Article Courtesy of The
By Lauren Layden
Published December 24, 2018
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WATCH VIDEO |
On Nov. 11, the city's code enforcement manager, Roger
Jacobsen, inspected the construction site and found it in violation of four
city codes, including one that prohibits "unsightly conditions" and another
that requires keeping the walls of a building enclosed while demolition work
is done.
The notice of violation gave Zea seven days to correct
the problems, but with a stop-work order still in effect, he couldn't touch
the building.
Looks like a bomb’ went off
When Zea didn't remedy the alleged violations, the case ended up going to
the city's Code Enforcement Board. That board, after a public hearing Nov.
29, ordered the developer to take corrective action or face fines. The board
voted unanimously to levy a fine of $250 a day if Zea didn't come into
compliance within 30 days.
"This looks like a bomb went off in a very prominent part of the city,"
board member Scott Kohls said during the hearing.
Also at the hearing, Jacobsen said the developer would need to remove the
building in question and apply for a new demolition permit to fix the
violations, which Zea vehemently opposes.
Jacobsen, who is also the city's harbormaster, told the Code Enforcement
Board that while working at the nearby Naples City Dock, he saw the
contractor busting out walls and floors dropping one by one. That triggered
concerns the entire building would be demolished without the proper permits. |
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The Bay Club of Naples project has stalled, as
the developer fights a foreclosure, stop work order and code
enforcement violations he describes as "bogus."
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Yet, the work also seems to have dragged on too long,
Jacobsen said. He has received many complaints about it from neighbors who
are unhappy about how the construction site looks, he said.
"The goal of code enforcement is compliance," Jacobsen said. "We would love
to see him finish this building."
Zea did not attend the code enforcement hearing. Instead,
he provided a letter to the board, stating he thought it would be "best for
this arena" and that the city attorney had "recommended that I not
personally appear on these matters."
No plans to demolish the building
In his letter, Zea expressed his frustration with the city. He said he
didn't understand why the stop-work order was issued or why it's still in
effect when there are no plans to demolish the building.
Further, Zea told the board he had followed the "belt and suspenders
approach" of having a private inspector oversee the permitted work as well
as working closely with city building official Craig Mole.
Zea said Mole visited the site in October and questioned the general
contractor about the work being done and in an email assured the contractor
that "he was good with the plans and approved what we were doing."
This isn't the first time Zea has faced permitting problems or code
violations in the city. In his letter, the developer said he didn't
understand "why all of the projects we are involved with have some kind of
quirky outside-the-box standard that we must meet."
At the code enforcement hearing, Mole said the drawings for the permitted
work didn't include any demolition. He couldn't be reached by phone or email
for further comment.
Zea and his general contractor, William Must, owner of The Rock Custom Homes
Inc., said the necessary permits have been issued for the work that has been
done.
Building height at risk
The building that is being altered doesn't meet city code because it stands
taller than 42 feet, exceeding the height limit for commercial structures in
Naples. However, since the building existed before the stricter rules took
effect, it was grandfathered in under the old code and considered in
compliance by the city.
By leaving parts of the building up, Zea's project can exceed the city's
height limit, he said in an interview with the Naples Daily News.
To get a demolition permit, Zea said, he would have to go through the city's
approval process again and request a deviation for height, which he thinks
he won't get.
If his project is limited to 42 feet, he said, he'd lose two penthouse
condos, cutting into the profitability of the development.
There's $15 million to $20 million in value in the top floors where the
condos are planned, Must said.
The proposed project includes two buildings on a little over 5 acres, with a
total of 10 residential units, spanning from nearly 3,500 square feet to
more than 4,000 square feet.
The development also would have about 5,000 square feet of space for retail
and office uses, plus parking.
In 2015, the developer paid $2.7 million for the smaller Old Cove
Professional building and $4.2 million for the larger one, often called the
Remington or just the yellow building, according to property records.
In case you missed it: Luxury Crayton Cove condominiums planned in Old
Naples
The north building is virtually complete, except for some of the finishing
touches. It replaced a quaint but well-worn one-story commercial building at
1163-1189 Eighth St. S.
Like Zea, Must, the general contractor, said he doesn't understand what the
issues are with the south building. He said the developer is leaving the
stairwell of the current building in place, which will be attached to the
new structure.
When it comes to removing parts of the building, the city's code doesn't say
"how much is too much" to keep the nonconforming status, Must said.
Hopes for a compromise
The contractor said he met with Jacobsen at the construction site recently
to try to clear up what he sees as a big misunderstanding, and he hopes the
disagreement can be resolved without the requirement of a demolition permit.
"There was never an intention of taking the whole building down," Must said.
"It has always been selective demolition work."
With the fate of the project in question, the lenders have become more
concerned about the developer's ability to finish the development and pay
them back.
On Dec. 12, Acres Capital, the loan administrator, asked the judge for an
emergency hearing in its foreclosure case to consider appointing a receiver
to take over the project.
In a letter to Circuit Court Judge Frederick Hardt, Tampa-based attorney
Alice Huneycutt, who represents the lenders, argued there's an urgent need
for a receiver to "work with the City of Naples to avoid the loss of the
property development entitlements and permits."
The permit for the stalled construction work will expire Dec. 29. However,
Zea said he plans to file for an extension.
The lenders estimate the potential loss at $8 million if the development
rights for the second building are lost. Plans show six condos in the
building, including two penthouses on the top floor.
"It is alarming that no one on behalf of the defendants attended the code
enforcement hearing to defend," Huneycutt wrote in the letter to the judge.
Zea said there's no need for a receiver to take over the project and that
he'll fight the lenders on it.
"I do have money to complete it," he said. "We're waiting for the city to
lift its bogus stop-work order."
Zea has sued the loan administrator and lenders in U.S. District Court in
Fort Myers, alleging breach of contract, fraud and torturous interference.
The dispute is over a $28.5 million loan for the project. Zea said it was
never fully funded but that he was wrongly charged "100 percent of the
interest" on the entire amount of the loan.
"It's outrageous. It's ridiculous. It's a whole lot of things," he said.
In the foreclosure suit, the lenders accuse the borrowers of defaulting on
the loan and violating the terms of the loan agreement in multiple ways,
including by failing to stick to the construction budget.
Zea said he is starting to think there's a "coordinated effort to put me out
of business," with the lenders, city officials and residents working against
him.
"I'm not going to go away," he said. "They are not going to get any
satisfaction."
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