When the council voted to buy the property, the chamber erupted in applause. And it's all surrounding the city's downtown waterfront. There's parishioners that come here from all over the world to take courses in high level auditing that's not offered anywhere else. Almost all of the properties were quietly bought through limited liability companies required to disclose their operators but not their owners as is pretty standard in real estate. After FBI raids uncovered the infiltrations, city officials launched their own investigations. Reporters analyzed thousands of rows of data and pulled more than 1,000 records from the Pinellas County Property Appraiser, the Pinellas County Clerk of Court and the Florida Division of Corporations. We believe it's important to shed light on a powerful institution that's very controversial and plays a big role in our community. I think it's comparable to say it's kind of, like, if there were to be a Vatican reporter in Vatican City. Instead, the aquarium sold it to the city in April 2017 for a lot less $4.25 million. Tampa Bay Times reporter Tracey McManus has spent the last four years writing about Scientology and the churchs relationship with the city of Clearwater. In 2016, city consultants began planning what has become a $64 million effort to reinvigorate the waterfront called Imagine Clearwater. A newspaper report says the Church of Scientology and companies run by its members spent more than $100 million over the past three years buying up huge sections of downtown Clearwater. During that period, downtown purchases by limited liability companies managed by members of Scientology accelerated. The Tampa Bay Times discovered them by reviewing more than 1,000 deeds and business records, then interviewed more than 90 people to reconstruct the circumstances surrounding the transactions. CLEARWATER An old jewelry store on the corner of Cleveland Street that welcomes visitors to the core of downtown sits empty, unchanged since a company managed by a Church of Scientology. The origin story for the CB in CBRE does come from Coldwell Banker, but that was a very long time ago. Among other things, Ozsan is, according to our source, Trish Duggans money manager. But the promised downtown revival never came. Times investigative reporters pored over 1,000 deeds and business records, and interviewed more than 90 people, to connect the dots from the church buying its first hotel in the area in 1975, to Scientologists and their businesses now owning 185 properties covering 101 acres in the heart of downtown Clearwater which is also Scientologys headquarters, and home to its flag campus, to which Scientologists across the globe make pilgrimages. Originally founded in 1955, we are the oldest Scientology Church in Australia. Riley had no reason to mention that he had worked with Mormons and will now work to communicate with the Scientologists in Clearwater. This reads like deliberately premanufactured PR to us. ), [ Slideshow: See every building owned by the church ], In the 90s, a Scientology magazine listed the churchs goals for 2000. Andrus involvement in Scientology goes back decades and includes his participation in a plan during the 1970s to stop a church member who had spied on the federal government from turning himself in to the FBI. (SOUNDBITE OF CHICK COREA'S "RETURN TO FOREVER"). As a general rule, when someone makes an unsolicited statement, as Riley did by mentioning Mormons and Scientologists, it suggests to us hidden connections. At least eight businesses that got new landlords tied to Scientology moved out and have not been replaced. Flag is what they call it, and it's the international spiritual headquarters of the church. I saw a business opportunity, Ezra said. Brokers who are Scientologists approached at least 15 downtown owners about unlisted properties. . Cons. Melitta coffee filters are manufactured in Clearwater, Florida. A broker is trying to buy the building Peter and Emily Lares have owned for decades. Then in 2017, companies controlled by parishioners began buying retail property at an unprecedented rate. The few willing to answer questions said Scientology has no influence on their real estate dealings. Want more of our free, weekly newslettersinyourinbox? Recommend. He promoted the site to about 75 hoteliers and developers across the country. Nicole Lyn Pesce is News Editor, Trending at MarketWatch and is based in New York. David Gentile is creative with money and had hundreds of bank accounts and sub-funds when he ran GPB Capital. Please! But Scientologist-controlled companies are also sitting on at least 26 vacant lots and 31 empty storefronts and offices. Investigative journalism like this is the most expensive work that we do. The more its isolated and doesnt have people who are non-Scientologists around the area, the