New Smyrna Beach orders Venetian Bay developer's paid-parking operation shut down

Article Courtesy of  Daytona Beach News-Journal

By Mark Harper

Published January 6, 2025

  

A New Smyrna Beach developer is attempting to fend off challenges on two fronts to its much-reviled new paid-parking operation in Venetian Bay.

 

The city's Code Compliance Department has issued three violations against Geosam Capital U.S., saying the original agreement to develop Venetian Bay – a community of more than 2,000 homes west of Interstate 95 off State Road 44 – does not allow paid parking. Simultaneously, a merchants' association has sued Geosam, alleging the developer, in setting up the paid parking, relied upon documents that weren't executed legally.

The paid parking – which is free for the first half-hour but costs $2.50 for the first hour – has been panned by residents on social media, with comments including "money-grubbing," "another way to push businesses out," "beyond ridiculous" and worse.

One business, the Happy Deli, closed after its owner was vocal in his criticism of the paid-parking plan. Others say they have been harmed.

Ken Garguilo, owner of Bistro 424, a Venetian Bay restaurant, said the paid parking is cutting into his business and others in the Town Center. Business at Bistro 424 has been down 20% in each of the last three months, he said.

"We’re the only paid parking, basically, in all of Volusia County, if not the state, and definitely the only one who’s in a private community that pays HOA fees, some of them two HOA fees, and now has to pay to park in their own community. It’s just unheard of," he said.

A paid-parking QR code is posted above a space in the lot next to the Venetian Bay Town Center in New Smyrna Beach. The city's Code Compliance Department has issued citations against the developer, Geosam Capital U.S., saying the paid-parking operation violates a development agreement.


 

A message left with Geosam's New Smyrna Beach office this week was not returned.

 

City of NSB: Paid parking not an allowed use

The developer's agreement with the city, known as a planned-unit development or PUD, allows for certain uses on land tracts within the Venetian Bay Village Center area.

While it allows for retail sales and service, office, non-fast food restaurants, personal service and residential units above the ground level, it does not include a paid-parking operation, according to a letter from the city's Code Compliance clerk, Teresa Merck, to Geosam.

The letter states the case was opened on Dec. 16 and gave the company until Friday to stop requiring the paid parking.

 

It identifies three tracts where paid parking exceeds the PUD's allowed uses: in a lot south of the Town Center, along Medici Boulevard and south on Luna Bella Lane, as well as on Casello Drive heading south on Luna Bella Lane.

The city has a code compliance board and a special magistrate to hear cases. Meeting agendas for January were not available on the city website on Friday.

In addition, the notices advise Geosam: "An amendment to the current PUD that adds paid parking to the list of permitted and accessory uses is needed for the activity to be eligible for a Business Tax Receipt."

Business Tax Receipts are required for all paid parking lots, according to a city ordinance.

Merchants file lawsuit against Geosam

Also, the Tuscany Town Center Association, Inc., a nonprofit association of merchants in Venetian Bay, is suing Geosam.

The association alleges Geosam took control of the association and in 2016 amended an earlier document granting the businesses a parking easement. Geosam recorded the amended contract in 2021, clearing the way for paid parking.

Geosam, whose attorney did not respond to an email seeking comment, has asserted in court documents that the amendment was properly executed and that the merchants do not have a permanent parking easement.

Garguilo, also president of the Tuscany Town Center Association, said the presence of Geosam employees on the association board led to favorable changes for the company that were at odds with the needs of the businesses that occupy the Town Center.

"They basically had this paper from 2016 and didn't file it until 2021," he said, "so in the meantime, we purchased our units thinking we had these easement rights because it wasn't filed until we bought in 2019."

This map, created by the city of New Smyrna Beach, shows "Tract G," a portion of the Venetian Bay town center where the developer, Geosam Capital U.S., has begun charging for parking, both in the lot on the bottom, as well as along Luna Bella Lane, Medici Boulevard and Casello Drive.


 

The association is asking a Volusia circuit judge for a "quiet title," or establishing it as the true owner of the parking areas. It also asks the judge to invalidate the deletion of the merchants' parking easement.

 

New Cordova apartments to increase demand for parking

In the past year, Geosam has been building Cordova, a 322-apartment complex, that's yet to open. The new apartments are directly across Luna Bella Lane from the Town Center.

Garguilo believes the apartments are going to create even more demand for parking in the neighborhood.

“If you looked at the original design plan of the Town Center, there were supposed to be four equal buildings like we have, where there was commercial on the bottom and, like 70-something apartments in each one," he said. "The problem is the city kind of – not the present people but back in the day – approved a change to (allow) all residential instead of commercial and the density went up times 10 on that one block. ... But the parking never changed.”

Additionally, the parking requirement for Cordova, he said, is 1.5 spaces per unit, rather than 2, which is today's standard.

“It’s just not adequate parking for everybody, and that’s what’s caused the problem," he said.

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