Lawsuit adds to Spanish Main's recovery uncertainty

The repair bill totaling more than $13 million remains unpaid, the company says.


Pat Evans, an independent contractor, works on interior trim on a house in Spanish Main Yacht Club.
Pat Evans, an independent contractor, works on interior trim on a house in Spanish Main Yacht Club.
Photo by Dana Kampa
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A drive down Spanish Drive South or Spanish Way on a sunny, summer day still appears as an idyllic Florida retirement spot at first sight. On both sides of the street, gleaming white one-story dwellings accented with pastel pink, purple and seafoam green shutters are everywhere.

Yet, the homes remain quiet with only the occasional cluster of construction trucks parked here and there. Upon closer inspection, almost every house has a yellow notice of restricted use taped to the windows, dating back to November.

Almost every resident and business owner on Longboat Key experienced effects from hurricanes Helene and Milton last fall. But, while many are far along on the road to recovery, residents at Spanish Main Yacht Club have struggled with returning to their homes.

Now, a dispute with a damage-remediation company has gone to court.

Spanish Main Yacht Club has until early August to respond to a lawsuit filed in Manatee County Circuit Court by a Michigan company seeking to enforce a construction lien against the condominium association over unpaid repair bills totaling more than $13 million.

Only a few months remain before the anniversary of hurricanes Helene and Milton, and the majority of homes at Spanish Main Yacht Club remain under restricted use.
Photo by Dana Kampa

In the 55-page lawsuit, filed on July 7, RACM LLC which does business as Servpro of Saginaw, Mich., leveled several legal complaints against Spanish Main, including breach of contract and enforcement of a 2025 construction lien related to repairs by the company after Helene in September 2024. The lawsuit was served on July 17, court records show.

By law, Spanish Main has 20 full days to respond. As of July 28, no such response had been filed, court records show.

In an email, one of Servpro’s Miami-based attorneys denied the ultimate goal was foreclosure on the property. Spanish Main board president Janet Burmeister, elected in April along with new board officers, did not return phone messages left seeking comment.

“This is not a foreclosure action, but an action to enforce a lien by Servpro to recover monies owed for extensive work performed on the property,’’ wrote Marlyne Zakher of the Goldberg Segalla firm, representing Servpro. “Servpro is working amicably with the Association to resolve this matter."

In January, Servpro filed a lien for $13,521,635.46 charged for repair work. Roof work totaling $175,360.64 was also billed and remains unpaid, according to the lawsuit.

“This claim of lien shall apply against all of the units in the condominium according to their respective percentage of the common expenses of the condominium,” the lien states.

The July contract and indebtedness lawsuit claims Spanish Main is in breach of contract.


Calling it quits

Frustration has caused some residents to leave.

One such homeowner is Joseph Gutmann, who, along with his siblings, inherited the property at 683 Spanish Drive South in July 2024. He bought his siblings’ shares shortly thereafter.

He sold the property in July for $10,000 less than he paid.

Piles of water-damaged furniture and other items from a unit in Spanish Main following the hurricanes. Spanish Main residents continue to wait for the proper permits to fix or rebuild their homes.
Photo by Carter Weinhofer

“Think the ship is going to sink. That’s why I got out,” he said.

Looking at the current status of the complex, he said, “I don’t believe there’s any significant number of units that are habitable. I know some people did their own thing and are, more or less, able to move in.”

Gutmann said he was among the homeowners urging community leaders not to employ Servpro in the early stages of rebuilding.

“I pleaded with the board not to engage with them, because I was concerned they were going to get price-gouged,” he said, adding he refused to sign agreements with vendors connected to the condo association.


A vision

Hurricane Helene struck Longboat Key on Sept. 27, 2024, with flooding storm surge in some areas, predominately on the northern half of the island. Spanish Main was among the communities hardest hit, experiencing water infiltration and roof damage from wind.

A contract signed on Sept. 28, 2024, specifies an estimated repair price per each of the 212 dwellings of $40,000 for initial repairs and water-remediation services, court records show. Common areas also were mentioned.

Flooding and high winds from hurricanes Helene and Milton hit homes at Spanish Main Yacht Club particularly hard last October.
Photo by Dana Kampa

The number of units multiplied by the price totals about $8.5 million. An invoice dated Dec. 18, 2024, for work on the residential units, clubhouse and maintenance shed reflects a balance due of $13,521,635.46, court records show.

Another invoice for roof inspections and repair for $175,360.64 was delivered on Dec. 16.

Gutmann said he brought in two different developers to potentially buy out the homeowners, seeking concurrence among at least 90 percent of the 212 parties to potentially redevelop the property.

“I brought a developer in who was going to give everybody market value of their homes, plus 20%, before the storm,” he said. “My deal would have been great, but there were some people who weren’t happy with the terms.”

In 2018, Spanish Main owners took heart in a landmark Longboat Key zoning change that opened the door for residents to consider redevelopment of properties more in keeping with contemporary standards or rebuild from catastrophe.

Concepts were developed, including one that called for 52 three-bedroom units, a clubhouse, amenities, roads, sidewalks and covered parking with an ample setback from Gulf of Mexico Drive. The front of the development would have a “Las Vegas-style” water feature. 

At the time, community leaders emphasized, the notions were simply visions, not firm plans.

Spanish Main was one of Longboat’s first condos, built in 1965 at an overall cost of $4 million.


Selling or staying

Two properties in Spanish Main sold about a month before the storm: one for more than $900,000 and the other for more than $350,000. Eight have sold since the storm for prices between $180,000 and $400,000, two to the same new owners, a married couple from Palma Sola.

Four units are actively listed for sale with prices ranging from $359,000 to $399,500. A fifth was under contract in late July, listed for sale at $299,000. Common on Spanish Main real estate listings is verbiage that explains the status of the properties, either with renovations completed and awaiting final décor choices or something similar to: “This community is in the build-back stage due to damage from hurricanes in 2024. All 212 units in Spanish Main are under FEMA regulations, guidelines and stringent adherence to rebuild specifications. 

This unit is built back to drywall, electric and plumbing guidelines. Insurance payout will transfer with the villa. This is an opportunity to make this villa your custom home.’’

Spanish Main Yacht Club has until early August to respond to a lawsuit filed in Manatee County Circuit Court by a Michigan company seeking to enforce a construction lien against the condominium association over unpaid repair bills totaling more than $13 million.
Photo by Dana Kampa

Gutmann noted he doesn’t have as much of a monetary investment in the property as some other longtime residents, so deciding to sell was not as difficult.

“My parents were there for over 20 years, and I get it,” he said. “I know them all there. But you got hit by a hurricane, you’re building back to where you were.’’

Gutmann hopes fellow residents find a positive resolution, but he’s doubtful. He had hoped to live out his retirement years in the same place his parents called home, and he may find another place in the area. But it won’t be in Spanish Main.

“I sold my unit. I’m out.”

 

author

Dana Kampa

Dana Kampa is the Longboat Key neighbors reporter for the Observer. She first ventured into journalism in her home state of Wisconsin, going on to report community stories everywhere from the snowy mountains of Washington State to the sunny shores of the Caribbean. She has been a writer and photographer for more than a decade, covering what matters most to readers.

author

Eric Garwood

Eric Garwood is the digital news editor of Your Observer. Since graduating from University of South Florida in 1984, he's been a reporter and editor at newspapers in Florida and North Carolina.

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