Eden condo developer sues Boca over permits

Article Courtesy of The Palm Beach Post

By Alexandra Clough

Published September 4, 2009 

The Eden condo in Boca Raton never was a paradise for the few owners who bought units in the troubled project.

But now a lawsuit could take Eden's developers, condo owners and the city of Boca Raton to a new destination: The limbo known as the Palm Beach County Circuit Court.

As if it could get any uglier, the unfinished Eden condo conversion is the subject of litigation between the project's developer, Boca East LLC, and the city of Boca Raton. In August, Boca East sued the city and the city council, claiming the city improperly killed extensions on Eden's building permits during a July meeting. Boca East says the city went against state law that extended the permits, set to expire Sept. 21, for an extra two years.

Now Boca East, an affiliate of West Palm Beach-based Ceebraid Signal, is asking a judge to quash the recent city action.

The partially-finished Eden, in the works for six years, has come to symbolize the region's spectacular real estate bust. When the Eden condo conversion first was pitched in 2003, it wowed buyers with promises of an in-town luxury enclave. But because of construction delays, contractor disputes and other problems, only one of four buildings has been completely rehabbed. The rest are in various stages of unsightly completion, a condition that drives Eden's few residents crazy with frustration.

The latest plan is to turn Eden back into an rental apartment complex, albeit a luxury one, with a construction start date of Nov. 1 and a completion date of Sept. 21, 2011. To do the job, Boca East says it needs to buy out the two dozen or so people who purchased units in the finished portion of the condo.

"But we can't buy these people out until we get the permits," said Boca East attorney Kelly Reagan. Nor can the project obtain financing without permits. Hence, the lawsuit.

The hulking, unfinished Eden, perched across from city hall, stands in stark contrast to another Ceebraid Signal project that just was completed - the chic Omphoy Hotel in Palm Beach. The $100 million resort, with its oceanview rooms and infinity pool, doesn't sit well with Eden homeowners trapped in a construction zone: "The fact that they have the money to do other luxury properties, and they are not buying out the people at Eden, is unconscionable," said one Eden homeowner, who requested anonymity.

The hard feelings are no surprise to Boca East. In its lawsuit, Boca East said the city's actions were improperly influenced by "vituperative" attacks on the developer by members of the public. But unpopularity is not a valid reason to put the kibosh on permits, Boca East says. "The fastest way to get this project finished is to allow it to move forward," Reagan said.

It looks like the city of Boca Raton isn't backing down. The city maintains that Boca East defaulted under the permit extension agreement because it failed to pay certain fees. "We believe we made the correct decision," said George Brown, deputy city manager.

Although the city finds itself on the defensive in this lawsuit, it still can go on the offensive in other ways.

For instance, Eden now is considered illegal because it no longer has a building permit, opening the door for the city to fine the developer $500 a day, Brown said.

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