The fourth Bert Harris lawsuit against Holmes Beach — attacking the city’s short-term rental occupancy rule — was served May 9 on Mayor Bob Johnson.
That same day, Holmes Beach commissioners met and spoke publicly for the first time about resolving the mounting claims and resulting litigation.
As of May 12, 54 pending claims, including four lawsuits, allege nearly $25 million in losses based on the Bert J. Harris Private Property Rights Protection Act.
Florida Gulf Coast Vacation Homes filed the newest suit in 12th Circuit Court over its property 211 54th St. The lawsuit builds on a November 2016 claim for a $395,000 loss blamed on the city occupancy rule.
The act gives property owners the right to sue for compensation against municipalities that inordinately burden property rights when their initial claim goes unresolved.
Three other lawsuits against the city were filed in 2017 — by Bob and Ellen McCaffrey for 7003 Holmes Blvd., the Patricia H. Hutchinson Trust for 104 75th St. and Swackhamer, Bmeehan and Kmeehan investment companies for 106 75th St.
Petruff called the new lawsuit filed by the FGCVH, a vacation rental company owned by Joe and Kelly Varner of Holmes Beach, the first “clear-cut occupancy” challenge. The city VRO allows up to 16 occupants in the eight-bedroom home.
“Their claim is they have regularly rented to 19,” she said.
A May 9 agenda item set up the commission discussion.
Petruff brought up the matter to discuss a “path forward” for settlement offers, particularly the occupancy cases.
“You don’t have enough insurance if you start losing these Bert Harris cases,” Petuff warned.
Of 54 pending claims, the city attorney said eight claims allege losses from four or more ordinances, while 41 claims relate to the occupancy rule.
Bert Harris claimants also allege inordinate burdens from other city rental and duplex regulations, such as parking, pool and building limits, enacted 2013-16, which hadn’t impacted their neighbors in the past.
Petruff suggested commissioners could discuss settlement options, such as the “Anna Maria-option” of “two per bedroom, plus two” at a work session.
The city of Anna Maria has settled some 58 of 112 claims, all of which have city offers extended, by relaxing its eight-person maximum occupancy rule.
Holmes Beach Commissioner Jean Peelen said it troubled her to speak in public about litigation.
Mayor Bob Johnson said the Bert Harris topic was brought as “information,” not as an “urgent” matter.
“Quite honestly, there’s a lot of questionable claims from a layman’s perspective.”
After the meeting, Peelen said attorneys who bring the Bert Harris cases “fish for these cases” and may hope the city runs out of insurance.
The city has a 150-day period to respond to a claim with a settlement offer, which can include an offer of no change in government action.
If a settlement offer made by the city to the property owner is declined, the next step for resolution is for the owners to sue in court.
Thus far, the city has responded with no-change letters in 13 pending Bert Harris claims.
The next city response is due in June.