It seems like there is no end in sight to litigation between the city of Holmes Beach and an island resort.
Judge Charles Sniffen of the 12th Judicial Circuit ruled March 30 in favor of the city’s pleadings against the Bali Hai Beach Resort, 6900 Gulf Drive, but granted the defendant one more chance to amend its counterclaims, according to city attorney Erica Augello.
The resort opened in 1971 but was purchased in 2019 for about $20 million by developer Shawn Kaleta, who subsequently renovated the property.
The city, claiming the business was not permitted to operate a bar, issued a stop work order for the construction of a bar/lounge on the property in January 2020 due to a lack of permits and a site plan.
The business has claimed since the purchase that it is permitted to operate a bar/lounge and a prior allowance should have continued under Kaleta’s ownership.
The dispute has led to several lawsuits between the city and business, including one filed by the city in May 2020 claiming the resort violated the city’s building and land development code by failing to obtain permits, failing to obtain a certificate of completion and violating a stop work order.
The city’s lawsuit requested the court issue injunctions to enjoin Bali Hai from conducting any work in violation of the city’s stop work order, as well as to enjoin it to comply with the municipality’s building and land development code.
In August 2020, the Bali Hai filed a counterclaim to the city’s arguments, seeking more than $30,000 in damages.
Over the almost three years since, the resort’s counterclaim has been amended twice.
The city filed a motion in September 2022 for judgment on the parties’ pleadings.
A hearing to discuss the motion was held March 30 in front of Sniffen, who ordered in favor of the city’s pleadings but allowed the Bali Hai another chance to amend its counterclaim.
However, Augello told The Islander April 13 both she and the Bali Hai’s legal counsel required clarification regarding Sniffen’s order.
She said they did not know if the judge would issue an order or if he was waiting for them to write a proposed order for him to sign, so they requested transcriptions of the hearing to resolve the issue.
Augello said if the resort failed to amend its counterclaim, the city would pursue injunctions for an evidentiary hearing or jury trial.
“I think at the end of the day, the city is just going to continue to move forward because it’s just seeking compliance with its code,” Augello said. “Until such time as it gets compliance, it’s going to alleviate itself with any mechanisms available to it to get compliance with the code.”
Augello said there have been no settlement discussions between the city and resort.
Another hearing for the case had yet to be scheduled as of April 15, according to the Manatee County Clerk of Court.
Kaleta also filed a federal lawsuit Jan. 31, 2021, against the city, claiming the municipality has run a “black-ball campaign” against the developer that has resulted in more than $3 million in damages.
He dropped the lawsuit in August 2022, and then refiled in October 2022.
The lawsuit claims the city violated Kaleta’s constitutional rights and asks the court to grant injunctive relief ordering the city to cease “unlawful practices,” order the city to engage in corrective measures and award the developer damages.
There were no hearings set for the federal case as of April 15.
Attorney Louis Najmy, of the Bradenton-based Najmy Thompson law firm, did not respond to an April 11 call from The Islander.