ST. JOHNS COUNTY, Fla. – The future of the World Golf Hall of Fame at the World Golf Village in St. Johns County may be more complicated than initially expected.
While the county is currently accepting proposals for the Hall of Fame site and the attached IMAX theater, the World Golf Foundation has taken legal action to challenge longstanding use restrictions on the property.
“It appears to us, at least from the outside, that the Hall of Fame was not thriving. So it makes sense that if it isn’t working, that something new would have to go out there,” Deputy County Attorney Lex Taylor said.
Taylor noted that the original developer imposed a restriction in the late 1990s requiring the property to be used exclusively as a golf-related Hall of Fame, but says there is some flexibility.
“There’s a lot of case law out there that says when a government entity owns property, they can use them for government purposes,” Taylor said.
The county owns the Hall of Fame and IMAX theater property, but the World Golf Foundation remains heavily involved.
“We retain 37 acres out there and the PGA Tour entertainment building,” Greg McLaughlin, CEO of the World Golf Foundation, said.
McLaughlin said the original developer’s restrictions have created a standstill.
“If nothing happens, then those properties are going to sit vacant until 2046 until this use restriction expires,” McLaughlin said.
The Foundation filed a lawsuit in February seeking to have the restrictions lifted, saying it only allows the property to be used as a Hall of Fame, an 18-hole golf course, and PGA Productions.
This excerpt is from the lawsuit:
“Use Restrictions. For a period of fifty (50) years from July 31, 1996, those lands constituting the Hall of Fame/Golf Course Parcels shall be utilized exclusively for the construction, development and operation of the Hall of Fame, an 18-hole golf course and clubhouse improvements and a PGA Tour Productions facility, sports medicine facility, IMAX or IWERKS Theater or other similar entertainment facility and ancillary uses thereto and for no other use or purpose. This restriction shall constitute a covenant running with title to the Hall of Fame/Golf Course Parcels in favor of SJH Partnership or its successors or assigns. Nothing contained in this Section 4.5 shall be deemed to limit or modify the County’s rights under the Ground Lease or any other separate written agreement between WGV or the PGA Tour, Inc. and the County.”
McLaughlin said they have made efforts to negotiate with the original developer, IT Land Associates, but have not made progress.
“We made a financial offer back in January and had several conversations in February, and they just refused to amend it,” he said.
News4JAX reached out to IT Land Associates and responded with the following statement:
“IT Land Associates is open to a resolution that protects its interests as well as the interests of other parties affected by the Foundation’s decision to relocate the World Golf Hall of Fame. The Foundation’s litigation seeks to relieve it of all its obligations to the World Golf Village community and is solely focused on maximizing their return on the sale of real estate that was given to the Foundation in exchange for its commitment to maintain the Hall of Fame at the World Golf Village.
The Foundation chose to file the current lawsuit without any serious attempt to coordinate a solution that was acceptable to IT Land, SJ County and the World Golf Village community. And to date, the Foundation has not made any reasonable attempt to resolve the matter in a manner that is considerate of the various stakeholders."
The county continues to receive interest in the property, but says that lifting the use restrictions would help.
“I have been privy to conversations before we put the request for proposals out, that the use restriction was going to hurt people being willing to come in there and do things. So I assume that it will,” Taylor said.
The next court date for the lawsuit is July 28.