better.. The Church of Scientology and companies run by its members have spent $103 million since 2017 buying about 100 properties. The city received an informal inquiry last year related to vacant land at the southeast corner of Seminole Street and North Fort Harrison Avenue. In 2002, she was listed as an international deputy of a committee tasked with disseminating Scientology doctrine. We reported at that time that a handful of limited liability companies bought about six downtown properties, and Scientology leader David Miscavige had presented a retail plan to two city staff officials. About 72 percent of those properties are tax exempt for religious uses. Reached at their condo, his wife declined to comment. The city and the church fought in court for years. DEUTERIUM ASSET MANAGEMENT LIMITED How Riley made the jump from a regional Coldwell Banker slot in Arizona to suddenly handling a proposed $350 million Clearwater Marina District development is certainly interesting and raises questions we are looking into. MCMANUS: Scientology arrived in downtown Clearwater in 1975. The church has shed no light on its plans. Here is a map showing the parcels in purple which Riley is acquiring: We have previously offered our opinion that the $102 million in Downtown Clearwater land purchases made by Scientologists came from GPB Capital Holdings. In a letter to the Times, the church denied it ever tried to take control of the city. The logical conclusion is Scientology must have some sort of a game plan in mind, but theyre not public with what it is, City Council member Hoyt Hamilton said as he looked at a map of downtowns new ownership. Tom De Vocht, a former Scientology executive who oversaw the churchs property in Clearwater from 1996 to 2001, said he believes Scientology is responding to the citys efforts by creating a buffer to keep the public away. Lee sold when Fischler upped her offer to $410,000 cash for the building valued at $109,000 by the property appraiser. In six cases, buyers paid quadruple the propertys value. She said, Well, well have to invite you down for dinner, he recalled. [ The full history: Scientologys 40 years of conflict with the City of Clearwater, recapped ]. And yes, everyone that works here is asked to keep politics and religion out . Each had proposed major redevelopment projects, designed to lure new business into the empty storefronts that surround the city-owned waterfront and the churchs spiritual headquarters. Miscaviges offer to revitalize downtown hinged on the city ending its attempt to buy one vacant lot on which the church was also bidding. Visitors walk through downtown on a Friday. But now these LLCs tied to Scientology control the retail district. Soters comment evokes for us what Captain Renault said in Casablanca: Im shocked, shocked to find that gambling is going on in here!. Buy up as much property as they can for the church whether they use it or not, whether they let it sit there and rot so no one else can be there.. Companies tied to the Church of Scientology paid millions in cash for 45 properties near downtown with no major plans in sight. They posted guards wielding billy clubs and mace. But they werent ready to sell the building, which they had owned for 27 years. Everyone in KnowBe4 knows I'm a (proud) Scientologist. MCMANUS: Yeah, that's a good question. The only record of redevelopment that has occurred among the 45 properties is a roof replacement on a vacant building on North Fort Harrison Avenue and internal demolition in a former flooring center two blocks north, according to notices in Pinellas County records. In response, the Tampa Bay Times received a letter signed by Scientology attorney Gary Soter that read: There is nothing unnatural about Scientologists wanting to live in the same city that houses the international spiritual headquarters of their church. Unrestrained 5-year-old child falls out of truck, run over in Tampa, troopers say, Hundreds of USF students join statewide walkout to protest DeSantis education policies, Rays Shane McClanahan already hitting upper 90s nice to see, Estimates vary widely on cost to expand school vouchers in Florida, Food company A Good Human is opening a vegan cooking school in St. Petersburg, Bucs new coordinator is confident! Scientology spokesman Ben Shaw said in a statement that the church is not involved with the acquisitions. We will continue research on our new Trish Duggan theory. Its designed not for recruiting new members but for hosting established followers. But after he forwarded an email critical of the organization in 2012 to another parishioner, the church began an excommunication process that would have forced his partner of 24 years to stop working with him and his tenants to move out. Real estate agent Daphna Fischler, a Scientologist, called and showed up to the shop a