Archive for August, 2012

US Bureau of Land Management rules it owns Wisteria Island – Key West

Friday, August 31st, 2012

 

 
Meanwhile …
 
 
 
 
 
Received this from Naja Girard early today, my thoughts in italics:
 
 
 
Good Morning Sloan,
Here is Arnaud and my latest Wisteria article published in the Blue Paper today.The Citizen left out quite a good chunk of the story in their piece on Wednesday.
 
Ignore the part in our article that says that Bernstein claims he bought the island from Papy – there was just a little miscommunication between the authors and the editor.
 
The rest of the article is accurate with some simplification of legal concepts here and there.
 
KEY WEST THE NEWSPAPER • AUGUST 31, 2012
 
“Final Decision” on Who
Owns Wisteria Island Comes
Down From Washington:
The US Government Owns it
 
BUREAU OF LAND MANAGEMENT:
FLORIDA COULD NOT CONVEY TITLE
BECAUSE THE PROPERTY WAS AND
IS OWNED BY THE UNITED STATES
 
IN RESPONSE, BERNSTEIN
FAMILY FILES LAWSUIT IN
FEDERAL COURT, ARGUING THAT
THEY BOUGHT THE ISLAND FROM
BERNIE PAPY SR, WHO BOUGHT
THE LAND FROM STATE OF
FLORIDA IN 1952
 
by Arnaud Girard and Naja Girard
 
The saga of who owns Wisteria Island continues.
 
Last November, the federal Bureau of Land Management (BLM) issued a preliminary ruling that stated that the U.S. government owns the island— not Roger Bernstein and the F.E.B. Corp., the would-be developers of the island.
 
That ruling, in effect, derailed Bernstein’s multi-million dollar development plans – at least temporarily.
 
In response to the BLM ruling, Bernstein hired a Washington lawyer who appealed to the BLM to reverse the preliminary ruling.
 
THE INSIDE SCOOP
That didn’t happen. Last week, a top BLM official issued the “final decision” concerning the ownership of Wisteria Island— and it was not good news for the Bernstein family and F.E.B.
 
In a letter dated last Tuesday, August 21, Dr. John Lyon, director of the BLM (Eastern States Division) wrote to Bernstein’s Washington attorney, Douglas Wheeler, “We have carefully reviewed the information you have provided, and continue to conclude that Wisteria Island is in federal ownership.”
 
Three days after Attorney Wheeler received Lyon’s letter, F.E.B. filed a lawsuit in federal court, last Friday, August 24.
 
And so, the fate of this last little foothold of natural forest, with its Osprey and Great White Heron looking across the harbor at over-developed Key West, continues to fascinate an ever-increasing public.On August 17th, the controversy was even featured in a Washington D.C. newspaper article by Emily Yehle of Greenwire.
 
“Florida,” writes Lyon, “couldn’t convey title [to Wisteria Island] because the property was and is owned by the United States.”
 
In support of BLM’s position, Dr. Lyon presents a list of unusual documents, not the least of which is an August 1924 Executive Order signed by former President Calvin Coolidge reserving Wisteria Island for Naval purposes.
 
WHAT ARE THE ODDS?
So, does Bernstein [F.E.B Corporation], who has declared himself to be “more than a little bit annoyed,” by the Government’s position, have a chance at winning his federal Quiet Title Act suit in a Key West federal court?
 
It appears there are some serious obstacles standing in his way.The most obvious one is the statute of limitations which requires that a person claiming ownership of land against the United States must bring suit within twelve years of the time the initial purchaser in the chain of title knew or should have known of the cloud on the title.(The initial sale took place sixty years ago.)
 
Bernstein claims he knew nothing of the federal claim, but that stance might not save him.BLM’s final decision includes documentation showing that the first purchaser, Bernie Papy, Sr., was made well aware of the Navy’s claim of ownership of Wisteria Island.Lyon refers to a letter dated January 7, 1952, wherein the Attorney General for the State of Florida recommends that the State “explain the Navy’s claim to Mr. Papy and allow him to accept the trustees deed at his own risk”.Even minimal due diligence by a title insurer would have resulted in a warning to future purchasers of the Navy’s claim, which was documented and easily found in the State’s deed file for the property.
 
