The licensee of WXEL-FM/TV in Palm Beach, Fla., and New York's WNET have dropped their 2005 agreement for WNET's purchase of the Florida station, the Palm Beach Post reported today. Richard Zaretsky, head of a local nonprofit that was to be a part of the purchase, said the group has been raising money and can make the deal on its own. Former suitor Miami's WPBT said it's still interested in some arrangement with WXEL. The licensee, Barry University, put the station in play in 2004 and later agreed to sell it to WNET, but the FCC held up the license transfer. Zaretsky said the commission feared the sale would violate its policy favoring local station ownership.