The Real Deal Miami

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
November 24, 2018 03:50PM

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.

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