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Hernando Today

Overworked Builder Or Shifty Contractor?

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By KYLE MARTIN, Hernando Today

Published: February 13, 2008

BROOKSVILLE - At what point does a homebuilder's delay in fulfilling his contracts become a criminal offense?

That's what nine people have to decide over the next four weeks as they weigh the evidence against Steven Bartlett.

Bartlett is accused of funding a lavish lifestyle with money siphoned from his company, Coral Bay Construction. The Spring Hill-based operation declared bankruptcy in May 2006, with $20 million worth of outstanding contracts.
Opening arguments on Tuesday exposed in depth for the first time the arguments both sides intend to float before jurors. One alternate was excused Tuesday morning, dropping the pool selected Monday to nine.
Assistant State Attorney Phillip Hanson calls Bartlett "the man who never says no" to a job.

He built a picture for jurors of people paying thousands of dollars for their piece of the American dream and nothing to show for it but an empty lot.

From 2004 until 2006, according to Hanson, Coral Bay patrons were fed a series of excuses about the holdups in their homes' construction and asked for deadline extensions.

"These customers were going nuts," Hanson said. When the witnesses take the stand, "listen to what they're told, listen to how they're treated."

The prosecutor intends to prove that Bartlett was fully aware that his business was corroding, but continued stealing company funds.

What should have gone towards raising walls and pouring slabs was used to buy motorcycles and motor homes, according to Hanson.

He points to $200,000 in personal expenses on a company credit card.

Bartlett's attorney, Donald Harrison, told jurors he doesn't dispute the facts. Yes, there are dozens of unfinished homes, but "there are two sides to every story," Harrison said.

What Harrison plans to do is put Bartlett's case into context as it relates to the rest of the construction industry at the time.

Most folks outside the industry don't understand the balancing act required on the homebuilder's part, Harrison said.

Customers provide homebuilders with payments called "draws," each about 20 percent of the future house's value.
Homebuilders invest about 50 percent of their capital into the initial building before they break even in the third phase: installing drywall.

Once that phase is reached, the builder can begin applying the proceeds of that sale into the next house and so on.

However, when the housing boom reached its pinnacle around 2004-05, the initial phase of pulling permits and consulting architects jumped on average from six to 10 months.

That was compounded by two back-to-back hurricane seasons and a short supply of labor and supplies.

The overall effect was crippling on the delicate chain of investment capital, Harrison said.

Bartlett ultimately intended on honoring his contracts, but "maybe not in the right timeframe" for the state attorney's office, Harrison said.

Reporter Kyle Martin can be reached at 352-544-5271 or kmartin@hernandotoday.com.

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