The dream of developing 6.6 waterfront acres could end Tuesday for an affordable housing nonprofit that made several financial missteps that led to its $1.7 million debt.

The Bahama Conch Community Land Trust (BCCLT) has long wanted to develop a portion of the Truman Waterfront with affordable housing, retail space and a cultural center, but a recent audit has revealed cases of suspected fraud in what City Commissioner Clayton Lopez called an elaborate grant-kiting scheme.

The audit was the final nail in the land trust's coffin, according to Commissioner Barry Gibson, who on Tuesday will propose rejecting a 99-year lease of city property.

"It's unfortunate, but I don't see any which way we can go forward with this," Gibson said Wednesday. "I don't think we have time to wait on the BCCLT anymore. There is no reason for us to wait while the BCCLT figures out what they're going to do or how they're going to reorganize."

Gibson acknowledged the wording of his agenda item reads as if he is lobbying for approval of the lease. The wording simply has remained the same each time the lease has been discussed, he said.

"Given the state of the BCCLT, I don't think anyone will support the 99-year lease," he said.

Commissioners may support a two-year contract extension for City Manager Jim Scholl, and are expected to discuss Scholl's continuing career with the city on Tuesday.

In other upcoming commission activity, commissioners likely will authorize the Walker Bros. Circus to produce a "small family circus" at Truman Waterfront from Jan. 29-31.

The City Commission also will decide whether to grant a franchise agreement to the Boston-based CityView Trolley Tours to operate sightseeing trolleys in Old Town.

The City Commission meets at 6 p.m. in Old City Hall, 510 Greene St.

mbolen@keysnews.com