Developer, Elks team up: Apartment complex on land in exchange for $4 million lodge makeover

WEST PALM BEACH — The local Elks Lodge may soon be welcoming a new neighbor — a 195-unit apartment complex that would occupy seven of its 11 acres at the intersection of Belvedere Road and 62nd Drive North.

The Elks called on the county at a zoning meeting Jan. 31 to share its property with a New York-based apartment developer, the Marcus Organization. County commissioners agreed to submit plans for the project that call for a zoning change to the state for review.

What is in it for the Elks? A $4 million state-of-the art new building.

In exchange for its support, the developer has agreed to replace the 48-year-old lodge with a 15,000-square-foot building, double the size of the existing one.

“This is a win-win for everyone,” Ed Morey, a spokesman for the Elks told The Post. “We get a state-of-the-art building for our operations and the county gets an apartment complex to help address the lack of affordable housing.”

A trend that will continue? Non-profits and developers partnering with each other

Josh Nichols, the project's agent, told The Post that more non-profits are partnering with developers to increase revenues by allowing a portion of their properties to be built upon. They, in turn, he said, are able to obtain new facilities. It recently occurred with a charter school and a church, he said.

"With the scarcity of land, it makes sense for these non-profits to do this," he noted.

Morey said the Elks have been trying for some time to raise funds to replace its building. It decided to try to sell the parcel but only if it could remain, adding: “We had several offers but this was the only one that allowed us to stay until the new building is built. There will be no interruption of our events.”

Elks Lodge 1352 has been involved in charitable work for years, raising funds for veterans and scholarships for needy students. It holds weekly bingo events, and rents out its facility for charitable groups to use. The larger building is expected to increase revenues. It will allow for catered events.

Morey said it has become costly to maintain the large parcel. The Elks, he added, did not have the $4 million to build a new facility.

Are the Elks in good financial shape?

Morey disputed published reports that said the reason for the sale of part of its parcel was because it needed money to stay in business. Its own report to the county reported that without the funds from the sale, the non-profit organization faced severe financial challenges.

“They (the Elks) can no longer function properly as the organization is losing both of its members and its financial revenue, and without significant changes, it is unlikely to recover,” the Elks’ report stated.

Morey said he does not understand how those comments made it into the report it submitted to the county but he told The Post: “Nothing could be further from the truth. Our finances have steadily improved in recent years.” He said the report will be amended to remove any comments about its finances being in poor shape.

“Do we have the resources to build a new building? Probably not. But we are not going out of business.”

Arnold Marcus, CEO of Marcus Organization, said the agreement with the Elks will result in his company building the new facility before any of the apartments are completed, adding: "That is the first thing we will do." Marcus said the project marks the first time his company has undertaken a project in Palm Beach County.

The application noted the region is experiencing rapid growth with thousands of people moving into the area every year. The current housing supply is not able to meet the demand, the report stated, adding:

“A multi-family residential development can revitalize underdeveloped areas and increase property values in the surrounding neighborhoods."

The site, according to the applicant, is ideal for apartments. It is located near employment centers and Florida’s Turnpike. Staff recommended approval. So, too, did the county’s Planning Commission.

Should the state approve the plans, the county is expected to act on them again later this year. It could then opt to initiate the text amendment or zoning change to allow for much higher density (17 units to the acre). Forty-nine of the apartments will be set aside for workforce housing, which will restrict the rents that can be charged to county workers.

Final adoption could take place by the end of the year.

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Mike Diamond is a journalist at The Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government and transportation. You can reach him at mdiamond@pbpost.com. Help support local journalism. Subscribe today.

This article originally appeared on Palm Beach Post: West Palm Elks Lodge makes deal with apartment complex developer