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Tag: Bali Hai Beach Resort

Battle at Bali Hai continues

Battle at Bali Hai continues

Written by SUN contributor on . Posted in Community News, Holmes Beach.

HOLMES BEACH – Special Magistrate Michael Connolly ruled in the city’s favor in two code compliance cases against the owners of the Bali Hai Beach Resort, but attorney Louis Najmy says the fight’s not over.

Closing out an April 26 code compliance special magistrate hearing were two cases involving Bali Hai – one for having more units than allowed and another for renting electric low-speed vehicles on the property.

The first case involved renting GEM cars on the property without the rentals being an approved use under the site plan. Representing the resort’s ownership, including majority owner Shawn Kaleta, Najmy said that while the GEM cars are on the property at any given time, they are not rented by the resort. Instead, he said, they’re owned and rented through a third-party affiliate business, AMI GEM Cars, and he provided communication from the owners stating that they’re not otherwise involved with Bali Hai.

After looking at documentation from code compliance officers showing that the cars were available for rent through the resort’s front desk, Connolly ruled that the resort’s owners cannot rent or store the cars on the property and they cannot advertise them for rent through Bali Hai. He did acknowledge that if a guest of the resort has rented a GEM car and it’s parked on the property that it would not be a violation.

The resort’s website has since been updated to reflect that GEM cars are available but are rented through AMI GEM Cars, not Bali Hai.

The second case, concerning the existence of a non-permitted 43rd unit on the property, caused Najmy to ask Connolly to recuse himself, saying that he feels the special magistrate is biased against his client, Kaleta. Connolly said that he’s sorry Najmy feels that way but if the attorney puts his concerns in writing he’d have to consider it.

After hearing statements from code officers along with City Planner Bill Brisson, Connolly ruled that the resort’s owners are in violation of city codes, having one unit over the maximum of 42 that Bali Hai is grandfathered to have. While the various building plans presented by city staff and Najmy showed the unit in question as a rentable unit on some and a flex space without sleeping quarters on another, staff noted that they had observed the unit to have sleeping accommodations. Najmy argued that while the unit does exist, it’s used as a backup in case one of the other 42 units is in need of repairs and is unable to be rented. He said the resort never rents more than 42 units at a time.

City Attorney Erica Augello said it doesn’t matter if the resort only rents 42 units at a time; having a 43rd unit available puts the resort over its maximum density because of the ability to rent 43 units.

Connolly ordered that the resort’s owners come into compliance by removing the 43rd unit on the property and provide documentation to the building official proving that there are only 42 units available on the property.

The battle over uses at Bali Hai isn’t ending with the special magistrate hearings. Several cases are pending in Manatee County court appealing Connolly’s rulings against the resort owners and the site plan approval granted by Holmes Beach commissioners restricting uses on the property.

As of press time for The Sun, no hearings were scheduled in any of the pending cases.

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Bali Hai owners hit with more code fines

 

City triumphs in noise violation hearing

Bali Hai owners hit with more code fines

Bali Hai owners hit with more code fines

Written by SUN contributor on . Posted in Community News, Holmes Beach.

HOLMES BEACH – The fight between city leaders and the ownership of the Bali Hai Beach Resort is continuing, with the Holmes Beach special magistrate levying fines in excess of $1,000 per day against the beachfront property, topping $176,000 so far with no end in sight.

Special Magistrate Michael Connolly vacated an order imposing fines against the property during a November hearing due to an issue with the proceedings not being recorded at a mid-2021 hearing. At a Jan. 19 code compliance special magistrate hearing, Connolly ruled against the resort in seven separate cases with hefty fines assessed.

In a case alleging change of use on the property – the operation of a bar/lounge without an approved site plan from the city – Connolly ruled in the city’s favor, imposing a $500-per-day fine from Oct. 12, 2021, until the property is brought into compliance by either obtaining an approved site plan, including the bar/lounge as an approved use on the property or demolishing the bar/lounge and returning it to its previous state. As of Jan. 30, the fines had reached $54,500. Connolly also assessed $127.24 in administrative costs.

Speaking on behalf of the property’s ownership, which includes local developer Shawn Kaleta, was attorney Louis Najmy. Najmy argued that the bar/lounge wasn’t a change of use, that it had been an existing use on the property, and therefore wouldn’t require a site plan approval.

In late 2021, Najmy took a site plan before the Holmes Beach city commission, requesting that it be approved to include the bar/lounge and the installation of a spa for the use of hotel guests. While commissioners approved a site plan, it didn’t include the bar/lounge requested by Najmy. That site plan approval has since expired due to not being accepted, signed and recorded by the property owners, meaning that the site plan approval process would have to begin again before it could potentially be approved by commissioners.

The conditional site plan approval is being used as an example of the city’s alleged “blackballing” against Kaleta and his business dealings in the city in his ongoing federal lawsuit.

Other code compliance cases heard by Connolly during the Jan. 19 hearing include repeat violations of work done without permits and work done in violation of a stop-work order.

