Developer sues to prevent Hollywood from getting $1.7M from Margaritaville sale

Lon Tabatchnick and Starwood Capital contend that the city excluded the cost of a parking garage from its calculation of the cost of the Margaritaville development

Margaritaville Hollywood Beach Resort
Margaritaville Hollywood Beach Resort

The developer of the Margaritaville Hollywood Beach Resort sued to prevent the municipal government of Hollywood from collecting $1.7 million of the proceeds from the sale of the resort.

Developer Lon Tabatchnick and his partner, Starwood Capital, collected $190 million in April from the sale of Margaritaville, which was built on land leased from the Hollywood.

Tabatchnick agreed to pay the city 5 percent of any profit from the sale of Margaritaville but told city officials that he and Starwood Capital didn’t make a profit on the sale.

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The city contributed at least $23 million to cover part of the development cost.

In a certified letter dated Oct. 15, Hollywood city attorney Doug Gonzalez gave Tabatchnick and Starwood Capital 30 days to pay the city $1,719,962.41.

Tabatchnick and Starwood Capital contend that city officials failed to include a parking garage when they calculated the total cost of the Margaritaville development. [Sun-Sentinel]Mike Seemuth