The City of West Palm Beach presented the proposal today in court.
All the parties have agreed in principle.
It now goes before the judge for approval.
(West Palm Beach, FL) – Today, in front of a bankruptcy judge in Delaware, the City of West Palm Beach announced the parties involved in the Digital Domain bankruptcy case have agreed in principle on a proposal. Once approved by a bankruptcy judge, the proposal immediately restores the “tent site” property to the City of West Palm Beach free and clear of any claims.
The proposal includes the lenders involved in the mortgages that were taken out on the property and represents a major step towards the restoration of the property involved in the Digital Domain case to city hands.
The proposal will now be circulated among the parties, and presented to the judge for approval.
“The fact that all the parties have agreed in principle to give up claims to the property without a long, drawn out legal fight speaks to the quality of the agreement we drafted, and to the strength of the clause in that agreement requiring the return of the property,” said West Palm Beach Mayor Jeri Muoio.
“This is exactly what we have been working towards, and this is exactly what we believed from day one should happen,” said Mayor Muoio. “We are now a significant step closer to focusing on what this whole deal was about from the beginning, and what it continues to be about. The City, together with Florida State University creating an economic incubator for a new and exciting industry here in West Palm Beach.”
According to Mayor Muoio, the FSU program, which continues to grow in West Palm Beach, is a key to success. It is because FSU remains in West Palm Beach that the City’s goals of creating a new economic engine to drive the City’s economy remain alive and promising, said Muoio.
Once the proposal is finalized, it will cut all ties with Digital Domain. It will restore the property to city control, and it will allow the City of West Palm Beach to move on, looking ahead to the future.
Under the terms, Digital Domain and all other parties agree to give up any claims to the property. This includes the mortgage holders. The land is immediately restored to the City.
The City, for its part, will agree not to file any additional claims against Digital Domain. The only city priority from the beginning has been the restoration of the tent site property.