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City staff praised for recovery efforts, flood insurance discounts

City staff praised for recovery efforts, flood insurance discounts

HOLMES BEACH – The city’s hurricane recovery efforts earned praise from FEMA representatives, and property owners will soon be eligible for 25% flood insurance discounts.

Director of Development Services Chad Minor made these announcements during the March 11 city commission meeting. He said as of that day the building department had issued 1,900 building permits since Hurricane Helene struck in late September. The city also conducted 4,344 building permit inspections to date, with Joe Payne Inc. assisting with those efforts.

Minor said permit revenues are only down about $6,600 dollars from last year even though the permit fees have been waived for hurricane-related repairs. Minor said the city’s fee waiver program will remain in effect at least until June 1.

“The building department’s doing an incredible job. There’s a lot of people that still have work to do and the mayor agrees we need to extend the fee waiver program,” Minor said.

He then noted FEMA representatives visited the building department the previ­ous week as part of their post-hurricane auditing process and focused on building permits and the city’s permitting policies and procedures.

Minor said Building Official Neal Schwartz and Building Department Office Manager and Emergency Operations Coordinator Kim Charron did a fantastic job preparing for the FEMA meeting, which he noted can be a daunting task.

“At the end of the meeting, FEMA said, ‘You guys have done everything right,’ ” Minor said.

According to Minor, the FEMA reps said they’d be sharing some of Holmes Beach’s applications and policies with other communities as an example of how to respond and proceed the proper way.

“It was my first experience with FEMA and I was a little nervous going into it, but the way we prepared – our staff, our policies and procedures – made for quite an easy meeting. We had nothing to hide and we received tremendous accolades,” Minor said, which prompted a round of applause from the commissioners and other meeting attendees.

“Don’t forget about the code compliance department as well,” Mayor Judy Titsworth added.

Minor then asked Code Compliance Chief James “JT” Thomas to join Schwartz and Charron at the podium with him.

Schwartz said FEMA was impressed with the code compli­ance department’s efforts and the many violation notices and stop work orders they issued while tracking the repair work to ensure that it was done in compliance with city, state and federal regulations.

Schwartz said the building department is still assisting homeowners and property owners with their permitting processes.

“Come on into city hall and talk to us,” he said. “We’re here for you.”

Flood insurance discounts

Minor then addressed the city’s Community Rating Service (CRS) rating that provides flood insur­ance discounts to any Holmes Beach property owner who carries a flood insurance policy issued through, or in conjunction with, FEMA’s National Flood Insurance Program.

Minor announced that on Oct. 1, the city’s current class 6 CRS rating that provides a 20% flood insurance discount is improving to a class 5 CRS rating that provides a 25% discount. This prompted another round of applause.

“The city has acquired enough points to be classified as a class 4 but we have to meet a prerequi­site of a watershed master plan. We are underway on that. Once that is complete, we will submit for reclassification, which, if approved, will result in class 4 (rating) and a 30% discount,” Minor said of the additional CRS rating improvement to be sought next year.

Minor thanked all the city staff members, including the public works department, who helped prepare the reports that led to the improved CRS rating.

“It shows the hard work pays off. This is a huge one for the city and it really should be celebrated,” Minor said, prompt­ing a third round of applause.

“You guys did great,” Titsworth said.

Commissioner Carol Soustek expressed her appreciation for the staff efforts that will provide ad­ditional flood insurance discounts to Holmes Beach property owners and Commissioner Dan Diggins said, “Thank you guys. This is wonderful news.”

Holmes Beach eliminates ‘lookback’ for substantial improvements

Holmes Beach eliminates ‘lookback’ for substantial improvements

HOLMES BEACH – Property own­ers in the city are no longer subject to a one-year lookback requirement regarding the total cumulative cost of repairs, renovations or recon­struction made to their structures.

The lookback period pertains to compliance with FEMA’s 50% substantial improvement/substan­tial damage rule.

According to the Manatee County website, “The 50% Rule is a regula­tion of the National Flood Insurance Program (NFIP) that prohibits improvements or repairs to a struc­ture exceeding 50% of its market value unless the entire structure is brought into full compliance with current flood regulations. This may include elevating the structure, using flood-resistant materials and proper flood venting.”