In the case of work being done without permits, Najmy said, “The Bali Hai’s hands are tied” by the city because after-the-fact permits for the work on the property cannot be issued until a site plan is approved by commissioners.

Speaking on behalf of the city, attorney Erica Augello said that Najmy was “asking for forgiveness instead of permission” and argued that if his client had gone through the proper channels before doing construction work at the Bali Hai, neither party would be in this place where fines were being assessed. She also noted that the resort’s ownership had the opportunity to accept an approved site plan from the city and refused.

Connolly assessed fines of $500 per day from June 11, 2021, until the property is brought into compliance, which is $116,500 as of Jan. 30, plus administrative fees of $127.24.

In the repeat violation case of doing construction in violation of a stop-work order, Connolly ruled that the violation was irreparable because the work has already been completed, assessing a flat $5,000 fine, the maximum allowed under city codes for an irreparable code violation, and $127.24 in administrative fees.

In the case of operating a bar/lounge and spa without a business tax receipt (BTR) issued by the city, Connolly also found a violation. Since it wasn’t a repeat violation, Connolly didn’t assess a fine but ordered that the property come into compliance and receive its BTRs for the two uses by Jan. 31 or face future fines. He did assess administrative costs of $127.24.

The issue that Najmy noted with receiving the BTRs from the city is that the property cannot have any outstanding code violations and receive a BTR. Connolly said he wouldn’t hold on fines due to any pending litigation.

“The cost of doing business in Holmes Beach is complying with the law,” Augello said.

“I really just want this to end,” Najmy said, arguing that the city has placed his client in an impossible situation.

Augello said that if the resort’s owner wants issues with the city to end, they should comply with city codes and cease operations of the bar/lounge and spa until they fix the code issues on the property and can receive the BTRs.

In three cases concerning electrical, plumbing and A/C work done without a permit, Connolly ruled that there was a violation and gave the Bali Hai’s ownership until Jan. 31 to obtain the three required permits or face additional fines at an upcoming code compliance hearing. He assessed $127.24 in administrative costs in all three cases.

For those keeping score, that’s the city of Holmes Beach at seven with the Bali Hai at zero, though Najmy has more than one court case pending appealing the decisions of the city’s representatives and alleging wrongdoing against Kaleta.

Connolly said that while he did assess fines against the resort and its ownership, he doesn’t believe that continuing to assess fines is going to remedy the issues between the city and the resort. He encouraged both parties to meet and try to work out a feasible way forward that would remedy the code violations instead of both sides continuing to pursue the matter through hearings.

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Builder, city head back to court

 

Special magistrate reconsiders fines

Builder and city head back to court

Builder, city head back to court

Written by SUN contributor on . Posted in Community News, Holmes Beach.

HOLMES BEACH – City leaders and local developer/builder Shawn Kaleta are no strangers to meeting each other in court. This time, Kaleta’s attorney, Michelle Grantham, has filed a suit against city leaders in the U.S. District Court for the Middle District of Florida Tampa Division alleging that city leaders are discriminating against him and his various businesses in the city.

In the paperwork filed Dec. 31, Kaleta states he is filing for damages, along with declaratory and injunctive relief, alleging deprivation of property and civil rights by the city. The filing alleges that city leaders have violated Kaleta’s right to free speech and equal protection under the law, both protected by the First and Fourteenth Amendments to the U.S. Constitution.

The lawsuit argues that city leaders have passed regulations specifically targeting Kaleta and his businesses, particularly concerning the development and regulation of short-term rentals, and that he is held to a different standard by the city for the operation of his businesses than other business owners. It also argues that Kaleta, along with his development and rental properties, are singled out by the city for code enforcement and other potential violations and that city leaders publicly subject Kaleta to slander and blackballing.

Included in the lawsuit is the ongoing struggle between the city and Kaleta over the operation of a bar/lounge at the Bali Hai Beach Resort. Kaleta and Louis Najmy, serving as the attorney for the resort’s owners, have argued before the Holmes Beach code compliance special magistrate and city commissioners that there was a bar/lounge previously existing on the property, granting Kaleta the right to have one serving alcohol to patrons now. Due to the remodel of the space used as a bar/lounge at the Bali Hai, along with the introduction of a spa service area and construction work done at the site without prior building permits, the property ended up before city commissioners in 2021 for a site plan approval. After being discussed by commissioners at several meetings, commissioners eventually voted to not allow the operation of the bar/lounge on the resort property, one of the stipulations of the site plan approval. This action is listed in the current lawsuit as one example of how city leaders are allegedly discriminating against Kaleta and his businesses.

The lawsuit also alleges that the city and its special magistrate, attorney Michael Connolly, who is not mentioned by name in the paperwork, have arbitrarily regulated and fined Kaleta’s businesses.

