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Special magistrate defers foreclosure; orders owners and city to meet after lien accrues to about $361,000

Special Magistrate Hearing — City of St. Pete Beach · July 14, 2026
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Summary

A St. Pete Beach special magistrate deferred a decision to authorize foreclosure of a long-accrued code-enforcement lien and directed the parties to meet with city staff; the city says the lien totals about $361,304 and seeks $86,500 held in escrow.

A special magistrate in St. Pete Beach on the status of a multiunit property deferred a request to authorize foreclosure and gave the owners 28 days to meet with city staff to present a completion plan. The city told the magistrate that fines have accrued for 1,441 days at $250 per day, producing a current lien of about $361,304; the title company is holding $86,500 in escrow that the city asked be applied as a partial payment.

Nancy Stuporich, the city attorney, said the property remains out of compliance with sections cited in a 2022 order and that the city has been unable to obtain the escrow documentation from Westchase Title. "We believe the city is entitled to that money at this time," Stuporich said, urging the magistrate to direct release of the $86,500 so it can be credited toward the outstanding lien.

Owners said they are actively working to finish the building and asked for a short window to demonstrate progress. Omar Ben Abraham, a co-owner, said, "We're here to work," and offered to provide a project Gantt chart within about 72 hours to show start-to-finish steps and proof of funds. General contractor Anthony Pavick and co-owner Kiefer Diane described delays from hurricanes, labor shortages and theft of materials that they said interrupted progress.

Adam Kestenbaum, the prior owner who sold the property subject to the lien and said he holds a seller-promissory lien, objected to the city's request to release escrow funds without his consent. Kestenbaum told the magistrate he was never served notice of a April 2022 hearing and that the escrow arrangement was a private contract between buyer and seller; he said releasing escrow now would prejudice his position in any future lien-reduction negotiations.

The city placed the lien and recorded an order in 2022 after finding unpermitted work and substandard conditions; the magistrate recited that a subsequent order in April 2022 anticipated an escrow deposit to secure estimated fines. City staff testified about permit activity, saying five inspections had been logged since the 2022 submittal and that a permanent-power inspection scheduled in February 2026 was canceled as "not ready for permanent power," leaving a meter-assembly issue to fix before further progress.

The magistrate said Florida statute authorizes him to issue an order permitting foreclosure when a code-enforcement lien has been of record for more than three months. He warned the parties he has "tools in the toolbox all the way up to foreclosure," but said he would defer a decision if the parties meet with city staff and produce a credible, timebound plan. "If the plan doesn't come out of a meeting, then at that point I'll be ready to make a decision," the magistrate said.

The magistrate set a follow-up status hearing for August 25 at 10:00 a.m. and closed the current hearing. He instructed the owners and city staff to meet promptly to negotiate timetable, inspections and documentation; if the parties reach agreement, he said he will honor it, and if not, he signaled he would likely authorize foreclosure under statutory authority.

The next scheduled status hearing is August 25 at 10:00 a.m. before the special magistrate; the city and owners said they would try to meet in the interim and produce a plan and any documentation the city requests.