Court upholds injunction against Anna Maria’s VRO

Anna Maria must maintain the status quo.

When 12th Circuit Judge Gilbert Smith Jr. presided over the second hearing for Anna Maria’s short-term vacation rental ordinance Sept. 9 at the Manatee County Judicial Center, 1051 Manatee Ave. W., Bradenton, he said more time was needed before he rendered a decision.

Attorneys Kevin Hennessy and Jennifer Cowan are representing several vacation rental property owners and businesses, including Island Real Estate of Anna Maria Island, 6101 Marina Drive, Holmes Beach, and the Anna Maria Island Vacation Property Association, also at 6101 Marina Drive.

Real estate broker Larry Chatt, president of the AMIVPA, and Anna Maria city clerk Diane attended the hearing.

In his opening argument, Hennessy asked for a declarative judgment on the VRO and a final hearing for the case.

“We need to bring this to a head,” Hennessy said. “(The ordinance) is a moving target and every time the city sees a problem, they will just revise it.”

City attorney Becky Vose asked for a dismissal of the suit. She said the Sept. 2 amended vacation rental ordinance corrected many problems alleged in the lawsuit.

“We’ve tried to work with Mr. Hennessy and Ms. Cowan as we made changes,” Vose said. “The city has kept them updated on its progress and has sent them proposed changes for their opinion. All we’ve gotten back was that they’re against the ordinance.”

Hennessy replied that he planned to submit an amended complaint to counter the amended ordinance.

“And how much time do you need for that?” asked Smith.

Hennessy said, 20 days. Vose said she would need 10 days for a response.

Smith told the attorneys to maintain business as usual until that time.

For Smith, who took over the case from 12th Circuit Judge John Lakin after the city asked him to step down, it was the first time hearing the arguments.

Smith’s decision not to rule stemmed from Vose and Hennessy’s different opinions about the previously awarded temporary injunction.

Lakin had ordered the city to maintain “status quo.”

For Hennessy and Cowan, it meant no new actions could be taken, no new rules could be implemented.

For Vose and the city of Anna Maria, it meant they had time to amend the VRO. Since the ordinance doesn’t go into effect until Jan. 1, 2016, making changes to the rules and regulations wasn’t breaking the status quo, she said

Hennessy argued amending the VRO was against Lakin’s order.

Smith wasn’t so sure. “I need time to clarify what (Lakin) meant by status quo,” he said

He told the attorneys he would schedule within two weeks another hearing to clarify “status quo” and get back to them. Smith also encouraged both sides to come to an agreement.

“I’m glad the court gave us time to correct any issues and we hope the city will act respectively,” said Hennessy.

Vose said she felt Smith acted fairly.

After the hearing, Chatt said he was disappointed that the city lacks the common sense to understand they are trouncing on an owner’s property rights. “It’s amazing that Bradenton Beach and Holmes Beach understand what’s legal. Anna Maria seems to think they play by a different set of real property rights.”

Smith also set a tentative final hearing in November, but if the timeframe is pushed back, Smith said he wouldn’t be able to hear the case until January.

He told Vose and Hennessy his trial cases take precedent. He said there’s a fair chance a November hearing would get pushed back.

 

A moving target

When the Anna Maria City Commission adopted the original short-term vacation rental ordinance April 9, Commissioner Dale Woodland said he knew the city was going to get sued.

The commission unanimously voted to adopt anyway.

The plan, as mentioned at the April 9 meeting, was to create a moving target.

As problems arose, the city would adapt and correct. Vose told the commission it would be difficult to cover every problem area in the beginning, there would be oversights the commission and her law firm couldn’t foresee.

Real Estate agent Jason Sato of Sato Real Estate, 519 Pine Ave., and Mike Coleman of Pine Avenue Restoration LLC, 306 Pine Ave., warned the commission in April legal action would be forthcoming.

On May 22, the first lawsuit against the ordinance was filed with the 12th Circuit Court.

A similar vacation rental case was heard in the Seventh Circuit Court, with Judge Michael Orfinger presiding over 30 Cinnamon Way LLC v. Flagler County.

30 Cinnamon Way alleged Flagler County’s VRO was illegal and prohibited vacation rentals.

Orfinger decided the ordinance was legal but questioned Flagler’s attempt to force rental contracts to match its VRO.

A June 18 emergency ordinance was Anna Maria’s attempt to correct a similar mistake. The ordinance would exempt rental agreements written on or before the April 9 adopted date that had more than eight occupants.

Rental agencies and owners had to apply for exemption by until July 15.

On July 14, Hennessy and Cowan filed an emergency motion for a July 15 hearing.

