Former Palatka city manager accused of concealing business ties in land deal

PALATKA, Fla. – An independent investigation into the City of Palatka’s former interim city manager, Jonathan Griffith, has concluded that 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 report also reveals that 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 report identified 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 that 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 prompts concerns, and states citizens should ask the city if they could have acquired the Port Consolidated land for significantly less.

The investigator concluded, “Mr. Griffith intentionally concealed his business interest.”

Efforts to reach Griffith for comment have been unsuccessful. News4JAX also contacted Palatka’s mayor and city commissioners for their perspectives on the findings. As of now, no responses have been received.

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.