STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

DEPARTMENT OF BUSINESS ) REGULATION OF FLORIDA LAND SALES ) AND CONDOMINIUMS, )

)

Petitioner, )

)

vs. ) CASE NO. 82-1600

) SUNCOAST HIGHLAND CORPORATION, ) TIMBER OAKS, INC. and KINGSLAND, ) INC., )

)

Respondent. )

)

RECOMMENDED ORDER

Prior to the 28 September, 1982 hearing date, the parties in the above- styled proceeding, by and through their attorneys, on 27 September, 1982 submitted a STIPULATION purporting to contain all facts material to this case. By accompanying letter the parties waived formal hearing and requested a Recommended Order be submitted using the STIPULATION for the factual determination in this proceeding. The parties are represented by: Daniel J. Bcsanko, Esquire, Staff Attorney, Department of Business Regulation, 725 South Bronough Street, Tallahassee, Florida 32301 representing Department of Business Regulation; Edward S. Jaf fry, Esquire, Post Office Drawer 1140, Tallahassee, Florida 32302 representing Suncoast Highland Corporation, Timber Oaks, Inc. and Kingsland, Inc.

By Amended Notice to Show Cause dated 10 September 1982, the Department of Business Regulation, Division of Florida Land Sales and Condominiums, Petitioner, seeks to issue a cease and desist order, impose civil penalties or take other appropriate action against Respondents. As grounds therefor it is alleged that on March 22, 1982 Respondents entered into an Amended Consent Order wherein they agreed to establish and fund an Escrow Account in the sum of

$95,000 to insure completion of certain improvements in a subdivision registered with Petitioner; and that, as of May 5, 1982, Respondents have failed to establish or fund said Escrow Account.

All facts have been stipulated to by the parties. Proposed Recommended Orders have been submitted by the parties and have been considered by the Hearing Officer.

FINDINGS OF FACT

1. Respondents are developers of land registered with Petitioner pursuant to Chapter 498, Florida Statutes, and were so registered at all times here relevant.

   
   

2. In 1979 Respondent Suncoast Highland Corporation, (Suncoast) developer of Shadow Run Subdivision, received numerous complaints from the Shadow Run

   Homeowners Association (Homeowners) regarding lack of recreation facilities promised by the developer. This led to the execution of an AGREEMENT between Suncoast and Homeowners in which the developer agreed to install certain recreational facilities.

   
   

3. This AGREEMENT was not carried out by Suncoast and, after intervention by the Division of Florida Land Sales (Division) a CONSENT ORDER was entered on

   22 April 1981. In this CONSENT ORDER Suncoast irrevocably committed itself to complete the promised recreation facilities; agreed to file monthly progress reports with the Division; and, in the event of default by Suncoast, authorized the Division to impose a civil penalty in the amount of $10,000. Suncoast did not complete the recreational facilities as promised.

   
   

4. On 12 March 1982 an MENDED CONSENT ORDER was entered into between the Division on the one hand and Suncoast, Timber Oaks, Inc. and Kingsland, Inc. on the other, in which it was determined Suncoast had failed to construct the prescribed recreational facilities and Kingsland, Inc. had failed to provide recorded warranty deeds and title insurance policies to purchasers in their registered subdivisions. In this Amended Consent Order Suncoast reaffirmed its commitment to complete the recreational facilities promised to Homeowners no later than June 15, 1982; Timber Oaks, Inc. guaranteed the completion of recreational facilities by Suncoast; and all Respondents agreed to establish and fund on or before March 31, 1982, an Escrow Account under the supervision of the Division in the amount of $95,000 to pay for the completion of the recreational facilities, to pay the costs associated with recording deeds and title insurance, and to pay delinquent real estate taxes. The Amended Consent Order further provided that in the event of default by the developers the Division will immediately be entitled to impose a civil penalty in the amount of $10,000.

   
   

5. Respondents have failed to fund the Escrow Account or otherwise comply with the provisions of the Amended Consent Order.

   
   

   CONCLUSIONS OF LAW

   
   

6. The Division of Administrative Hearings has jurisdiction over the parties to, and the subject matter of, these proceedings.

   
   

7. The CONSENT ORDER and AMENDED CONSENT ORDER were final orders issued by the Division.

   
   

8. Section 498.049,Florida Statutes provides in pertinent part:

   
   

   1. A registration may be revoked or suspended upon findings that the registrant has:

      1. Failed to comply with the terms of any written order of the division.

(3) If the division finds that the registrant has been guilty of a violation for which suspension or revocation could be ordered, it may issue a cease and desist order instead.

(4). The division may, by order, impose civil penalties against any person for violations

of this chapter or rules relating thereto. Such imposition of a civil penalty shall not

preclude the division from invoking

any other appropriate remedy authorized by this chapter.

In the Stipulation the Respondents admit the violations alleged, namely, that they have failed to establish the escrow account or to correct the deficiencies that led to the Amended Consent Order requiring the funding of the Escrow Account. It thus appears that Respondents are financially unable to comply with the Amended Consent Order and carry out their obligations as developers, or that they have willfully ignored the provisions of this order. In either case the purchasers in the subdivision here involved have incurred the disabilities Chapter 498, Florida Statutes, was intended to avoid. Further palliatives are not indicated. It is

RECOMMENDED that the Division of Florida Land Sales and Condominiums issue a Final Order imposing a $10,000 civil penalty on and revoke the registrations of Suncoast Highland Corporation, Timber Oaks, Inc. and Kingsland, Inc. It is further

RECOMMENDED that if the Respondents pay the civil penalty of $10,000 to the Division and to comply with all terms of the Amended Consent Order within six

(6) months of the date of the Final Order the revocation of the registration be stayed for a probationary period of two (,2) years upon the expiration of which, unless sooner vacated for good cause, the Respondents be restored to good standing.

ENTERED this 3rd day of November, 1982, in Tallahassee, Florida.

K. N. AYERS, Hearing Officer Division of Administrative Hearings The Oakland Building

2009 Apalachee Parkway

Tallahassee, Florida 32301

(904) 488-9675

Filed with the Clerk of the Division of Administrative Hearings this 3rd day of November, 1982.

COPIES FURNISHED:

Edward S. Jaffry, Esquire Post Office Drawer 1140 Tallahassee, Florida 32302

Daniel J. Bosanko, Esquire Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301

Gary R. Rutledge, Secretary Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301

E. James Kearney, Director Division of Florida Land

Sales and Condominiums Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301

Docket for Case No: 82-001600

Orders for Case No: 82-001600