Shores neighbors at each others' throats

Article Courtesy of The St. Augustine Record

By Peter Guinta

Published March 3, 2010

A long-simmering hostility between angry St. Augustine Shores homeowners and that development's management company is bringing to boil an ugly soup of personal vendettas, accusations of corruption, character assassination, unpleasant confrontations and lawsuits.

Add one arrest on a charge of stalking to that list.

Jerry Zinn, president of St. Augustine Shores Service Corporation's board of directors, which manages day-to-day operations at the Shores, said only a "small group" of homeowners has hostility against the board.

"The board does things very deliberately," Zinn said. "We have the authority and documents to do everything we are doing today.

"We're audited and have not had a complaint from an auditor in six years."

But the complaining homeowners say the board violates Shores' restrictions and misuses maintenance fee money.

Both sides said they are preparing legal actions -- but neither would reveal details -- and the homeowners have hired St. Augustine attorney Doug Burnett of St. Johns Law Group to represent them.

They expect a few fireworks at the next homeowners' meeting, scheduled for Thursday at Riverview Club.

Kevin Dunne, a homeowner opposing the board, said, "There are serious human relations problems in this community, and the board is doing nothing to promote community spirit in St. Augustine Shores."

Another resident, Kristina Thomas, said homeowners "just want to figure out what's going on" with Shores business.

Keith Goldstein, a long-time board gadfly, said, "We're trying to get the board to reimburse property taxes and assessment fees used to support Riverview Club. The homeowners have not had the use of that facility, so why should they be paying for it?"

However, the most immediate issue cooking right now is whether the club is available for the Thursday meeting.

Zinn said last week that the homeowners may use the club's meeting room without charge. But the next day he backtracked and said other board members opposed that decision and wanted to discuss it at a special meeting Monday.

Zinn said that meeting will not be open to the homeowners.

Dunne said the Service Corporation's legal firm, Clayton & McCulloh of Maitland, gave permission to use the room if the homeowners would put up a $200 damage deposit, which he did.

The arrest

Late Thursday night, Goldstein, 47, was arrested about 8 p.m. while watching TV with his wife, Linda.

A Sheriff's Office report listed the charge as stalking and the date of the offense as Wednesday, Feb. 24.

Four employees of the Service Corporation -- Lucille Blanche Smith, 52, Karen Lynn Clarkson, 58, Sally Marie Canfield, 70, and Linda L. Stuto, 54 -- and one man -- Shores General Manager Joseph Henry Smith III, 48 -- filed statements saying Goldstein stalked them and that he was a "nuisance" and a "bully" who performed "continual acts of verbal and non-verbal harassment" and "enjoyed creating tension and issues" during homeowner meetings.

Goldstein said Saturday that he was released from County Jail on $12,500 bond, and he denied all accusations.

"I have enough evidence to dispute this charge and have it thrown out of court," he said. "If you look at the arrest report carefully, they are all saying the same thing."

He said the five victims have concocted the story.

"We have a videotape of that (Wednesday) meeting and alleging that the offenses didn't happen," he said.

Deputy Michael R. Quintieri wrote in his report, "K. Goldstein has been spoken to numerous times by members of the St. Johns County Sheriff's Office asking and directing him to cease and desist in these acts."

The report also stated that Goldstein had not done anything that would be considered criminal but made the women who work in the office uncomfortable.

A victim said Goldstein's behavior got worse after the board voted Dec. 10 to foreclose on his condo.

She "voiced her opinion that (Goldstein) gave the impression that he could get (threatening), and (she) felt he had the ability to undress a person with his eyes," according to the report.

Goldstein's criminal record in Florida and New Hampshire shows arrests for violation of a protection order, fraud, larceny, traffic offenses and violation of probation, and the report said he's used aliases such as Keith McKenna and Keith Todd, the police report said.

He said he had been the victim of identity theft in the past.

"There are 42 Keith Goldsteins in the United States, 18 in Florida," he said Saturday.

Deputy Quintieri wrote that there were "no identifiable incidents of violence or charges that would suggest a propensity for physical violence" in any of the complaints.

General Manager Smith told deputies that Goldstein had pointed his fingers at him "in the form of a gun" during a meeting and acted like he was pulling a trigger.

In addition, one female victim said, "He taunts (us) and would pop up outside (our) office window and make unwanted comments with the intent to intimidate, annoy or harass."

Goldstein said he's never spoken to two of the complainants, Carlson and Stuto.

"This will never go to trial. There's nothing there that they can prove," he said. "They've all had time to sit down and concoct a story to keep me from speaking at the homeowners' meeting Thursday."

Trigger happy

Goldstein has previously accused the Service Corporation board of being a "foreclosure mill," filing multiple foreclosures against homeowners in retaliation for nonpayment of small amounts of back maintenance fees.

His foreclosure was handled the same way, he said.

According to Steve Raff, a board director, foreclosure hearings are usually short and simple.

"The board is read a list of people delinquent in fees and how much they owe," Raff said. "I've told them that we're making the attorneys (Clayton & McCulloh of Maitland) rich and kicking friends and neighbors out of their homes."

But he usually is the lone dissenter in 6-1 votes.

