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Hunters Point dock permit challenge hearing begins

Hunters Point dock permit challenge begins

CORTEZ – A hearing is un­derway to decide whether Hunt­ers Point can build 49 docks in the canal bordering the new development.

The case pertains to the environ­mental resource permit that the Southwest Florida Water Manage­ment District (SWFWMD) issued Hunters Point developer and property owner Marshall Gobuty in June 2021.

The permit allows Gobuty to build 49 docks – or one continuous dock with 49 slips – along the pri­vately-owned canal he purchased when he bought the Hunters Point property in 2016. Construction is well underway on many of the 86 three-story, net-zero energy rated solar powered townhomes, but the docks will not be built until the permitting challenge is resolved. Many who pre-purchased Hunters Point homes did so with the un­derstanding that their home would include a dock.

The Cortez Village Marina’s ownership group is challenging an environmental resource permit issued in 2021 for the construction of the Hunters Point docks. – Joe Hendricks | Sun

In July 2021, MHC Cortez Village LLC, the Cortez Village Marina ownership group, filed a petition for an administrative hear­ing naming Gobuty’s Cortez Road Investments ownership group and SWFWMD as respondents and asking that SWFWMD be ordered to revoke the approved permit or modify it in a manner that further protects navigation.

The petition claims the Hunt­ers Point docks would increase traffic on the canal, impair vessel traffic by narrowing the navigable portions of the canal, negatively affect the marina customers’ safe use of the canal, limit the size of the vessels that can use the canal and negatively impact the profit­ability and ongoing operations of the Cortez Village Marina. The marina is located along Cortez Road West, less than a half-mile east of the Hunters Point property and upstream of the canal owned by Gobuty’s Cortez Road Invest­ments and Finance Inc. The canal borders the Hunters Point property on three sides.

The Buttonwood Inlet and Holi­day Cove RV parks are also located along the canal, east of the Hunters Point property, as are several privately owned homes. The west end of the canal passes under the humpback bridge at 127th Street West, where it connects with the Intracoastal Waterway near the Seafood Shack restaurant.

Administrative law judge Bruce Culpepper presided over the June 14-15 hearing at the SWFWMD office in Tampa on behalf of the State of Florida’s Division of Administrative Hearings. The next hearing date has not yet been scheduled.

Attorneys Susan Martin and John Fumero represented Cortez Road Investments at the hearing. Attorneys Megan Albrecht and Elizabeth Fernandez represented SWFWMD and attorneys Matthew Chait, Devon Woolard and Dan Norby represented the Cortez Vil­lage Marina.

Culpepper said the sole intent of the hearing is to determine whether the water district properly issued the environmental resource permit that allows the Hunters Point docks to be built. All parties involved agreed that the riparian rights – the right to continue using the canal for navigational pur­poses – of the marina, the marina customers, the RV resorts and those who own homes along the canal are a matter to be decided in a circuit court.

Hearing Testimony

After opening arguments by the three parties involved, Martin began presenting Cortez Road In­vestment’s case, joined at times by SWFWMD attorneys, with cross examination by the Cortez Village Marina’s attorneys.

While testifying and being cross-examined, Gobuty said the Hunters Point docks are designed to accommodate boats no longer than 25 feet, while the marina accommodates vessels as long as 35-38 feet. It was also noted the marina and storage facility accommodates approximately 350 vessels.

On June 15, Captain Dane Fleming was called as a witness for Cortez Road Invest­ments. Fleming said he navigated and mea­sured the canal on two different occasions prior to the hearing. Fleming expressed his opinion that the canal is wide enough to ac­commodate the Hunters Point docks without hindering or impeding navigation.

Fleming called into question a video previ­ously provided on behalf of the marina own­ers. He noted the captain of the boat from which that video footage was filmed was navigating on the wrong side of the canal while filming. Fleming said this resulted in camera angles that “skewed” the marina’s claims regarding visibility and the canal being too narrow for safe navigation in some areas. Fleming noted there are some areas that are too narrow for two boats to pass side-by-side, but one boat can wait in the wider area until the other boat navigates the narrower area.

