New timeline could push King's Landing completion to 2029 from original 2026

FORT PIERCE — Nearly five years after it was first selected to develop the former H.D. King Power Plant site, Audubon Development has proposed a new timeline that would put completion of the King's Landing project about another five years away.

Current deadlines require the same phases of construction to be complete by December 2026.

Audubon CEO Dale Matteson, who proposed the new timeline to city commissioners Tuesday, said he has spent $4.4 million on the project over the last five years, but there is no vertical construction yet to show for it.

New dates are a path forward, developer says

While city leaders and Matteson have publicly disagreed about who is to blame for the delays so far, Matteson said Tuesday's meeting was about looking forward, not rehashing those past arguments.

"We're all frustrated," Matteson said. "Tonight, this afternoon, we talk about a path forward."

Matteson presented commissioners, acting in their role as board members of the Fort Pierce Redevelopment Agency, with a new timeline, beginning at Tuesday's meeting through completion of the project in 2029. Matteson indicated a number of incremental deadlines also would need delays.

Phase One, which includes a Marriott-affiliated hotel and private villas, would be rescheduled for completion on Feb. 15, 2028. That is more than two years beyond the current deadline, Feb. 5, 2026. The villas would be done sooner, with a proposed completion date of Sept. 30, 2025. Construction would begin by this September.

Matteson indicated design, approval and construction times would remain the same as in the original agreement, with the pushed back starting dates. That means the two-year delay applies to subsequent phases as well. Phase Two, which includes condominiums and a parking garage, would be rescheduled for completion on March 27, 2029. Phase Three, which includes restaurant and multi-use buildings, would have the same completion date.

Opposition from residents, push back from commissioners

Some residents urged commissioners to start the process over and find a new developer.

"In my opinion the city just needs to cut ties with Audubon and take the land back," Kris Einstein said.

"I don't think he should be a part of Fort Pierce," Chris Gardner said.

That said, commissioners did not openly consider taking the property back, instead questioning Matteson on the details of his plan and pushing back on some of his past statements.

Matteson has previously blamed the city for many the delays. Issues included an undisclosed 1,500 tons of concrete buried under the site. Matteson repeated that Audubon did not even receive title for the property until two years after an agreement with the city was signed.

Commissioner Michael Broderick pushed back on those statements Tuesday, as it was revealed that Matteson is still searching for an operating partner for the hotel. In fact, conversations with the latest option only began about two months ago, said Marriott Vice President of Development Kyle Gagne, who has been helping Matteson with that search.

"This is not the city of Fort Pierce's issue, with the delays," Broderick said.

Broderick last month told Matteson to bring details on financing partners. On Tuesday, Broderick asked if financing is in place to complete the project. Matteson said he does have a partner in place, but he cannot seal the deal until there is more certainty around whether the city will push back deadlines.

"They are, like everyone else, waiting to see what we do with the development timelines here today," Matteson said.

Is there proof, Broderick asked Matteson, that a company planned to finance the project if timelines were pushed back.

"The answer is yes," Matteson said, claiming to have an email showing commitment from a company with a $10 billion real estate portfolio, and promising to share that email with the commission.

"To date, I have not seen one document" indicating financial capability, Broderick said, adding he would be "thrilled" to see such an email.

Commissioner Jeremiah Johnson questioned how the hotel would be able to open before the parking garage is complete. The parking garage, Matteson said, never was intended for hotel guests, who would be able to use limited surface parking and valet parking at a city owned garage, with an even revenue split between the hotel and city.

Johnson said Audubon will need to formally change the dates in the contract, and then present it to both the City Commission and FPRA for approval. The next scheduled FPRA meeting is June 11.

Audubon and its legal team may need to do more than edit the documents with new dates over the next month, though. The city has issued a default notice to Audubon for missing a deadline for Phase Two applications. The city later granted a 45-day extension, which will expire June 4, a week before the next scheduled FPRA meeting.

"Get that done. If not, we're going to have a conversation here in June," Commissioner Curtis Johnson said.

Commitment from Marriott, though nothing is legally binding

Gagne, who said he oversees the entire east coast for Marriott, attended the meeting at Matteson's request. His presence allowed commissioners to ask a number of detailed questions of a hotel expert.

Within roughly the last week, Gagne said, Marriott signed a letter of interest with Audubon to make the hotel an independently branded part of its "Tribute Portfolio." However, Gagne said, such a letter is not legally binding.

"We're locked in, not legally, but we're committed to seeing this through," Gagne said.

Commissioners asked Gagne whether Matteson had submitted signed financial statements to Marriott. Not yet, Gagne said, as that vetting comes later in the process. Broderick asked if, when that vetting is conducted, Marriott could share the results with the city.

"I have confidence in Marriott's ability to be able to execute that," Broderick said of the largest hotel chain in the world.

Gagne said he would need to check with legal teams before committing to it.

Though residents and officials in Fort Pierce are understandably frustrated, Gagne said, the kind of delays seen at King's Landing are common across the country right now.

"This is not out of the ordinary. I know it's out of the ordinary for you guys. You're living it and breathing it," Gagne said. "Financing is tough for a $55 million hotel right now. I think we've got a great plan."

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No vote on delay, yet

Tuesday's meeting was an update on the potential new timeline, and no vote had been intended. commissioners said. That vote will come later, after Audubon has had the chance to rewrite the contract.

The FPRA, though, did take one vote on the topic Tuesday, confirming the same 45-day extension approved last month by the City Commission. Both boards, though comprising the same members, must vote separately.

Wicker Perlis is TCPalm's Watchdog Reporter for St. Lucie County. You can reach him at wicker.perlis@tcpalm.com and 504-331-0516.