Trouble ahead? City faces tough decisions and tight budget


The hits kept coming at the Key West city commission meeting on June 16.

Large groups of visitors had displayed what Mayor Teri Johnston called “a blatant disregard” for the city’s mask requirements and social distancing regulations, calling into question the safety and wisdom of future events, including Fourth of July fireworks, lobster mini-season and, ultimately, Fantasy Fest.

The commission also learned the long-awaited assisted-living facility on Duck Avenue is losing $104,000 a month and needs financial support from the city of Key West, and Monroe County, housing authority director Manuel Castillo said.

Finally, the city is preparing a budget that takes into account decreased revenues from cruise ships, in the event that a voter referendum passes in August, requiring the city to limit the size of ships and number of passengers who can visit Key West.

“People need to know how this will impact taxes and millage rates,” Commissioner Sam Kaufman said.

 “I agree, we need to see a worst-case scenario,” Commissioner Billy Wardlow told City Manager Greg Veliz, who said he shares the mayor’s concerns about upcoming events.

“It’s been asked of me whether I can guarantee a safe atmosphere for the Fourth of July fireworks, but I’m not sure I know how. I’m not sure we can deliver anything significantly different than what we saw this weekend,” Veliz said.

The commissioners were not willing to cancel the fireworks event at their June 16 meeting, but emphasized the importance of personal responsibility and adequate signs to organizers from the Rotary Club of Key West, which sponsors the fireworks in partnership with the city. 

“Our numbers are not going in the right direction,” Johnston said. “I’d like us all to spend the next two weeks thinking of unintended consequences. I am glad to say the Tourist Development Council has beefed up the language in its ads to include Key West’s mandatory mask requirements. But I think we have to find a way for that message to reach the drive-down market that the TDC is targeting right now.”

The commissioners also voiced support for the struggling Poinciana Gardens assisted-living facility, despite looming budget concerns.

Castillo told the commissioners that since the facility opened in June 2018, it has been managed by two different private companies and subsidized by the housing authority to the tune of $2.5 million.

Poinciana Gardens independent and assisted-living apartments need financial support from the City of Key West and Monroe County. MANDY MILES/ Keys Weekly

“It troubles me to have to have this conversation with you, but in February 2020, the housing authority took over management of the facility with the hope of creating an agreement with the county to manage it,” Castillo said. “Then came COVID-19. Things are not going as smoothly with the county, and the housing authority doesn’t have the financial wherewithal to keep this going.”

If the city of Key West cannot help, then the housing authority may have to look for a private buyer for the facility.

“We would hope to sell the building, but lease the land underneath it to the buyer, so the land would remain publicly owned,” Castillo said, adding that the $104,000 monthly shortfall would decrease as more residents move into the facility, which has had to freeze new move-ins during the pandemic. Castillo did not say how many of the facility’s 104 or so units are currently occupied.

An unofficial straw vote during the virtual City Commission meeting showed support for the facility.

“I don’t think any of us are going to let that facility fail,” Johnston told Castillo.

Mandy Miles drops stuff, breaks things and falls down more than any adult should. An award-winning writer, reporter and columnist, she's been stringing words together in Key West since 1998. "Local news is crucial," she says. "It informs and connects a community. It prompts conversation. It gets people involved, holds people accountable. The Keys Weekly takes its responsibility seriously. Our owners are raising families in Key West & Marathon. Our writers live in the communities we cover - Key West, Marathon & the Upper Keys. We respect our readers. We question our leaders. We believe in the Florida Keys community. And we like to have a good time." Mandy's married to a saintly — and handy — fishing captain, and can't imagine living anywhere else.