During the meeting, several residents voiced their objections to the proposed development on the Holton property located in Tom Stewart’s Causeway. The development’s potential to alter the city’s character was at the forefront of the debate. Residents were particularly apprehensive about the proposed 10-story buildings, increased traffic, and the preservation of the city’s distinctive charm. The emails submitted by citizens highlighted a range of concerns, including the high density of the proposed development, the adequacy of infrastructure to handle the increase in population, and the overall suitability of such a project within the small beach town context.

In response to these concerns, the vice mayor assured residents that no discussion on the development would proceed until a later date and encouraged community members to participate in future meetings. The applicant’s representatives presented their case, emphasizing a reduction in the original density and height of the project to alleviate concerns. They detailed the architectural design, which aimed to conceal parking areas and create a mixed-use development that would cater to both guests and residents. Furthermore, the project’s architect presented a vision of maximizing views and creating a visually appealing development that would serve as a visual anchor while enhancing the pedestrian experience.

A traffic study was also discussed, in which a certified planner addressed the project’s impact on traffic volume and proposed road improvements to accommodate the expected increase. Despite the anticipated changes, the planner maintained that the project would still preserve level of service C conditions on the road. The project’s compliance with the city’s comprehensive plan and the requirements of a development agreement were also underscored.

Financial growth and stability were also key points of discussion during the meeting. The finance director reported a 12.8% increase in general fund operating expenditures and a 125% increase in government-wide liabilities, attributed to borrowing for utility undergrounding and stormwater drainage projects. However, the net position of the city increased by 10%, signaling overall financial health. The finance director suggested revisiting adopted policies and considering new ones to ensure long-term sustainability.

In addition to development and financial discussions, the meeting also addressed concerns raised by residents about the recent referendum process. Several residents criticized the referendum’s language as deceptive and confusing, which led to a lack of clarity among voters. Others defended the intentions behind the referendum and emphasized the necessity of a representative form of government.

Other agenda items included the approval of a consent agenda that allocated budget for the city’s fireworks show and Christmas ornaments, with a notable increase in the fireworks budget to $26,000, offset by a $5,000 donation for the cost of the barge. Additionally, the meeting saw the authorization of a governmental money purchase plan and trust adoption agreement with ICMA Retirement Corporation to comply with new IRS requirements.

The city manager discussed a delay in filing financial statements due to new pension accounting standards. The independent auditor presented audit reports and highlighted that the city’s books were in good order. The reports included an assessment of the city’s financial condition, which resulted in an overall rating of inconclusive, a rating common among most cities.