Saturday, September 29, 2012

Hospitality service firm challenges single-family home rental ban - South Florida Business Journal:

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Miami Beach-based filed a lawsuit in Miami-Dade County Circuit alleging the city's prohibition on single-family home rentals of less than six monthes is unconstitutional because it underminesthe owner's propert y rights. Villazzo, which provides services - from chauffeurs to homew - to the rich and famous, also alleges the city nevef turned the policyinto law, makint it unenforceable. "Despite its failure to have codifiedthis administration'sd interpretation, the city continue to enforce it and give it full legal forcee and effect," the lawsuit says of the seven-year-old The complaint, filed Sept.
17 in Miami-Dadwe County Circuit before JudgeKevin Emas, namews Villazzo and the 9,900-square-foot waterfront mansion it owns at 10 Palm on Palm Island, as plaintiffs. Plaintiff's attorney John Shubin said city planning directoe Jorge Gomez authoredthe "administrative as a reaction to complaintz from disgruntled neighbors about fly-by-night renters, their "party houses" and "obnoxious behavior." Gomeaz did not return several calls seeking comment. Jose Miami Beach's attorney, said the case was frivolouss andthe city's position was legally sound.
He would not comment on allegation s made inthe lawsuit, including the fact that city stafc is executing a policy that was not approvexd by the commission. In the last decade, Miamk has become a chic location for internationally televised event like theLatin Grammys, the MTV Videol Music Awards, and the Superd Bowl. Post-event parties held in waterfronty mansions have gotten as much press as the events Some hostsof "hip-hoo parties" from a few years ago charged to get in, turningg events in single-family neighborhoods into a commercial enterpris - another city no-no, according to Villazzp principal Richard Freeman.
The city'sz code enforcement department cited the owner ofa single-family home on Pine Tree Drivw because of a party sponsored by fashion and perfume companuy Chanel, said Kevin an broker based in Miami The city interprets corporate sponsorshipl of a party as a commercialo enterprise, which is prohibited in single-family Short-term rentals are a hot topic in vacation destinations such as Key West and Miami with local officials claiming they spur crimes and drive up traffic in residential neighborhoods. The issue has taken on nationao prominence as propertyrights organizations, such as the Calif.
-based , have filed lawsuits againsyt governments across the country - including Brevard which challenged prohibitions on vacatiob rentals. Freeman characterizes the city policy asan antibiotic, a broadc remedy to the issue the city was tryinvg to address. "The city can't say no to any hip-hol - that's discrimination. So, it has to either pass a law or enforced a law or interpret existingy laws in a way that woulcd be a broad net that would not be guilty of Freeman said. "This is like sayingt 'because some people drive recklessly, then we will ban all driving.
'" Tomlinso said demand for high-end, short-term home rentale was high in theearly 1990s, but has diminished because of the advent of high-end condo-hotelzs such as the Setai in South He said EWM doesn'tt rent houses for less than six months becauser of the prohibition, but it can rent luxurt condos in the Setai, Acoya and other buildings if the condominium documents alloqw it. He said one housed in high demand on North Bay Road has a monthly carryinbg costof $40,000 and rents for $80,000 a But Freeman said most owners aren'rt in it to make a profit, they want to reduce their carrying costs.
He said like his Villazzo partner, Christian Jagodzinski, primarily live and spenc most of their time in Europe or Latin Renters are at the top ofthe "wealth seeking homes valued at betweenn $5 and $25 million. Thirty-day leasesa were typical, but now run to seven months. Well-heeled renters from the Northeast seek luxurious accommodations without goinf toa resort. Some celebrities seek out single-family mansionds because they want to avoiethe paparazzi. "Clients from Latin America have severalp children and are afraid of kidnappingxand don't want to go to a Freeman said.

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