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Tag: Coconuts Beach Resort

Fines levied for Coconuts owners

Fines levied for Coconuts owners

HOLMES BEACH – Special magistrate Michael Connolly isn’t pulling any punches when it comes to renting vacation rental units for a shorter amount of time than is required by city codes.

During a Jan. 19 code compliance special magistrate hearing, Connolly found violations against the owners of several units at The Coconuts, a beachfront vacation rental complex, some of which received fines during the hearing.

Representing owner Flehd Property Service Advertising and Management Inc. at the hearing was Emily Werner. In the case of unit 105/104A, Werner said a notice of violation from code compliance officers was received on Dec. 8 and all bookings of less than seven nights were corrected beginning Dec. 9, though she was unaware that any existing bookings of less than seven days needed to be canceled. Werner added that now she is aware of the issue, the remaining existing bookings for less than seven nights were being canceled or amended to meet the city’s requirements.

Connolly found a violation in the case and assessed administrative costs of $127.24 but didn’t grant the city’s petition to assess a daily fine.

In the case of unit 103/102B, owned by Flehd Modern Inc., Connolly found that renting for less than seven nights was a repeat violation and assigned a fine of $250 per day from Dec. 9 for the days that the property violated the city vacation rental certificate ordinance and costs of $127.24.

For unit 110/203A, attorney Louis Najmy took to the podium, along with co-counsel Michelle Grantham, to represent owner 100 73rd 203A LLC. The case brought before Connolly was a repeat violation for an improper length of stay, less than seven nights. Najmy argued that his client had made every effort to extend all of the existing reservations to seven nights to meet city codes and that now the rentals at the unit comply. He and Grantham also argued that improper notice of the code hearing was given, despite code officers stating under oath that notices were posted at the property and hand delivered to Najmy’s law office.

Connolly refused Najmy’s motion for continuance and found that the property violated city codes, assessing a $500 per day fine from Dec. 18-Jan. 19.

The case of an alleged repeat violation at unit 118/202C at The Coconuts was a little more complicated. The unit is owned by 100 73rd Street 202C LLC. The renters that code compliance officers spoke to rented the unit for a seven-day/six-night rental, which Najmy said he believes complies with city codes.

Connolly required an interpretation from City Planner Bill Brisson on city codes. Brisson said the code would require a seven-night stay, not seven days, leaving it as a violation for the property to be rented for six nights/seven days.

Najmy argued that the paperwork provided by code compliance officers specified seven days and that his client had attempted to come into compliance and believed that they were within the seven-day stays booked at the unit.

Brisson said the code had been interpreted as seven 24-hour periods, technically eight days, since 2007. Najmy said he wouldn’t argue about the interpretation of the code but would like clear direction from the city’s representatives on what rental terms would be compliant so that his clients could make sure they comply with the VRC’s requirements going forward.

Speaking on behalf of the city, attorney Erica Augello said that looking on the rental agency’s website, AMI Locals, the unit was listed as available for a two-night minimum stay, well below the seven nights required by the VRC, which violates the advertising requirements of the code.

Connolly found the property in violation of the ordinance and assessed a fine of $500 per day from Dec. 22 until the property and its advertising are brought into compliance.

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Coconuts owner faces off with city code officers

Builder and city head back to court

Builder, city head back to court

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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Coconuts owner faces off with city code officers

Coconuts owner faces off with city code officers

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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