HOLMES BEACH – The October code compliance special magistrate hearing featured eight cases and they were all issues occurring at the same complex, The Coconuts.
The property, located at 100 73rd St. in Holmes Beach, has four units managed by Coconuts Management Inc. and 11 units owned by local builder Shawn Kaleta. While the four units managed by Coconuts Management Inc. are rented weekly in compliance with the city’s codes and ordinances, Holmes Beach code compliance officers allege that some of the units owned by Kaleta are being rented in violation of the city’s vacation rental ordinance. Attorney Louis Najmy was on hand to represent Kaleta during an Oct. 20 code compliance hearing held at Holmes Beach City Hall.
Wanda Bell of Coconuts Management Inc. stated in an email to The Sun that Kaleta bought a number of units in The Coconuts complex and forced the management company to vacate the onsite office Dec. 19, 2020 after firing the company in favor of his own AMI Locals group. Bell added that the four onsite units still managed by Coconuts Management Inc. are owned by other owners.
Code Compliance Supervisor James Thomas presented the case in front of Special Magistrate Michael Connolly. Thomas alleged that units in the complex are being rented without valid vacation rental certificates (VRC) and advertised for improper lengths of stay, specifically stays for less than seven days.
The property is located in the beachfront A-1 district which, while a residential district, is also home to some of the city’s hotels and motels, along with several condominium units. Thomas argued that The Coconuts is a condominium complex and is subject to the seven-day minimum stay requirements for residential properties in the A-1 district. To rent the units, he said, would also require a valid VRC issued by the city.
Thomas said the infractions before Connolly were repeat violations because a citation had been issued to the units’ owner in June. Attorney for the city, Erica Augello, said the citation had been paid and there had been no challenge submitted to the city by the property owner.
She added that all of the units previously had VRCs but that they expired in June, except for one unit, which she said still has a valid VRC.
Thomas asked Connolly to levy costs for each of the eight cases of $127.24 against the property owner and to charge $250 per day fines in each case retroactive to Sept. 24 until the units are brought into compliance with city codes.
City Planner Bill Brisson said that The Coconuts, and specifically the units in question, do not have a hotel/motel license from the Florida Department of Business and Professional Regulation.
Najmy argued that the resort’s management has a license from DBPR that is interchangeable with a hotel/motel license and that the property was built to be a resort, not a residential condominium complex. He added that the property’s units have been regularly rented for nightly stays since The Coconuts was built in the early 1970s. For the one unit that has a VRC, he said he feels that it’s improper for the unit to have one and for the city to require it. Out of the 18 units on The Coconuts property, Najmy said 11 of them are rented nightly.
As to the violation of city codes, Najmy argued that there are no minimum night stay requirements in the A-1 district and that every property should be able to be rented nightly.
Connolly said that he would have to rule in all eight cases based on the city codes. He instructed Brisson to forward the sections of code he referenced to determine rental regulations for the A-1 district to himself, Najmy and Augello and for the two attorneys to prepare and email arguments to him based on the sections of code provided.
With a ruling in the eight cases not planned to be issued until at least mid-November, Connolly warned Najmy that if the cases are decided in the city’s favor, his client risks fines of up to $250 per day dating back to Sept. 24 until the units are brought into compliance.
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