While Key West residents brace for a proposed 30% property tax increase, City Hall continues to overlook a long-standing sweetheart deal that could bring in over a million dollars annually—without raising a dime from taxpayers.
I’m talking about the Key West Yacht Club, a private, members-only club nestled on publicly owned waterfront property in Garrison Bight. In 1961, the City of Key West leased this prime land and marina space to the club for just $1 per year—a deal that has remained in place for over 60 years.
Today, the Yacht Club operates 68 wet slips and 3 transient slips, which are actively rented out for daily, weekly, and monthly use. Conservative estimates place the Club’s annual revenue from dockage alone at $1 million or more. And yet, the club still pays only $1 to the City. No taxes. No PILOT payments. No revenue-sharing.
Even more concerning: the original lease clearly includes a clause (Clause Seven) that prohibits the subleasing or reassignment of slips without the City’s written consent. But public records show the City has no record of granting that consent—not once. This isn’t just a loophole. It’s an ongoing breach of contract, and the City has either failed to notice or failed to act.
Meanwhile, working-class liveaboards at Garrison Bight pay steep, escalating rates and face strict rules. Some are cited for minor infractions like leaving windows open on their boats. They’re regulated, inspected, and financially squeezed. The contrast couldn’t be more glaring.
What’s worse is that many of our top city officials are members of the Yacht Club—past and current city managers, commissioners, even city attorneys. That raises serious ethical concerns about oversight, enforcement, and conflicts of interest. When public land is leased to private interests with political connections, transparency must be airtight. In this case, it’s absent.
Let’s be clear: the Yacht Club isn’t the villain here. They’re a private club acting in their own interest. The real failure lies with the City of Key West, which has allowed this lease to go unchecked for decades—failing to enforce its own terms, failing to collect what’s due, and failing to protect public assets.
According to legal experts, the City may be able to recover up to four years’ worth of unpaid sublease fees—potentially over $1 million in back payments. And going forward, the City could assess a reasonable usage fee—$300,000 to $400,000 per year—based on market comparisons and usage.
Instead of pushing unaffordable tax hikes onto residents, City leaders should take a hard look at how much public money has been left on the dock.
If we expect working-class residents to pay more and comply with every rule, the wealthiest tenants of city-owned land must do the same. Enforce the lease. Recover lost revenue. Restore fairness. And above all, ensure that public property serves the public good—not private profit.
It’s time for accountability.
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