The relief sought through the court by Grantham on Kaleta’s behalf includes having a trial by jury, a declaratory judgment on the city’s policies, interpretations, practices and actions as they related to the protection of Kaleta’s rights to free speech and equal protection clauses under the Constitution, an order by the court granting Kaleta injunctive relief ordering the city “to cease the unconstitutional and unlawful practices directed at plaintiff’s (Kaleta’s) ability to be properly notified and represented at code enforcement hearings, be treated fairly at code enforcement hearings, conduct his business, including hotel/motel and short-term vacation rentals, in compliance with city code and without arbitrary interruption by the city, and order the city, their officers, agents, employees and attorneys to cease from making false and slanderous public statements regarding plaintiff and his businesses and to record all future code enforcement hearings.” Other relief sought would require the city to issue a public apology to Kaleta through local newspapers and award Kaleta damages, pre-judgment interest, reasonable attorney’s fees and costs.

At press time for The Sun, the case had not been assigned to a judge and no hearings have been scheduled.

In the Manatee County Circuit Court, Kaleta had a win against the city as Judge Charles Sniffen denied the city of Holmes Beach’s motion to dismiss the second amended counterclaim submitted on behalf of the Bali Hai during a Jan. 5 hearing held by teleconference. The case before Sniffen concerns the operation of the bar/lounge and right of the bar/lounge to serve alcohol at the Bali Hai resort property.

Attorneys for the city argued that the second amended counterclaim failed to state a cause of action upon which relief could be granted and that the promissory estoppel claim listed in the second amended counterclaim should be dismissed with prejudice, arguing that city leaders never gave the Bali Hai’s representatives a promise that alcohol could be served indefinitely at the property.

With Sniffen’s denial of the city’s motion, the case will move forward in Manatee County Circuit Court.

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Special magistrate reconsiders fines

Special magistrate reconsiders fines

Written by SUN contributor on . Posted in Community News, Holmes Beach.

HOLMES BEACH – This month’s code compliance special magistrate hearing was all about fines – reducing and eliminating them.

First up was a case involving 305 73rd St. and owners 305 73rd LLC. Though Special Magistrate Michael Connolly had already issued a final order imposing fines, attorney Louis Najmy asked for a reduction in fines on the owners’ behalf.

The violations found against the property in previous code compliance hearings included a dilapidated structure that the city had to secure against intrusion and engage a contractor to remove potentially dangerous building materials from the yard. The city also did not receive a timely response from the property owner, who did work outside the scope of permits.

Speaking on behalf of the city, attorney Erica Augello argued that the property has had two stop-work orders issued on it since code violations were first identified in September 2019. She said the property finally came into compliance with city codes and Connolly’s previous rulings on Aug. 31, 2021.

The total outstanding fines on the property were $51,900 plus $127.24 in administrative costs.

Najmy argued that his clients tried to work with the city but proceedings were delayed due to COVID-19 and other issues.

Connolly agreed to lessen the fines from $150 per day to $100 per day, bringing the total down to $34,500 plus the $127.24 administrative costs. Najmy said the reduction in fines should prevent the matter from being heard in Manatee County district court.

Another of Najmy’s clients, Bali Hai JV LLC, owners of the Bali Hai Beach Resort, had two matters involving fines heard by Connolly. In both cases, the city petitioned Connolly to rescind the fines against the property due to a due process issue where the hearing in which fines were levied against the resort’s ownership was not recorded. Since there is ongoing litigation in Manatee County circuit court between the resort owners and city leaders and the recording is a matter of due process, Augello asked Connolly to vacate the prior final orders and orders imposing fines in two of the nine code compliance cases against the resort. Augello stipulated that she would like the orders vacated without prejudice to allow the city to have the cases reheard and fines imposed for the alleged violations.

While Najmy said his clients do not object to the vacation of the fines, he does object to the reason for the city asking the fines to be vacated. He said he doesn’t believe that the city’s representatives were being totally honest about why they were asking for the reconsideration of the fines and final orders by the special magistrate.

Connolly ruled in favor of vacating the final orders and fines without prejudice.

The next code compliance special magistrate hearing is scheduled for Jan. 19 at Holmes Beach City Hall.

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Holmes Beach leaders and Bali Hai owners face off

Holmes Beach leaders and Bali Hai owners face off

Written by SUN contributor on . Posted in Community News, Holmes Beach.

HOLMES BEACH – No agreement has been reached concerning the operations of the Bali Hai Beach Resort between the hotel’s owners and the city of Holmes Beach, despite a pending court case, numerous code compliance hearings, fines and a pending site plan amendment approval.

Attorney Louis Najmy, representing the resort’s owners, including local developer Shawn Kaleta, appeared before commissioners on Sept. 15 for a site plan approval hearing. Due to issues with the site plan and a lack of compliance with city regulations, the site plan approval was postponed to the first meeting in October. This would allow the resort’s representatives additional time to work with city staff to create a site plan proposal that meets all of the city’s requirements and determine what action needs to be taken by the resort to come into compliance with city regulations until the proposed site plan for activities on the resort property.