In a December 2024 memo to city commissioners, Director of Development Services Chad Minor and Building Official Neal Schwartz stated, “This reason for this change is to allow existing structures that need repair, reconstruction, rehabilitation, alteration, addition or other improvements not to have to wait one year from the final inspec­tion date. Due to the hurricanes, several property owners that had made improvements would have to wait to pull a permit due to this one-year lookback.”

The proposed changes to the city’s one-year cumulative calculation requirements were presented to the Holmes Beach City Commission on Dec. 17, reviewed by the planning commission on Jan. 15 and adopted in the form of Ordinance 25-01 by the city commission on second and final reading on Feb. 11.

One of the clauses contained in the new ordinance says, “The city commission, at the recommendation of staff, has determined that rescind­ing the one-year lookback period relative to the accumulation of costs regarding substantial improvements is in the best interest of the health, safety and welfare of the public and is imperative to support the city’s recovery and continued participation in the NFIP.”

The previous city ordinance contained language that referenced repairs, renovations and reconstruc­tion “taking place during a one-year period.” That language does not appear in adopted Ordinance 25-01.

The previous ordinance also contained language that said, “For each building or structure, the one-year period begins on the date of the certificate of completion or the certificate of occupancy of the first improvement or repair of that building or structure subsequent to June 27, 2019.” That language does not appear in Ordinance 25-01.

Ordinance 25-01 now defines substantial improvement as, “Any combination of repair, reconstruc­tion, rehabilitation, alteration, addition or other improvement of a building or structure, the cost of which equals or exceeds 50% of the market value of the building or structure before the improvement or repair is started. If the structure has incurred ‘substantial damage’ any repairs are considered substantial improvement regardless of the actual repair work performed.”

Staff insights

During the Dec. 17 meeting, Com­missioner Carol Soustek asked staff if the city is allowed to remove the one-year lookback requirement. She was told the city could remove the requirement.

“If we pass this on the second reading (on Feb. 11) it will be effective immediately,” Schwartz said. “In the year period, over the lookback period, we’ve had several homes that have been remodeled up to 49% or under the 50% rule. Based on the damage they have received, they would have to wait one complete year from the completion (of previous repairs and renovations). Some of these weren’t even completed yet, so they’re caught between a rock and hard place so they just have to sit there for a year to start over. I didn’t think that was fair.”

Schwartz said he contacted state floodplain management coordinator Rebecca Quinn about eliminating the one-year lookback and he was told approximately 30 other municipali­ties were in the process of doing the same thing.

Schwartz said removing the one-year lookback requirement would not affect the city’s Community Rating System rating that currently provides Holmes Beach property owners with a 20% discount on flood insurance policies issued through or in conjunc­tion with FEMA’s National Flood Insurance Program; and the CRS discount currently experienced in Holmes Beach is expected to increase to 25% on Oct. 1.

“Neal, you’re a genius. You have really altered some lives with this,” Commissioner Carol Soustek said on Dec. 17.

“Everybody knows my house was affected too. I feel for everybody,” Schwartz responded, noting that Soustek, Mayor Judy Titsworth and Commissioner Carol Whitmore were also among those displaced by the hurricanes.

Holmes Beach eliminates ‘lookback’ for substantial improvements
Director of Development Services Chad Minor assisted with the efforts to eliminate the
one-year lookback requirement. – Joe Hendricks | Sun

When presenting the ordinance for final adoption on Feb. 11, Minor said, “Due to the hurricanes, sev­eral property owners that had made improvements would have to wait to pull a permit to address this one-year lookback. This is striking that one-year lookback period.”

Schwartz said one of the goals is to prevent “phasing.”

“At the end of a permit, a permit has to be completed. You can’t go into phasing. Once you get that final (inspection), you get to start over. That is called phasing. FEMA looks very bad upon phasing. We could lose our CRS rating for that,” he said.

City leaders, resort owner face off in court

City leaders, resort owner face off in court

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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