Communication Builds Our Community
Communication Builds Our Community
City Appears Poised to Receive Title
A ruling by Circuit Judge Jennifer Swensen this month has brought the City of Lake Wales and the city's Community Redevelopment Agency significantly closer to reclaiming the title to the landmark Walesbilt Hotel, bringing redevelopment of the building within reach.
The legal battle over control of the historic structure began when the city filed the suit in February 2022.
The most-recent ruling dismissed a counter-suit and appeal for summary judgement filed by defendant Dixie-Walesbilt LLC, which alleged that the municipal authorities had waited too long to file their lawsuit. The court disagreed, ruling that the case could proceed to a jury trial.
The court had already ruled in May 2024 that the company's principal, Ray Brown of Winter Haven, had essentially used false statements in the negotiations with the city. Brown was gifted the building by the city on the premise that he would complete the redevelopment.
The once-elegant interior of the Walesbilt Hotel featured a deeply-coffered ceiling imported from Italy, along with marble floors, Corinthian capitols on fluted columns, and a wrought-iron mezzanine railing. It is viewed as highly-restorable and could be returned to service as a hotel.
That ruling of "fraud in the inducement" resulted in the awarding of summary judgements in favor of the city on two counts. They related to claims by Brown that he had pre-sold multiple units in his promised condominium development, and had financing arranged for the project. That ruling will be entered as factual material in any jury trial seeking final judgement,
It was the second motion for summary judgement by the defendant that has been denied. The first ruling came from Circuit Judge William Sites in April of 2023. The new decision left the defendant with few options, and the city much closer to an award of rescission which would return the title to them. That would allow the city to invite new proposals from qualified developers.
The history of the hotel, which was under construction 100 years ago, took a complicated turn after the city had obtained the title following a prior fight with previous owner Ander Nyquist of Vero Beach over multiple code violations in 2005. The city sought proposals for redevelopment through a citizen's committee that recommended Brown's condominium plan.
Brown displayed an intense focus on historic accuracy in his efforts, locating the New England quarry that had supplied the original marble cladding and obtaining the specific varieties of hardwoods that added color to the restored mezzanine promenade.
A historic postcard featured the Walesbilt Hotel alongside Edward Bok's Singing Tower, drawing tens of thousands of visitors to the area. Many stayed the winter in Lake Wales, which was a popular resort center.
Brown's initial work on the building convinced city authorities to assign the title after he claimed he had spent a million dollars and asserted that he had the financing in place to complete the job. Work, however, proceeded slowly as Brown requested multiple extensions. It was those requests which ultimately ended his countersuit as the court ruled that they essentially extended the city's access to the statute of limitations.
Frustration at the lack of significant progress in returning the hotel to a functional use grew steadily as the years passed. The city waited until the eleventh hour to file the suit only a day before the lapse of the statute of repose.
If the city is awarded title to the structure in a jury title it is possible that they could also file for monetary damages to recover attorney fees and tax revenue lost during the battle,
The hotel was constructed during the Great Florida Land Boom of the 1920's and opened to the public on January 1, 1926 during the Prohibition era, Construction costs were funded by local investors and several major figures of the silent film era. Legend says that Al Capone visited a speakeasy in the basement which featured tunnels leading to exits.
An expansive ground-floor dining room in the Walesbilt Hotel once served well-heeled guests in an elegant setting. The building features a very large kitchen capable of turning out hundreds of meals a day.
Originally featuring 96 rooms, the end of Prohibition brought a state law allowing alcohol licenses to hotels with 100 or more rooms, so four additional rooms were built onto the roof, creating an eleventh floor.
Redevelopment of the hotel would be an economic boon to the city, generating enormous benefits to downtown businesses, increasing property values, and generating significant additional tax revenue for the CRA, which would capture the lion's share of the increase, known as the tax increment.
The CRA is required to expend its revenue within the boundaries of its designated district. CRA funding has provided the spark of funding for the ongoing Lake Wales Connected streetscape projects in the downtown area, which has also attracted major grants from federal sources.
The entire Connected project is expected to include more than $50 million in work, which is expected to transform public perception of the area. The completed Park Avenue phase has created a shady garden oasis in the heart of the city, attracting improved pedestrian activity.
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