Stantec ecologist and permit expert Eliza­beth Eardley helped Gobuty’s development team acquire the environmental resource permit granted in 2021. While testifying Wednesday, Eardley said the state permitting process did not require a navigational impact study because the canal is privately owned. She also testified the Hunters Point docks are designed to allow adequate remaining navigational space in the canal and are not expected to impede navigation.

When the hearing continues, SWFWMD attorneys will present their arguments re­garding the environmental resource permit being properly issued. After that, the Cortez Village Marina attorneys will present their arguments.

Ownership and riparian rights

Even though riparian rights will not be determined during the administrative hear­ing, testimony was still given pertaining to the history and ownership of the canal.

Hunters Point dock permit challenge hearing begins
The canal area directly west of the Cortez Village Marina is owned by Cortez Road Investments and is also utilized by canal-side homeowners and the Buttonwood Inlet RV Resort. – Joe Hendricks | Sun

When testifying on behalf of Cortez Road Investments, attorney and property title expert Adron Walker said the man-made Hunters Point canal did not exist when Florida was granted statehood in 1845, thus the canal’s submerged lands are privately owned and are not state-owned submerged sovereign lands. Walker also testified that the man-made canal did not exist when the property now known as Hunters Point was first platted in 1921.

During Walker’s testimony, property cards and images from the Manatee County Property Appraiser’s Office were displayed. One property card shows the Hunters Point-owned canal that extends from 127th Street West to the western boundary of the Cortez Village Marina property. Walker said he could not locate any easements or usage agreements ever granted to the marina or any other potentially impacted upland prop­erty owners regarding their right to use the privately-owned Hunters Point canal.

Hunters Point dock permit challenge hearing begins
According to this property card image, the canal area highlighted in blue is owned by developer Marshall Gobuty’s Cortez Road Investments and Finance Inc. -Manatee County Property Appraiser | Submitted
Hunters Point dock permit challenge hearing begins
The canal area highlighted in blue is owned by Marshall Gobuty’s Cortez Road Investments and Finance Inc. as part of the triangular-shaped Hunters Point property. – Manatee County Property Appraiser | Submitted

Walker referenced another property card which revealed the portion of the canal located directly in front of the marina is not owned by the marina but is owned by the Cipriani family trust that previously owned the Hunters Point property and canal. Walker also said he’s not aware of any use agreement between the marina and the Cipriani family trust for the use of that por­tion of the canal.

Hunters Point dock permit challenge hearing begins
According to this property card, the canal area in front of the Cortez Village Marina (highlighted in blue) is owned by the Cipriani family trust. – Manatee County Property Appraiser | Submitted
Hunters Point dock permit challenge hearing begins
Located in front of the Cortez Village Marina, the canal area highlighted in blue is owned by the Cipriani family trust. – Manatee County Property Appraiser | Submitted

Walker said the only existing right the marina and the other upland owners might have would be a prescriptive easement granted by a court. Walker said a declaration of that nature usually requires an existing historic use of at least 20 years.

Martin noted the original petition for hearing states the Cortez Village Marina has operated in its current configuration since 2008. The petition also notes that site has been used as a marina since at least the 1990s.

Recent lawsuits

In late May, Cortez Road Investments filed a civil lawsuit in the 12th Judicial Circuit Court in Manatee County seeking to prohibit the marina and its clients from using the Hunters Point canal.

The lawsuit seeks a permanent injunction that would prohibit Cortez Village Ma­rina clients and employees from using the privately owned Hunters Point canal. The lawsuit notes the canal was constructed in the 1950s.

In early June, Cortez Road Investments filed a separate lawsuit against upland canal-side property owners Jonathan and Sheila Graham, Mark Ibasfalean, Jacquelyn Shepa­rd, Mary Norman, Timothy Fitzpatrick and Wendy and George Kokolis. That lawsuit complaint states those property owners have constructed and are maintaining docks, lifts and other structures on and in the Hunters Point canal without the property owner’s authorization. The complaint notes that the Cortez Village Marina petition contends, in part, that the existing docks that extend into the Hunters Point canal could impede navigation for the marina customers.

“This has left plaintiff (Gobuty/Hunters Point) with no choice but to file this suit against defendants,” according to the lawsuit complaint.

The lawsuit seeks the removal of the named property owners’ docks, lifts and other structures located in the canal.