Another problem for Bernstein will be his own previous testimony.While under oath at a quasi-judicial hearing before the Monroe County Planning Commission in May of 2010, Bernstein admitted what everyone knows, that the island was built-up by the Navy to, at least in part, work as a“buffer” to protect the Navy docks from the west.And under federal law [Submerged Lands Act of 1953] if a spoil island had been built-up by the US government for its own use, it remained the property of the federal government.Futhermore, just to the west lay Tank Island, similarly created, which the Navy eventually sold to a developer, and now that island is Sunset Key. That developer, the Walsh family, then partnered with the Bernsteins in a joint attempt to develop Wisteria Island. If the Navy had owned and sold Tank Island, how could it not also own nearby Wisteria Island?
 
According to BLM’s findings, the Navy’s “intended use” of the island is clearly established by a series of ambitious projects for the area spanning over nearly half a century: A coal depot in 1908, a dry-dockage facility in 1917, a fuel depot in 1951 (at the time Congressman Papy pressured the State into selling him the island). Because Wisteria was built-up by the Navy in the context of these Navy projects, the intended use is irrefutable.”Therefore,” concludes Dr. Lyon, “it is the opinion of BLM that Florida had no title to Wisteria Island whatsoever at the time of its purported conveyance to [...] Bernie Papy in 1952 or at any other time.”
 
The sale by the State appears more and more like a gamble by a savvy insider: Congressman Bernie Papy, Sr., also known as “King of the Keys”.Papy may have used confidential information about 1951 plans for a fuel depot to position himself for a windfall.(In fact, Papy sold the island, for more than ten times what he had paid, just a few years after he purchased it from the State.)
 
POOR MR BERNSTEIN?
“Bernstein is brandishing his constitutional rights,” says Deb Curlee, a Director of the local group Last Stand that has championed efforts to keep Wisteria natural, “but there is no constitutional right to usurp title to public land.” Amen. Looks to me Roger Bernstein’s beef is with his father, who did not do a thorough title search before taking back a mortgage on the island to secure a loan to Key West businessman David Wolkowsky, which loan Wolkowsky did not repay and Bernstein foreclosed the mortgage.
 
“Bernstein paid $146 in taxes last year, while the County has been paying tens of thousands to clean up the Wisteria beaches of derelict vessels.Volunteers have been cleaning up the island for years while Bernstein never paid for anything – until he was forced to by Code Enforcement – after refusing volunteers’ offers for more free clean-up services,” says Curlee.
 
WILDLIFE
In the meantime over 40 Threatened White-crowned pigeons have been documented nesting on the island and on July 7, 2012 a Florida Fish and Wildlife Conservation Commission biologist officially documented Threatened Loggerhead and possibly Endangered Green Turtle nesting on the beaches of Wisteria Island (with the possibility of hatching within a week or two).Monroe County laws prohibit all development of offshore islands (“including spoil islands”) where nesting has been documented.So, things look pretty good for those who have dreamed of keeping Wisteria Island natural.
What’s up with Anne Morkill?Wednesday’s Citizen article was at least the fourth time that she has made disparaging public remarks about the federal claim of ownership.She’s been confronted more than once about it – at this point she’s on her way out so we can’t justify it by pointing to her instinct for self-preservation (simply not wanting any more responsibilities.) I’m beginning to wonder whether or not she’s got some Bernstein/Walsh ties we (and her bosses) should know about.Seriously!She knows we’ve got turtle nesting out there now – she was called by the FWC biologist about it.She knows the place is literally covered with White-crowned pigeons – but never a word about the obvious environmental value of the island – always a little plug for the developer and in direct conflict with the official stance of her own boss – the federal government .And did she REALLY not know about the letter that BLM had issued a week prior to her comments to Tim O’Hara for Wednesday’s article?Grrrr!
I love this comment that someone submitted in response to the Citizen article:

Go back to setting fires

Submitted on Wed, 08/29/2012 – 9:19am by Rabbi Flanagan
I don’t understand why refuge managager Anne Morkill keeps issuing prejudicial and uninformed statements regarding the ownership of Wisteria Island. Her expertise is in setting out-of-control fires on Big Pine Key, not title research, which she has not conducted. Again, my recollection is Anne Moorkill was blindsided by news of a federal claim to ownership of Wisteria Island, and she expressed her doubt of the federal claim as soon as she learned of it. My impression was Anne did not want to have to look after Wisteria Island because it was remote from her territory and would be difficult to look after, and it was tangled up in lovely Key West and Monroe County politics. In Anne’s shoes, I probably would have hoped the Bernsteins owned the island, and not the US Government.
 
