After months of negotiations, an independent land trust is close to striking an agreement to enforce a conservation easement on a cherished golf course in Naples.
The easement is designed to protect the former Naples Beach Hotel’s golf course from commercial development in “perpetuity,” or forever. At least, a chunk of it.
An agreement between the North American Land Trust and The Athens Group could go before City Council for a final vote on Dec. 13.
“We do look forward to the conclusion of the easement,” said Naples Mayor Teresa Heitmann, after getting an update on the talks at a City Council meeting Monday.
Her fellow councilors agreed.
“I for one am ready to see a document that I can review, ask questions about and hopefully approve as quickly as possible,” said Councilman Ray Christman.
Benefit seen in having third party involved
The Athens Group agreed to the easement as part of City Council’s approval of its ambitious redevelopment plans for the 125-acre hotel property back in 2019.
City Council at the time chose not to involve a third party in the accord, although the developer seemed open to the idea.
The current City Council sees it differently, viewing the land trust’s involvement as a way to put more teeth into its easement agreement, which has yet to be implemented or signed.
While the city would have enforcement powers with its easement, the trust would add an extra layer, with monitoring and penalties for violations.
The city tapped Ausley McMullen, a Tallahassee-based law firm, to spearhead the negotiations between The Athens Group and the North American Land Trust in early April.
The law firm’s CEO told City Council talks got off to a slow start, as The Athens Group turned its attention to finalizing the purchase of the landmark hotel property, off Gulf Shore Boulevard in Naples. The sale closed on Oct. 14.
The property fetched more than $362 million in what one real estate observer described as a “monster deal.”
Negotiations between The Athens Group and the trust gained steam over the summer, as the closing on the property appeared imminent — after a months-long delay in the sale caused by a legal challenge involving a neighbor, who contends he’s entitled to have more say in the redevelopment plans.
“The talks have continued uninterrupted since the North American Land Trust was brought into the process by the city and their special counsel,” said Jay Newman, the developer’s chief operating officer, in a statement.
Legal challenge yet to be decided
While the legal challenge still looms in Collier Circuit Court, The Athens Group has characterized the suit as frivolous and argued it should be dismissed.
A conservation agreement with the land trust is entirely voluntary on the developer’s part.
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In the last update to City Council, Ken Hart, chairman, and CEO of Ausley McMullen, said the proposed legal document was on its “fourth or fifth draft,” with full participation and cooperation from the trust and the developer.
“We are pretty far along,” he said.
Hart shared some of The Athens Group’s concerns about the actual language of the document, particularly when it comes to the penalties for violations of the easement restrictions.
The developer’s concerns were spelled out in greater detail during a previous update to City Council a few weeks ago.
The Athens Group has argued that future violations may be out of its control, such as in the case of condemnation by a government agency, or another legal action, George Asimos, the trust’s attorney, explained.
If the easement should ever be undone by any legal action, the land trust wants to receive any economic benefits derived from the reversal — to spend on other conservation projects. The language is standard and purposeful in all of the trust’s agreements, designed to dissuade future conversion of protected lands for development, by ensuring there’s no windfall to current or future owners, Asimos said.
Such protective language is particularly important in this instance, in such a desirable place as Naples, he said.
“I view this a little like Central Park in New York,” Asimos said. “If you were able to develop it 20, 30, 50 years from now, it would be very, very valuable. This increases the incentive of anyone to attempt to undermine, or change it.”
He added that in no way did he think The Athens Group would ever seek to undermine the agreement, but there’s always a concern when it comes to future ownership, or legal challenges.
The Athens Group has also raised concerns about its financial obligations to the trust if violations are discovered or suspected, Asimos said.
Rarely do owners who enter into agreements with the trust violate their development restrictions, he said, but there’s always a concern about changes in ownership.
North American Land Trust no stranger to conservation easements
The North American Land Trust holds more than 550 conservation easements in 23 states, including Florida, protecting more than 133,000 acres of privately-owned land.
In the case of the Naples golf course, the trust would not hold the easement, but help the city manage it, reviewing the property at least once a year for compliance.
While there have been questions and disputes over how much of the existing 104 acres of open or green space must or will be preserved on the property, or how the golf course might be altered in the future, the trust has not taken up any of those issues.
“The use restrictions we think are within your bailiwick,” Hart told City Council.
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When it received its development approvals, The Athens Group agreed to sign the easement before the city’s issuance of a certificate of occupancy for the first “principal” structure in its redevelopment project, most likely the first condo building.
In a statement, Newman stressed the secondary agreement it’s negotiating with the trust isn’t required to proceed with its redevelopment plans, but reflects its desire to be a good partner with the city.
“The granting of this conservation easement is not required by our entitlements and is strictly voluntary on our part to promote a mutually beneficial working relationship with the city, and to provide further assurances to the community that our recreation and open space will remain as such,” he said.
Developer’s plans include five-star resort with ‘best-in-class’ condos
The developer plans to raze the beach hotel and build a five-star 216-room resort with “best-in-class” residential condos along both sides of Gulf Shore Boulevard North. Plans call for up to 185 homes.
The Athens Group has secured an agreement with Four Seasons to operate the smaller, but more upscale resort that will replace the storied waterfront hotel that opened in 1946 — at 851 Gulf Shore Blvd. N.
The easement became a hot-button issue earlier this year when The Athens Group started publicly sharing the possibility of shrinking the 18-hole golf course to 10 holes and creating new recreational activities on open, green space, including an instructional school for golf.
After hearing so much opposition to those potential changes from the community, the developer tabled them, with no plans to alter the championship golf course in the works at this time.
City Council has acknowledged the negotiations have taken longer than expected, but has expressed the importance of getting the agreement with the trust right, rather than trying to rush it.
In the council’s discussions, Vice Mayor Terry Hutchison said: “I just want to make sure we do what’s right for the future.”
As for the agreement itself, he said: “Of course, it’s only as good as what’s in it. So the details really matter.”