During the Sept. 15 meeting, city commissioners agreed that they were unable to approve the site plan as presented but that they’d rather provide at least a partial approval instead of outright denying the presented site plan and risk going to mediation in the court system. Najmy argued that the site plan as presented has met all of the city’s expressed requirements. He said that his client has not complied with the code compliance order from a special magistrate to cease operations at the restaurant’s bar and lounge, obtain after-the-fact permits for construction work done and cease operations at an installed spa or cease holding special events at the resort. His reasoning for the non-compliance is that he thought his client should be able to continue with operations as-is until a site plan was approved and then the resort’s operations would have to come into compliance. City commissioners said that was not the case and that compliance has to be achieved and fines paid before the resort would be considered to be operating in good faith.

Najmy said he believes the $1,000 per day fine currently in force against the resort due to non-compliance with city codes was enacted erroneously and he is contesting it.

The issues between the city and the Bali Hai go back over a year to when work was done at the resort without permits from the Holmes Beach building department and a bar and spa were opened on the property for guest use without an approved site plan for the change in use.

The work done on the property includes installation of railings on the second floor of the resort, the demolition of an owner’s unit on the second floor of an accessory building and a storage room on the bottom floor of the same building, the conversion of those spaces into an office and bar/lounge area and the conversion of a resort laundry facility into a spa.

On behalf of his clients, Najmy argued that the resort’s owners do not need site plan approval from the city to open a bar/lounge on the property. City Planner Bill Brisson said he can find no record that a bar/lounge was ever approved for the site, meaning that a site plan approval from city commissioners is required for the amenity to operate legally within Holmes Beach city limits.

Najmy said that his client is seeking to operate in good faith with the city, though commissioners pointed out that his client is still operating the resort in violation of city regulations.

City Attorney Patricia Petruff said that there can be no approval of the site plan without the resort’s owners being willing to first come into compliance with city regulations. She added that a path forward needs to be determined to bring the issue to a conclusion before the courts truly get involved.

Though there is a court case pending in Manatee County Circuit Court, a hearing was not scheduled as of press time for The Sun.

The site plan is scheduled to come back before commissioners on Oct. 12.

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egal issues put a damper on wedding plans

Legal issues put a damper on wedding plans

Written by SUN contributor on . Posted in Community News, Featured, Holmes Beach.

UPDATED Aug. 30, 2021 at 12:05 p.m. – HOLMES BEACH – A local couple whose wedding plans were ruined by the Bali Hai Beach Resort was rescued by Island restaurateur Sean Murphy, who has offered them a wedding venue at one of his properties.

City Commissioner Terry Schaefer contacted Murphy after Bradenton couple David Naeher and Natalie Schofield appeared before commissioners on Aug. 24 to plead their case, hoping the city would approve their application for a special event permit to have their wedding on the beach in front of the Bali Hai.

Unknown to the couple, the resort – which advertises itself as a wedding venue – is not allowed to host weddings due to city permit violations.

Commissioners did approve the ceremony on the sand to take place pending a parking plan review by Police Chief Bill Tokajer, but gave the couple the bad news that their Oct. 16 reception cannot take place at the resort.

Ordinarily, Mayor Judy Titsworth said she would be able to approve or deny a special event permit, however, with the ongoing legal issues with the host resort, she felt it needed to come before commissioners.

City leaders’ issues with the Bali Hai and its ownership extend back for more than a year to when work was done on the property without permits and a bar and spa area were opened on the property without permits and an approved site plan amendment for the new uses at the resort. The resort’s owner, local builder Shawn Kaleta, is being fined $1,000 per day in code compliance fines and the site plan changes are outstanding. Titsworth said the site plan proposal is scheduled to come back before commissioners for discussion on Sept. 15.

Without an approved site plan or the proper permits and a pending court case in Manatee County Circuit Court, commissioners said that while they feel for the couple, they can’t approve any wedding events taking place at the Bali Hai. In addition, during a previous public hearing, attorneys for the Bali Hai said the resort would not be hosting weddings or seeking to host them in the future. In stark contrast to that statement, the Bali Hai’s website features a wedding planning page featuring events at the resort for up to 150 guests.

Grateful to Murphy, Naeher and Schofield both expressed their disappointment and anger at Bali Hai.

Schofield said she’s upset the resort sold her a wedding package that it wasn’t legally able to deliver. Now, she said, she has seven weeks to figure out what to do about the wedding and guests and has lost time that could be used to plan if they had found out up front that their reception couldn’t take place at their chosen venue.

Naeher said that when their application for the wedding was submitted to the city in July, he was told the reason it was denied was the lack of a parking plan for their 100 guests, something he thought could be easily remedied. Instead, while commissioners were willing to consider the wedding ceremony on the beach, an application for the reception, which would need to be submitted to the city for approval by representatives for the Bali Hai, would not be approved.

Commissioner Jayne Christenson said she thinks Bali Hai would go through with hosting the wedding reception whether it’s approved by commissioners or not.

If the wedding reception went forward at Bali Hai, the couple could end up with police officers or code compliance officers at their celebration and a fine being issued if there’s a noise complaint from nearby residential neighbors and a fine for the resort for hosting an event that’s not allowed to take place on the property and without a special event permit.

Titsworth said the court case is progressing as quickly as it can through the legal system and that the city will not give up the fight to bring the resort into compliance with city regulations.

