Flagler County government is nearing a final settlement of a four-year-old lawsuit it filed against several parties after its ill-fated $1.125 million purchase of what was then known as the Sears building on Palm Coast Parkway.
The county previously settled with two of the four parties, recouping $900,000 (or $843,000, depending on which document you consult). The pending settlement would recoup an additional $125,000, netting a loss of $100,000 (or $157,000).
The settlement was negotiated by Assistant County Attorney Sean Moylan, who had handled the case, during a court-mandated mediation on Sept. 19 with Mediator Michael A. Tessitore. He reported to the court the next day that the parties had settled the case, pending signatures.
“We took a loss on the sale there,” Moylan said, “and our settlement does not pay for that. The issue is if we were to go to trial and succeed, there’s no guarantee that those damages would be awarded to us, so the issue with the settlement is, hey, is this worth it or not. We are presenting that to the commission. We believe it is worth it.”
“We can come to an agreement but the agreement is only on the condition that the commission agrees to that settlement,” County Attorney Michael Rodriguez said today.
The proposal is on the commission’s Oct. 6 meeting agenda. There was no closed-door discussion between commissioners and the county attorneys before the mediation, as is sometimes the case. State law allows for so-called “shade,” or closed-door, sessions of local governments when litigation strategy or settlements are in question. Commissioners are being briefed on the matter individually.
“This is a tentative settlement reached through mediation by our outside attorney and staff, based on prior direction from the Commission,” Commission Chair Andy Dance said, putting an emphasis on the “tentative.”
The county agreed to buy what was then known as the Sears building at 4888 Palm Coast Parkway NW in November 2018, and closed on the 8,000-square-foot property at the end of March 2019. The price was $1.125 million. The seller was Andre’a McIntyre through her company, Darnell Group.
After closing, the county discovered damage to the roof system and rain gutters and significant water intrusion, making the building unusable for the county’s purposes. The building was to have been used as a branch for the tax collector.
The county put four parties on notice that it would sue, including the realtor and her company, the owner, and Universal Engineering Sciences, the company that inspected the building on Nov. 9, 2018, before the sale.
The county settled with Darnell Group and the realtors in April 2020, when a buyer for the building was found. When the County Commission was presented with the settlement, the settlement agreement listed $1 million as the money the county would recoup. That turned out not to be the case. The building was sold to Bunnell Apostolic Church of God, also known as Christian Life Center of Flagler County, for $900,000 that September. The difference was never made clear. The figure cited in the Oct. 6 memo to commissioners is $843,000. The discrepancy is not explained.
(Two years after buying the building for $900,000, Bunnell Apostolic sold it to Calvary Christian Center, which occupies the building today, for $1.785 million.)
All that side, it still left Universal and one of its engineers, Brian Pohl, whom the county had sued for negligence and breach of contract. Pohl faced a claim of professional negligence, as he had signed the inspection report. Those are the two defendants now settling with the county.
Henry Flagler says
Ah, another one of Heidi Petito (done as the General Services Director, who is now the County Administrator) and Mike Dickson’s (the Assistant General Services Director whom is now the Director and close friend of the Petito’s) mistakes has been covered up. Remember that the Bings Landing, among many more, all have their fingerprints on it. And they made her the County Administrator, bringing along her friendship group to promotions, as well as hired into newly created positions. Amazing. Keep it up Flagler!
Jane Gentile-Youd says
Hadeed made sure to also sue the innocent lady realtor for the roof damage. Climbing on roofs and inspecting them is not a realt estate agents responsibility to disclose to anyone unless the realtor is aware of actual roof insufficiency. The lawsuit went on until May of this year -over 4 years before Hadeed ‘dropped her’ from the lawsuit but not before he made sure she spent thousands of her own personal dollars, as well as her broker was stuck with legal as she was also sued by the idiot Hadeed.
I am going to ask our new county attorney to offer these two innocent ladies reimbursement of their legal fees from the $125,000 the county is getting from Universal Sciences. The realtors , by the way, have no professional legal connection to the defendant Universal Sciences,.
BTW, I called their attorney 3 weeks ago and volunteered to witness on their behalf against the county because 2 weeks before closing the legal office did not have a copy of the sales contract – Sean Moylan sent an e-mail to Tim Telfer ( which I sent to Universal’s attorneys) ” Can you dig up the Sears contract for Ms. Youd? “….. Need I say anymore,
Coincidence that a week after my offer to testify the case was settled. Real coincidence,,.
Standing in the Middle of Palm Coast Parkway says
What Jane Gentile-Youd won’t say is the name of that Commercial Realtor, Margaret Sheehan-Jones, CCIM. CCIM stands for Certified Commercial Investment Member, an elite professional designation for commercial real estate professionals awarded by the CCIM Institute. It signifies expertise in commercial and investment real estate through a comprehensive program of education, a portfolio of qualifying experience, and a rigorous comprehensive exam. Earning the CCIM designation demonstrates a proven understanding of financial, market, and investment analysis, enabling clients to make informed decisions, minimize risk, and achieve their real estate objectives.
