Cost, delays in Boynton condo repair project prompt residents to ask court to take control

BOYNTON BEACH — A group of Boynton Beach condo owners is pushing back plans for an $8 million security repair project, alleging its board mismanaged the work so badly that a court-appointed receiver must take control of the complex.

At issue is a concrete restoration project at Gulfstream’s Seagate, a 50-year-old, five-building community on the Intracoastal Waterway in Boynton Beach made up of 360 properties. Each of the buildings has four floors.

A state law passed in response to the tragic June 2021 collapse of a 12-story oceanfront apartment tower in Surfside requires safety inspections and calls for financial reserves to be fully funded. The law applies to buildings of three stories or more.

Special report: Why Florida’s new safety inspection law is creating havoc for condo owners

The Palm Beach Post, in a special report published in October, highlighted the difficulties the law is causing for many condo owners who say they cannot afford to undertake costly repairs and fully fund their reserves. Several complexes proved so dangerous that building officials ordered them evacuated.

The Seagate ownership group, unhappy with the cost of the repair work and the manner in which it was being carried out, went so far as to create a limited liability company called “The Affected Seagate Owners of Gulfstream.”

The LLC hired an attorney, then filed a complaint in Palm Beach County Circuit Court, alleging that the engineer hired by the association recommended unnecessary work and that the contractor overseeing the work failed to managed to monitor them properly.

As a result, many condo owners faced months of having to remove “screens, hurricane shutters, windows, sliding glass doors, and floor coverings,” the complaint alleges.

More: Florida condo crisis: In 3 Palm Beach County communities, big problems = high assessments

Elizabeth Mifsud, a member of the group challenging the association, acknowledged that some verandas had to be closed while the concrete work was underway. But the work was expected to take a few days, she said. Many condominiums have been closed for months, denying owners access to their verandas.

Mifsud said more than half of the 360 ​​units have joined the owners group. An attempt to recall board members failed this year when the board refused to accept the recall request, according to Mifsud.

The complaint also alleges that contracts for the multimillion-dollar project were awarded without transparency, saying the board president signed them without the owners being present at a community meeting.

Legal challenge to recommended work could be unprecedented

Big win for the developer: Zoning change passed that could lead to new condo on Jupiter Island

The complaint could be the first of its kind. State law requires the first safety inspection reports to be completed by December 31. The Florida Legislature is expected to determine next year whether the law should be changed to lessen the impact on condo owners.

“There seems to be no limit to the cost of the concrete restoration project and the overcharging of rates. FirstService, UPE, and Waterfront Services all benefit financially from this project and are making it as expensive as possible,” the complaint states.

Waterfront Services of Lake Park was hired to perform the concrete restoration. United Professional Engineering (UPE) of Lake Worth Beach was hired to oversee the work, and FirstService Residential is Seagate’s management company. Efforts by The Post to obtain comment from the condo association, Waterfront Services and FirstService Residential were unsuccessful.

UPE emailed a statement to The Post. He said the contract with the association identified a standard of care to which it must adhere.

UPE said it “provided services that met or exceeded this standard of care.” She (UPE) performed numerous tasks including structural condition assessments, special inspections, and construction administration. The project has progressed consistently with other similar projects and aims to be delivered within the overall budget.”

The lawsuit against the Seagate Association also claims that board members Richard Deluca and Don Miller should be removed from their positions because they owed the association money when they managed to get elected to the board of directors last February. The association’s statutes stipulate that any offender cannot run for a seat on the board of directors.

A complaint was also filed in March with the state Department of Business and Professional Regulation, requesting the removal of Deluca and Miller. The agency has not yet made a decision.

At a board meeting on Dec. 19, residents were informed of the lawsuit and that a reporter had requested comment from the board. Residents were told the association was unaware of the lawsuit until the reporter called for comment.

Mike Diamond is a journalist at The Palm Beach postwhich is part of the USA TODAY Florida network. He covers Palm Beach County government and issues affecting homeowners’ associations. You can reach him at [email protected]. Help support local journalism. Subscribe today.

This article originally appeared on Palm Beach Post: Residents ask court to take back Boynton condo in $8 million repair project.