handful of times in mid-2018. Aaron Smith-Levin, who left the world of Scientology after 29 years, is running to serve on the council in Clearwaterwhich has been home to the church's international spiritual headquarters. Longtime City Manager Bill Horne said he cant tell whether the church wants the same thing. Thats not happening with almost any of these properties., [ More reaction: What Clearwaters City Council thinks about Scientologys downtown takeover ]. Scientologys extraordinary influence over its members has been documented in government investigations and testimony from former parishioners throughout its 65-year history. Help us keep bringing stories like this to you. Andrus, the former church operative, has broken ground on a condo tower near the citys boat ramp and filed plans for another housing complex nearby. Almost immediately, a decades-long trickle of purchases by church members turned into a flood. I just was curious if this is possibly a decent job or if EVERY scientologist owned company is a recruiting scam. This purchase was part of Project Normandy, a covert Scientology program to take over Clearwater. The Times described sales as cash transactions when they were paid without a mortgage filed in public records. Another Scientologist, Rick Argall, owned a building on downtowns Garden Avenue that housed six Scientologist-run businesses, including a chiropractic clinic he operated with a fellow church member. Coincident with this Riley-registered RSR Capital Advisors as an LLC in Florida on March 21, 2022. His partner is Scientologist Maria Dolores Gregori Fuster. The church attracts members through a theology of self improvement and understanding. But its potential is still untapped, with prime vacant land overlooking Clearwater Harbor. In January and February 2017, as the council was preparing to approve the consultants concept, a handful of companies bought six commercial properties downtown. Our opinion is that Riley was instructed to get ahead of the story by bringing up Scientology before he was asked about it. It also has to be someone who trusts the Epsteins enough to invest with them. Of the $103 million spent, $99 million was paid in cash. Typically, when people buy commercial real estate, they move forward with construction or redevelopment. Over half are owned or operated by Scientologists. After the Times reported the purchases, Miscavige met with city officials and acknowledged the church acquired them as part of his plan to spend $55 million renovating downtown buildings and recruiting high-end retail to empty store fronts. Scientology members fuel another land-buying surge in Clearwater Companies tied to the Church of Scientology paid millions in cash for 45 properties near downtown with no major plans in. They came in under a fake name to buy the Fort Harrison Hotel, a historic hotel right in the center of downtown. A buyer, whose identity Chesney never learned, agreed to his asking price without countering $1 million cash for the adjoining parcels, which was four times the value set by the Pinellas County Property Appraiser. Advance! On Sept. 7, Epsteins employee was removed from the corporate filings of the company that own the land. It is a big faux pas in business PR to bring up the subject of religion when it is absolutely unnecessary to do so. I would assume hes a Scientologist or involved with them in some fashion. He demanded to see their financials, their board of directors. He took over Bob Lees Auto to continue the business legacy and served on the Downtown Development Board for a decade. The project broke ground in August and is aimed at helping bring businesses and foot traffic to the empty storefronts in the surrounding blocks. In 2018, Peter Lares got a call from Fischler, asking if hed sell the prominent building in the center of downtown that houses Emilys Restaurant. TRACEY MCMANUS: Hi, Lulu. There is no discrimination for or against *any* religion. Much of downtown Clearwater is now owned by people or companies tied to Scientology, a report finds. Clearwater is the permanent home to more than 10,000 Scientology parishioners. Instead, Epstein took the formal step of using an affidavit to deny that the Church of Scientology is not the client. This gallery shows all 60 properties Scientology owns under its name in Pinellas county and six additional retail properties the church acquired through limited liability companies in 2017. If the council in 2020 isnt on board with doing something his way, hes going to do it himself.. Among them: make Clearwater known as the first Scientology city in the world.. The city, meanwhile, moved ahead on its now-$84 million Imagine Clearwater project, a plan to transform the city-owned downtown waterfront with an outdoor amphitheater, a garden, bluff walk and plaza. Hayes, the attorney and parishioner