Work halted and people suffering losses The dream of integrating into society a luxurious complex with a hotel and shopping mall on the seafront of one of the most popular beaches in Florianópolis turned into a headache and legal dispute for hundreds of investors. The large number of lawsuits led the Public Ministry of Santa Catarina (MPSC) to launch a de facto notice to investigate the delay in the delivery of work on the project in Praia dos Ingleses. ?Click and follow the g1 SC channel on WhatsApp Approved in 2017, the project designed to occupy an entire block in one of the most visited and sought-after regions of Florianópolis has its work on hold, has accumulated hundreds of lawsuits in court and continues to have its construction permit expired at city hall. ? The project proposal combined the cooperative model (involving land owners, suppliers and around 140 members) with the sale of shared quotas (a format in which the buyer acquires the right to use the property during defined periods of the year, without having ownership of the property). JC Compra e Venda de Imóveis, one of those responsible for the project, says it is negotiating with a new investor company to enter the business to enable the resumption of works. Regarding pending issues, he justified the lack of investments after the pandemic and problems with an investment fund. ? The news in fact is: the initial record of any demand, complaint or representation forwarded to the MP and acts as a "thermometer" or a preliminary procedure where prosecutors assess whether the complaint is well-founded, whether it involves public interest and whether it is within the competence of the institution. After the assessment, the procedure may proceed, archiving or opening an investigation. The location should be a luxurious complex with a hotel and shopping mall in front of Praia dos Ingleses Morgana Fernandes/NSC TV Buyers claim losses of up to R$200,000 This modality attracted buyers from different regions of the country, including Flávio Marcelino and his wife in 2022. The couple would invest a total of around R$44,000 each in two installments. The couple paid off just over R$10,000 before stopping payments, upon realizing that work on the site was at a standstill and that they could no longer contact those responsible. "It was going to be a shopping mall and facing the sea. They said there would be an even greater return, a greater appreciation after the extension of the beach. There was no one else working. We ran after it, we filed a lawsuit to try to reverse this, but so far no response. There is nothing left in their name, all the assets were removed and it is a huge loss for everyone who invested", says Marcelino. The couple's contract provided for the project to be delivered in October 2022, also stipulating a tolerance clause of up to 180 calendar days from the scheduled completion date. The frustration is shared by buyers from other states who learned about the proposal during tours of the site. Rio Grande do Sul businessman Otávio Borba purchased three shares at the end of 2021 and invested more than R$21,000 before suspending the installments. "I had never heard of shared housing. We thought it was a cool investment and to this day we haven't had any return", he complains. Professor Janaína de Sousa Alves, resident of São Paulo, reports even greater losses. She acquired five shares in 2020, which total almost R$200,000. "We lost R$200,000. Florianópolis is a very attractive city. One of the things we didn't even think about was: 'Ah, it's something that won't work.' We never thought about it. Even because it is a touristic, attractive city and the location is beautiful, we ended up believing it", he says. Legal dispute and records of complaints Given the abandonment of the work, reports of losses multiplied on social media and consumer forums. In consultation with the Court of Justice of Santa Catarina (TJSC), the company JC Compra e Venda de Imóveis Ltda (one of the cooperatives) and JC Compra e Venda de Imóveis SCP Centrinho dos Ingleses (owner of part of the work) have filed almost 800 first and second degree lawsuits, appearing as defendants in most of the cases. In addition to legal actions and online groups formed by injured parties to exchange information, there are dozens of records on internet complaints platforms. At Procon in Florianópolis, there are 11 open cases against those responsible for the project. What those responsible say When asked to clarify the reasons for the interruption of works and the situation of clients, Júlio De David, owner of JC Compra e Venda de Imóveis, explains that the financial difficulties began four years ago. "The work suffered a problem due to lack of resources post-pandemic and everything else. It could no longer be sold, there was a sales problem and the work had to be stopped. It also had a fund from São Paulo that was investing at the time, which went through a certain difficulty. We imagined at the time that the work would be stopped for around 90 days, but what ended up happening is that, during that time, some people went to court, which hindered the entire process", claims De David. According to the businessman, the sales department and the doors of the project were definitively closed in June 2023, when the company started looking for new investors in the market. Promise of restructuring and reimbursement The management of JC Compra e Venda de Imóveis states that it is negotiating with a new investor company to enter the business to enable the resumption of the construction site. The proposal envisages changing the legal structure of the enterprise: the current cooperative model will cease to exist to make way for an incorporated Specific Purpose Society (SPE), under new management. According to De David, around 99% of the agreement package for this transition is already aligned, and an assembly with cooperative members should take place in the coming weeks to define the official payment schedule and reinstatement.