Port foreclosure lawsuit receives new hearing

Published: Thursday, September 19, 2013 at 09:10 AM.

The Port Authority’s defense team is arguing that the Port Authority lacked the authority to mortgage the 37-acre parcel.

“The question is whether the port had the capability to mortgage public land without a referendum,” Gibson said.

Under Florida law there must be a public referendum to approve the mortgaging of public land, Gibson said.

“The argument is we didn’t have the power to enter into that transaction,” Gibson said, noting that the port, as a special district under Florida statutes, can borrow and issues bonds.

A date and time for a new hearing has not been set, Gibson said, adding he had no idea of a timetable.

The judge’s ruling following the hearing, whenever it might come, would come down to one of three possibilities, Gibson said.

A win for Capital City Bank would enforce the mortgage and lead to foreclosure on the parcel.

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