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Bali Hai legal dispute continues

Bali Hai legal dispute continues

Written by SUN contributor on . Posted in Community News, Holmes Beach.

MANATEE COUNTY – A court has ruled in favor of the city of Holmes Beach’s quest to stop the use of a lounge and bar installed without proper permits at the Bali Hai Beach Resort. Unfortunately for the city, the ruling was open-ended, at least for 30 days.

Manatee County Circuit Court Judge Charles Sniffen heard arguments from attorney Erica Augello for the city and attorney Michelle Grantham representing the Bali Hai’s ownership. The ruling involves the city’s motion to dismiss a counterclaim from the resort owners.

Sniffen ruled in favor of the city’s motion to dismiss but with the stipulation that the resort’s attorneys have 30 days to amend the counterclaim and resubmit it for consideration by the court.

In the counterclaim, Bali Hai’s owner alleges that the city’s demand for a site plan and that service stop until the site plan is approved at the onsite bar/lounge is financially damaging the resort, which was installed without permits from the Holmes Beach building department. The resort’s owner is seeking financial relief from the city and requested a trial in the amended counter-complaint filed April 26, alleging breach of contract.

During the Aug. 5 hearing, Grantham presented a letter from city attorney Patricia Petruff stating that city leaders would work with the resort to allow service to hotel guests to continue at the onsite lounge if the resort’s owners submitted a site plan for approval by city leaders and all applicable fees. Grantham said her client submitted the requested site plan despite believing it’s not necessary for the use of the lounge and that the letter constitutes a contract between her client and the city.

The lounge, along with other construction work done on the resort property, has been a point of contention between city leaders and the resort’s owner for more than a year due to no permits being applied for or given by the city’s building department for the work. The changes on the property also require a site plan approval under city code, which has not been given by city commissioners due to ongoing issues with the site plan submitted by the resort’s representatives. The resort’s representatives have argued since early 2020 that a site plan approval is not needed for the lounge and that it was an existing use on the property. City representatives have said the lounge was not an existing use and needs approval in order to operate legally.

Despite the ongoing issues, the resort’s lounge has continued to operate, leading to the city’s lawsuit against the resort owner to stop the use of the lounge and the sale of alcohol on the property until the site plan can be approved.

When ruling on the city’s motion to dismiss the amended counterclaim with prejudice, Sniffen said he does not see any evidence from what was presented that the city entered into a contract with the resort or how the resort’s representatives providing a site plan for approval would benefit the city. He added that for it to be a contract, the city would need to benefit in some way from the agreement.

Instead of dismissing the counter-complaint with prejudice, which would prevent the resort’s attorneys from resubmitting the claim for reconsideration by the court, Sniffen gave Grantham 30 days from the date of the hearing to amend the countercomplaint and resubmit it for a future hearing.

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Bali Hai owners receive code fines

Bali Hai owners receive code fines

Written by SUN contributor on . Posted in Community News, Holmes Beach.

HOLMES BEACH – The fight for compliance with city codes is still ongoing between the owners of the Bali Hai Beach Resort and city leaders. Now, the owners of the resort are going to have to pay fines until the issues are resolved.

Two cases against the hotel ownership were heard during a June 11 code compliance special magistrate hearing. One concerned work being done without a permit and the second was the operation of a bar/lounge without an approved site plan.

Though no one appeared on behalf of the owner to argue the case, the attorney for the city, Erica Augello, said she received an email from attorney Louis Najmy during the hearing objecting to Special Magistrate Michael Connolly not granting a continuance to the two cases and objecting to not being able to attend the hearing held at Holmes Beach City Hall by Zoom or teleconference. In his email, Najmy also said he had previously requested discovery by the city, which he had not received.

Connolly said he was not inclined to grant a continuance for the case, while code Officer James Thomas said he’d spoken to Najmy several times in previous weeks about the hearing and issues at the property.

In his case submittal, Thomas said he’s viewed construction work being done on the second level of a small accessory building on the property multiple times without permits since 2020. Previously, Connolly ruled against the property for completing demolition work in the same space without permits. Now, Thomas said that space has been rebuilt and is being occupied as an office without permits and without inspections to make sure the area is safe.

In addition, a bar/lounge is being used on the bottom floor of the same building without an approved site plan in violation of city codes. While the resort’s owners have submitted site plans to the city over the past year, Building Official Neal Schwartz said issues still persist with the site plan submittals. Though one was scheduled to go before city commissioners for approval earlier in 2021, the item was pulled from the commission’s agenda by the applicant to make changes. It has not yet been resubmitted to be scheduled for a public hearing.

In addition to the bar/lounge operating without an approved site plan, Thomas said he’s received numerous complaints from neighbors about noise and other issues related to the bar/lounge use on the property.

During public comment, a neighbor to the Bali Hai, Jeanetta Moss, said that since the new owners took over the property she’s had problems with loud parties, drunk people and people trespassing on neighboring residential properties.

“The Bali Hai has not been a good neighbor since the renovations occurred,” Moss said. “I hope they will be compliant and be the good neighbor it once was.”

