Judge denies motion to dismiss $1.4 million excess permit fee suit filed against Venice

Earle Kimel, Sarasota Herald-Tribune
·2 min read

VENICE – A state judge denied a motion by the city of Venice to dismiss a lawsuit filed by developer Pat Neal over the city charging too much for building permit fees.

Following Twelfth Judicial Circuit Court Judge Hunter Carroll’s Nov. 30 ruling, the dispute is headed to a Jan. 23 case management conference, though he gave the city 20 days to respond to his order.

Neal Communities is asking for a refund of at least $1.45 million in building fees in the lawsuit.

Neal’s attorneys contend that a building fee formula – which the city adopted in August 2012 – bases fees on the percentage of a project's value instead of the cost for enforcement of regulations.

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The $12 million expansion of the Venice City Hall campus included a 7,000-square-foot expansion of the building division, pictured here, which was partially paid for with building permit fees.
The $12 million expansion of the Venice City Hall campus included a 7,000-square-foot expansion of the building division, pictured here, which was partially paid for with building permit fees.

That distinction was discovered by Neal's staff in February 2020.

Between Sept. 5, 2014 and July 12, 2021, Neal and his associates paid about $3.8 million in building permit fees. The $1.45 million represents what he contends are overcharges.

Neal is asking for reimbursement of his company’s overpayments after July 12, 2021, too – as well as interest and penalties.

Attempts at mediation failed and the City Council forced the matter toward court on July 12, when it voted to suspend a special agreement dealing with the fees – called a tolling agreement – that lifted a four-year limit on how far back fees could be recovered.

The developer responded by filing the lawsuit.

Money collected through the building permit fees were used by Venice to help pay for a new building division – including a 7,000-square-foot expansion to house the division  –  as part of a $12 million expansion of the City Hall campus that included construction of a new Fire Station 51.

Earle Kimel primarily covers south Sarasota County for the Herald-Tribune and can be reached at earle.kimel@heraldtribune.com. Support local journalism with a digital subscription to the Herald-Tribune.

This article originally appeared on Sarasota Herald-Tribune: Judge denies Venice bid to dismiss developer suit over building fees