=============================
 
 
Here are all of the comments on the recennt Wisteria Island title controversy article in The Key West Citizen, which I included in full in the hilarious, if not so disturbing – latest Wisteria Island developments, mostly – Key West post. My own few comments in italics.
 

All the squatters should leave the island now.

Submitted on Wed, 08/29/2012 – 10:04pm by Capt.Wisteria
All the squatters should leave the island now. The previous owner put the island up as collateral on a loan they never intended on repaying.The Bernsteins got hoodwinked into paying cash for a fake title on a federal property. Now Roger says, “F.E.B. Corp. have paid taxes” Ha, the offshore island was assessed for $75,000, F.E.B. Corp. owes back taxes. Now Roger says, “F.E.B.Corp. managed the island for more than four decades” Actually they never did anything until Monroe County Code Enforcement forced them to clean it up in 2011. Volunteers were the only ones to clean it for decades. Now Roger says, “without any government assistance,” This one island cost Monroe County $180,000 plus in 2011 for shore maintenance removing trash. Monroe County Planning Board, County Commisioners, and County staff have spent over $100,000 and thousands of hours on this single property in recent years. All the squatters should leave the island now, including the Bersteins and F.E.B.Corporation. Amen.
 

Who owns Wisteria Island

Submitted on Wed, 08/29/2012 – 2:21pm by Jordan
What we have here is another example of our governmentr picking on the weak. In this case the developewrs can and will vigorously defend their rightful claim to the Island. This is just the tip of the iceberg, Our present system of government is outdated. It needs to be drastically changed. A possible change of administration is not the answer. The system is flawed. We the people NEED TO TAKE BACK OUR GOVERNMENT! Since the end of World War II our country has gone steadily downhill. We are no longer a first rate power. Both China and Russia have surpassed us and unless we change our ways will eventually overpower us. The change we need will not be easily accomplished. We must abolish the House and Senate and all lobbyists. We should institute a system where the President has more power and there is an elected assembly of two delegates per state. These delegates should not be permitted to stand for reelection unless the budget is balanced. I am willing to lead or participate in forming a duly registered group to do this and am aiming for a mass demonstration in Washington in April 2013. If you share my thoughts and wish to participate please let me know. My email address is classiccaddy5@gmail.com classiccaddy might try researching the topic before chiming in, he also might try staying on the topic.
 

Bag Man’s making court calls right now.

Submitted on Wed, 08/29/2012 – 11:21am by Mac
If this is tried anywhere in Monroe County, it’s a done deal for the Bernsteins and the Walsh’s. The judges in this county as as crooked as they come. Bernstein filed suit in federal court, according to the recent article in The Key West Citizen, which is the only place to file suit since the US Government claims to own the island. What many call “bubba justice” is not legal precedent in federal court, as Bernstein’s Field Marshall Jim Hendrick learned when he was tried in federal court in Key West.
And the director of the Bureau of Land Management sounds as though she’s already been bought and paid for.
Look for the residents of Key West to get screwed by developers once again.
Again, my recollection is Anne Moorkill was blindsided by news of a federal claim to ownership of Wisteria Island, and she expressed her doubt of the federal claim as soon as she learned of it. My impression was Anne did not want to have to look after Wisteria Island because it was remote from her territory and would be difficult to look after, and it was tangled up in the lovely Key West and Monroe County politics. In Anne’s shoes, I probably would have hoped the Bernsteins owned the island, and not the US Government.
 

Aren’t there any County

Submitted on Wed, 08/29/2012 – 10:22am by Faye
Aren’t there any County records to show who actually owns Wisteria Island or am I delusional in thinking records are kept for this kind of dispute.The county records show the title chain stemming from the trustees deed from the State of Florida to State Legislator Papy, which created a chain of title out of thin air, if the State did not own the island, never having received title to it from the U.S. Government, one of whose agencies had created the island out of bay bottom.
 

Go back to setting fires

Submitted on Wed, 08/29/2012 – 9:19am by Rabbi Flanagan
I don’t understand why refuge managager Anne Morkill keeps issuing prejudicial and uninformed statements regarding the ownership of Wisteria Island. Her expertise is in setting out-of-control fires on Big Pine Key, not title research, which she not conducted. Agreed, Anne should not have chimed in, since the issue – real estate – was beyond her field of expertise.
 