involved in the rest of the North Marina purchases, was added as manager on the companies filings. Thats not happening with almost any of these properties., But Tal Ezra, a Scientologist who recently bought four parcels of land in downtown Clearwater, told the Times that he has plans for an office space and a retail shop. The churchs campus grew slowly over decades. Spa not owned by a Scientologist. I dont mix my personal business with other areas in my life, said Terri Novitsky, a Scientologist who manages a company that bought two office buildings on Chestnut Street in 2017. I had to make a decision, Bosi said. In Florida, limited liability companies that buy property are required to disclose administrative operators but not their owners. In January and February 2017, a handful of limited liability companies bought six prime downtown parcels. Agami, the developer whose family gave $10 million, leased a storefront to a non-Scientologist that has become a successful restaurant since opening in 2017. Those six lots were bought in November 2020 by a limited liability company then-managed by an employee of CA South, a Nashville-based real estate firm founded by Megan Epstein and advised by her husband, Stephen Epstein, both members of Scientology. MCMANUS: Yeah, I think that the key here is the uncertainty. My sister is always struggling with money and drugs: I own a house with my husband and mother. Fischler, a local real estate agent, negotiated at least 10 of the downtown deals, according to interviews with sellers. He is linked to the Church of Scientology via the Epsteins and Trish Duggan. Andrus did not respond to an email, phone message, a note left at his office or a certified letter. Another tell. Click here to read the story. GPB Capital Holdings: Court-Appointed Monitors Report on Q4 2022 Activities. Businesses without ties to the church are moving into a few of those. In those cases, four or more parcels purchased together clearly comprised a single piece of real estate. The Church was unaware of the significant number of properties owned by Scientologists in the Clearwater area and are delighted you provided the information, the letter continued. Construction on eight townhomes on the south end of the marina began Oct. 1, according to county records. Seventy-three percent of the property is tax-exempt for religious purposes. He owns Stonebridge Real Estate and served as president of the Florida Gulfcoast Commercial Association of Realtors in 2017. Story by TRACEY McMANUS Philip Kirkpatrick, Clearwaters senior economic development coordinator, said Stephen Epstein spoke with city officials in December about a potential commercial and multifamily project on the site. The church, its members and companies they control now own 185 properties that cover 101 acres in the center of downtown. . MCMANUS: The reason Scientology has such an outsized influence is because of the cash and assets it has, which is estimated to be $3 billion. Rodney Riley is the CEO of RSR Capital Advisors in Clearwater, Florida. Its important for me to communicate with the Scientologists in Clearwater and have that ability to work side-by-side, Riley said, also noting he is now based in Clearwater. The new owners also are sitting on about 30 undeveloped lots. Write by: . Business Outlook. Epstein declined to name his client but responded to questions from the Timeswith an affidavit declaring it was not the Church of Scientology. The gallery does not include properties bought by companies run by church members. Additional Clearwater real estate purchases began in 2019. This gallery shows all 60 properties Scientology owns under its name in Pinellas county and the six retail properties the church acquired through limited liability companies in 2017. It was a very turbulent time. and last updated 7:53 PM, Oct 21, 2019. She reported full-time for six months, interviewing more than 90 people and reviewing more than 1,000 documents, to bring you this story. Visitors are expected to stay in Scientologys hotels and eat at private church restaurants. Some have donated millions to the church. The memos were later seized by the FBI. Philip Kirkpatrick, Clearwaters senior economic development coordinator, said Stephen Epstein spoke with city officials in December about a potential commercial and multifamily project on the site. An informal inquiry last year related to vacant land overlooking Clearwater Harbor institution that a. Through a theology of self improvement and understanding southeast corner of Seminole Street and North Fort Harrison Avenue accelerated... Make a decision, Bosi said Imagine Clearwater miscaviges offer to revitalize downtown hinged the. Affidavit declaring it was not the client he had worked with Mormons and will now work to with. 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