PALATKA, Fla. – An independent investigation into the City of Palatka’s former interim city manager, Jonathan Griffith, revealed he concealed certain business relationships while serving in that position.
The findings, detailed in a report obtained by News4JAX on Thursday, question Griffith’s transparency and his use of city position to benefit businesses he was associated with.
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The final report references an interim report on Griffith from September.
That’s when the investigator says Griffith failed to disclose “his outside business interests” as the “Crill Avenue” property moved through rezoning, platting, permitting and development.
The report also reveals his financial interests “were greatly enhanced by actions required from the Commission, a Commission kept in the dark by false or misleading documents.”
Property swap raises questions
The Final report focused on a land swap deal involving a property known as “River Center” and another one called “Port Consolidated.”
Blue Crab Development Group North LLC, which is owned by a Palatka attorney, entered an agreement with the City of Palatka to swap the Port Consolidated land. According to reports, Blue Crab purchased the properties located at 100 and 102 Reid St. in January for $1.3 million, despite the same properties selling for $45,600 in 2023.
In exchange for the property, the City of Palatka deeded the River Center property to Blue Crab Development. While appraisals valued the River Center at $1.6 million, the Port Consolidated property was appraised at $1.325 million. This meant Blue Crab paid an additional $275,000 to even out the deal.
However, the investigator said there was a hidden conflict of interest: Griffith and the attorney who owned Blue Crab Development were business partners at the time of the transaction.
Hidden partnership raises ethical questions
The report asserts Griffith had an obligation to disclose his partnership with Blue Crab’s owner to city officials, but he did not. The final report said the omission prompted concerns, and states citizens should ask the city if they could have acquired the Port Consolidated land for significantly less. Like buying it in 2023 when it was $45,600.
The investigator concluded, “Mr. Griffith intentionally concealed his business interest.”
News4JAX reached out to Griffith and received a response from him Sunday morning.
He sent a statement that reads: “I received the report on December 20, 2024. The report is factually incorrect and includes misleading statements for the purpose of harming my professional reputation. It is my understanding the report is to be sent to the Florida Commission on Ethics. If contacted, I will address these unfounded allegations with the Commission on Ethics.”
News4JAX also contacted Palatka’s mayor and city commissioners for their perspectives on the findings. As of now, no responses have been received.
In a recent commissioner meeting, commissioners discussed this final report and asked their attorney if further action by Florida Department of Law Enforcement or the State Attorney’s Office, would take place.
It’s unclear what those next steps would be by those departments, but in the meeting it was discussed Jane West the city attorney, has been tasked with giving the commissioners a recommendation of what to do next.
The investigator will present these findings in person to the Palatka City Commission on Jan. 9. This meeting is to provide an opportunity for the Commission and the public to better understand the report’s details, allegations, and conclusions.