June 15, 2007 — Superior Court Judge Brenda Hollar Monday issued a temporary restraining order against Grande Bay condominium developer Bay Isles Associates Friday after buyers of the unfinished units claimed the developer changed the terms of their purchase agreements.
A preliminary injunction hearing will be held at 9 a.m. Wednesday, Hollar said. Asked why she issued the order, she said, "There was likelihood of success on the merits.”
The project, which fronts on the road to Gallows Point, is under construction just above the Cruz Bay waterfront. About two dozen condominium buyers filed suit against Grande Bay.
Grande Bay attorney Simone Francis did not return a phone call requesting comment.
The buyers got the news in a May 17 letter that allowed them to cancel their purchase agreements if they did not agree with the changes, according to court documents. They had 15 days to cancel or Bay Isles would assume the buyer was going along with the changes.
If they didn't like the new agreement but still wanted to buy units, buyers could pay $39,000 a year for a hospitality agreement that includes such amenities as access to digital TV, telephone services, DSL Internet service, garbage collection and access to a refrigerated wine storage area included for free in the original agreement.
In their request for a temporary restraining order, the buyers claimed the developer removed four parcels from condominium ownership, including two slated to serve as beach access.
"This land is much more valuable to the plaintiffs than any dollar value assigned to the land itself,” the complain says. “This land allows access to the beach, which significantly enhances the desirability of the condominium units at the resort.”
The new agreement also removes assigned and exclusive parking included in the original agreement. Instead, buyers will have to use valet parking that will cost them $175,000 a year. Grande Bay will also have the right to park any cars in those spaces, according to the new agreement.
This change is necessary because Bay Isles wants to install lifts in each of the parking spaces so two cars can be stacked up, doubling parking capacity, according to the court documents.
"Bay Isles wants to be able to effectively run a parking garage and have the plaintiff buyers subsidize its cost," the complaint says.
Instead of unlimited use of their units included in the original agreement, the new agreement limits stays to 90 days per year. Bay Isles had seven complementary nights every five years in the original agreement, but now gets seven days a year.
The original agreement called for Bay Isles to spend at least $50,000 a year on marketing, but in the new agreement that number stands at zero.
The new agreement allows Bay Isles to allow anyone to use Grande Bay's pool, a change from the clause in the original purchase agreement that reserved it for the exclusive use of condominium owners.
No one representing the buyers could be reached for comment.
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