CORTEZ – One of the defendants, Jacquelyn Shepard, named in a 2022 lawsuit regarding the residential use of the man-made Hunters Point-owned canal reached a settlement agreement with Cortez Road Investments and Finance Inc. (CRIF) and Hunters Point developer Marshall Gobuty.
Through her Cortez Canal House and Cortez Boat Resort limited liability corporations, Shepard owns the canal-side homes located at 4219 126th Street West and 4223 126th Street West in Cortez.
On Feb. 19, Shepard and CRIF reached a settlement agreement that removes Shepard as a defendant in the case for which a jury trial is scheduled to take place in mid-May before 12th Circuit Judge Charles Sniffen.
Filed on June 3, 2022, the civil lawsuit alleges some of the docks and boat lifts at the west end of the canal, across the canal from the Hunters Point property, violate county regulations because they allegedly extend more than 25% into the canal waterway. When speaking to The Sun in the past, some of the other defendants disputed the allegation that their docks and/or boat lifts extend too far into the canal.
According to the Joint Notice Of Voluntary Dismissal With Prejudice dated Feb. 19, “The parties have entered into a settlement agreement resolving all matters in the above-styled litigation as among themselves. All claims asserted by plaintiff against defendants Jacquelyn Shepard, The Cortez Canal House, LLC and The Cortez Boat Resort LLC are hereby voluntarily dismissed with prejudice. All counterclaims asserted by defendants Jacquelyn Shepard, The Cortez Canal House, LLC and The Cortez Boat Resort LLC against plaintiff are hereby voluntarily dismissed with prejudice.
“This dismissal applies only to the claims and counterclaims among the parties executing this notice. The litigation remains pending as to all other parties. Each party shall bear their own attorney’s fees and costs incurred in this litigation,” the notice states.
THE PARTIES SPEAK
When speaking to The Sun on March 26, Gobuty said, “We worked together to solve an issue, keep the canal safe for boating and let the homeowners enjoy the canal behind their home. It was a pleasure to work with Jackie and her husband, Steve.
“One home had a dock was torn down by the hurricane and it is acceptable to Cortez Road Investments and Finance Inc. if she replaces that dock, after she gets the required Manatee County permits. The second home has a dock that is within the 25%, so that is fine as it is. They also have access to use the canal and the necessary easements have been granted and are being recorded,” Gobuty said.
Attorney Susan Martin represents Gobuty and CRIF. When speaking to The Sun on March 26, Martin disclosed some of the general settlement terms.
The settlement terms include CRIF being named as additional insured parties on Shepard’s homeowners’ insurance policies.
The settlement agreement allows Shepard to maintain her current dock at 4223 126th Street West and build a new, five-foot-wide dock at 4219 126th Street West to replace the dock that was damaged during the 2024 hurricanes.
When speaking to The Sun on March 26, Martin said, “Marshall’s objective is to have people comply with the Manatee County regulation by being less than 25% of the width of the water body. His second objective is to be on everybody’s insurance policy so if there’s some type of accident on the canal, he’s not responsible for it. Thirdly, and probably most important, is to make sure there are no navigational hazards on the canal.”
Martin said the recorded easements grant Shepard and the occupants of those two properties the right to utilize the canal for the purpose of maintaining her docks and using the canal to access the Intracoastal Waterway.
When speaking to The Sun on March 27, Shepard said she’s not real pleased about being limited to building a new dock that’s only five feet wide, but she’ll make it work.
As for why she settled, Shepard said, “I didn’t want to spend any more money on legal fees. It’s a narrow canal, so we have to work together. Before Marshall came, it was only being used on our side of the canal. Now that’s not the case so we’ve got to make adjustments. As long as it’s done in a reasonable fashion and there’s compromise on both sides, then it’s a good day.”
The lawsuit still names Jonathan Graham, Sheila Graham, Mark Ibasfalean, Wendy Kokolis and George Kokolis as defendants.
The Sun reached out to Jonathan Graham, Mark Ibasfalean and their attorney, Fred Moore, but no comment was provided at this time.
“Capt. Kim” Ibasfalean stores the boat she uses for her Captain Kim’s Boat Rides & Charters business at their canal-side home. In the front yard of Mark and Kim’s home are two signs that reference the “Stand with Captain Kim to Protect HerHome” online fundraiser that, to date, has received $1,215 in donations.
The tall vertical sign placed in the couple’s front yard says, “Help save the canal. Hunters Point, on the other side of this canal, has 6 homeowners on this canal in a 3-year court battle. They claim they OWN all of this part of the canal and up to 3 feet into our back yards and we must remove our docks.”
“I have lived here and paid property taxes for 40 years. They persuaded a judge to file a lis pendins (pendens) on our properties. Meaning: we cannot sell our homes or borrow against them. They specifically told me that ‘when’ they win, they will charge everyone to use the canal. Help us keep waterways open to the public. Stop developers from taking over!” the yard sign says.
A banner that hangs in front of the Ibasfaleans’ home also references the GoFundMe page and says, “Help us keep this canal for everyone. I have spent $100,000 lawyer/surveyor fees. If we loose (lose) = you will pay to use canal.”
Regarding the upcoming jury trial, Martin said if CRIF prevails in the lawsuit, CRIF can pursue the recovery of the value of the use of the canal, from the time the lawsuit was filed until the time the non-compliant docks, boat lifts are removed
Martin said if the defendants prevail in court, they’ll be able to maintain their docks and lifts in their current conditions, even if they pose potential navigational hazards to other boaters and canal users.
CANAL HISTORY
Constructed in the 1950s, the man-made inland canal extends from the humpback bridge at 127th Street West (near the former Seafood Shack property) to the Cortez Village Marina and boat basin at the east end of the canal.
The canal surrounds the Hunters Point property on three sides and it provides the only waterway connection to the Intracoastal Waterway for those who have docks, lifts and boat storage facilities along the canal.
The 2022 lawsuit was filed in connection with an ongoing dispute between Cortez Road Investments and Finance Inc. and the MHC Cortez Village LLC limited liability corporation that owns the nearby Cortez Village Marina that utilizes the canal Gobuty purchased when he bought the undeveloped Hunters Point property in 2017.
The lawsuit involving the canal-side property owners was filed about a week after CRIF filed a civil lawsuit against MHC Cortez Village LLC, the owners and operators of the Cortez Village Marina, on May 26, 2022.
CRIF filed the lawsuit against MHC Cortez Village LLC in the midst of what proved to be the marina ownership group’s unsuccessful challenge of the state-issued permit that allows for the construction of 49 Hunters Point docks and boat slips along the Hunters Point side of the canal. The CRIF/MHC Cortez Village lawsuit remains ongoing and no trial date has been set for that case.
The 86-unit Hunters Point community is now approximately 50% completed and some of the solar-powered, LEED-certified townhomes are now occupied as homes, second homes or short-term vacation rentals as the construction of more townhomes and the Hunters Point docks continues.
Hunters Point canal settlement reached with one defendant
