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Treehouse lien reduction denied again

Treehouse lien reduction denied again

Written by Joe Hendricks on . Posted in Community News, Holmes Beach.

HOLMES BEACH – By a 3-2 vote, city commissioners have denied a second request to reduce the treehouse-related $188,621 code en­forcement lien the city placed on the Angelinos Sea Lodge.

Owned and operated by Holmes Beach residents Lynn Tran and Richard Hazen, the beachfront resort is located at 2818 Avenue E.

The lien is the result of the $125-per-day code enforce­ment fine the resort owners incurred for 14 years while contesting the city’s request to remove the beachfront treehouse that was built without a city-issued building permit. After a long, costly legal battle, the treehouse was removed on Aug. 29, 2024. At that point, the daily fines for the unpermitted treehouse stopped accumulating, but they remain unpaid.

Treehouse lien reduction denied again
The infamous Holmes Beach treehouse was removed from this tree in August 2024. – Joe Hendricks | Sun

A lien associated with an unpaid debt can prevent or delay the sale of property and in some cases enable the lienholder to take possession of the property.

Lien reduction denied

On May 27, the commission voted 5-0 against reducing the treehouse-related lien requested by Tran and Hazen, with Tran suggesting $18,000 as a reduced amount to consider.

On June 24, Tran and Hazen again asked the com­mission to reduce the lien.

Commissioner Carol Whit­more made a motion to reduce the lien to $80,000, payable within 90 days. Whitmore said she never supported the treehouse or the legal actions and expenses the city was subjected to, but she wants the long-running saga to end. Commissioner Dan Diggins seconded Whitmore’s motion.

In response to a question from Commissioner Steve Oelfke, City Attorney Erica Augello said the city spent more than $200,000 on the treehouse lawsuits and appeals.

“The city had to file an injunctive action and expend public dollars to affirmatively get a court order after several years to have the treehouse removed,” Augello said.

Oelfke said he sympathizes with the resort owners, but their decisions resulted in the legal costs incurred by the city.

“I can’t support any reduc­tion,” he said.

Commissioner Carol Soustek said she can’t support a lien reduction because Hazen and Tran chose to battle the city in court rather than work with the city to resolve the case.

“That was the choice made, so I cannot support any reduction,” she said.

Commissioner Terry Schaefer said, “The amount of the lien as a result of those accumulating fines is a direct result of a continual 14-year period of resistance. As I said at the last meeting, we hope that you can continue to be a part of our community, but to capriciously reduce our lien – when it’s a direct result of your actions, not the city’s – would make a mockery of our system and would set an ugly precedent. For those reasons, I cannot support reduction of the lien.”

Treehouse lien reduction denied again
Angelinos Sea Lodge owners Richard Hazen and Lynn Tran have twice had their lien reduction requests denied.

When addressing the com­mission, Tran said, “We didn’t do the treehouse out of malice.”

She said the building official at that time told them they didn’t need a permit for the treehouse and they later spent $19,000 in an unsuccessful effort to obtain an after-the-fact building permit.

Regarding the lengthy legal battle, Tran said, “We listened to our at­torney. Please don’t say we chose to be in court for 14 years.”

Mayor Judy Titsworth said, “The choice to appeal was your choice. Unfortunately, 14 years added up. You knew that it was a daily fine but you continued to fight. I’m sorry, but it’s the consequences for the choices that were made.”

Diggins said, “I’m just looking at it from a compassionate point of view. $80,000 is a lot. $188,000 is a lot more. We’re not disputing the validity of the fines. We’re not disputing the lien. We are saying be compassionate to help a citizen.”

“This is a lot of money. I don’t think anyone up here today can write a check for $180,000,” Whitmore said.

Whitmore’s motion failed with a 3-2 vote, with commissioners Oelfke, Schaefer and Soustek opposing the lien reduction.

Soustek then made a motion to deny the lien reduction and that motion passed by a 3-2 vote, with Whitmore and Diggins in opposition.

Vacation rental fines

Tran and Hazen continue to incur a separate $125-per-day fine for operat­ing their resort without a city-issued vacation rental certificate. Those fines now total approximately $190,000.

Treehouse lien reduction denied again
The hurricane-damaged Angelinos Sea Lodge structures closest to the Gulf remain boarded up. – Joe Hendricks | Sun

On May 27, Augello said the resort owners could have applied for a vacation rental certificate when the treehouse was removed but they didn’t; and to obtain a vacation rental certificate now, they must bring their property into compliance by temporar­ily suspending their rental activities and passing a city inspection.

Treehouse lien reduction denied again
This two-story structure is also part of the Angelinos Sea Lodge. – Joe Hendricks | Sun

“They’re not compliant because they’re continuing to rent their prop­erty in violation of code. They haven’t come into compliance,” Augello said on June 24 when Whitmore asked about the resort owners’ recent attempt to obtain a rental certificate.

