The Village of Atlantic Beach Board of Trustees voted unanimously to approve a settlement in the long-running dispute over the Libbey property, bringing an end to years of litigation over the waterfront parcel.
Under the terms of the agreement, the village will pay a total of $300,000 in two installments: $250,000 within 60 days of signing the settlement, and an additional $50,000 at the start of the village’s 2027 fiscal year.
The March 26 vote marks a significant turning point in a contentious legal and political battle that has spanned several years and drawn sharp reactions from residents, village officials and the property’s owners.
“The board has settled the inherited and eminent domain litigation regarding 2035 Park Street,” Mayor Barry Frohlinger said. “The resolution ends costly legal uncertainty stemming from the prior administration. It allows us to focus on moving the community forward.”
The village has already paid $700,000 in 2023 and an extra $50,000 after the building was appraised for $750,000.
“This settlement allows us to avoid going to trial and not have any legal or appraisal fees,” Frohlinger added. “It also avoids us paying a nine percent statutory interest rate.”
The Libbey property, a vacant parcel at 2035 Park Street along the waterfront, has been at the center of disputes, when the village moved to acquire the land through eminent domain. Officials at the time argued that taking control of the property would serve a public purpose, including protecting the shoreline and preserving open space in a densely developed coastal community.
The proposal, however, was met with skepticism and opposition from some residents, who questioned both the necessity of the taking and the village’s motives. Concerns were raised at public meetings about the potential cost to taxpayers and whether the property’s acquisition was the best use of village resources.
Those concerns were compounded when the matter moved into the courts. The property owners challenged the village’s attempt to seize the land, setting off a protracted legal battle that delayed any resolution and added to the overall cost of the dispute.
“We are restricted by law based upon the eminent domain rules on what we can do with the property,” he said. “We’ve gone through many scenarios on what we can do and it is designated as a park or recreational use.”
Longtime Atlantic Beach resident Richard Libbey’s family business, M.A. Salazar, had owned the property at 2035 Park Street since 1938, including a building that was demolished by the village in 2011.
“The settlement means nothing,” Libbey said. “They stole our property, it was a big plot and the former building inspector and board did nothing to kill the deal with the Chabad.”
Libbey’s family has been doing business in Atlantic Beach for over 100 years and his grandfather used to own the building. He believes they will be turning the property into a park.
“Hopefully they will fence it up so nobody from other locations can use it,” Libbey said. “It’s not a good area for a park.”
The settlement appears to reflect a decision by the village to close the chapter on the dispute rather than continue litigation. By agreeing to compensate the property owners, the village avoids further legal uncertainty and the potential for higher costs associated with continued court proceedings.
“We’re trying to avoid spending lots of more legal money,” Frohlinger said. “In the last four years, this village has spent $1.1 million on legal fees not including $740,000 in settlements.”
