MIAMI, Fla. January 27, 2015 -- Heller Waldman filed a $200 million lawsuit against the city of Aventura on Jan. 14 on behalf of veteran developer Gary Cohen and his partners over the city's ongoing obstruction to commencing the building of the luxury development Prive at Island Estates on the last undeveloped island in Aventura. The delays stem from complaints by neighboring residents determined to halt the project. Despite Aventura's repeated approvals and acknowledgements that the developer has vested rights to build the project that dates back to 1976, the city continues to defer to the special interests of a few residents and thereby delay commencement of Prive at Island Estates. The luxury development is a 160 unit two tower complex with first class amenities, scheduled for completion in 2017. The lawsuit alleges that the City's continued refusal to issue the necessary permits is costing developers millions in sales and other related costs.

Filed in Miami-Dade's Eleventh Circuit, the complaint charges the city with breach of contract, equitable estoppel, tortious interference and seeks declaratory relief with regard to the parties' respective rights. The City has yet to respond formally to the allegations.

The City's refusal to award the developers the permits to commence construction originated with three residents of the neighboring island's luxury community who ignited a firestorm over sidewalk construction, with the true intent to delay the project indefinitely, alleges Glen H. Waldman, partner at Heller Waldman in Miami, who represents Cohen's Prive Developers, Last Lot, Corp., NI Holdings, LLC, Two Islands Development Corp., and BH3 Realty LLC, along with partner Eleanor Barnett and associate Jeffrey Lam.

"This is about a sidewalk, a marginal requirement that residents keep focusing on," Mr. Waldman told Miami's Daily Business Review. "What they've done is try to utilize events occurring on the south island to prevent the north island from going forward."

Mr. Cohen has repeatedly attempted to resolve the issue with the city, including months of talks, developing alternative sidewalk construction plans, and holding funds in escrow, but to no avail.
 
The South Florida Business Journal reported that at a hearing this past September in Miami-Dade County Circuit Court, Mr. Cohen told the court that some potential buyers of reserved units at Prive at Island Estates have opted out and recovered their deposits because of ongoing litigation and delays.
 
The stakes for the developer are high and were laid out in the complaint: 71 of the 160 units have been sold with $192 million in sales under contract. Some $55 million is held in escrow. Prive had planned to complete construction and deliver the units to buyers during the first quarter of 2017, and remains committed to do so. The City's continued refusal to follow its own ordinances and resolutions, however, has left Prive with no alternative but to seek judicial intervention.

The complaint argues that delays by the city of Aventura have prevented Prive from closing on a $150 million construction loan, which will force the developer to find other financing, losing out on the more favorable terms of the current loan. If the project remains stalled, Prive and its partners could lose more than $190 million in sales and $11 million in soft costs.

Known as one of the founding families of Aventura, the Cohen family, starting with Mr. Cohen's father Norman Cohen, developed landmark properties in the city starting in the 1960s. The Cohens created the land at issue by dredging and filling in what is now the city of Aventura.
 
"Mr. Cohen and his partners have acted in good faith, meeting every requirement asked for by the city, regardless of the merits of those requirements," Mr. Waldman said. "However, city officials chose to become embroiled in the petty interests of a few residents. Their actions have left no alternative but to seek a remedy from the courts."