Hunters Point developer sues Cortez Village Marina

Hunters Point developer sues Cortez Village Marina

CORTEZ – Hunters Point Resort & Marina has sued the neighboring Cortez Village Marina to keep it from using a canal where Cortez Village Marina claims Hunters Point should not be allowed to build new docks.

The Hunters Point property under development on Cortez Road West includes 86 three-story, net-zero energy use solar-powered townhomes, many of which are expected to have private docks along the canal that surrounds the Hunters Point property on three sides.

Hunters Point developer files lawsuit against Cortez Village Marina
This model of the Hunters Point development includes the canal that surrounds the property on three sides. – Joe Hendricks | Sun

Hunters Point is about two-tenths of a mile west of the Cortez Village Marina and boat storage facility at 12160 Cortez Road W.

Boca Raton-based attorney Susan Roeder Martin filed the lawsuit in the 12th Judicial Circuit Court in Manatee County on May 26. The civil case has been assigned to Judge Charles Sniffen. As of Friday, the defendant’s attorney had not filed a response to the complaint.

Injunctions sought

The complaint states that Marshall Gobuty’s company, Cortez Road Investments and Finance Inc., owns the Hunters Point property, including the canal constructed the 1950s and purchased by Gobuty in 2016.

The lawsuit seeks a temporary injunction, followed by a permanent injunction, to prohibit the Cortez Village Marina, owned by MHC Cortez Village LLC, from using the private canal surrounding the Hunters Point property.

Marina customers use the canal to access the Intracoastal Waterway (ICW) near the Seafood Shack restaurant, as do several homeowners who live on the canal. The lawsuit does not seek to prohibit homeowners with existing county-permitted docks from using the canal.

The complaint alleges the marina is unlawfully using the canal without the authorization of the property owner, and that the marina owners are encouraging customers to unlawfully enter the canal by advertising that those who lease marina slips can use the canal to access the ICW.

“There are no easements, licenses or other use authorizations for navigation dedicated to the Cortez Village Marina or the general public found in the chain of title,” according to the complaint. “The public records of Manatee County do not indicate that any additional rights to build docks, tie up boats or utilize the private canal were granted to defendant’s predecessors or to the public. Therefore, defendant’s use is limited to a single dock with but one boat.

“MHC Cortez Village has led its 350 patrons to believe that they can lawfully utilize the private canal to access the Intracoastal, as is evidenced in its marina brochure,” Martin stated in an email that included the lawsuit complaint.

Hunters Point developer files lawsuit against Cortez Village Marina
Several homeowners own docks along other areas of the canal. – Joe Hendricks | Sun

When the proposed Hunters Point development was being approved by the Manatee County Commission in 2017, several residents who own docks along the canal voiced concerns about losing the use of the canal.

In response, Gobuty’s attorney, Caleb Grimes, said, “We don’t believe anybody with a current dock has anything that is improper. These people have the right to use them as they have historically used them.”

Dock permitting challenge

MHC Cortez Village LLC filed a petition for an administrative hearing in July 2021 against Cortez Road Investments and Finance Inc. and the Southwest Florida Water Management District (SWFWMD) challenging the district’s issuance of a permit allowing Hunters Point to build docks in the canal.

The petition claims the construction of the new docks would significantly increase and impair vessel traffic in the canal, negatively affecting Cortez Village Marina users’ ability to safely navigate the canal and affecting the marina’s profitability and ongoing operations.

Hunters Point developer files lawsuit against Cortez Village Marina
The canal along the Hunters Point property is used by marina clients and neighboring homeowners. – Joe Hendricks | Sun

The petition requests the dock permit be revoked or modified to protect the marina’s riparian rights and navigational interests.

In December, Hunters Point Vice President of Development Ashley Klearman sent a construction update letter to those who purchased the Hunters Point homes about to be constructed.

“MHC is arguing the proposed docks hinder the navigation of the canal, even though the proposed docks have been designed to provide as minimal an intrusion into the canal as possible and are in full compliance with all local, state and federal rules and regulations. It is our legal team’s position that this petition is without merit and that SWFWMD correctly issued the permit,” Klearman stated in her letter.

According to Gobuty, the administrative hearing is scheduled to take place on Tuesday, June 14.

