West Palm Beach Mayor Keith James wants a better deal to operate the Sunset Lounge

In the heart of West Palm Beach, the Sunset Lounge stands as a testament to our rich cultural heritage and a symbol of our community’s enduring spirit. This iconic venue, which has witnessed the performances of legends like Ella Fitzgerald, Count Basie, and Louis Armstrong, is poised for a renaissance.

The West Palm Beach Community Redevelopment Agency (“CRA”) has spent $20 million to renovate the Sunset Lounge and breathe new life into that historic venue. It is imperative that the operation and management of this venue serve to implement the vision for the Sunset Lounge articulated in the Request For Proposals (“RFP”).

As the mayor of this city, I am a steward of public funds and am obligated to exercise the highest level of fiscal responsibility.  I strongly believe that the CRA should not accept the current deal proffered by the party currently negotiating to be the operator of the Sunset Lounge.  That deal, according to the numbers developed by the proposed operator of the Sunset Lounge, includes only a $50,000 investment from the proposed operator, while requiring the CRA to fund $1.5 million for the opening event, and front an additional $5.4 million for the first year of operations.

I acknowledge that the revenues projected by the proposed operator would cause the loss for the first year of operations to be over $590,000, but those revenues are only projections. It must be noted that, as a municipal agency, the CRA would be required to budget the entire $5.4 million if it were to sign the proposed contract, while the revenues would come in over the course of the fiscal year, if ever.  

The foregoing terms fall woefully short of the requirement as set forth in the RFP that the operator would have the ability to fund the venue's operations with minimal public financial support. Moreover, the aforementioned imbalance places an undue burden on the CRA’s budget, thereby threatening other vital CRA projects. My responsibility is to safeguard CRA funds, not foolishly gamble taxpayer dollars with the hope of one day realizing uncertain revenues.  I do not take those fiduciary responsibilities lightly.

Our View on the Sunset Lounge:Future of West Palm Beach's Sunset Lounge should hinge on facts not personal beefs.

I simply do not believe that the proposed deal, reached after nine months of negotiations and the expenditure by the CRA of considerable additional dollars during that time, will lead to a sustainable and prosperous future for the Sunset Lounge.  If nine months of negotiations has not resulted in a realistic deal, how much more time and money should the CRA invest in this exercise?

It is for this reason, based upon fiscal facts and not human feelings, that I strongly believe the current negotiations should be terminated now, and that we immediately forge a new path that will lead to the prosperous and sustainable future the Sunset Lounge deserves.  Our city deserves nothing less. Forthcoming decisions will shape the future of the Sunset Lounge for generations to come.  The selection of an operator must be approached carefully and with wisdom because that choice will dictate whether or not the Sunset Lounge is placed on a path that ensures its long-term success and restoration to its glory days.

I remain committed to celebrating the heritage and the history of the Sunset Lounge, ensuring that it once again becomes a vibrant hub of music and culture while operating on a fiscally prudent basis. For these reasons, I am steadfast in my position as the mayor that contracting with the right operator for the Sunset Lounge is not just a business decision; it is a commitment to the community and its future.

This opportunity is not a reward to be given lightly but a high honor and responsibility to be earned through demonstrated execution and vision.

Keith James is the mayor of West Palm Beach and chair of the Community Redevelopment Agency.