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

Miami /
Nov.November 24, 2018 03:50 PM

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


Related Articles

arrow_forward_ios
The current Miami Beach North Shore library with Mayor Dan Gelber (Google Maps, Gelber)
Miami Beach seeks buyers for city-owned development sites
Miami Beach seeks buyers for city-owned development sites
Developer David Edelstein and Robert Levine of RAL Development with the project (Getty, RAL)
David Edelstein, partner close on missing piece of Wynwood assemblage for office towers
David Edelstein, partner close on missing piece of Wynwood assemblage for office towers
David Grutman and Pharrell’s Goodtime Hotel had received nearly 30 noise violations (Carma Connected, Getty)
Too much of a good time? David Grutman and Pharrell’s Goodtime Hotel could lose entertainment permit
Too much of a good time? David Grutman and Pharrell’s Goodtime Hotel could lose entertainment permit
Related Companies Chairman Stephen Ross with One Flagler (Related, Getty)
Prayers answered? Related Companies closes on church site for planned office tower in downtown West Palm
Prayers answered? Related Companies closes on church site for planned office tower in downtown West Palm
Grover Corlew principal Mark Corlew with Bank of America Tower in Boca Raton (Grover Corlew)
Grover Corlew buys Bank of America Tower in Boca Raton for $45M
Grover Corlew buys Bank of America Tower in Boca Raton for $45M
The partially collapsed 12-story Champlain Towers South condo building (Getty)
Inside the tug-of-war over the Surfside condo site’s future
Inside the tug-of-war over the Surfside condo site’s future
Moishe Mana and the downtown parking lot he purchased (Google Maps, Getty)
Moishe Mana expands downtown Miami assemblage with $12M purchase
Moishe Mana expands downtown Miami assemblage with $12M purchase
Dusko Bruer pictured with one of his yachts and his Lake Worth property. (Facebook via Bruer, Southern District of Florida | United States District Court)
Palm Beach County resident who evaded taxes, splurged on Lake Worth Beach manse, sentenced
Palm Beach County resident who evaded taxes, splurged on Lake Worth Beach manse, sentenced
arrow_forward_ios

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

Loading...