Lakin presided over the hearing and granted a temporary injunction against the ordinance.

Vose began drafting an amended VRO soon after.

During a July 23 city commission meeting, commissioners voted 4-1 for Mayor Dan Murphy to request Lakin to step down from the case.

Lakin complied and Smith was assigned to preside.

The commission adopted 18 amendments to its April 9 VRO on Sept. 2

The next day, Sept. 3, Vose filed for the Sept. 9 hearing to be dismissed on the grounds the new ordinance addresses the alleged complaints.

The dismissal was denied.

PAR filed July 28 a second lawsuit against the VRO. A hearing date hasn’t been set.

 

A moving target

When the Anna Maria City Commission adopted the original short-term vacation rental ordinance April 9, Commissioner Dale Woodland said he knew the city was going to get sued.

The commission unanimously voted to adopt anyway.

The plan, as mentioned at the April 9 meeting, was to create a moving target.

As problems arose, the city would adapt and correct. Vose told the commission it would be difficult to cover every problem area in the beginning, there would be oversights the commission and her law firm couldn’t foresee.

Real Estate agent Jason Sato of Sato Real Estate, 519 Pine Ave., and Mike Coleman of Pine Avenue Restoration LLC, 306 Pine Ave., warned the commission in April legal action would be forthcoming.

On May 22, the first lawsuit against the ordinance was filed with the 12th Circuit Court.

A similar vacation rental case was heard in the Seventh Circuit Court, with Judge Michael Orfinger presiding over 30 Cinnamon Way LLC v. Flagler County.

30 Cinnamon Way alleged Flagler County’s VRO was illegal and prohibited vacation rentals.

Orfinger decided the ordinance was legal but questioned Flagler’s attempt to force rental contracts to match its VRO.

A June 18 emergency ordinance was Anna Maria’s attempt to correct a similar mistake. The ordinance would exempt rental agreements written on or before the April 9 adopted date that had more than eight occupants.

Rental agencies and owners had to apply for exemption by until July 15.

On July 14, Hennessy and Cowan filed an emergency motion for a July 15 hearing.

Lakin presided over the hearing and granted a temporary injunction against the ordinance.

Vose began drafting an amended VRO soon after.

During a July 23 city commission meeting, commissioners voted 4-1 for Mayor Dan Murphy to request Lakin to step down from the case.

Lakin complied and Smith was assigned to preside.

The commission adopted 18 amendments to its April 9 VRO on Sept. 2

The next day, Sept. 3, Vose filed for the Sept. 9 hearing to be dismissed on the grounds the new ordinance addresses the alleged complaints.

The dismissal was denied.

PAR filed July 28 a second lawsuit against the VRO. A hearing date hasn’t been set.

One thought on “Court upholds injunction against Anna Maria’s VRO

  1. Islander

    Most vacation rental owners in Holmes Beach are waiting to see what happens in Anna Maria but with the recent ordinance approved in Holmes Beach, there is cause for concern.

    Anna Maria defines maximum occupancy as 2 per bedroom (PLUS 2), which makes a total maximum occupancy of 8 people. (not counting grandfathering)

    Holmes Beach is defining maximum occupancy as 6 people, or 2 per bedroom, whichever is greater.

    For every vacation property owner in Holmes Beach, they are already at a competitive disadvantage to Anna Maria because Anna Maria allows the (PLUS 2),along with their maximum occupancy of 6.

    If you have a 3 bedroom rental home in Holmes Beach and one of the rooms has 2 twin bunk beds, or 2 twins w/ trundles, the home that could have previously rented to 4 adults and 4 kids (8 total), But now, that home is being restricted by Holmes Beach to a total of just 6 people.

    So this same family of 8, who can’t stay in a 3 bedroom in Holmes Beach anymore, can simply go down to Anna Maria, where the maximum occupancy on a 3 bedroom home would be 8 (6 PLUS 2), thus screwing every property owner in Holmes Beach out of the rental income that just left to go down to Anna Maria..

    With Holmes Beach not adopting the same maximum occupancy ordinance as Anna Maria, many vacation property owners in Holmes Beach are going to lose income to Anna Maria rentals. I would assume that lawsuits will follow.

    Anna Maria, Holmes Beach and Bradenton Beach all have to have the SAME maximum occupancy ordinance or else they will be affecting the bottom line for many vacation property owners. And I doubt they will stand for it.

    Holmes Beach should reconsider their maximum occupancy language and make it the exact same as Anna Maria:

    Section 108-53 (Anna Maria Ordinance)
    “Two persons per bedroom within the Vacation Rental (counting only those rooms that satisfy the definition of bedroom under this Chapter), PLUS TWO PERSONS.”

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