Jacksonville sues developer who didn’t finish Palms Fish Camp project [The Florida Times-Union, Jacksonville]

Jan. 16--Jacksonville has countersued a developer who was supposed to build a restaurant on city-owned land on Heckscher Drive, saying he didn't buy the insurance and performance bond he was contractually required to.

In December, developer Paul Rohan sued City Hall for kicking him off the restaurant project, which remains unfinished more than seven years after its scheduled completion date.

After the Palms Fish Camp eatery closed in 2005, the city bought the land where the restaurant stood in order to allow public access to the boat ramp. Rohan's company, Palms Partnership, was supposed to resurrect the restaurant, with completion set for Sept. 30, 2006.

Despite multiple extensions, the work was never done.

In his suit, Rohan said the city "never had any intention" of letting his company manage the restaurant. He asked for damages, interest and attorney fees, having previously said the city should pay him $1 million.

In its countersuit, filed Monday, the city denies all of Rohan's allegations, saying the developer breached his contract.

His "actions have caused harm to the public and to the public trust by failing to complete the new facility and make it available to the public," the city said.

Jacksonville paid $365,000 in taxpayer dollars and another almost $228,000 in state grant money to build the boat ramp, parking area and dock facilities, the countersuit says, all with the expectation that it would get money from the restaurant.

Furthermore, it says, the city was harmed because Rohan didn't obtain a payment and performance bond, meaning the city couldn't enforce performance of the agreement and could have been sued by vendors or contractors if Rohan didn't pay them. Obtaining such a bond was required by the contract with the city and by state statute.

Rohan also did not get insurance, the suit says, placing the city at risk.

The city has asked for an unspecified amount of damages.

An email sent to Rohan's attorney Tuesday afternoon was not returned.

timothy.gibbons@jacksonville.com, (904) 359-4103

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