LOCAL BUSINESS

Naples Beach Hotel: Court decision on lawsuit holding up the sale has been delayed to August

Laura Layden
Naples Daily News
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A judge's decision on whether to throw out a legal challenge holding up the sale of the Naples Beach Hotel will have to wait. 

On Friday morning, Collier Circuit Judge Lauren Brodie rescheduled a hearing on the defendants' motion to dismiss the case.

Her decision came after the Naples resident behind the suit amended his complaint at the eleventh hour.

Plaintiff Gregory Myers filed his amended complaint overnight, within hours of the hearing, scheduled for 9:30 a.m.

Now the defendants must review the new suit to see if it's necessary to tweak their arguments for dismissal.

In the latest version of his suit, Myers has added three more claims: breach of covenant, breach of development agreement and civil conspiracy.

Like the original complaint, the modified one includes allegations of nuisance and slander of title.

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An older aerial view of The Naples Beach Hotel & Golf Club, which has closed to make way for a redevelopment project.

The hearing on the motion to dismiss is now scheduled for Aug. 6 and it's expected to take about two hours for all sides to present their case.

Myers, a close neighbor to the Naples Beach Hotel property, is representing himself in the lawsuit.

He's no stranger to legal battles.

Myers has fought bankruptcy and foreclosure for years and he's filed multiple suits against the developers of the WaterColor community, also known as the Villages at Seagrove, located in northwest Florida, in an attempt to keep them from making changes to open and natural areas.

The original Naples Beach Hotel.

In late May, his last-minute lawsuit filed in Collier Circuit Court stopped the looming sale of the 125-acre Naples Beach Hotel property in its tracks.

In the suit, Myers questions the right of the proposed buyers — the Athens Group — to pursue their ambitious plans without his input or approval.

Based on publicly recorded plats and easements, he asserts that he has an interest in the to-be-sold land, although he doesn't technically own any of it. He's declined media requests to comment on the case.

The challenge stemmed from Myers' opposition to proposed refinements to recreational and open spaces — and his lawsuit includes some of the same legal claims as the ones he brought over changes at Villages at Seagrove.

Myers has sued both the buyers and the sellers of the Naples Beach Resort property. The Watkins family has owned the property for decades, but wants to move on.

The Athens Group plans to raze the beach hotel and build a five-star 220-room resort with "best-in-class" residential condos along both sides of Gulf Shore Boulevard North. The redevelopment project includes changes to the golf course and other recreational amenities, including the well-loved tennis center.

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The developer has confirmed it has a letter of intent for the world-renowned Four Seasons brand to operate the five-star resort that will replace the existing Naples Beach Hotel.

In their motions to dismiss Myers' initial complaint, the plaintiffs have described his legal challenges as fictitious, false and fallacious. 

An aerial view of The Naples Beach Hotel & Golf Club on Sunday, May 23, 2021.

In a court filing, Michael Watkins, president of Naples Golf and Beach Club Inc., said not only have Myers' actions interfered with the anticipated sale of the property, but caused "substantial losses and damages" to the company and its employees. 

The hotel and its related operations, including the golf course, closed on May 24, in anticipation of finalizing a long-planned sale on May 28. 

According to a letter written to former employees on June 21, the payments they expected from a Recognize, Retain and Reward Plan, known for short as RRR, have been delayed and won't be made until the sale of the property happens.

In the letter, the previous human resources director Patsy Carbone writes: "We are uncertain when the sale will close, but we will continue to keep you advised. The delay will not impact the amount of the compensation under the RRR plan."

In court records, the purchasers say they've also incurred substantial losses and damages as a result of Myers' legal actions, which have delayed demolition and the start of construction for the new hotel.

When it sells, the landmark resort property is expected to rank as one of the largest real estate transactions in the history of Naples.