VERO BEACH — Three months after sister publication Vero Beach 32963 reported the City of Vero Beach has allowed one of the area’s most prominent developers to fall behind on rent payments amounting to tens of thousands of dollars, the city has still yet to be paid a dime.
The failure to collect rent from David Croom for the Old Diesel plant in downtown Vero comes at a time when the city is considering various options — including billing Little League for $30,000 in utility bills and selling city-owned buildings — to get the general fund budget in line. This belt tightening is taking place to prepare for the loss of revenues from the city’s electric utility once the sale to Florida Power and Light is concluded.
Croom and company signed a lease in 2001 and then again in 2005. He is said to have put upwards of $1 million into the facility that today is still a shell, with a dirt floor and no plumbing. When the contracts were signed, it was expected the developers would construct a concept building either for a well-heeled single tenant or for multiple tenants who would then pay rent to Croom, who would in turn make a profit and pay the city rent on a scale the increased over time.
Today, Croom is more than $65,000 behind in rent and the project is still incomplete.
Croom was expected to update the City Council Tuesday night and, just as he did the previous council meeting, he was absent. But Tuesday, the discussion continued without him.
Croom met with, if not all, most council members and the city manager individually recently.
From Mayor Craig Fletcher’s perspective, Croom wants out of his contract.
“Do we hold his feet to the fire or go … with a lawsuit,” said Fletcher who got the conversation going.
Neither ideas floated by Fletcher were discussed at great length.
Dick Winger said the building could be a great enhancement for the downtown area.
George Paxton, an island resident and member of the Indian River County Cultural Council asked the council if it would be willing to let the group take over the lease for a $1 a year should the council find $2 million to $3 million to finish the project. Paxton said the cultural council would like to turn the Old Diesel Plant into an art center with, potentially, a restaurant.
Paxton said the council was not willing to buy Croom out for his expenses.
The way Councilwoman Tracy Carroll sees it, Croom didn’t make good on his promise and the building, with its $1 million in mostly cosmetic exterior enhancements, belongs to the city.
“Our best case scenario is we end up with a half-finished building,” said City Manager Jim O’Connor.
No one appeared to support the Cultural Council’s informal application to take over the property and in the end O’Connor directed to have another meeting with Croom.
