MANATEE COUNTY – A disagreement between Holmes Beach city leaders and the ownership at the Bali Hai Beach Resort has escalated, resulting in two hearings held the week of Aug. 17.
On Aug. 19, two issues involving the Bali Hai were brought before city special magistrate and attorney Michael Connelly for review. The first was construction work done without a permit and in violation of a stop-work order. The second was alcohol sales on the premises without an approved site plan. Arguments on those same issues came before Manatee County Judge Charles Sniffen during a hearing Aug. 21 on the city’s complaint for injunctive relief and motion to compel the defendant, Bali Hai JV LLC, to respond to the city’s complaint.
In the Aug. 21 court hearing, Sniffen ruled that the hotel’s ownership has five business days, until Aug. 28, to respond to the city’s complaint. The city’s motion for an injunction, to stop occupancy of and business in a small two-story accessory building on the property, was continued to a future date as the questioning of witnesses and presentation of evidence went over the time limit allowed.
Attorney Erica Aguello, speaking on behalf of the city, said that city leaders are seeking an injunction to stop alcohol sales on the property without an approved site plan and stop occupancy of the building until permits can be secured and work completed on the second floor of the building.
The Bali Hai is currently owned by Bali Hai JV LLC, a Florida limited liability company that lists law firm Najmy Thompson P. L. as the registered agent and local developer Shawn Kaleta as the manager of the LLC. During the hearing, attorneys for the defense acknowledged Kaleta as the owner of the hotel.
The city’s issues with the Bali Hai began in late January, according to evidence submitted by the city. During the evidentiary hearing, Building Official Neal Schwartz said that he was called out to the site Jan. 24 by code compliance Officer James Thomas to investigate work being done on the accessory building without a permit.
Schwartz said the first issue he noted was that railings were being replaced on the second floor of the accessory building without a permit or city approval of the railing material to make sure it meets Florida Building Code standards.
Upon further inspection, Schwartz said that part of the upstairs of the building had been gutted down to the studs without permits and that office workers were occupying another area while work was going on, also in violation of building codes. Since it was now a life safety concern, he said that West Manatee Fire Rescue Fire Marshal Rodney Kwiatkowski was called out to the scene and ordered the second-floor egress onto the balcony to be boarded up and the office workers to evacuate the building.
Meanwhile, Schwartz issued a stop-work order on the accessory building until permits could be granted for the work being done. He said that at the time, the bottom floor of the building was being used as a storage room. Schwartz said he did later give property management permission to paint the walls and the floors of the downstairs room since that type of work would not require a permit.
When Schwartz and Thomas returned to the property in March, Schwartz said that there was a significant change in the downstairs area, primarily that it appeared to have been renovated and was in use as a bar and lounge area with an adjacent storage area in the back.
While having an onsite bar, restaurant or lounge is an approved accessory use in Holmes Beach for a hotel, it is required that the hotel’s owners submit a new site plan for approval by the city before any alcohol sales take place on the property.
While Schwartz admitted that some of the work done on the bottom floor of the accessory building, such as painting and installing shelves, didn’t require a permit under cross-examination from attorney Jason Miller, speaking on behalf of the owner, he said some of the work, such as remodeling bathrooms, did require a permit and was done in violation of a stop-work order.
Miller argued that the work done in the accessory building didn’t require permits and that the issues between the resort owner and the city were the result of several miscommunications on behalf of the city’s representatives.
When the court hearing continues, Sniffen will hear more from Schwartz along with testimony from City Planner Bill Brisson as well as witnesses for the defense. As of press time for The Sun, the continuation of the hearing had not yet been scheduled.
Many of the same points were put before Connelly during the Aug. 19 special magistrate hearing. Connelly ruled that the property owner had 30 days from the hearing date to obtain permits and start renovations on the top floor of the building as well as 30 days to obtain a site plan approval from the city. He did not address whether or not service in the bar/lounge area was required to stop until compliance with city and Florida building codes was achieved.
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