As renovated Sunset Lounge sits idle, leaders assure they have a plan, reopening timetable

WEST PALM BEACH — The Sunset Lounge, a 1920s-era supper club extensively restored with $16 million in taxpayer money, has sat idle for two years since its renovation, validating the complaints of some that West Palm Beach should never have purchased and rebuilt the iconic venue.

Rather than hosting famous entertainment acts and igniting the revitalization of the city's largely Black Northwest community, the empty Sunset stands — for now, at least — as a monument to government inertia, protracted legal battles and, some fear, pique.

That could change by year's end.

In March, West Palm Beach's Community Redevelopment Agency, which uses taxpayer money to revitalize distressed pockets of the city, submitted an updated management agreement to Vita Lounge, the local group of largely Black financial, entertainment and dining officials who won the bid to manage the Sunset.

F. Malcolm Cunningham, an attorney who represents Vita, said the group is reviewing the proposed management agreement and hopes to have it before the CRA's board of directors for approval as soon as May.

"The goal is to open the Sunset during the 2024 holiday season, and the operating agreement outlines conditions to be achieved for this grand opening," Cunningham said.

That would be welcome news for those eagerly awaiting the reopening of the famed facility, which hosted the likes of Ella Fitzgerald, Duke Ellington and James Brown and was the cultural hub of the Northwest before falling on hard times and closing in 2018.

Mayor Keith James has been committed to revitalizing the Northwest, a once-thriving community of middle-class Black residents that, like the Sunset, fell on hard times.

The community of small homes and narrow streets has endured economic distress and crime, but James, the first Black person to hold the office of mayor since West Palm Beach greatly expanded the powers of the office, has aggressively pursued a variety of projects to turn things around, including everything from parks, streetscaping and underground pipe work.

"I am proud of the fact that this administration has invested more in The Historic Northwest, Coleman Park and Pleasant City (over $100 million to date) than any other administration has spent in those areas in the city’s history," James said in response to questions from The Palm Beach Post about the Sunset and the Northwest.

"These investments are consistent with my vision of making West Palm Beach a community of opportunity for all."

Why the Sunset Lounge is so critical for the Historic Northwest community

The linchpin of the community's comeback is to be the Sunset. The CRA bought the building in 2015 for $2.4 million and sought community input on how it should be used in the future.

“The plans for the Sunset and the areas around it are what CRAs are all about,” then-CRA Executive Director Jon Ward said. “This will be a once-in-a-generation opportunity to transform the neighborhood and breathe new life into an area of our city rich in history and culture.”

Over the next six years, the city would pour another $12 million into the building. Some critics, most notably prominent businessman Rodney Mayo, argued that buying and rebuilding an entertainment venue is beyond the scope of government.

Under James, frequently the subject of criticism from Mayo, the city forged ahead. Hopes soared in April 2022, when the CRA offered a tour of the lounge.

Long-time Northwest residents joined journalists and became emotional recounting the days when the Sunset was the go-to place for after-work drinks, community gatherings or a special night out to see a legendary entertainer. Construction crews were still putting the finishing touches on the building, but city officials said it would be reopened later that year or in early 2023.

More than a year later, that reopening still hasn't happened.

“An opening date has not been set as the operations agreement is still being finalized," current CRA Director Christopher Roog said.

Biggest sticking point: Who would operate and manage the Sunset Lounge in West Palm Beach?

A pair of groups submitted bids to manage the Sunset, Miami-based Mad Room and Vital Lounge.

Area Black residents, pointing to the history of the Northwest and the lounge, pushed for Vita. James, however, argued that Mad Room had the longer track record and a stronger financial foundation.

James and some City Council members, who double as the CRA's board of directors, complained that advocacy for Vita went too far, with some backers insinuating that support for Mad Room was racially and culturally insensitive.

The mayor and council members bristled at that suggestion, but Vita won the bid, sparking an emotional celebration in council chambers.

The bright lights of the Sunset, it was hoped, would be flicked on soon. That's not how it played out, however.

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James wondered aloud whether Vita's backers violated city rules against lobbying during a bid process. The city's procurement official ultimately declared that Vita did violate those rules.

Then, after Vita pointed out post-bid contact between James and Mad Room officials, the procurement official disqualified Mad Room, a decision the group opposed but did not legally challenge.

Vita, however, did file a legal challenge to its disqualification. In March 2023, a Palm Beach County Circuit Court judge sided with Vita, ordering the city to commence management negotiations with the group.

The CRA was ordered to pay Vita's legal fees, which it disputed, arguing that the group did not provide sufficient documentation. Back-and-forth legal filings, including a motion for contempt Vita filed in March 2023 to compel the CRA to negotiate in good faith with the group, highlight the intense legal battle Vita and the CRA have waged.

Vita says it is 'committed to reopening the Sunset Lounge'

Through it all, Cunningham said Vita is "committed to reopening the Sunset Lounge. Vita has the experience, resources and desire" to fulfill the objectives it laid out when it first responded to the CRA's request for proposal to manage the lounge.

"Given a chance, Vita can achieve these objectives," Cunningham said. "The CRA should show the same commitment."

While Cunningham said Vita is committed to reaching agreement with the CRA, many have wondered if too much damage has been done to the relationship between the group and the city.

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James' reaction to news that Cunningham would be the keynote speaker during a Black Chamber of Commerce of Palm Beach County awards dinner in February highlighted those worries. When James learned that a city employee had purchased tables in support of the dinner — and that Cunningham was to be keynote speaker — he ordered his staff to rescind the purchase.

"The city will not support any event at which he is the keynote speaker," James wrote in an email to the city employee.

Asked Tuesday if personal animus has played a role in delaying the Sunset's reopening, James said "absolutely not."

He added: "First of all, I do not perceive this time as a 'delay.' It may not be happening as quickly as some would like, but this is the public sector, and there are certain processes that must be followed. Watching the sausage being made as happens in the public sector is not always pretty."

James said he not interested in quickly reopening the Sunset at the expense of due dilligence.

"I have told staff to get it right and not be rushed," he said. "I remind them repeatedly that we only get one shot to make a good first impression. I am working to ensure that the first impression of the renovated Sunset Lounge will be unforgettable. I am confident we will get there."

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Wayne Washington is a journalist covering West Palm Beach, Riviera Beach and race relations at The Palm Beach Post. You can reach him at wwashington@pbpost.com. Help support our work; subscribe today.

This article originally appeared on Palm Beach Post: West Palm Beach's historic music venue Sunset Lounge to reopen in 2024