The state has ordered the board of directors of
one of the largest developments in the Upper Keys to be removed.
A Department of Business and Professional
Regulation arbitrator on Dec. 21 certified a recall of the Key Largo
Ocean Resort Cooperative’s board, a recall which was originally voted
on July 25. That five-member board, including its president, Pedro Salva,
was at the center of a row over a site plan for one of the largest
redevelopment projects in the Upper Keys.
The arbitrator ruled that the new board - Juan
Alvarez, Scott Barret, Oreste Lopez Recio, Felix Perez and Gicela Pino -
is to take over “effective immediately.” It was ruled that the old
board did not give proper justification for not counting several ballots
in favor of the recall.
The 22-acre oceanfront property at mile marker
94.8 has been out of compliance with county code for decades. It was
originally zoned for temporary mobile homes, but over the years,
permanent trailers with decks and Florida rooms have sprouted up.
Most recently, Circuit Court Judge Luis Garcia,
answering a motion request by the County Attorney’s Office, ordered
everyone out of the park by Jan. 15. Chief Assistant County Attorney Bob
Shillinger wanted the evacuation because county officials said the park
contains numerous fire hazards and is a disaster waiting to happen.
Shillinger said he does not expect the ousting of the board of directors
to change that decision.
“The injunction was based on life-safety issues
that exist at Key Largo Ocean Resort regardless of who the leadership
is. It may change how the injunction and life-safety issues get
resolved,” Shillinger said.
New board member Oreste Lopez Recio said he and
his colleagues plan to adhere to the development agreement at the heart
of the controversy there, which has pitted neighbor against neighbor. He
said a decision on whether to appeal Garcia’s evacuation order was to
be made at a meeting Wednesday night, which was after press time.
The development agreement and site plan were
agreed upon by both the county and the board under Salva as a way to
bring the park into compliance with county building and fire codes. It
called for the 300-plus structures there to be razed and replaced by
modular homes. The plan was approved in 2005, but a group of residents
who did not want to leave their homes — some part-time, some full-time
residents — fought in numerous courts to have it thrown out. They lost
every time.
In the meantime, the previous board was working to
implement changes to bring the park into compliance. This included
paying the Key Largo Wastewater Treatment District about $14,000 to get
plans to connect to the sewer system reviewed, and beginning to pay
assessments that will total about $840,000 over 20 years, Chuck Fishburn,
the director of the wastewater district, said.
The plans to connect to the main system were
necessary because the state Department of Environmental Protection
ordered the park’s on-site package plant shut off because it’s
leaking sewage into the ocean, said Don Craig of the Craig Co., a Key
West-based design and planning firm hired by the past board.
It was unclear at press time what the old
board’s legal options are in terms of appealing the state’s
certification of the recall.
That group’s attorney, David Rogel, said he
filed a motion with Garcia to keep the old board on until an appeal with
the Department of Business and Professional Regulation is decided, but
BPR spokeswoman Alexis Antonacci Lambert said the decision is final.
“The decision is binding. It can’t be
appealed,” Lambert said.
At issue in the recall are ballots the old
board’s attorney, Marathon-based Frank Greenman, said should not have
been counted. It was because of those ballots that the matter went in
front of DBPR. Greenman said at a July 29 meeting that the ballots were
questionable enough to send the issue to DBPR’s Division of
Condominiums, Timeshares and Mobile Homes arbitrator David R. Slaton.
The park’s cooperative association has 284
members, of whom 165 voted to recall Salva and the old board.
Greenman did not return a phone call for this
report.
On Aug. 25, Slaton, the arbitrator, issued an
order to the board to show documentation why the ballots should not be
considered. The board filed a response that it could not comply because
the Monroe County Sheriff’s Office had possession of all the
association’s records after it carried out a search warrant on the
property in July for an unrelated matter.
But Deputy Gregory Larochelle testified that he
made it clear to office manager Maria Hernandez that the Sheriff’s
Office was not shutting down the association’s operations and she
could obtain any record she needed at any time.
Slaton based his Dec. 21 decision on
Larochelle’s testimony.
Despite Recio’s claim that the board plans to go
through with the development agreement, it’s unclear when the park
will be razed and if the same players will be involved.
A $5.4 million development contract was recently
awarded to Fountain Engineering to do the work. But Craig, who was
instrumental in hiring Fountain, had strong words for the new board.
“They
are a small group of malcontents who have been able to convince a number
of shareholders that they can reverse the decision taken by the
county,” Craig said.
RECALL
ARBITRATION FINAL RULING