Suit: City illegally allowed developer to move hotel licenses to Old Town

BY MANDY BOLEN

Citizen Staff

In the ongoing debate about the future of development in Key West and questions about the city's expired Rate of Growth Ordinance, an environmental group has asked a judge to prevent the transfer of transient licenses from a former hotel to Old Town apartments.

Last Stand on Friday filed suit against the city of Key West and Parrot Key Associates, the company that is building Parrot Key Resort at the site of the former Hampton Inn on North Roosevelt Boulevard.

"We want an order from the circuit court declaring what the law is in Key West regarding the transfer of transient licenses from zones where transient rentals are allowed," said attorney Eric Dadd, who represents Last Stand.

Dadd said the city's code of ordinances prohibits the transfer of transient licenses from zoning districts where they already are permitted. But in the 2006 resolution allowing for the redevelopment of the Hampton Inn property, Dadd said city officials inserted a sentence saying they were interpreting the law so it would allow for the transfer of leftover licenses from the old Hampton Inn to a variety of Old Town properties.

They did so "under the guise, or rubric, of calling it an interpretation," Dadd said. "We want Judge Mark Jones to decide whether the law is the city code as written or if the law is something else."

"[The resolution allowing the transfer] purports to nullify a specific and substantive prohibition on the transfer of transient licenses embodied in the city code, which could only be changed, amended or repealed by legislative action," the suit states.

In the lawsuit, Last Stand notes that transferring transient licenses is in direct contrast with the city's commitment to preserving permanent housing stock.

Currently, Dadd said, there are 22 license transfers pending.

"If the transfers are prohibited, then all 22 pending transfers would be set aside," he said, adding that the city and Parrot Key Associates have 20 days to respond to the suit. "Each license transfer would affect a conversion of an existing housing unit to transient use, removing the unit from housing inventory available for those in need of a place to live in the city of Key West."

John Allison, the attorney for Parrot Key developer Pritam Singh, on Tuesday said he could not comment on the situation because his client had not been served with legal papers.

City Attorney Shawn Smith is on vacation until March 3.

mbolen@keysnews.com