Who is Streamline Boats of Northwest Florida? Here's what we know

As the city of Pensacola seeks a $53 million Triumph Gulf Coast Grant to upgrade and redevelop the Port of Pensacola, one of its partners, Streamline Boats of Northwest Florida, is under the spotlight as a new lawsuit raises questions over the company's ownership.

Here's what we know about who's behind Streamline Boats of Northwest Florida and how that might impact its lease with the city of Pensacola.

Lawsuit: South Palafox Group lawsuit will determine ownership of investment firm

Port plan: Port of Pensacola seeks $53 million from Triumph Gulf Coast to upgrade and redevelop port

Questions arise: Streamline Boats facing eviction in Hialeah. Pensacola factory in doubt after owner change

What's in the lawsuit?

On Aug. 31, a group of South Palafox Group business partners filed a lawsuit alleging that James Dillard and John Levitan had removed Mark L'Hommedieu and Alexander Cover as owners of South Palafox Group without authorization. The complaint alleges that the ownership of South Palafox Group was split equally between the four men.

Additionally, the complaint alleges that Dillard and Levitan also steered or transferred South Palafox Group's ownership interest in Streamline Boats of Northwest Florida, along with other investments, to a new company called Invictus Holdings.

The lawsuit comes after Streamline Boat's attorney notified the city in July that the founders of the company had been removed from management raising questions if the ownership had changed.

A separate lawsuit filed earlier this year by Dillard and Levitan alleged that L'Hommedieu and Cover along with others are in control of South Palafox Group documents they were not authorized to possess. The group responded to that lawsuit with similar allegations that Levitan and Dillard had seized control of the company without authorization.

Two companies called Streamline Boats

Streamline Performance Boats Corporation is a Hialeah-based sports fishing boat builder that began operations in 2018.

Streamline Boats of Northwest Florida was created when investors from South Palafox Group and Streamline Performance Boats Corporation partnered to create a new Pensacola-based company.

In 2020, the city approved a 10-year lease for warehouse space at the Port of Pensacola for Streamline Boats of Northwest Florida.

Read more: Streamline Boats business partner sued for fraud over business deal with another company

What's the Lease say?

The city's lease requires the company to begin making payments for the warehouse by March 2023.

Any change of more than 50% equity ownership of the company requires city approval to continue the lease; however, the lease also allows for the company to merge with or assign the lease to affiliated companies as long as the equity ownership is the same.

Amy Miller, who was port director at the time, told the council that South Palafox Group would hold 49% of the company and have no say in company operations, while the Hialeah-based Streamline Performance Boats Corporation would have a 51% share of the company.

As of today, both companies now have the same corporate officers which include Dillard and Levitan, according to a filing with the Florida Department of state.

Bart Houston, the company's attorney, said ownership of the company has not changed.

"The Company principals have discovered over the past 12 weeks significant mismanagement of Streamline Performance Boats Corp. (SPB) and consented to appropriate action by its’ lender to remove the officers of that company," Houston wrote in an email to the News Journal on Aug. 11. "There is no doubt as to the Company’s ability to operate and meet its obligations and commitment to meet Streamline Boats of Northwest Florida, LLC’s obligations to the Port of Pensacola. In times like we are now experiencing, sometimes changes in management are necessary, and my clients have taken appropriate action by removing the former managers of SPB."

Houston did not respond to additional follow-up questions about the company's operations or how a lender could remove the owners of the company from its management structure.

What is the city doing?

Miller, who is now deputy city administrator, said Monday that Streamline Boats of Northwest Florida remains compliant under its lease with the city.

"They aren't expected to start paying rent until next March, whether they're complete (with construction) or not," Miller said. "And so between now and then, I think some of these other issues will work themselves out. But we've been told by their attorney that the ownership of Streamline Boats has not changed, only the management."

Streamline Boats of Northwest Florida is listed as a partner on the city's Triumph Gulf Coast pre-application seeking $53 million in BP oil spill funding for a $153 million project to upgrade and redevelop the Port of Pensacola.

What is South Palafox Group?

South Palafox Group is an investment firm that has a checkered past in Pensacola. The company was an investor in South Palafox Properties which managed the Rolling Hills landfill in the Wedgewood community when it was closed for environmental violations in 2014.

For several years, South Palafox Group listed South Palafox Properties as one of its investments on its website.

In his Aug. 11 email, Houston said the News Journal was wrong to tie the company to events that have nothing to do with the boat manufacturing company.

However, corporate filings with the state of Florida show that Invictus Holdings is tied to Streamline Boats. Invictus Holdings also is listed as having ties to the current owner of the former Rolling Hills landfill property, a company called Judgement Partners LLC.

Judgment Partners list Dillard, Levitan and Invictus Holdings as managers of the company.

Jim Little can be reached at jwlittle@pnj.com and 850-208-9827.

This article originally appeared on Pensacola News Journal: Who is Streamline Boats of Northwest Florida? Here's what we know.