Jane believes that “Climbing on roofs and inspecting them is not a real estate agent’s responsibility to disclose to anyone unless the realtor is aware of actual roof insufficiency. “. Shame on you, Jane. Shame on Margaret. Given her ‘professional certification’, she should have known better. The City of Palm Coast should never have dealings with Margaret or her employer again.
Skibum says
Jane Gentile-Youd, as practiced as you must be with all of your past involvement dealing with the county and their civil suit against the dilapidated motel, I hope you realize that it is not uncommon for civil actions to name anyone and everyone even remotely associated with an issue. During discovery or depositions of all named parties, as well as in the run up to a trial, is it not appropriate to drop people from civil actions who are determined to have done no wrong?
Wouldn’t you agree that there is not always a conspiracy around every corner?
JimboXYZ says
Jane, was this hardly innocence considering it was a 2nd failed location for similar mold issues for what eventually became the new facility for FCSO off SR-100. The first building was a property that is more directly on SR-100. I forget the guys name that was a local Govt employee, steering real estate deals for the FCSO facility to a real estate company that his wife worked for ? That guy resigned and went off to Ft Walton Beach or wherever it was the couple relocated to. Was more about that level of any corruption ? There’s a history of the stories for FlaglerLive archives 2019-present for anyone that wants to research the history of that. The mold in that building was pretty obvious, even an issue for the first choice that deals fell thru for another lmcation. That building one of Mayor Alfin’s clients backed out of the a deal. I recall that being a healthcare operation for substance abuse rehab ? A mnufacturer eventually bought up that location. Real Estate in FL is a “Buyer Beware” thing pretty much. Long standing punchline is “…I’ve got a bridge in the Swamp/Everglades to sell you.” Even the new FCSO facility had to have the lot built up with dirt because it’s in the middle of the swampland of Flagler County. End of the day, the politicians were throwing millions at that FCSO facility need like it was pocket change. Ultimately the FCSO facility became a $ 20+ million expenditure.
http://sundaymorningcafe.com/web/if-you-believe-that-i-have-some-swampland-in-florida/
Greg says
Another blunder, another loss for taxpayers. Poor leadership at the city and county level is disgusting. Being run by a bunch of flunkies. That’s why I’m getting out of this hell hole november 15th.
TR says
Good luck with your move Greg. But if you think that wherever you’re moving to has a better form of council, then you’re mistaken. If it’s not the way it is here in PC now it will be in a few years. Unless of course you move to an island or someplace off the grid. Again, good luck.
JimboXYZ says
Here’s another perspective ? Recently there was a suggestion that tax rollback by the council. One comment by the council was the $1.5 million that was earmarked for Govt employee raises would be affected by a roll back. The math of the Sears building & all the litigation over mold would have paid for the Gambaro tax rollback and more. The Sears fiasco was 2019-ish, long before Bidenomics of inflation and a 2025/2026 Govt employee raises. Invested more wisely than purchasing a moldy Sears building and they probably pay for not only the employee raises in the present, but also future employee raises. What did we get instead ? A moldy building tht will never recoup losses & then there was 4 years of litigation that will never add any value to Sears building, no mold remediation, no roof repair, nothing that would improve the property. But I’ll bet the unaffordable inflation increased the value of the property for tax purposes without a single line item of commercial property improvements ? Lawyers getting paid well for something that should’ve never happened, been in a courtroom in the 1st place to reach a settlement that is short of resolving anything. The Sears building is the same age & has the same issues it’s had for years.
Jane Gentile-Youd says
Amazing that a ‘settlement ‘ without the details is on the Consent Agenda for Oct. 6. What are the terms and conditions? Amazing that Al Hadeed did not even have a copy of the county’s purchase contract in his office so he probably had no idea where the building is located. Note: Had he been there in person ( with the $889 salary per day he got) he would have SEEN visible mold.
Suing the realtors for issues which he was well aware are NOT mandated by F.S. 475 which governs licensed real estate agents and brokers. An attorney should know how to read state statutes. Hadeed cost two licensed innocent real estate agents thousands of their personal dollars what should have been TOTALLY UNNECESSARY LEGAL FEES.
Not only was he never there his staff instructed Universal Sciences to ‘go easy’ and not do a thorough inspection ( just make it look like one to justify tax dollars) so that’s what Universal probably did.
I doubt Al Hadeed could describe where the building is – he would need to check his GPS to find it no less buy it!
NO settlement belongs on any Consent Agenda when have a staff of 3 lawyers we are paying over 1/2 million bucks to ( not counting their perks and health insurance) and they didn’t include the actual proposed Settlement into the Agenda package and hear it under ‘General Business’ not ‘Splish Splash Consent Agenda’!!!!!!
I will say in public that if this settlement is not put on full agenda and if the 3 licensed real estate agents who are 3 voting commissioners disagree with F.S. 475 they need to ask their legislators to change it. But for now it clearly does NOT mandate real estate agents be responsible to discover any part of a structure’s condition. We licensees are however responsible if we have been told by the sellers, that there is (are) defects and we fail to disclose what we were ‘told’ to the prospective buyers. END OF STORY.
