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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