When the County approved the rezoning of South Seas, it was likely that Timbers Resorts and its partners would seek building permits before the Appellate Court could decide whether the Circuit Court’s judgment enforcing the 2003 Mediated Settlement Agreement between CCA and County would be upheld or reversed. The Settlement Agreement prohibits the County from issuing building permits on South Seas in excess of 912 dwelling units. The likelihood that permits could issue was even greater because when the County appealed the Circuit Court decision, state law placed an automatic stay on the Circuit Court decision pending the appeal.
To deal with this timing concern, CCA requested the Circuit Court lift the stay to prevent South Seas and the County from evading the Circuit Court judgment before the appeal was decided. The County objected and a hearing before Judge Shenko took place on September 3rd.
At the hearing, the Judge explained that his ability to lift the stay was limited by existing case law – and could only occur under the most compelling circumstances and when there is imminent risk. Here, South Seas advised the Court that it did not intend to request permits on dwelling units until at least the first quarter of 2026 – and therefore CCA’s motion to lift the stay was premature. In response, the Judge asked the County if it would agree not to issue any building permits until the Appellate Court issued its decision. The County said it could not agree. And of course, there was no guarantee that the Appellate Court would issue its decision before the first quarter of 2026.
So — at the request of CCA’s attorney, the Court ordered that CCA be advised by both South Seas and the County should any application for building permits for dwelling units be made on South Seas. CCA’s attorney made the request so that CCA could return to Court in time to have the stay lifted, and to ask the Court to enjoin the County from issuing permits in violation of the 912 cap.
Faced with the new Court order, the attorney for South Seas asked whether the notice requirement for dwelling unit permits included hotel units. The Court then reviewed his Order granting CCA’s Motion for Summary Judgment – and made it clear that his prior Order limiting South Seas to 912 dwelling units included hotels units, and that his new Order requires South Seas and the County to advise CCA of any requests for building permits including hotel units.
The Circuit Court hearing on September 3rd not only required the County to provide notice to CCA should building permits be requested before an appellate decision issues, but it restated the Court’s view that the 912-unit cap in the Mediated Settlement Agreement includes hotel rooms.
What took place at this hearing further undermines the South Seas lawsuit against CCA for claiming that the Settlement Agreement, if upheld, will limit South Seas to 912 units including hotel units. CCA has requested sanctions and attorneys fees against South Seas and its attorney in this frivolous lawsuit and looks forward to its dismissal by the Court. And most importantly, CCA looks forward to a decision from the Appellate Court upholding the 912-unit cap – now that all briefs have been filed and we wait for the scheduling of oral argument.