteria Drive that it purchased for $6 million, including the 918 building, which town records say is the only remaining historic building in the commercial area.
Lake Park's Historic Preservation Board and the Town Commission denied Alder’s requests to remove the historic designation from the building.
Alder and the town recently appeared before a special magistrate, with the developer agreeing to demolish five vacant properties while leaving the 918 building in place.
In its complaint, Alder alleges that Lake Park officials induced it to purchase that property, promising that approval for the Kelsey project would be swift and completed with just a letter and architect approval. Alder said it complied with the town's terms but had subsequent applications denied.
It reports that a code enforcement officer was sent to its properties following a meeting with the town attorney in March "with the purpose and intent to use the code violation process to coerce, intimidate and force Alder to sell the Properties."
It alleges Lake Park is holding Alder responsible for dilapidated conditions that existed prior to its purchase of the 918 building, assessing daily fines and subjecting the property to potential foreclosure.
Residents say high-rise towers will threaten Lake Park's small-town feel
In his prepared statement, Baird said Lake Park has enforced its codes in the Alder matter as it would against any property owner.
“The allegations in the lawsuit brought by the Alder, the agent for whom is Glen Spiritis, a councilman for the city of Riviera Beach, against me and other Town officials, including Lake Park’s town manager, community development director, and a code compliance officer regarding the Town’s enforcement of its codes are not true and denied," Baird said.
"The lawsuit is intended to retaliate against me as a prosecutor of town codes and the Town officials I represent merely for performing the responsibilities we have to the town and its residents.
"Mr. Spiritis and the New York corporation for whom he is the agent, purpose in filing the lawsuit appears to be to legally intimidate the town officials responsible for the enforcement of the town’s codes and to chill the planning staff’s comments regarding its current review of the recently revised plans to develop a 16-story mixed use building in Lake Park’s historic downtown.
“The Town has enforced its codes against this property owner as it would any property owner who neglects its properties and allows them to become so dilapidated that they are a blight on the community and on adjacent commercial and residential buildings, devaluing these properties."
"In the recent code magistrate proceedings, the property owner admitted to the numerous code violations cited in five code cases and admitted to a violation in a sixth case for a historic building because of the owner’s failure to maintain its properties. The Magistrate ruled that there were numerous provisions of the town code in all the cases, required the property owner to pay the Town’s administrative costs, and ordered the owner to correct the violations.”
Spiritis referred questions to Goldstein. He said Alder filed the lawsuit with the intent of forcing the town to honor prior agreements.
"All we want is the town to sit down and talk to us and honor what they agreed for us to do," Goldstein said. "We went on their word, we spent a lot of buying this and all we want to do is build a place for people to rent to and to live."
Goldstein noted that the town has approved other high-rise projects, including Nautilus 220. He said some Lake Park officials have opposed Alder's plans to use its property for workforce housing instead of luxury condominiums.
Julius Whigham II covers northern Palm Beach County and public safety for The Palm Beach Post. You can reach him at jwhigham@pbpost.com and follow him on X, the platform formerly known as Twitter, at @JuliusWhigham. Help support our work: Subscribe today.
This article originally appeared on Palm Beach Post: Developer sues Lake Park over stalled plan for 16-story downtown tower
