by James Coulter
The Dixie Walesbilt Hotel will be returned to the City of Lake Wales now that city commissioners have approved a settlement agreement with the hotel’s current owner.
At their meeting on Tues. Apr. 15, 2025, Lake Wales city commissioners voted unanimously to approve a settlement agreement that would allow the city to regain ownership of the historic building located in Downtown Lake Wales.
Now that the agreement has been approved, the Dixie Walesbilt Hotel will be returned to the City within 30 days via a Special Warranty Deed. In exchange, the City will pay $450,000 to the hotel’s current owner, Dixie-Walesbilt LLC.
Located at 115 N 1st Street, the Dixie Walesbilt Hotel was built in 1926. The 10-story skyscraper served as a resort until its closing in 1995. It was added to the U.S. National Register of Historic Places in 1990.
The City had initially entered into a redevelopment agreement with Ray Brown, president of Dixie Walesbilt LLC, on Feb. 10, 2010. However, on Aug. 2, 2024, the City filed suit against Brown for alleged violations of the agreement. Brown, in turn, filed a countersuit against the city on Sep 13, 2024.
Per the agreement, the city will withdraw its suit against Brown, and Brown, in turn, will withdraw his countersuit against the city.
Commissioner Carol Gillespie commended the negotiators for being able to pull together the settlement agreement.
“At least it will not be torn down,” she said. “I hope that is not one of the alternatives because it is one of the landmarks and attractions for downtown.”
Commissioner Keith Thompson was pleased their negotiations not only resulted in an agreement but also a signed agreement.
“Why are we buying back a hotel that should be ours?” he said. “Well, it is not ours. It belongs to another entity. And this will be the most efficient way to do it.”
Commissioner Thompson expressed his optimism of the city regaining ownership of the historic hotel. He claimed the city was in “a better position” than they were when they turned it over to Brown and Dixie Walesbilt LLC.
“We have every reason to be hopeful,” he said. “We are in a better season than we were in 2010. There was no equity for these improvements, and that put us in a desperate place. But we are in a different place. So I am very encouraged about the future of the hotel.”
Deputy Mayor Robin Gibson likewise commended the legal counsel that allowed them, within the span of a two-hour executive session (or “shade meeting”)mhosted last week, to achieve this settlement, which he considered to be the best decision for Lake Wales.
“We developed the approach that was the right approach that turned out to be successful,” he said. “It was done the right way for the right reason and ended up being the right result.”
Mayor Jack Hilligoss expressed his gratitude that the hotel will be rightfully returned to Lake Wales, as it will help the City “reactivate” the downtown revitalization efforts.
“We should move forward with this because it is the right decision,” he said.
A motion was made and seconded to approve the settlement agreement, and the city commission voted unanimously through a roll call vote.
