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Board rules in favor of Hunters Point docks

Board rules in favor of Hunters Point docks

CORTEZ – The Southwest Florida Water Management District’s (SWFWMD) governing board has adopted a final order that allows 49 residential docks/boat slips to be built along the Hunters Point canal as part of the Hunters Point Resort & Marina development.

The final order issued on May 23 in favor of Hunters Point developer Marshall Gobuty and his Cortez Road Investments and Finance Inc. (CRIF) ownership group pertains to a 2021 permitting challenge filed by MHC Cortez Village LLC, which owns the nearby Cortez Village Marina.

Board rules in favor of Hunters Point docks
Eighty-six energy homes are being built as part of the Hunters Point Resort & Marina development. – Joe Hendricks | Sun

The marina and its clients use the man-made canal built in the 1950s and purchased by Gobuty when he bought the Hunters Point property in 2016. The governing board’s ruling allows the water management district to issue the environmental resource permit CRIF first sought in 2021. The permit allows for the installation of 32 new boat slips in the canal and the replacement of 17 existing slips.

Board rules in favor of Hunters Point docks
This map illustrates where the Hunters Point docks will be located. – Cortez Road Investments | Submitted

MHC Cortez Village has 30 days to appeal the final order. If filed, the appeal would be heard either by the district court of appeal in Hernando County where the water district headquarters is located or in Manatee County where the Hunters Point property is located.

When contacted by The Sun and asked about the appeal process, the water district’s Public Information Officer Susanna Martinez-Tarokh provided the information she obtained from the water district’s office of general counsel.

“The court of appeal would review the record of the administrative proceeding and would make its decision based on the evidence in the record,” she said. “An appeal would not necessarily prevent the dock construction from starting, unless the court of appeal enters an order requiring construction to cease. However, if the court of appeal overturns the final order, the dock construction may have to be stopped.”

Gobuty told The Sun he expects MHC Cortez Village LLC to appeal the board’s final order.

When challenging the original permit issuance in 2021, MHC Cortez Village LLC was granted an eight-day hearing by Administrative Law Judge (ALJ) Bruce Culpepper. That hearing was conducted last fall on behalf of the Florida Department of Administrative Hearings (DOAH).

During the hearing, MHC Cortez Village LLC alleged the construction of the Hunters Point docks would impede navigation on the canal and negatively impact the marina clients’ ability to use the canal, which provides the only direct water access to the nearby Intracoastal Waterway. The canal provides similar access for several canal-side residential property owners who already had docks and boatlifts in place when Gobuty bought the canal.

The governing board’s monthly meeting took place at the water district’s Tampa office.

SWFWMD attorney Chris Tumminia told the board members they were engaging in a quasi-judicial process that did not allow for any new testimony or public input. Tumminia said the board’s ruling could only be based on the official records of the case they received before their meeting, including the recommended order Culpepper issued on March 7.

SWFWMD attorney Jennifer Soberal then reviewed for the board members the salient points of the DOAH hearing and Culpepper’s previous factual findings and conclusions of law, which were based on the evidence, testimony and legal arguments presented to him.

“The applicant (CRIF) and the district demonstrated by a preponderance of the evidence the applicant’s entitlement to the ERP (environmental resource permit),” Soberal said. “The applicant provided the district with reasonable assurance in its permit application that constructing the dock is not contrary to the public interest. While the administrative law judge concluded the dock project will impede boat traffic to a certain extent, competent substantial evidence and testimony further established that any impediment will not be significant. The challenger failed to carry its burden of ultimate persuasion that the ERP should not be issued to the applicant.”

Before the governing board made its ruling, the attorneys representing CRIF and MHC Cortez Village were given three minutes to address the board. CRIF attorney Susan Martin noted the permit challenge pertained to a privately-owned canal and that the Hunters Point docks will not extend more than 9% into the canal.

“Your staff testified that this development was not contrary to the public interest and would not substantially impede navigation,” she said.

MHC Cortez Village attorney Matthew Chait said, “This is a very narrow and shallow canal and, when they add docks on one side it’s obviously going to make it narrower. The judge concluded in his proposed order that boats in this canal need at least 3.5 feet of depth to navigate, but the range of depths on the non-project side tops out at 3.2 feet. There is literally not enough depth for a boat to pull off on the non-project side, which is why we asked for the permit to be modified to remove some slips.”

Board rules in favor of Hunters Point docks
The owners of the Cortez Village Marina unsuccessfully challenged a permit that allows the Hunters Point docks to be built. – Joe Hendricks | Sun

With no further board discussion, the board approved the proposed final order and the issuance of the environmental resource permit that allows the Hunters Point docks to be built.

In 2022, in response to MHC Cortez Village’s permit challenge, CRIF filed a still-pending civil lawsuit seeking a court order that would prevent Cortez Village Marina clients from using the privately-owned canal.

CRIF also filed a separate and still pending civil lawsuit against several canal-side residential property owners which alleges that their docks and boat lifts violate Manatee County code by extending more than 25% into the canal. Those property owners dispute those allegations.

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Final order expected for Hunters Point dock challenge

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.

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Canal ownership presents unique situation

 

Hunters Point development approved

 

Revised Hunters Point plans increase home size