Boca tells Eden developer $500,000 is past due

Article Courtesy of The Palm Beach Post

By GRETEL SARMINENTO

Published October 11, 2007 

BOCA RATON — City to Eden developer Boca East LLC: Show me the money.

The developer has failed to pay a $500,000 bond, one of the most critical in a series of agreements worked out with the city to get an extension to the project's building permit. The bond, due Tuesday, was to be paid within 15 days of the extension being granted. It would ensure the funds needed should the developer lose the building permit and, facing an unfinished project, the city want to demolish it.

"We did not get the letter of credit by 5 p.m.," said Assistant City Manager Michael Woika.

The frustration was evident from the city council at a meeting last month with several council members bluntly stating they doubted the developer's credibility.

And while the council is still very "wary," Mayor Steven Abrams said Wednesday the city will still give the developer a chance to comply. Four years into construction, the luxurious four-building condominium promised across from City Hall on Palmetto Park Road has yet to be finished. The plan may be resuscitated as an adult living facility proposed by developer Parc Communities, just now stepping in.

Despite the developer's history of delays, poor progress and last-minute changes, the council was told not to worry, that failure to meet any of the agreements in place would kill the September 2009 permit extension granted to Boca East. Not quite it seems.

A clause in the worked-out agreement allows the city to give the developer 15 extra days whenever a deadline is not met. The city has done just that. "Our client has been complying with the conditions of this agreement to the best of his ability," said Attorney Wendy Larsen, representing the developer. "We have the letter of credit to submit but are working on another issue." Larsen said the letter should be in soon. News that the developer hadn't paid within the city-set parameters didn't come as a surprise to the residents this project concerns.

"This is heartbreaking to the many unit owners who are currently residing at Eden Condominiums," said Attorney Steven Platzek, who represents several discontent unit owners.

"The developer has, over the previous two years, treated the unit owners with arrogance and scorn. It is not surprising that the developer would now treat the city's deadline in a similar manner with the same arrogance."

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