Boat lift installation

In another canal-related matter, Hunters Point sent a cease and desist letter to George and Wendy Kokolis on May 17 regarding the boat lift being installed at their undeveloped lot on the canal directly across from the Hunters Point property. The Kokolis’ lot is next to the residence they own at 4317 126th St. W.

Hunters Point developer files lawsuit against Cortez Village Marina
A cease and desist letter was issued regarding the installation of a boat lift on the canal across from the Hunters Point property. – Joe Hendricks | Sun

“It has come to my attention that you are building a dock/boat lift on Cortez Road Finance and Investments’ private canal. This letter is to advise you to immediately cease construction and to remove the works that you have already placed on my client’s private property. If you do not immediately remove your facilities, we will file suit and seek damages from you. We will also request attorney’s fee and costs,” Martin stated in her letter.

As of late last week, the boat lift had not been removed.

Hunters Point construction continues despite dock challenge

Hunters Point construction continues despite dock challenge

UPDATED Feb. 28, 2022, 1:28 p.m. – CORTEZ – Construction has begun on two homes along the canal of the Hunters Point Resort & Marina property, but the developer says that docks are not planned for those homes.

Last July, MHC Cortez Village LLC, owners of the nearby Cortez Village Marina and boat storage facility, challenged a dock permit issued by the Southwest Florida Water Management District (SWWMD) to Hunters Point. MHC filed a petition for an administrative hearing naming developer Marshall Gobuty’s Cortez Road Investments and Finance Inc. ownership group and SWFWMD as respondents.

Hunters Point construction continues despite dock challenge
Construction of the first Hunters Point home along the eastern edge of the property began in December and had progressed to this point as of last week. – Joe Hendricks | Sun

“The approval of the permit and the ultimate construction of the proposed new dock(s) will significantly increase and impair vessel traffic in the navigable canal, while further decreasing the narrow navigable fairway width,” the petition states.

“Other than the first four homes on the west side that do not have docks, the homes on the west and northwest sides of the property are all under the petition and can’t be started,” Gobuty said. “The interior and the east side is where our homes will go up over the next 12 months. We don’t see a resolution on the west and northwest sides until early 2023.”

In December, Hunters Point Vice President of Development Ashley Klearman sent a letter to buyers who had purchased homes to be constructed in the Hunters Point community.

Hunters Point construction continues despite dock challenge
Construction has begun on two Hunters Point homes located alongside the western portion of the navigation canal that borders the property. – Joe Hendricks | Sun

“MHC is arguing the proposed docks hinder the navigation of the canal, even though the proposed docks have been designed to provide as minimal an intrusion into the canal as possible and are in full compliance with all local, state, and federal rules and regulations. It is our legal team’s position that this petition is without merit and that SWFWMD correctly issued the permit,” Klearman stated in her letter.

In December, construction began on the first Hunters Point home, along the eastern edge of the property. Gobuty said then that the administrative challenge could delay the construction of some homes.

When contacted last week, Gobuty said the previously delayed administrative hearing is now scheduled for June 14 and 15.

The development plans approved by Manatee County allow for the construction of 86 net-zero energy use homes that will be equipped with solar panels and storage batteries. The development plans include a small marina and 47 docks to be constructed along the navigation canals adjacent to the Hunters Point property on three sides.

Hunters Point faces dock permit challenge

Hunters Point faces dock permit challenge

CORTEZ – The construction of the first Hunters Point Resort & Marina home is underway, but developer Marshall Gobuty is facing a dock-related permitting challenge from a neighboring marina owner.

Development plans for Hunters Point, located on the north side of Cortez Road east of the Cortez Bridge, allow for the construction of 86 single-family homes equipped with solar panels and storage batteries that Gobuty says will result in the homes producing more electricity than they use.

The plans also include a small marina and 47 docks to be constructed along the navigation canal that borders the property to the west, north and east.

Hunters Point faces dock permit challenge
Construction of the Hunters Point single-family homes is now underway. – Joe Hendricks | Sun

In late July, the Cortez Village Marina (MHC Cortez Village LLC) filed a petition with the Florida Division of Administrative Hearings to revoke a permit that the Southwest Florida Water Management District (SWFWMD) issued to Hunters Point (Cortez Road Investments and Finance/CRIF).

