SEBASTIAN — A $1.8 million foreclosure suit against Flagship Marina, home of the since-closed Mike’s Hula Grill, could lead to the property being sold at a public auction on Nov. 6.
Property owner Damien Gilliams said that he is working with a couple of potential buyers for the sixth-tenths of an acre site. If he can work out an arrangement with a buyer, the property would not have to go on the auction block.
Oculina Bank filed for foreclosure on the mortgage earlier this year, citing that Gilliams had failed to make payments since Jan. 19, aside from a $5,000 partial payment in February.
Monthly mortgage payments for the property were about $15,600, according to court records.
Gilliams said that the reason the property fell into foreclosure is because the tenants who owned Mike’s Hula Grill pulled out of their lease. He said the owners had tried to get a liquor license from the state, but failed due to the city putting roadblocks in their way.
Attempts to confirm the allegations were unsuccessful, as City Manager Al Minner had left the office late Friday afternoon.
The owners had operated the restaurant for nearly four years before leaving the site. As of May 13, the property was mostly vacant, aside from a few boats docked at the marina.
Gilliams added that he tried to work with the bank to avoid the foreclosure to no avail. Judge Paul Kanarek issued the final foreclosure judgment on Aug. 13. Earlier this month Kanarek ordered the property sold at public auction.
The property is listed for sale at $2.7 million, though Gilliams had the site appraised for $3.8 million. The City of Sebastian, too, had appraised the site at $2.7 million and $3 million within the last few years, according to court records.
The site includes a waterfront restaurant, marina, and deepwater dock space for boats. While in operation, the Hula Grill welcomed patrons coming by water and by land.
If the property does go to auction, it will be held 11 a.m. Nov. 6 in the Jury Assembly Room at the county courthouse, 2000 16th Ave., Vero Beach.