Jan. 17–LAKE WORTH — Hudson Holdings, the Delray Beach company planning a $70 million face-lift for The Gulfstream Hotel, is now exploring selling the historic site, saying Lake Worth officials aren't doing enough to attract more investment in the city.

"I'm a long-term investor and we want to be part of a city that is moving forward," Steven Michael, Hudson Holdings co-founder told The Palm Beach Post late Monday night. "It's not just about our investment. It's important that investors follow us and I feel that Lake Worth isn't promoting that."

But City Manager Michael Bornstein said more than $100 million worth of new investments and projects are underway in Lake Worth.

"This is from a city that seven or eight years ago had no commercial permits pulled to now over $100 million," Bornstein said. "(Michael's comments) don't match up with the realities."

In recent days, Hudson Holdings placed a sign from Talon Point Capital, a West Palm Beach real estate investment firm, in front of the Gulfstream which read "site development opportunity."

"We'd like to see the city make some positive changes," Michael said. "If that doesn't happen, we'll explore other possibilities. We don't feel like we've worked in tandem with the city like we hoped to. But I still hope it's us the develops and operates The Gulfstream."

The project includes transforming the 106-room Gulfstream Hotel, built in 1925, into an 87-room hotel while also building a five-story hotel annex to be branded by the Curio Collection, an upscale Hilton Hotel brand.

Plans, however, remain in limbo over legal issues. A suit was filed last year over building heights. A three-judge panel dismissed that suit in August, but an appeal was filed. That appeal has yet to be heard.

Michael called the suit "frivolous" and said it hasn't been a major stumbling block for the project.

"It's very difficult dealing with code enforcement," Michael said, although the city gave Hudson Holdings all the approvals it needed to move forward. "There's much room for improvement within the city departments. Not just for our project, but for the long term stability of Lake Worth."

Check back for updates on this developing story

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