Developer sends Marathon $750,000 for housing

The city of Marathon received $750,000 last week from the developer of the unfinished Marlin Bay Yacht Club for workforce housing and councilmen want to use the money for a housing project.

It comes in lieu of building workforce housing, which was in the original 2005 development agreement between the city and then-owner L.L. Sandler and Sons. Marlin Bay Yacht Club LLC bought it in 2011 for $15 million.

Marlin Bay on Louisa Street was marketed as a $220 million luxury community with the 80 houses ranging from $1.6 million to $4 million. It was to include 99 boat slips and a 7,600-square-foot clubhouse with business and fitness centers.

But when the housing bust came in 2008, contractors walked off the job after not being paid and nothing's been done there since. The 13.8 acre development was considered a Keys poster child for failed housing-boom development. Just 13 houses, 65 boat slips and the clubhouse were built. None of the houses sold.

Marlin Bay Yacht Club LLC Chief Executive Officer Ronald Brittian didn't respond to multiple calls for comment.

Ideas for the $750,000 range from building 30 units on city-owned property on 104th Street to purchasing the former Marathon Manor next to Marathon High School and building affordable housing there.

It may be on the agenda for Tuesday's council meeting, scheduled for 5:30 p.m. at the Marathon Government Center.

"We're doing it to help with housing need we have," Vice Mayor Mark Senmartin said. "This could be a revenue generator. There's no reason us to spend the money and not get it back."

Senmartin said whatever units built from the $750,000 could operate like an enterprise fund, where the city hires a few groundskeepers and is responsible for upkeep.

Councilman Dan Zieg favors of working with a private company or a Realtor to run the units while the city leases the land out on 104th Street or another city-owned location. Zieg and Senmartin said they want the possible occupants limited to workers who earn a majority of their income in Marathon.

Councilman Bill Kelly supports starting a city housing authority that can review options and make recommendations to the City Council. He also wants to explore obtaining the site of the former Marathon Manor.

All councilmen said they're open to all ideas, which include possibly working with the Middle Keys Community Land Trust and Habitat for Humanity.

"The three legs of the affordable housing stool are land, money and allocation," Mayor Chris Bull said. "The better conversation we're going to have, the better it's going to be for the community. This is council's No. 1 priority right now. We'll never solve the solution but we can put a dent in it."

The fund for workforce housing is expected to get another $180,000 for the Courtyard by Marriott under construction and $160,000 in unit transfer fees. Senmartin expects the Marriott to pay in the next two months. Developers have to pay before receiving their certificate of occupancy.

Under city code, workforce housing is defined as “an attached or detached dwelling unit intended to serve the housing needs of persons who are gainfully employed in Marathon.

This story was originally published August 19, 2015 at 11:37 AM with the headline "Developer sends Marathon $750,000 for housing."