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Another Southwest Florida home builder has exited, leaving dozens of customers with unfinished homes and regulators dealing with a third-party contractor who qualified the company's permits.
Sarasota-based Avalon Homes left its offices at 379 Interstate Blvd. unfurnished, unlocked and deserted several weeks ago, its former landlord says.
Meanwhile, the small builder has 56 open permits with the city of North Port and officials there have been in touch with Venice-based contractor James Leake -- who qualified the Avalon homes for permits -- to try to get the houses finished.
Avalon's owner and manager, 62-year-old Joseph W. Pufta of Sarasota, could not be reached for comment. His listed home phone has been disconnected. Customers and business associates have likewise been unable to reach him for some time.
Joe Powell was one of Avalon's customers. He bought a North Port lot in September 2004, put $16,700 down on the $167,000 house and has since watched his home languish.
"It's far, far from complete," said Powell, a 46-year-old maintenance mechanic who now lives in a month-to-month efficiency rental, with his personal belongings in a storage unit.
He has since fired Avalon, hired a lawyer and taken direct control of the building site. He is planning to complete the home with another contractor.
Powell considers himself "one of the lucky." There are 50 to 60 other buyers who might not be so far along in extricating themselves from Avalon, he said.
The company's travails could become something more commonplace as 2007 dawns and small players throughout Southwest Florida struggle with a customer base that has evaporated along with the booming real estate market of 2004-05.
Jade Homes, another Sarasota-based home builder, shut its doors unexpectedly in August, leaving about 75 customers with unfinished homes totaling about $17 million.
Vision Homes of Southwest Florida Inc. has stepped in to help Jade finish the houses in what is likely to be a lengthy process.
Signs of trouble
The first outward signs of trouble for Avalon Homes came when the company's landlord noticed he had not seen anyone at the main Sarasota office for weeks.
David Greenfield, property manager of First Property Group, had not seen anybody at the Sarasota offices "since well before Thanksgiving."
He contacted Avalon's attorney and the company agreed to forfeit its security deposit and shut the office. Greenfield has since leased the office space to another tenant.
Avalon also has closed its West Price Boulevard sales office in North Port and disconnected the phone number. The Sarasota office telephone number still works, but only through an answering machine.
Bud Korte, plans division manager for the city of North Port, has "received lots of complaints" about Avalon. He said that a few of the company's permits have lapsed.
He estimated that about half of the dozens of homeowners who were customers of Avalon have assumed control of their home sites and brought in other contractors to finish the work.
Pufta "is not a licenced contractor" in Florida. The permits issued to Avalon were qualified by Leake, who is licensed. The city has been going to Leake on the issues associated with Avalon's permits, Korte said.
"We have to hold the license holder responsible," he said.
But Leake, 51, said he has been as unsuccessful as Avalon's customers at reaching Pufta: "All the phone numbers I had for him were disconnected."
Leake said he was paid roughly $1,000 for each home that he qualified for Avalon during the past 24 months.
He has already assumed responsibility for some of the costs of the unfinished homes, like emptying overflowing trash bins.
Leake said he has not been paid anything by Avalon since June 7.
He said he is not planning on qualifying construction permits any more "for a company where you're not a decision maker."
"I'm truly stupid," Leake said. "I am being held responsible for decisions I did not make."
Asked if he was concerned about retaining his license, Leake said, "I am concerned more about my good reputation than my license with the state."
Avalon's corporate records show Pufta and Steven Lloyd Bailey, 42, of Bradenton, as partners in the business.
Bailey says he sold his interest in Avalon Homes to Pufta in January. Bailey has "no current involvement or knowledge" of the home builder's activities.
Leake, who said he is a friend of Bailey's, confirmed Bailey's departure.
Bailey, who described himself as "just an investor" in Avalon, said that had been contacted recently by Greenfield when the landlord was trying to reach the home builder.
Bailey said another Avalon partner, Donald Pennock, also was bought out by Pufta prior to Bailey's departure from Avalon.
Bailey said he has been unable to reach Pufta since his former partner's cell phone was disconnected.
Other executives associated with Avalon also could not be reached for comment.
Pufta also is a principal in The Signature Group of Sarasota LLC, the corporate owner of Avalon Homes. Signature's registered agent is Sarasota attorney John A. Moran of Dunlap & Moran P.A.
Several homeowners have filed lawsuits against Avalon Homes, including Juan Amador, Scott Sterlace and Pavel Klebansky, all of North Port. Several companies, including Martin Septic, Kellys Sod and Landscape, and Johnson Decorative Floors, have filed liens against Signature or Avalon.
Avalon Homes was one of five proposed home builders in Michael Tringali's troubled Steeplechase Estates subdivision near Myakka City, recently bought in lieu of foreclosure for $27.2 million by Fort Lauderdale's BankAtlantic Bancorp.
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