TBO.com - TBO is Tampa Bay Online

Buyers Sue To Cancel Downtown Tampa Condo Contracts

ADVERTISEMENT

By TOM BRENNAN | The Tampa Tribune

Published: October 8, 2008

Updated: 10/08/2008 06:17 pm

TAMPA - A group of 10 people who bought condominiums in the posh Skypoint complex is now trying to get out of their contracts, contending they never were told the 32-story tower was built on once-contaminated land.

The group filed a lawsuit in Hillsborough County Circuit Court on Tuesday seeking to cancel their purchase contracts and recoup the more than $200,000 in earnest money they had to post, from $9,885 to $56,520 each.

They said they were never told that the 380-unit project at 777 N. Ashley St. was built on land contaminated by underground fuel storage tanks. The lawsuit, which contains only their version of the facts, contends they never would have bought their units if they had known about the environmental problems.

"It is a matter of disclosure that should have been made and was not made," said James A. Staack, the group's attorney.

Paul Boudreaux, a professor at the Stetson University College of Law, said Florida law requires sellers of residential property to disclose any material fact that a buyer would want to know. He said it usually applies to all defects or problems.

"Arguably that would include contaminants," he said.

John R. Akin Jr., president of the Novare Group, one of Skypoint's developers, denied any wrongdoing. He said the lawsuit "lacks merit and is replete with inaccuracies."

The property was once a parking garage for Tampa Electric Co. When the company began tearing down the structure, county environmental official said, the underground storage tanks were discovered.

Michael McKelvey, a general manager with the Hillsborough County Environmental Protection Agency, said soil and groundwater contamination was identified in 1986. He said TECO officials and subsequent owners voluntarily worked with local and state officials to clean up the site, and the effort was officially completed in August. 2007. It involved removing the tanks and contaminated soil.

The group's members were winners of sales lottery Skypoint's owners held in May 2005. They then put up deposits for the opportunity to purchase units once the project was finished.

The lawsuit contends that Skypoint's plan to clean up the contamination wasn't approved until the next month. It also claims that another underground tank was discovered in June 2005 when construction crews were digging an elevator shaft.

Akin said the land, like much in downtown Tampa, did have buried petroleum tanks, but that his company made TECO clean up the site before entering into any contracts or closing on any homes.

Akin described the group as real estate speculators trying to get back their deposits without closing on their units. He said 310 people have closed on units at Skypoint.

"The site was clean and we went ahead and made full disclosure anyway," he said.

The lawsuit names Skypoint LLC, Smith & Associates Real Estate Inc. and Chicago Title Insurance Co. as defendants. Smith & Associates were a listing agent for the project. Chicago Title served as the escrow agent.

Chicago Title officials couldn't be reached for comment. Bob Glaser, president and CEO of Smith and Associates, said he didn't know about the lawsuit.

Reporter Tom Brennan can be reached at (813)259-7698 or tbrennan@tampatrib.com.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT