City Seeks Dismissal in Foundry Rental Lawsuit
Outside counsel argues 2005 settlement sunset controls Truman Annex dispute.
The City of Key West has moved to dismiss a lawsuit filed by the Foundry Homeowners’ Association, also known as TARPOA — the Truman Annex Rental Property Owners Association — over the loss of short-term rental licenses in the Truman Annex, arguing the dispute is governed by a 20-year sunset provision contained in a 2005 settlement agreement rather than by state vacation-rental preemption law.
The Feb. 16 filing, obtained and reviewed by Above the Fold, marks the city’s first substantive response to the lawsuit, which was initially reported earlier this year.
The City of Key West is represented by Hudson Carter Gill of Johnson, Anselmo, Murdoch, Burke, Piper & Hochman, P.A., serving as outside counsel retained through contract city attorney Mayanne Downs of Orlando. Firms of that type typically charge an estimated $400 to $525 per hour for outside municipal litigation counsel when retained by a city attorney. That is in addition to Downs’ own hourly rate of $499 under her contract with the city.
The Foundry Homeowners’ Association/TARPOA is represented by Dennis Kerbel, a Florida land-use specialist with the national law firm Akerman.
In the motion filed in Monroe County Circuit Court, the city contends the Foundry’s complaint fails to state a valid claim because the revocation of transient business tax receipts and regulatory medallions followed the expiration of rights granted under the 2005 settlement, which allowed certain Truman Annex properties to operate transient rentals for a limited period.
The case, Foundry Homeowners’ Association Inc. v. City of Key West, case number 25-CA-001365-K, concerns 29 townhouses within the Foundry community that had been listed as registered short-term rental units under the agreement.
City officials notified unit owners in December 2025 that their transient licenses would be voided after the 20-year term expired. TARPOA then filed suit, alleging the city’s actions are preempted by Florida Statute 509.032(7), which restricts local governments from prohibiting vacation rentals or regulating their duration or frequency.
The city’s motion to dismiss argues the statute does not apply because the city is enforcing a pre-2011 agreement rather than adopting a new local law or ordinance. The filing also contends any attempt by TARPOA members to assert vested rights to continue short-term rentals is time-barred, noting that a 2005 ordinance created a limited application window for property owners to establish lawful nonconforming rental status.
The case has been fast-tracked for an administrative hearing before Circuit Judge Tim Koenig, though no date has been set for the court to hear arguments on the city’s motion. Because it is a civil action seeking declaratory and injunctive relief, the matter will proceed without a jury.
The outcome could carry broader implications for transient-rental enforcement in the Truman Annex and other areas where historic settlement agreements intersect with state vacation-rental preemption law.
29 townhouses centered around a decision with potentially greater implications to the whole community, representing taxpayers with a corrupt legal council.
"My God".... There's a famous Talking Heads song 🎵 line in there somewhere.