Tarragon's Practices Leave Sour Taste

"Tarragon had no right to remove the third-party management contract and to issue themselves a contract," Dobbins says. "As soon as Sage was put in place, almost all maintenance ceased. At Montreux, I can point to leaking roofs, sinking foundations, rotting siding, damaged fencing and degraded parking areas."

Officials from Tarragon could not be reached for comment.

According to Dobbins, Montreux's bylaws require a competitive bidding process for any management contract if the cost of services exceed 5% of the total annual budget of the association, which Dobbins says they did at the property.

Last Monday, a competitive bidding process, which Tarragon agreed to, was conducted, and Continental Group was put back in place as the manager of Montreux.

The battle has piqued the interest of residents at other properties Sage manages in Florida.

Fernando Dominguez, vice president of the Central Florida region for Continental Group, says he has already received interest in his company's services at the two other Jacksonville communities that Sage took over.

"The biggest problem with Sage is lack of experience," says Ernie Fordham, a board member and resident at Bishops Court, a Tarragon condo community in Jacksonville. "It was formed primarily from people who work for Tarragon development in their apartment-rental division. Very few of them have actual experience with managing a community association."

Fordham said his community is likely to put the management contract out for a competitive bid once the owners take control of the homeowners association. In Florida, developers retain control of a condo project until 90% of the homes are sold.