April 1 could long be remembered as an expensive day for the city of Anna Maria.
Since that date, the city has been the target of Bert Harris claims — property owners looking to recoup lost value they claim resulted from the adoption of the city’s vacation rental ordinance.
A massive settlement offer approved by the city Sept. 8 could have financial consequences if the offers are accepted by the claimants.
Since the city’s VRO limiting short-term rental occupancy to a maximum of eight occupants went into effect, 66 Bert Harris claims have been filed against the city, including more than $20 million in losses, based on appraised value of the property.
The city has 150 days to respond to each claim with a settlement offer. City attorney Becky Vose has been preparing suggestions for each of the settlements for approval by the city commission.
The Bert Harris Jr. Private Property Protection Act of 1995 allows property owners to seek monetary relief if they can prove a government action lowered the value of their property.
The settlement suggestions have previously been limited to offering claimants an occupancy rate of two guests per bedroom, plus two more guests, which Vose said allowed the owners reasonable use of their property. She said the occupancy offers also would make the city appear reasonable if the settlements are denied and the claims reach the courthouse.
The city authorized more than 20 settlement offers thus far following this formula. The next step, if the offers are denied, will be to go to court.
Vose brought the commission potential settlement offers Sept. 8 that, for the first time, suggested property purchases. The offers total more than $21 million for 20 claims — greater than the combined amount of losses up to that date in all the claims.
After a lengthy and conflicted discussion, the commission voted 3-2 to approve Vose’s settlement suggestions. Commissioners Chuck Webb and Nancy Yetter voted no.
The purchase offers Vose calculated were based on the appraised value of the property as outlined in the owners’ Bert Harris claims, plus 1.5 percent. The offers range from $629,950 to $1,898,500.
The purchase offers stunned commissioners at the meeting, but Mayor Dan Murphy said that even if owners accept the offers, “I don’t want the city to own a bunch of property.”
“If (owners) accept the purchase offers, then what we would do is make arrangements to purchase the property, and sell the rights to that purchase to an investor,” he said.
“We certainly don’t want to go into the vacation rental business,” the mayor added.
Investors would be legally obligated to follow the vacation rental ordinance and limit occupancy to eight guests if they purchase and continue using the property as a vacation rental.
The city next sent the most recent round of settlement suggestions to the claimants’ attorneys for consideration.
Attorney Louis Najmy, whose law firm represents 38 of the 66 claims filed, said, “If the offer is a market value offer or higher, I have some clients that would indeed consider it.” Thirteen of Najmy’s clients received purchase offers, including seven valued at more than $1 million.
Two claims have been filed since the Sept. 8 meeting. On Sept. 13, a claim was submitted on behalf of Benjamin and Julie Asper for $345,000 in losses for their property at 507 S. Bay Blvd.
Another claim was submitted Sept. 16 on behalf of Violet and Neil Rosenblit for $520,000 in losses on their property at 804 N. Shore Drive, bringing the total number of claims since April to 66.