Panama City- A controversial low income apartment complex project, previously approved by Panama City commissioners, is now dead in it's tracks. Commissioners voted Friday to deny a request to transer an existing lien against the property at the corner of East 11th Street and Sherman Avenue. All this comes after a development order for the Panama Commons apartment complex was already approved. That's because the city just found out about the lien.

For three years, the Paces Foundation has been trying to get approval to build what company officials call a quality housing development for low-income families. They chose property on the corner of 11th Street and Sherman Avenue.

The owner, Linda Powell, was willing to sell, but the city owned an easement that split the parcel. Neighbors, who opposed the project urged Panama City commissioners to reject a request to abandon the easement, which they did. So Paces Foundation managers modified the project to conform to the land they had to work with. The city issued a development order and it appeared the project was on it's way.

Then Thursday, city commissioners discovered the property owner, Linda Powell doesn't have a clear title to the land, because the city has a tax lein against it for $560,000. Powell offered to pay the city $260,000, hoping the city would allow her to transfer the remaining $300,000 lien to another property she owns.

The issue came to a head during a Friday emergency meeting. "We are leaving you land. All you have to do is shift your lien and we are going to give you $260,000 today. You haven't seen that in 18 years and you are not going to see it if this project doesn't go forward," said Mark DuMas, the CEO of Paces Foundation.

"What is it? There must be something else that is driving this that you would want to go through this type of triangulation," said a concerned resident.

"The certainty of getting the $260,000 makes some sense, as well the value of the project to the community," said Panama City Mayor Scott Clemons.

"It's a sure bet $260,000, I don't want to throw that away, but I don't want this commission to be known for doing the wrong thing in order to do the right thing," said Panama City Commissioner John Kady.

And with that, commissioners voted 4 to 1 to deny the lien transfer, leaving Powell and Paces officials shocked. "We've lost a great deal of money and your community is going to lose even more with the loss of these low income units," said DuMas.

Residents we spoke with say they are happy with Friday's decision, but are still concerned about the future of the property.