Wednesday, April 17, 2013

Watch Cape Coral Golf Course Lawsuit Concludes


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Cape Coral Golf Course Lawsuit Concludes

Video:
Clay Crevasse, a lawyer representing Cape Coral, discusses a lawsuit filed against the city after the trial concluded Tuesday.
http://www.news-press.com/videonetwork/2305882920001/Cape-Coral-Golf-Course-Lawsuit-Concludeshttp://www.news-press.com/videonetwork/2305882920001/Cape-Coral-Golf-Course-Lawsuit-Concludes

Golf course dispute trial wraps up

Written by  Thomas Stewart - News Press

The question of whether Cape Coral could ultimately be forced to shell out millions to the owners of an abandoned, overgrown 175-acre golf course is almost ready to be decided.

The five-day trial prompted by a 2009 lawsuit filed by the owners concluded Tuesday and the lawyers have until May 1 to turn in proposed final judgments and written closing arguments.


After that, Circuit Judge Michael McHugh will issue his ruling. There is no deadline for that decision.
If the judge rules in favor of the owners — who argue the city effectively condemned the property through restrictive regulations — the trial would go to a jury, which would determine the amount of damages.


The owners presented testimony last week that the property would’ve been worth $18 million to $19 million in 2009 if the requested future land use designation — mixed-use — had been granted.



That designation, denied in May of 2009, would’ve allowed the development of more than 300,000-square-feet of office space, 100,000-square-feet of shops and about 800 homes, they have argued.
 
 An appraiser hired by the city, meanwhile, testified Tuesday the property would’ve been worth about $10.3 million with the mixed-use designation and about $8.8 million with a residential land use.
 
The owners contend that blocking the land use change didn’t allow them to earn a profit. As a golf course, with a land use of parks and recreation, it lost money every year from 2001 to 2006, when the course was shuttered, testimony indicated.


The city, however, argued the land use designation was already in place when the property was purchased and the owners failed to apply for another land use, such as residential, that would’ve likely been approved and could have proved profitable.


Clay Crevasse, a lawyer representing the city, said changing the property to a mixed-use designation also could have opened the land up to industrial uses.



“The city’s case is that we acted in a way to protect the compatibility of the existing zoning regulations and land use regulations to not allow the golf course to be developed in a way that’s incompatible with surrounding neighborhoods,” Crevasse said.


Those actions, he said, didn’t affect the owner’s ability to turn a profit.



“The real consideration here was, at the time this was all happening, the economy in Southwest Florida was going down the tubes,” he said.

Wednesday, April 10, 2013

Owners say city played hardball on golf course 'News Press'

In court, claim rules were onerous; Cape says rules are rules.

 By Thomas Stewart   The News Press




The owners of an abandoned 175-acre golf course in Cape Coral who are suing the city argued in court Tuesday the city abused its own processes in an effort to force the owners to default on their loan so the city could snag the property.

“The evidence will show the city was hoping to acquire (it) in bad faith at fire sale prices,” said Michael Ciccarone, a lawyer for the owners of the 18-hole course on Palm Tree Boulevard.

The suit was filed in 2009. The trial began Tuesday and is expected to conclude April 16.

After both parties present their cases, Circuit Judge Mi­
chael McHugh will issue a ruling. There is no deadline for his ruling.

The owners have long argued the city effectively condemned the property through restrictive regulations that prevented development.

On Tuesday, Ciccarone said the city blocked an attempt to change the future land-use designation from parks and



recreation to mixed-use, which would have allowed the construction of 100,000-square-feet of shops, 300,000-square-feet of office space and about 800 homes.

He said the property was no longer viable as a golf course, demonstrated by the failure of the former owners, who bought the property in 2001 and lost money every year until 2006, when the course was shuttered.

Scott Siler, who managed the property and still has a $375,000 stake, took the stand and explained how 50 investors paid $4.3 million for the course and borrowed another $4 million for renovations. Siler said the annual taxable losses ranged from $1.7 million in 2002 to $768,000 in 2005. In 2006, the same investors agreed to split ownership of the property with Minnesota-based Ryan Companies US in exchange for a $9 million loan to pay off their debts and other expenses.

Clay Crevasse, a lawyer representing the city, pointed out the land use and regulations were already in place when the property was purchased.

Crevasse said the city denied the land-use change because it could have allowed industrial projects and other ventures incompatible with surrounding residential neighborhoods.

“This property owner bought at the height of the market and, within two years, the bottom had fallen out,” he said. “It is not the obligation of the city to approve a plan that provides no benefit to the public.”

And, he said, the owners failed to apply for other potential land uses, such as residential, which the city likely would have approved and could have proved profitable. Ciccarone presented testimony that the city’s own policies indicated it felt it had enough residential property already. But he has said the owners no longer seek a land-use change and that the city wants to buy the property but has not yet offered enough money.

He said the two parties are millions apart in their opinion of the property’s value, but he declined to say how much they want.

On Tuesday, Pat Ryan, president of Ryan Companies US, testified the company has invested about $19 million in the property and revealed the company thought it could be worth $25 million-$30 million with the desired land use.
Clay Crevasse, a lawyer representing Cape Coral, cross-examines a witness Tuesday in a dispute over an abandoned golf course. GUY TUBBS/THE NEWS-PRESS

“It is not the obligation of the city to approve a plan that provides no benefit to the public.”

CLAY CREVASSE,  lawyer representing Cape Coral