Developer: Hollywood reneged on condo project settlement

Miami /
Nov.November 19, 2014 09:45 AM

After five years of litigation, GSK Hollywood Development Group had reached a tentative settlement with the City of Hollywood to allow its long-stalled condo project to move forward. But the deal fell apart last month, when GSK representatives learned they would not be able to build what the city previously agreed to, The Real Deal has learned.

In a Nov. 14 letter to Hollywood City Attorney Jeffrey Sheffel, GSK attorney Scott Marder accused city officials of reneging on the settlement deal and misleading his client.

“GSK has been met with nothing but betrayal and repeated misrepresentations,” Marder wrote. “By the time this case is finished, the city will write GSK a check approaching $30 million or more.”

In a separate unsigned letter sent to Hollywood Mayor Peter Bober three days later, the developer states it is willing to drop its lawsuit if the city buys the oceanfront land at the center of the dispute for $25 million.

“The city has made it impossible for us to develop our property,” the letter said. “It has zero development value or opportunity.”

Sheffel and Bober did not respond to requests for comment.

City spokesperson Raelin Storey disputed Marder’s claims. “We absolutely disagree with the characterization that the city reneged on the settlement offer,” Storey said.

In 2002, GSK paid $3.9 million for two sites on State Road A1A between Jefferson and Georgia streets totaling about 1.5 acres. According to state records, GSK’s managers are Michael Besso, Walter Fischer, Manuel Grosskopf, Jose Kavana and Daisy Sotolongo. The firm proposed a 15-story, 150-foot-tall condo tower, a plan that was met with fierce opposition from residents of the neighboring Summit building.

As a result, Hollywood commissioners restricted height limits to 65 feet in 2005. Four years later, GSK sued the city, claiming the downsizing reduced the value of the property and that the developer’s due process civil rights had been violated. In February, Broward Circuit Court Judge William Haury denied the city’s motion to dismiss GSK’s compensation claim.

According to Marder’s letter, GSK and city agreed to hold off on the trial, which was set for this month, after agreeing to settlement terms.

The city and GSK worked out a deal allowing the developer to build a 220-foot-tall tower with 80 residential units or 238 condo-hotel units, as well as obtain expedited permit approvals, city-funded street improvements, tax increment financing and a $1.2 million payment. Marder claimed the city told him and GSK’s principals that they could build the condo-hotel units without obtaining permission from Broward County.

That turned out to not be the case and the county rejected the proposal, Marder wrote.

Storey said Marder is incorrect about what city officials told him.

“The condo-hotel units were always dependent on county approval,” she said. “The county did not provide it.


Related Articles

arrow_forward_ios
Related Group’s Jorge Pérez and his Apogee Beach penthouse. (Related, Douglas Elliman)
Jorge Pérez sells Hollywood penthouse for $6M
Jorge Pérez sells Hollywood penthouse for $6M
MG3 Group executives (from top) Marcelo Saiegh, Hernan Leonoff and Gustavo Bogomolni with Everglades Preparatory Academy and Avant Garde Academy (MG3 Group)
MG3 Group sells Florida charter school portfolio for $242M
MG3 Group sells Florida charter school portfolio for $242M
3601 Van Buren Street (Google Maps)
Corinthian buys Hollywood fractured condo for $6M
Corinthian buys Hollywood fractured condo for $6M
Louis Birdman with a rendering of Harbor Landings project (Getty, FSMY)
Harbor Landings mixed-use multifamily, hotel and retail project near Seminole Hard Rock advances
Harbor Landings mixed-use multifamily, hotel and retail project near Seminole Hard Rock advances
Midtown Manor at 2001 Polk Street (Google Maps)
PrivCap sells assisted living facility in Hollywood for $10M
PrivCap sells assisted living facility in Hollywood for $10M
Renderings of 1301 South Ocean Drive with Jorge Pérez and Jon Paul Pérez (Photos via Related/Arquitectonica)
Related wins approval to develop high-rise condo project in Hollywood
Related wins approval to develop high-rise condo project in Hollywood
Affiliated Development CEO Jeff Burns and a rendering of The Tropic project (Affiliated Development)
Hollywood approves funding for apartment project with workforce units
Hollywood approves funding for apartment project with workforce units
Lourdes Alatriste and Miguel Solis with a rendering of Quint Hollywood
Elliman takes over sales of Quint Hollywood, marking third change in a year
Elliman takes over sales of Quint Hollywood, marking third change in a year
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...