In both cases, Connolly ruled against the resort’s ownership, requiring them to pay $127.24 in administrative fees and $500-a-day fines until the resort is in compliance with city codes in each case, resulting in a $1,000-a-day fine for the owners. He also ordered the owners to obtain after-the-fact permits for all work done without a permit, cease all operations of the bar/lounge until the property is brought into compliance and for them to schedule a public hearing for the site plan approval by the end of June with city leaders.

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Written by SUN contributor on . Posted in Community News, Holmes Beach.

HOLMES BEACH – Talks between the property owners at the Bali Hai Beachfront Resort and city leaders are planned to continue at a future meeting and it looks like both parties are moving closer to an agreement.

During a Feb. 23 work session, discussions on the proposed Bali Hai site plan amendment continued, with Assistant City Planner Austin Doles giving a presentation on what the property owners would like to do and how she recommends city leaders respond. And while city commissioners and attorney Louis Najmy, speaking on behalf of the resort’s owners, are closer to an agreement, there are a couple of sticking points where the two parties are not seeing eye to eye, primarily concerning how the resort should operate until the site plan is approved.

City staff suggested the unpermitted bar/lounge and spa on the premises at the Bali Hai should cease operations until the site plan amendment is approved, permits are received, the property passes all inspections, and receives a certificate of occupancy for those areas.

Najmy said it’s unfair of the city to request the bar/lounge and spa operations to cease while the details of the site plan are worked out with city leaders. He argues that the bar/lounge area was a pre-existing use on the property. Brisson said he’s been unable to find any permits, business tax receipts, or other records that prove the bar/lounge was in use prior to the current owners opening it. Mayor Judy Titsworth said her father built the property and the area underneath the old owner’s apartment currently being used as a bar/lounge for guests was previously an entertaining space for the prior owners.

Najmy also argued that his clients have put millions of dollars into the property to try and make it a five-star establishment. Commissioner Jayne Christenson said it would have benefitted his clients to present their plans to the city for approval before investing to make sure that their vision for the Bali Hai resort could be accommodated in the residential zone where the property is located.

While commissioners said they don’t want to prevent the resort from being profitable for its owners, they have to consider the surrounding residential neighbors and what’s allowed in the beachfront district when approving the site plan, particularly since construction work was completed and amenities were added without prior approval from the city or permits being applied for.

And while discussions ended Feb. 23 at an impasse, commissioners agreed to move the proposed site plan forward to a regular meeting and public hearing in the hopes of getting more input from the resort’s neighbors. Commissioners also hope to reach an agreement with the resort’s owners before a case seeking an injunction to stop operations at the resort until a new site plan is approved moves forward in Manatee County Circuit Court.

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Bali Hai site plan review hits a snag

Written by SUN contributor on . Posted in Community News, Holmes Beach.

HOLMES BEACH – City commissioners are willing to go to the table with the owner of the Bali Hai Beach Resort, but they still have questions about the submitted site plan currently under review.

Issues between the resort’s owner, local developer Shawn Kaleta, and the city arose in 2020 when code compliance officers and the building official discovered unpermitted work being done on the property along with a bar and lounge being operated without a site plan approval from the city. Despite a stop-work order, a pending case in Manatee County Circuit Court and an ongoing code compliance case before the special magistrate, photos presented to city commissioners during a Jan. 26 work session show that construction work continued at the property along with the continued operation of the bar and lounge area.

Assistant City Planner Austen Dole presented the proposed site plan amendment given to the planning and building departments by Bali Hai representatives, noting that in addition to the other unpermitted areas, two small spa service rooms had been constructed in the laundry building, also without permits from the city.

While the site plan is being considered by city leaders, Dole said staff recommends that all operations on the property cease until the proper permits can be approved. Despite the argument submitted by the resort’s representatives, City Planner Bill Brisson said that in records dating as far back as 1998 he couldn’t find any prior use of a bar or lounge existing on the property.

Attorney Erica Augello said that part of the issue is that the bar and lounge area is still operating despite the ongoing litigation and code violations. Mayor Judy Titsworth said she wanted commissioners to go ahead and start the site plan review process to hopefully bring a quick conclusion to the issues between the city and resort owner. To that end, she encouraged commissioners to carefully consider the site plan presented, what questions they have for the resort’s representatives and what conditions they would like to apply to the site plan approval, such as not allowing wedding festivities, including receptions, to take place at the Bali Hai due to its location amidst residential properties along Gulf Drive.

“We do want him to be successful,” Titsworth said of Kaleta and his venture with the Bali Hai, “but we do want him to play by the same rules everyone else plays by.” She noted that the property has repeatedly been in violation of city codes since Kaleta took over as owner.

City Attorney Patricia Petruff recommended commissioners submit their stipulations for site plan approval to city staff to be written up in some form for discussion at a future work session. Commissioners agreed to readdress the issue at their Feb. 23 work session. No representatives from the Bali Hai were present during the Jan. 26 work session meeting.

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Written by SUN contributor on . Posted in Community News, Holmes Beach.

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.

A photo taken in January shows the partially demolished state of the upstairs section of a two-story accessory building at the Bali Hai. – Submitted

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.