I swear to the Almighty if the commissioners do NOT vote to either table the issue or vote at the meeting to reimburse the 2 innocent real estate agents their total legal costs all caused by Al Hadeed’s immoral, disgraceful, vicious, lawsuits against them while knowing full well that HE not they were responsible for the price paid ( where is a formal proper appraisal report?? where pray tell) nor physical condition nor the result of a lousy investment in the first place.
I hear that Suzanne Johnston never asked for this building. It was chosen by our county attorney who never even saw it in thr first place.
Now for over $1/2 million for 3 attorneys ( 1 is not good enough for 20,000 people) I want to SEE the settlement as should the 5 commissioners for their $75,0000+ $$$$medical, travel etc etc.
Please please STOP blaming real estate agents for everything in this world. I am an agent for 46 years and have successfully fought, and led, many unnecessary and detrimental zoning changes and over development as well as always being involvef with FDOT over road beautification -both in Miami-Dade and here in Flagler. I got treed PLANTED not DESTROYED and I am a realtor for 46 years.
Have a nice day.
James Miller says
Funny, sue happy got the tax payers another bill! Why didn’t someone in the city government look at the cost to fix the sick building?
Currently occupied?
What about the fence near the library that was another site for this? Tax Payers got the bill for that as well!!
The city has a guy/gal taking realtors signs and they wonder why people are frustrated with this city officials. While the Toll brothers and Seagate have permanent signs on Belle Terre in the E section and Matanzas woods? Blame the realtor and not city is crazy!
CP says
When it was Sears and I went in in 2017 to purchase a riding lawnmower, it began to rain not only was the water coming in through the roof. It was coming in through the sidewalk under the wall. That place was a moldy mess when I walked in, I immediately started sneezing, and while filling out the paperwork, my eyes were watering so much. It looked like I was crying and I couldn’t quit sneezing and because it’s all computer generator I had to stand in there and deal with the mole you could smell it. I don’t know how anybody would’ve not seen And smelled the mole but when my daughter was being sworn in at the old sheriff’s office on 100 I had the same thing going on the minute that I walked into the building I could smell them old and immediately started sneezing. I ended up having to take medicine so I wouldn’t have an asthma attack. Maybe the County should quit buying a Properties expecting to make a profit if they’re not going to get inspections done, especially since Florida is the mold capital of the world especially on commercial buildings. Maybe they should employ someone like me who can smell mold, but they also have dogs That can smell mold if they’re going to spend money on dogs for the sheriffs department to sniff out drugs, maybe since they can’t hire proper building inspectors they should consider buying one of those dogs or get out of the commercial real estate business altogether, and only acquire properties when people can’t afford to pay the taxes anymore
Standing in the Middle of Palm Coast Parkway says
Jane Gentile-Youd, please ask your friend, Commercial Realtor Margaret Sheehan-Jones, CCIM, to review the CCIM Code of Ethics. Sheehan-Jones had brokered the sale of the building to the county from its former owners. Ask Sheehan-Jones to review the section that says “Misrepresentation: Exaggerating, misrepresenting, or concealing pertinent facts about a property or transaction is a serious violation,” and “Lack of due diligence: Members employed to manage a client’s property must exercise due diligence and protect it from foreseeable contingencies.”. By the way, the National Association of Realtors’ code of ethics prohibits misrepresentation, which includes exaggerating, concealing, or falsely stating any pertinent facts related to a property or transaction. Article 2 specifically states that REALTORS® must not engage in exaggeration, misrepresentation, or the concealment of pertinent facts, ensuring they present a truthful picture in their advertising, marketing, and communications.
Ask Sheehan-Jones about her commissions. According to earlier reporting, “As part of the agreement with the county, she found the new buyers and brokered the sale to them.”. Did she collect a commission on the sale of a mold-filled building to the county and then another commission for the sale to new buyers? Jane can attack the county attorney’s office all she wants.
Jane Gentile-Youd says
To Skibum
One does not have to sue someone and make them hire an attorney to defend themselves when a simple deposition is needed of a ‘third party ‘. You obviously do not know the law at all.
Jane Gentile Youd says
to Standing in the middle of Palm Coast Parkway:
Realtors are NOT responsible for structural defects in any building that they cannot SEE with their own eyes or have been told exist by the sellers. I suggest you pull up a chair and make yourself comfortable in the median of Palm Coast Park and READ Florida Statute 475.- that is if you can read…. Seem to me you just love write any blah blah from your poison filled mouth while you have a major reading disorder as your comments have nothing to do with the law as written regarding responsibilities of licensed real estate agents.
BTW we have to take 14 hours of continuing education to keep our state real estate licenses every 2 years – I accumulated 32 hours of continuing education – 16 more than I needed just a few weeks ago.
How many credits do YOU have regarding the legal obligations of a Florida licensed real estate agent. Verbal toxicity is repulsive.
Paul S says
The incompetence.
Amazing.
Playground fiasco.
Real-estate fiascos.
Planning failures.
The list goes on.
Maybe we need some RE and development professionals to step in. Oh, wait …