Raff also said he asks if anyone had gone out to talk to a homeowner before the foreclosure is filed and was told no.

"We don't have enough facts to go into foreclosure and send (people) packing," he said.

Zinn replied by saying the board sends delinquent homeowners four notices, one of which is a registered letter. If there is no response, the account is given to Clayton & McCulloh, and it becomes too late for homeowners to pay their unpaid maintenance fees, he said.

"It then goes to a collection agency. Our attorneys tell us not to deal with (homeowners) at that point," Zinn said.

The foreclosed home is eventually sold. It costs the board $430 in court costs to file a foreclosure, plus approximately $900 in attorney's fees, he said. Considering outstanding liens, satisfying the mortgage and other costs, the board doesn't see much money coming into their coffers.

Goldstein said he wasn't worried about the foreclosure on his home.

"We owed $247 in back maintenance fees. But they said we owed $1,150," Goldstein said. "I have no idea where that number came from. We attempted to pay the (actual) fees. Jerry Zinn sent back the check."

Goldstein believes a lawsuit may save his home.

The club

Riverview Club operating expenses are roughly $500,000 per year, but incoming revenue is half that.

The board collects about $234,000. About $90,000 is collected from rentals of Riverview Club rooms, about $20,600 from Recreation Commission membership fees, and $23,000 from pool fees.

But homeowner maintenance fees pay the shortfall to support the building.

Goldstein said early last week, "The Property Appraiser has yet to determine if the Riverview Club is a common element. We believe it is not. It is being operated as a private club."

If not, the county can tax it as commercial property, sending its tax rate into the stratosphere, he said.

Shores resident John Grexa said that, when the Riverview Club was purchased from Deltona Corporation in 1990, "The homeowners were held harmless from meeting any of the expenses of that building."

He has a document showing the agreement.

Initially 500 to 600 members belonged to the Recreation Association, but that has dropped to about 100. That means revenue to support the building has dropped to a low level.

But Zinn said that the document Grexa referred to was not a contract and not legally enforceable.

"We've had our lawyers check it out. It is only a letter of agreement," Zinn said. "The homeowners are focusing on that (strategy). They can use the building. Probably 30 percent of these rooms are empty and can be shared by anyone who wants to use them. The building is always open."

He added that if the homeowners want exclusive use of club space, they do have to pay for that.

Goldstein said he became angry when someone -- later identified as a former general manager -- posted a wanted poster with his photo on it at the board offices in the Riverview Club.

It was quickly taken down, Zinn said, adding that the poster didn't come from anyone at the Service Corporation.

777 Alhambra

Homeowners have accused board vice president Allan Baker of taking advantage of his position because Baker's two sons landed sweetheart deal contracts with the Service Corporation.

Zinn admits that the Baker sons pay under-market rents at the Shores' boat storage compound at 777 Alhambra Ave., and both run private businesses from that building.

But, he added, there's nothing's wrong with that.

General Manager Joseph Smith said the Shores had a contract with both renters.

"We asked legal counsel if we can rent it out, and they said we could," Smith said.

Zinn said, "It's no different from renting the (Riverview Club) rooms here. If the vast majority of the (Alhambra Street building's) business is Shores business and not outside activity, it is permissible."

One of Baker's sons, who runs a landscaping business from there, was awarded the Shores' landscaping contract when another firm pulled out and the son offered to continue the work at the same price, Zinn said.

Where is it going?

The short answer: To court.

The longer answer: Probably more years of acrimonious juggling for power between the board and the homeowners.

Zinn said he's offered an olive branch to the St. Augustine Shores Civic Association, the homeowners group which prints the Civic Advocate, a newspaper critical of board actions.

He said he's forming a visioning committee to look ahead for the next five years, and is preparing for the completion of 900 more homes and 120 more condos to the development's current 3,380 homes and 8,000 residents.

About the squabbling, he shrugs, "It comes with the job."

Both sides say they hate this fight but apparently still can't resist sniping at one another whenever possible.

Yet despite the battles, residents are proud of the Shores and its wonderfully kept grounds and safe streets.

Winston Burrell, a Realtor, said the development has the lowest maintenance fees of any community: $27.50 per month.

The Service Corporation hasn't raised that fee in six years, Burrell said.

"(But) if they raise (the fee) to $55, they could give everything away free," he joked.

The homeowners believe the board's vice grip on power cannot be dislodged.

Under current rules, each property gets one vote in an election. Deltona Corp., which owns 88 lots, uses that bloc to support its candidates, usually incumbents.

Dunne said those 88 votes and another 100 from the Recreation Association make it difficult for challengers.

He said he tried and failed. Goldstein tried and failed.

Kristin Thomas said she's going to begin a run for the board.

"I call the board 'The Untouchables.' The residents aren't happy," she said. "I tell them, 'Please come to the meetings.' They say, 'Why bother? They don't listen to us anyway.' Who's going to want to buy here?"

Zinn suggested that Goldstein's failure to be elected might have come from his behavior, nothing more.

He said Goldstein would point at the four office workers and say, "You're gone, you're gone," as if he would fire them all, though Goldstein denies that.

In what seems ironic now, Goldstein said only days before his arrest, "This is all about how people are treated."