Palm Beach County rejects deal to end lawsuit against Palm Beach Gardens

The five-year legal battle pitting Palm Beach County against one of its biggest cities, Palm Beach Gardens, is back on again.

After a mediator announced in February that a settlement appeared close, Palm Beach County commissioners met in closed session March 10 to go over the terms.

Yes, but: Commissioners rejected the deal.

• The next day, county attorneys told the court: “Mediation has reached an impasse.”

What that means: The two government agencies, warring since 2021, are headed to trial as early as June, pending Circuit Court Judge James Sherman’s ruling on motions from both sides to end the case without a trial.

Not so fast: In a November court filing, county attorneys wrote: “The issues presented within the pending summary judgment motions are legal, not factual; county is certain this matter will be concluded upon this court hearing the motions.”

READ MORE: Palm Beach County vs. Palm Beach Gardens: Lawsuit to decide how people get around

Why it matters: The dispute is over who controls millions from developers for road improvements. The city says a state law gave them the power to stop collecting a county impact fee to enhance the regional road network and begin collecting a city fee that would pay for a variety of improvements, from road expansion to bike lanes, in the city.

• The county counters that the law didn’t give the city the power to stop collecting its fee and won an injunction in 2022 that it says ordered the city to renew its collections.
• The city didn’t do that, running up an estimated $6.7 million tab. The county asked the court to hold the city in contempt for failing to pay up.

Zoom out: After meetings between new County Administrator Joe Abruzzo and Gardens City Manager Ron Ferris, the two sides appeared ready to reconcile.

Of note: While mediator Greg Coleman wrote that both sides would bring the settlement to their respective boards in publicly noticed closed sessions, Gardens did not.

Zoom in: A city appeal filed in November stayed the case for a brief time, but two weeks after filing the appeal the city withdrew it. The court heard arguments on the summary judgment motions in December.

• The judge stayed the case again in February, pending the outcome of the settlement talks. He’ll consider lifting the stay in an April 8 Zoom hearing.

Both sides won’t talk publicly about the litigation. The county has been using in-house lawyers since it filed the suit in 2021. The city has relied on its longtime attorney, Max Lohman, and the Jones Foster law firm.

This story was originally published by Stet News Palm Beach, a WLRN News partner.