"This case could be a cautionary tale for all other prospective developers that really need to look at the documents to see whether they are permitted to do what they are trying to do," Glen H. Waldman, a partner at Armstrong Teasdale, alleged in an interview.
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The owners of eight condo units in Miami sued two companies, whose investors are identified as largely international speculators, under a Sunshine State statute, in a lawsuit “unlike any condominium termination case yet litigated in the Florida courts,” according to their Am Law 200 firm attorney.
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Biscayne 21 Condominium in Edgewater. |
Meanwhile, a TRE spokesperson said in
a statement that plans for the Edition Residences in Miami
are moving forward, following “the successful termination of
the Biscayne 21 condominium,” after months in which they
worked closely with residents and the condominium
association to facilitate a termination plan.
The spokesperson said that the Florida Division of
Condominiums, Timeshares and Mobile Homes blessed the plan,
“thereby satisfying the requirements outlined in Florida
State Statute.” TRE has proposed that the three towers, two
at 56 stories and one at 55 stories, will stand at the
maximum height permitted by local aviation rules, 649 feet
above sea level.
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Two Roads Development three luxury towers with 750 units that would replace the Biscayne 21 Condominium building in Edgewater. |
Yet, the plaintiffs claimed in court documents that TRE gained control of the association with a four-part plan: First, terminate the condo form of ownership; second, evict any dissenters; third, demolish the building; and fourth, redevelop the waterfront site into massive ultra-luxury condos, including “branded residences” using the “Edition” marque of Marriott International, with a “sell-out value of approximately $1.5 [billion to] $2.5 billion.”
To achieve those ends, TRD is alleged in the lawsuit to have amended the Biscayne 21 declaration to allow termination, without unanimous consent. The plaintiffs have argued that despite TRD’s best efforts, the new provisions are still inconsistent with the 1974 version of Florida’s Condominium Act, in effect since Biscayne 21′s inception.
But
after the defendants moved forward by submitting the plan of
termination to the relevant agencies, the plaintiffs alleged
that they timely contested the plan administratively and
still faced threats of imminent eviction, leading to the
unit-owners filing the lawsuit.
Waldman said: “This case could be a cautionary tale for all
other prospective developers that really need to look at the
documents to see whether they are permitted to do what they
are trying to do.”