This photo, submitted into evidence during an Aug. 21 hearing, shows the state of the lower floor of the accessory building, seemingly being used for storage in late January. – Submitted

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 code compliance officers revisited the property in March, they noticed a large change in the bottom floor of the accessory building, primarily that work had been done without consulting the city and that it was now open as a bar and lounge. – Submitted

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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Special magistrate rules on seven code issues

Written by SUN contributor on . Posted in Community News, Holmes Beach.

HOLMES BEACH – Attorney Michael Connelly had his hands full on Aug. 19 when he reprised his role as the city’s special magistrate, hearing seven code compliance hearings in one day.

The first case involved cabanas, wood decking and electrical work at the recently renovated Anna Maria Beach Resort, 6306 Gulf Drive, formerly known as the Blue Water Resort. Code Compliance Supervisor James Thomas presented evidence, along with Building Official Neal Schwartz, that there were no permits filed or issued for the poolside cabanas, the electrical work or the wood decking by the pool. Speaking on behalf of the owner, attorney Aaron Thomas said that his client was attempting to work with the city to correct the issues. Connelly ruled that there was a violation on the wood decking and electrical work and gave the owners 21 business days to provide requested supplementary data. The city has 10 days after that to review the data and determine the next steps, if permits can be issued or if a full site plan review needs to take place. Joseph Varner, of Anna Maria Vacations in Holmes Beach, is listed as the Blue Water Resort AMI LLC’s manager by the Florida Division of Corporations.

The second case involved a home owned by 305 73rd LLC at 305 73rd St. that had been tagged as a dilapidated and unsafe structure. Developer Shawn Kaleta is listed as manager. Thomas said the first notice of violation was posted at the home, which was then open to the elements in a state of construction with an overgrown yard and building materials scattered across the property.

Thomas said it took until Aug. 3 for the structure to be boarded up against intrusion and it was the city that hired the contractor to complete the work. Schwartz said that before the property was seemingly abandoned, there was an active permit to replace the roof, but that construction had clearly gone beyond the scope of work with the entire building gutted. He issued a stop-work order on the property and has been working with the contractor on the project, whom Schwartz said has neglected to turn in proper paperwork to have the stop-work order removed.

Special magistrate rules on seven code issues
Attorney Michael Connelly serves as the Holmes Beach special magistrate during a series of code compliance hearings Aug. 19. – Submitted | Sun

Connelly ruled that the property owner has 30 days from the date of the hearing to obtain a permit and begin either rehabilitation or demolition of the structure. He also ordered a fine of $250 per day beginning on Aug. 19 and that the owner pay $127.24 in administrative costs.

Two cases were heard in one hearing, both of them involving the Bali Hai Beach Resort, 6900 Gulf Drive. The first case involved work being done on a small building on the property without a permit and the second for alcohol sales on the premises without an approved site plan. Connelly ruled that there was a change in use on the property without an approved site plan and that work was done without a permit and construction work was done with an outstanding stop-work order issued.

Connelly gave Shawn Kaleta, listed as manager of Bali Hai JV LLC, 30 days to obtain permits and start construction on the property and 30 days to obtain the necessary site plan approvals. He ordered Kaleta to pay $127.24 in administrative fees for both cases and said he would schedule a hearing to impose fines once the structure is brought into compliance.

Kaleta came under fire again in the final three hearings, which were combined into a single hearing. The property in question this time was The Anna Maria Island Inn, previously known as the Pirate’s Den, at 3501 Gulf Drive. The code issues Thomas said he found with the business include renting vacation rental units without vacation rental certificates (VRC), work done without permits and a zoning violation for renting units daily in an R-4 zone, where rentals must be seven days or more.

Part of the case presented by the city involved two bottom floor units that Schwartz said were constructed in a previous storage area without permits and below allowable elevation for the area under the Florida Building Code for the time when the building was first erected.

The attorney for the owner, Louis Najmy, argued that the property was purchased during the COVID-19 pandemic and that the two bottom floor units were already in place and that the property has a history of renting units for a single night. He added that the rentals are taking place with VRCs in place, but that the VRCs aren’t in the current owner’s name. He said that the bottom two units have ceased to be rented until an agreement could be reached with the city but that the remaining units have guests and future reservations.

Connelly ruled that there were multiple violations on the property and ordered that the signage and advertising be changed to remove the daily rental option. He also gave 30 days for the owner to obtain permits, complete work for A/C units that were installed incorrectly, and remediate the bottom units, returning the area to storage space. He ordered the owner to pay $127.24 per case but no fines unless the property isn’t brought into compliance within the specified amount of time. He also ordered that the remaining units cannot be rented until new VRCs can be obtained in the current owner’s name. The VRCs cannot be issued by the city until the property is brought into compliance and the stop-work order issued for the A/C units and plumbing work done without a permit is removed through proper permitting.

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Written by SUN contributor on . Posted in Community News, Holmes Beach.

MANATEE COUNTY – Manatee County Circuit Court Judge Edward Nicholas has recused himself from taking any action in a lawsuit involving both the city of Holmes Beach and the owners of the Bali Hai Beach Resort.

