Holmes Beach declines settlement offer for 306 Clark-Bert Harris suit

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Alana Pascoe, a Bradenton Beach annual renter, says traffic is her “No. 1 concern.” She said the cities could’ve avoided Bert Harris claims with reasonable restrictions, such as reducing vehicles parked at rental homes. Islander Photos: Kathy Prucnell
Island visitors Billy Pipkin and Mary Pipkin of Chesapeake Bay, Virginia, say rental restrictions should apply equally to all rental properties — that exceptions to local ordinances, such as raising the maximum occupancy as forged by Anna Maria’s Bert Harris claimants, shouldn’t be made. “It screams unfair,” said Billy Pipkin.
Gary Berg of Minnesota, a regular Holmes Beach winter renter, agrees with short-term rentals restrictions so residents aren’t burdened “with 16 people next to them.” About rental owners faced with lost profits from new city ordinances with occupancy limits, he said owners have property rights but “hates to see the very large rentals” take over.

The city of Holmes Beach just says no.

Commissioners rejected a proposed settlement of a 12th Circuit Bert Harris lawsuit at a Feb. 14 shade meeting.

Citing ongoing litigation, attorney Jay Daigneault said the commissioners turned down the proposal from the property owner, 306 Clark LLC, managed by Keith Carter, Emma Stringer and Claire Daley of Holmes Beach, but declined to comment further.

City attorney Patricia Petruff and Louis Najmy of Najmy Thompson P.A. of Bradenton, for the owner, confirmed the commissioners’ rejection.

Daigneault was hired by the city’s insurer to handle claims made against the city under the Bert J. Harris Jr. Private Property Rights Protection Act. The city is insured through the Florida League of Cities.

Aaron Thomas of the Najmy Thompson firm proposed the settlement in a Jan. 19 letter to city officials.

“The plaintiff is asking for a building permit to allow for the construction of a fourth bedroom and fourth bathroom for both units of the duplex,” Thomas wrote.

He stated the proposed settlement is “far less than what plaintiff asked for as part of their Bert Harris claim.”

The Bert Harris act provides a legal framework for Florida property owners to file claims against county and municipal governments, based on inordinate burdens to property rights from local laws interfering with reasonable investment-backed expectations.

In a November 2016 lawsuit, the LLC alleged a city moratorium and rental ordinance limited 306 Clark Drive to two bedrooms per duplex unit, causing $84,600 loss in fair market value.

The city had approved the duplex for three bedrooms and three baths on each side in February 2015, but denied the fourth bathroom five months later, after discovering unpermitted plumbing work.

The LLC has been seeking the building permit for the fourth bathroom for more than two years.

In 2015, 306 Clark LLC sought a court order for a fourth bathroom for both sides, alleging a Holmes Beach building official was required to issue the permit but refused. A judge sided with the city and dismissed that part of the LLC’s suit.

In court papers filed about a remaining count, the LLC and the city disagreed on the existence of an agreement to remove illegal work. The dispute was not heard and, according to the court website, the case is closed.

Among the Bert Harris claims filed against Holmes Beach, owners of two other properties — 626 Key Royale Drive with an appraisal alleging a $319,479 loss, and 7003 Holmes Blvd. with an alleged loss of $106,000 — also advanced their claims by filing lawsuits in the 12th Circuit Court.

The Key Royale case, filed by owners Leah Marie Enterprises LLC and Kathleen Morgan in March 2015, went to trial in December 2016 and is pending a judge’s decision.

In the Holmes Boulevard case filed in January, Daigneault said he expects to answer Robert and Ellen McCaffrey’s complaint in 10-20 days.

According to the Harris act, the government served with a claim has 150 days to respond with a letter.

For a list of claims against the city, visit this story online at www.islander.org.