The Greed grab continues

Submitted on Wed, 08/29/2012 – 7:47am by trapper
Some people just don’t learn the lessons life gives them. Hard for me to believe the Bernsteins did not know of the federal claim of ownership all along.
 

They took his tax money on the island every year

Submitted on Wed, 08/29/2012 – 10:05pm by Sal Gutierrez
that should establish some sort of estoppels. Who’s the greedy party? The Fed Government did not take the taxes. Sal Gutierrez has had distemper with Monroe County for years over his being unable to get permission to develop lots he bought in the Keys, some of which I heard were in enviromentally sensitive acres where no development ever should be allowed, and, I heard, he bought the lots on the cheap.
 

Land Grab

Submitted on Wed, 08/29/2012 – 7:00am by Black Panther
The only land grab was when the Papy family grabbed the island in 1952 using an “agent”, political influence and back room dealing.Karma has finally reared it’s beautiful head. To say that the Bernstein family has maintained the island for decades is a joke. The island was left untouched until the greedy owners tried to change the density and zoning. That is when they claimed to be responsible landowners and cleaned the island and put up the no trespassing signs and fencing. Too little too late. The Walsh family’s flagrant attempt to buy votes in broad daylight for the zoning changes came back to bite them on their hineys. The fluff pieces in the Crotch Color to attempt to sway public opinion were also great comedy. The fluff pieces in The Key West Citizen were seriously short on the facts and seriously long on presenting only Roger Bernstein’s bitching and moaning.
 
I still like my idea for resolving this, which I explained in this way in a letter to the editor submission to The Key West Citizen yesterday:
 
What if the Bernsteins give Wisteria Island to Key West for a public park in perpetuity. In return, KW gives the Truman Waterfront marina and a few adjacent acres under a nominal 99-year lease to the Bernsteins and the Washes, who are the Bernsteins’ development partner for Wisteria Island.
The Walshes and Bernsteins put in a 5-star resort on Truman Waterfront. KW receives back one percent of the 5-star resort’s annual revenues off the top, regardless of what the Walshes and Bernsteins make off it. The Walshes also give KW an easement over Admiral’s Cut.
The Walshes developed and own Sunset Key, and have built and run 5-star resorts on the Eastern Seaboard, and do it right. They have the money and know how to put a 5-star resort in at the Truman Waterfront marina without KW worrying about it getting done and running.
The city turns Wisteria Island into a day and overnight camping park, using cisterns, compost toilets, and solar technology. A green park. The city runs a ferry out there and back from Mallory Pier, for a fee. Day visitors pay a daily fee for being on the island, overnight campers pay a higher daily fee. A dock is installed to allow boaters to visit the island, for a fee. The city sells Wisteria Island T-shirts, photos, and other memorabilia. A Wisteria Island cult is born and promoted.
Re US Government title claim, Wisteria island would be difficult for US Fish & Wildlife to manage, and I imagine with the Bernstein family’s permission, US Bureau of Land Management would be happy to deed whatever interest it owns in Wisteria Island to KW for a city park in perpetuity.
Under the 2007 referendum, KW voters have to approve in a city referendum the City accepting title to Wisteria Island.
Transient rental rights will have to be found for a hotel on Truman Waterfront, but developers and KW politics have found such rights whenever the city government wanted a new hotel.
Sloan Bashinsky
Little Torch Key
 
There is no guarantee Bernstein will or will not win his federal lawsuit. The time could not be better for him and the Walshes, and for the Bureau of Land Management, to join with Key West in putting together the swap deal outlined above, a win-win for the Bernsteins and Walshes, BLM, Key West. I do not think, however, that Naja and Arnaud will be happy with it. I think the only thing that will make them happy is for the Bernsteins to lose the federal lawsuit and for US F&W to look after Wisteria Island forever and ever.
 
That bothers me, because Naja had given up the title argument after getting stonewalled by the local Navy base. I told her the angels were telling me she should keep digging, there was something there.So she kept digging and indeed there was something there. When BLM initially stonewalled Naja, I told her to keep after it, the angels saw something there.So Naja kept after it, and she found a sympathetic ear in BLM, and finally she what she wanted from them. Naja gets my posts, she reads them. She read my two recent posts on Wisteria Island and only today does she tell me of BLM’s final decision, which might be final, and might not be final.
 
The angels all along were angling for the swap deal, which idea they put into my head in 2010. Never were the angels angling for US F&W to get hung with looking after Wisteria Island forever and ever.