The order of recusal was completed by Nicholas on Aug. 3 and filed with the Manatee County Clerk of Court on Aug. 4. No reason was given for the recusal.

The recusal came after a July 31 order from Judge Charles Sniffen on the city’s emergency motion for ex-parte relief in the matter. The order states that Sniffen reviewed the emergency motion because Nicholas was not available and that he denied the city’s motion. Sniffen additionally ordered that the entirety of the motion and all requests for relief should be heard by Nicholas or another assigned judge on or after Aug. 3.

At press time for The Sun, the case had not yet been reassigned to another judge and a hearing date had not been set.

The case revolves around the city’s assertion that work was done at the Bali Hai without a permit and in violation of a stop-work order issued by Holmes Beach Building Official Neal Schwartz.

According to the lawsuit filed on May 22, Schwartz and Code Enforcement Supervisor James Thomas visited the property on Jan. 24 and observed extensive work being done on the property without a permit. Schwartz issued a stop-work order and notified West Manatee Fire Rescue Fire Marshal Rodney Kwiatkowski that the structure under construction also was being occupied. Kwiatkowski verbally ordered the occupants to cease, desist and vacate the premises.

Schwartz and Thomas returned to the property on March 2 and noted that additional work had been started in violation of the stop-work order. Due to the scope of the work observed, the lawsuit states that the work would require a major site plan review before it could be approved and permitted by the city.

As of the filing of the lawsuit, the city asserts that the resort is still in use and that no permits have been applied for, no site plan has been submitted for review and no certificate of completion, allowing for occupancy of the building, has been issued. As a result of the allegedly unpermitted work, a multi-purpose room was transformed into a bar/lounge area which also is a change of use.

Through the lawsuit, the city seeks an injunction to either comply with the city’s ordinances and codes or to cease use of the building where the work took place until it’s fully compliant with all building codes.

The Bali Hai is a beachfront resort with 43 rooms, a private pool and a private lounge for guests of the resort. The hotel is located at 6900 Gulf Drive in Holmes Beach.

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Written by SUN contributor on . Posted in Anna Maria Island, Community News, Holmes Beach, West Manatee Fire Rescue.

BRADENTON – West Manatee Fire Rescue commissioners had a couple of legal decisions to make when the board met Nov. 19, first to select new legal counsel and second, to decide how to move forward with a pending lawsuit.

In a unanimous vote, commissioners appointed attorney Maggie Mooney as the district’s legal counsel, replacing the retiring Jim Dye. Mooney also represents four other Manatee County fire districts.

In her first act as the attorney for WMFR, Mooney informed commissioners that a lawsuit had been filed against them in Manatee County Circuit Court and an administrative appeal in the same case also had been set for a hearing on Nov. 25 with the Manatee County Fire Code Appeals Board.

The appeals board is a seven-member volunteer board made up of local professionals. This will be the first appeals case that has gone before the board.

Mooney said that local builder and real estate investor Shawn Kaleta had filed both the lawsuit and the administrative appeal on Nov. 18, appealing a decision made by Fire Marshal Rodney Kwiatkowski to require a sprinkler system installed at the Bali Hai Beach Resort. The resort is owned and being remodeled by Kaleta. Mooney said that the administrative appeal should technically have been ruled on before a lawsuit was filed but that in this case, both had been done at the same time. Until the administrative hearing is held, she said the lawsuit cannot be heard in court.

The appeals hearing was held at Cedar Hammock Fire Rescue District’s administration building Nov. 25 after press time for The Sun.

On behalf of Kaleta’s Bali Hai JV LLC, attorney Jason Miller filed an emergency motion for permanent injunction, arguing that Kwiatkowski’s interpretation of the Florida Fire Code, requiring sprinkler system was delaying the completion of the remodel of the property at 6900 Gulf Drive in Holmes Beach. In the motion, he alleges that as a result of the requirement for fire sprinklers that Kaleta will suffer irreparable financial harm that would likely be unrecoverable.

In the lawsuit, Miller asks for declaratory relief and preliminary and permanent injunctions due to the alleged halting of construction and stopping of the permitting process related to the requirement for fire sprinklers.

The Life Safety Code, a provision of the Florida Fire Prevention Code, says that only one and two-family dwelling structures are exempt from a requirement for sprinkler systems. The Bali Hai has 48 suite and hotel room units.

The lawsuit claims that the resort can be booked for $795 per night during season and that Kaleta could suffer monetary damages in excess of $15,000 not including attorney costs.

Mooney said that if WMFR were to win the administrative appeal and have Kwiatkowski’s ruling upheld, it doesn’t mean that the lawsuit won’t go forward. She recommended commissioners authorize Chief Ben Rigney to enter into a contract for specialist litigation attorneys to fight the case. On Nov. 20, attorneys Martin Garcia and Josh Dell of The Law Firm of Matthews Eastmoore out of Sarasota were entered into the court record as attorneys for WMFR. The case has been assigned to Judge Charles Sniffen.

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