New Tampa

Homeowners sue to lift veil of secrecy

Cory Lake Isles residents want full accounting from the developer's property association.

By DONG-PHUONG NGUYEN, Times Staff Writer
Published November 13, 2007

NEW TAMPA - Homeowners in Cory Lake Isles, an exclusive New Tampa community with brick-lined streets and a sandy beach, have paid more than $4.6-million in the last five years for maintenance and operations.

Yet some of them say they do not know how their money is being spent. They say the one man who seems to have full control over both Cory Lake's taxing district and its property owner association, developer Gene Thomason, has failed to produce adequate records.

As a result, eight residents are suing the community's property association in hopes of getting a full accounting.

This is a lawsuit solely for production of financial records, a demand for what we are already granted by Florida law," said Dan Morford, a three-year resident and one of the plaintiffs who spoke on behalf of the group. "We've worked for a long time trying to get this clarity outside legal circles. We shouldn't have to be where we are today, unfortunately."

The lawsuit, filed in Hillsborough Circuit Court last month, prompted the property owners association to warn all homeowners that they might have to pay even more money. A flier was placed on residents' mailboxes over the weekend saying the association will consider a special assessment to cover legal costs in defense of the lawsuit. That discussion will take place during a property owners' meeting at 7 tonight at the Cory Lake Isles Beach Club.

Although only eight names are listed on the lawsuit, support for the filing is in the dozens, Morford said. About 930 homeowners were assessed $1,475 each last fiscal year, according to the lawsuit.

The group hired the law office of Bush Ross, which specializes in homeowner association disputes. Among the lawyers working on the case is Steven Mezer, known for pursuing homeowners on behalf of homeowner associations.

The lawsuit asks for copies of contracts, bids, accounting records and tax returns.

Thomason, who has managed to retain control of Cory Lake Isles beyond the typical first six years, is the keeper of those documents. However, he gives up his seat as chairman of the taxing district board in November 2008. As residents prepare to take control, they say they have no foundation from which to work.

"We're not stating any kind of unsavory activities whatsoever," Morford said. "This lawsuit is not about hammering the past. It's about planning the future. We are in the middle of transition with zero knowledge and insight as to how this community has come to where it is today."

Another sticking point with residents: For as long as they can remember, they've made their checks out to Cory Lake Ltd., the development company controlled by Thomason. The money should have been going to the community association, Morford said.

Homeowners have long been perplexed by the close relationship between the development district, property owner association and development company accounts.

At a taxing district meeting last month, when one resident complained about being overcharged for photocopies, Thomason handed her $10 from his wallet to end the debate.

Neither Thomason nor his attorney returned calls Monday for comment.

Dong-Phuong Nguyen can be reached at 813 269-5312 or at nguyen@sptimes.com.

[Last modified November 12, 2007, 23:41:00]