Hunters Point faces dock permit challenge
The owner of the nearby Cortez Village Marina and boat storage facility oppose the state-issued dock permit. – Joe Hendricks | Sun

The marina alleges that permitting the development’s new docks will hinder boat traffic for marina customers and nearby private property owners who also use the canal.

“Petitioner requests SWFWMD deny the application for, or revoke, the permit; or in the alternative, modify the permit to protect petitioner’s riparian rights and navigational interests,” according to the marina’s petition.

“It is our legal team’s position that this petition is without merit and that SWFWMD correctly issued the permit,” according to a construction update letter that Hunters Point recently sent to home purchasers. “Accordingly, CRIF is committed to fighting the permit revocation and moving forward with the development as originally planned. While CRIF expects to prevail at the hearing in March, this will still cause considerable delays to the commencement of construction of a portion of the development, other than infrastructure.”

Gobuty said his initial discussions with marina representatives produced no resolution to the dock permit dispute.

Hunters Point faces dock permit challenge
This diagram included in the petition for administrative hearing illustrates the canal locations and the locations of the 86 single-family homes to be built. The westernmost part of the canal is located at the top of the image. – Cortez Road Investments and Finance Inc. | Submitted

In the letter to buyers, Gobuty said 76 of the 86 homes have already been purchased, including many along the western canal now subject to the permitting challenge. Construction of the 20 homes along the canal at the western edge of the property remains on hold until the permitting dispute is resolved, he said, adding that construction along the eastern and central portions of the property will proceed.

The Hunters Point homes are currently selling for slightly less than $1 million each, he said.

The letter states that CRIF has obtained final site plan and construction plan approval from Manatee County and is pursuing multiple other development approvals at the local and state levels, including the final subdivision plat for the project.

“There has been an unfortunate delay with a key permit at the state level, specifically, the permit for the construction of the Hunters Point docks,” the letter states. “On March 15, CRIF applied to the Southwest Florida Water Management District for an environmental resource permit to construct the Hunters Point docks surrounding the development site. On June 29, SWFWMD acknowledged the application was in full compliance with all applicable rules and regulations and granted the permit to CRIF without limitation or restriction. With the final site plan approval and SWFWMD permit in hand, and the site cleared and graded, CRIF was planning to commence construction of the Hunters Point project two months ago.”

Gobuty said SWFWMD did deny two of the 49 docks sought, which were to be located along the western portion of the canal, noting that the height of the bridge near the Seafood Shack restaurant and the western end of the Hunters Point property that provides access to the Intracoastal Waterway limits the size of the vessels that can pass beneath it.

Hunters Point faces dock permit challenge
Several residential docks already exist along the westernmost portion of the navigation canal that surrounds the Hunters Point property. – Joe Hendricks | Sun

“We’re behind schedule, but the good news is you can see all the work that’s going on here now. We’re coordinating our infrastructure at the same time as going vertical on the construction of the homes,” he said.

An administrative law judge is expected to enter a recommended order about 90 days after the requested hearing takes place, according to the letter, which states that the parties will have an opportunity to respond to the recommended order for 90 more days, which could delay the construction of the westernmost homes until next September.

The letter also notes the marina’s owner, MHC, could file an appeal with the circuit court if the developers prevail in the administrative hearing process.

“You should be aware that MHC is owned by Equity Group Investments, founded, and chaired by the multi-billionaire, Sam Zell, so it has the financial backing to take this battle into the courts. Furthermore, despite our confidence that CRIF will persevere, there is always the possibility that the outcome of an administrative hearing or court process could be unfavorable,” the letter states.

Hunters Point faces dock permit challenge
Developer Marshall Gobuty presented his development plans to Manatee County commissioners in December 2017. – Joe Hendricks | Sun

The letter also addresses the worldwide material shortages, labor shortages, supply chain interruptions and increased costs developers are experiencing. The letter states these challenges are as serious, if not more serious, than the dock permit dispute and are not expected to be resolved until next summer at the earliest.

The letter advises buyers that if the dock permit challenge and the material and labor shortages persist, the developers may be forced to extend the time needed to construct some homes and/or boat slips.

Related coverage

 

Canal ownership presents unique situation

 

Hunters Point development approved

 

Revised Hunters Point plans increase home size