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Letter to the editor

Condominium developer sues over rejection

Dunedin changed its mind at the last minute, the developer says.

By TAMARA EL-KHOURY, Times Staff Writer
Published February 1, 2008

DUNEDIN - The developer of a condominium complex rejected by the city is suing because he said city staff and commissioners led him to believe his project would be approved.

Developer Kelly Prior wanted to build an upscale five-story, 12-unit condo complex at 715 Edgewater Drive. The preliminary site plan was approved by the City Commission, but the project was rejected at a final hearing in August 2006 because commissioners deemed it was incompatible with its surroundings.

Prior and his Clearwater attorney, Ed Armstrong, argue city officials changed their position at the last minute, causing Prior financial damage. They are asking a judge to force the city to approve Prior's site plan and are seeking incidental damages.

"The city led Mr. Prior down a path and wrongfully and illegally pulled the rug out from underneath him," Armstrong said.

On Jan. 24, Circuit Court Judge Nelly N. Khouzam denied the city's request to immediately dismiss Prior's claim.

City Attorney John Hubbard said his next step is to gather more information. When that process is complete, the city can file another motion asking the judge to pre-empt a trial by immediately ruling in the city's favor.

Armstrong said he's confident the case is going to trial.

This is not the only lawsuit Prior has filed since his project was rejected.

In a separate action last summer, a three-judge panel in Pinellas-Pasco Circuit Court denied Prior's request that the city be forced to reconsider its rejection of the final site plan. Prior has appealed to the 2nd District Court of Appeal.

In addition, Prior is pursuing a claim seeking $1-million to $6-million in damages to make up for the revenue he lost when his plan was rejected.

Mayor Bob Hackworth said he was concerned about the potential impact to the city.

"It indicates that we have some pretty serious exposure, which obviously I'm concerned about," Hackworth said.

Testimony already has been gathered from recently retired community services director Kevin Campbell, Vice Mayor Deborah Kynes, Commissioner Julie Scales and Commissioner Julie Ward Bujalski.

Armstrong said there were "significant discrepancies" in the sworn testimonies of the city leaders.

Tamara El-Khoury can be reached at 727 445-4181 or tel-khoury@sptimes.com.

[Last modified January 31, 2008, 22:03:21]