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Controversial adult entertainment complex planned for Upper Duval scrapped, as reported in this November 26 Keynoter article:

Blue Palm plan is killed

Gay complex lost backers during delays

By Christie Phillips cphillips@keynoter.com

Key West developers have scrapped plans for a massive gay-oriented entertainment complex on Upper Duval Street, admitting that the fight to develop the Blue Palm Resort was too overwhelming to continue.

"We came to a point where we had to draw a line in the sand for our peace of mind, to get on with our lives," said Roger Cousineau, general manager of Blue Palm Resort LLC. "We’ve been working on this project for two and a half years."

The plan was to develop the complex, which was to include a guesthouse, piano bar, restaurant, night club and adult entertainment venue, at 900-904 Duval, the current home of Bogart’s and the Casablanca hotel.

"I still believe it’s an incredibly sound business plan," Cousineau said. "A lot of people asked us if we could do it without the adult entertainment, but the adult entertainment was what made it so special. It fills a niche not available in Key West for the gay market."

An inability to secure funding for the development was the final straw that pushed developers to end their fight.

"We hit this wall, and the wall is funding," Cousineau said. "We had funding for it last April when we were waiting for word from the Planning Board, which approved the project, but that approval was then challenged by the immediate neighbors."

Joined in a coalition called Save Upper Duval Street, several residential neighbors in the area, led by guesthouse owner Nancy Coward, spoke out against the gay entertainment venue part of the Blue Palm project.

"They went into major attack mode," Cousineau said. "It was nonstop. It made this difficult and I guess ultimately they won this battle, which is unfortunate. The gay presence on Duval is diminishing and this was an opportunity to bring something good to the area."

Funding sources backed out of the deal, worried about the difficulty Blue Palm developers were having passing through the city approval process and future run-ins with Save Upper Duval.

Still, Coward doesn’t see this as an all-out victory.

"Obviously, we weren’t happy with the plans, so if they were unable to obtain funding, then it serves our objective," she said. "But we’re still hoping to see something positive go in that location. Whether it’s Blue Palm or something else, we’re still looking for the same thing, for something compatible with the neighborhood."

The battle is lost, but the war isn’t over for either side.

"We’re still investigating funding sources, but not with the same diligence," Cousineau said. "We want to revisit this in a couple months. It’s a great project and it would have been a wonderful addition to the 900 block and to the gay market and what attracts people to Key West."

Save Upper Duval still wants a say in what goes on the site. "I guess we’ll be on to the next proposal now," Coward said.

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