Related coverage:
Treehouse fines will not be reduced

Treehouse fines will not be reduced

Treehouse fines will not be reduced

Written by Joe Hendricks on . Posted in Community News, Holmes Beach.

HOLMES BEACH – City commis­sioners rejected Lynn Tran and Richard Hazen’s request to reduce the $183,350 code enforcement lien the city placed on their Angelinos Sea Lodge property for unpaid fines related to the non-permitted construction of a beachfront treehouse on their resort property several years ago.

After the city prevailed in a lengthy and costly legal battle, the treehouse was removed from the resort property at 103 29th St. on Aug. 29, 2024, but the unpaid fines associated with that Holmes Beach code enforcement case remain unpaid.

On April 16, Tran and Hazen sent a letter to Code Compliance Chief James Thomas asking him and the city to consider waiving or reducing the $300,000 in fines they’ve accumulated to date, including more than $186,000 in additional and still running fines for offering their resort units as short-term vacation rentals without a city-issued vacation rental certificate.

Their letter cites financial hardships created by the city-imposed fines and additional financial hardships caused by Hurricanes Helene and Milton and says, “The penalties are unpayable until we can sell or die.”

On May 23, City Attorney Erica Augello sent the mayor and city commissioners a six-page memo that said, “You are being asked to consider the reduction of a code enforcement lien relative to the unpermitted construction of a treehouse structure.”

The memo says a judge imposed a $50 per day fine that started on July 22, 2015, and continued until the treehouse was removed on Aug. 29, 2024. This resulted in code enforcement fines and lien totaling $183,350.

The memo states that in 2021 the city instituted a separate code enforce­ment action against Tran and Hazen for engaging in short-term vacation rental activities at their resort without a vacation rental certificate.

According to the memo, when the treehouse was removed and the tree­house case concluded on Sept. 4, 2024, Tran and Hazen could have applied for a vacation rental certificate the next day but did not. In 2021, the couple admitted during a special magistrate hearing that they were renting their units and would continue doing so without a vacation rental certificate. The special magistrate found those rental activities violated city code and imposed a $125 per day fine that began March, 18, 2021 and remained ongoing as of last week.

“To date, the Hazens have not complied with city code and secured a vacation rental certificate even though the property is now in compliance relative to the structure (the removed treehouse). Those fines continue to accrue until the property ceases to be rented or the Hazens secure a vacation rental certificate. The fines and potential lien related to this case are not before the commission and cannot be reduced at this time, as the property is not in compliance,” Augello’s memo says.

Lien reduction denied

When appearing before the commis­sion May 27 and seeking a reduction of the treehouse lien amount owed, Tran said they came as residents, not adver­saries, and their intent wasn’t to re-argue the treehouse case.

Tran suggested possibly reducing the $183,350 treehouse lien to $18,000 and allowing that amount to be paid over time.

Commissioner Carol Soustek served in office for the entirety of the treehouse dispute and she said Tran and Hazen filed at least 14 legal actions against the city.

“That’s why the city’s legal fees are so high,” she said of the city’s legal fees that Augello said exceeded $220,000.

Treehouse fines will not be reduced
Commissioner Carol Soustek didn’t mince words when expressing her views on the unpaid treehouse fines. – Joe Hendricks | Sun

Regarding the request to reduce the treehouse fine-related lien, Soustek said, “I cannot be sympathetic to you. You had opportunity after opportunity to stop the legal action and you chose to continue. I cannot do away with that.”

Soustek said she would support the couple working out a payment plan with the city but she would not sup­port reducing the treehouse lien amount owed.

“I will not wipe one penny because it was not the city who caused this,” she said.

Regarding the vacation rental fines, Soustek asked Tran if they’re still renting out their resort units.

“I have to pay bills. Yes, I am,” Tran said. “I have chosen to violate that because we can’t be out in the street not paying bills.”

When addressing the treehouse fines, Com­missioner Terry Schaefer said, “We made it pretty clear that we’re here today because of your actions and not the city’s actions.”

The treehouse lien reduc­tion discussion ended with the commission voting 5-0 to deny the lien reduction request.

Rental violations

Augello said the issue before the commission that day pertained only to the treehouse lien and not the ongoing vacation rental fines that Director of Development Services Chad Minor said totaled $186,129 as of that day.

Augello said Tran and Hazen can apply for a vacation rental certificate anytime they want because removing the treehouse remedied that violation. She said the resort property would first have to pass a vacation rental inspection and she didn’t know if the resort property, in its current condition, would pass that inspection. Tran said she would apply for the vacation rental certificate the following day.

When contacted on June 2, Code Compliance Chief James Thomas said the couple did apply for a vacation rental certificate but the inspection hadn’t happened yet.