The proposed hotel would be at 800 S Harbour Island and run along the south side of Knights Run Avenue. Credit: Screengrab via Google Maps
Harbour Island is one step closer to getting a major hotel development—along one of the community’s largest thoroughfares. Still, the contentious site remains the subject of ongoing legal battles between its developers and the city of Tampa after the city rejected the plan.

In a Dec. 19 ruling, Judge Anne-Leigh Gaylord Moe, of the 13th Judicial Circuit Court, stated that the city of Tampa lacked quasi-judicial authority to make a decision on the development of this site, as it has for land use issues for decades. Quasi-judicial proceedings are ones that require due process, so all involved parties can be heard and provide substantial evidence.

This was seen as a win for Liberty Group, the developer behind the proposed boutique hotel. Liberty issued the following press release to Creative Loafing Tampa Bay:

After a four-year legal battle, Liberty Group has won a decisive victory in litigation against the City of Tampa. A judge has issued a Summary Judgment Order confirming that the Tampa City Council does not hold quasi-judicial authority to rezone any individual property in the City of Tampa.

This ruling invalidates any rezoning or restrictions previously imposed by the City Council on theHarbour Island property, restoring the original CG + RMU-100 zoning classifications. The decision paves the way for Liberty Group to advance its development plans, contributing to Tampa’s ongoing economic growth and fostering new opportunities for the community.

“This decision is not only a significant milestone for us and this project, but it also reaffirms the legal framework for zoning authority in the City of Tampa,” said Punit Shah, CEO of Liberty Group. “We are excited to move forward with our development plans and remain committed to investing in the future of our dynamic Tampa community.”

Shah continued, “I am grateful for the efforts of our entire legal team and the support of the community throughout this process.”

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The case has also been moving through the Second District Court of Appeals. In a nine-page Jan. 16 filing, Liberty Group suggested that the court send the case to the Florida Supreme Court for an “immediate resolution,” citing how the case affects myriad municipalities with quasi-judicial power over land-use cases, not just Tampa City Council.

On the other side of that fight remains the city of Tampa and residents of Harbour Island. City officials declined to comment due to the ongoing legislation as it is pending a decision. And on Dec. 17, Gov. Ron DeSantis appointed Moe to the Florida Second District Court of Appeals, where this case is being heard.

The development was first introduced in 2021 and Larry Premak, the president of Harbour Island’s South Neighborhood Association has been vocal against it since.

“What is most important in Judge Moe’s decision is if the city council does not have authority to rule on quasi-judicial proceedings, who does? The judge does not say,” Premak said. If the ruling stands–and we don’t think it will–it would turn any land use exemption, exception, or variation into the wild west…it would be chaos.”

City council denied Liberty Group’s proposal in May 2022 and again that December. Back then, the neighborhood association cited Knights Run Avenue as a line of demarcation, which has marked the division between Harbour Island’s zones for 35 years. In a presentation to council, it was noted that high-density residential and high-density commercial only exist north of Knights Run Avenue. The proposed hotel would be at 800 S Harbour Island and run along the south side of Knights Run Avenue.

Campaign finance records show that Shah, the CEO of Liberty Group, also known as Liberty Hospitality Management, donated to the campaigns of two different judges of the 13th Judicial Circuit Court before Liberty’s case against the city was heard there. Shah donated $1,000 to Steven Scott Stephens in August 2020. Stephens ultimately lost that bid for reelection and works at a private practice in Tampa. Shah donated another $1,000 to Judge Alissa Ellison’s campaign in February 2022, just two months after city council last heard and denied the proposal. Both of these donations were made from 800 S Harbour Island Blvd., which Liberty Group asserts was the address of the company’s headquarters until 2022.

When asked about these donations, Shah told CL, “We like to support leaders within our community that can help make a positive impact.”

Political Scientist and USF professor Dr. Ed Benton believes this is enough to affect the case.

“I would think that the appellate court would void the decision that has already been made by a 13th Circuit judge because of conflict of interest and possible bias and then direct that the case be re-heard by a judge in another judicial circuit in the state that is not close to Hillsborough County,” he said.

David Smolker Esq., of Smolker Matthews, represents the South Neighborhood Association.

“We are not intervened in any of the litigation,” Smolker said. “We’re, at this point, sort of bystanders.”

While there’s been a question of the subject matter jurisdiction, or the court’s legal authority to hear a case, Smolker said it’s more a matter of what proper action should have been taken.

“It’s a bit of a tempest in the teapot because I think, at the end of the day, it’s just a question of what’s the proper remedy,” Smolker said. “Either way, I think Judge Moe had jurisdiction. It was just a question of whether she treated it as a petition for certiorari and reviewed the record only or whether she conducted a brand new trial.”

A petition for certiorari is a request for the Supreme Court to view a case from a lower court. Premak, for his part, believes this case will end up in the Florida Supreme Court, calling the ruling “broad” and something that affects not just Tampa, but all of Florida.

“When the last hearing in front of city council was held in December 2022, out of 4,000 residents on Harbor Island, exactly one spoke in favor of this development,” Premak said. “Hundreds literally wrote in or were at city council to oppose it. And the only one who did speak for it was Punit Shah, the developer.”

In the appeals case, Liberty Group and the city of Tampa—and, by extension, the South Neighborhood Association—await the judge’s decision in the appellate court.

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