Nov. 4--Don't expect to see any high-end resorts popping up on Knights Key in the near future.

Fed up with its lack of progress and failure to convey land for a sewage treatment plant, the Marathon City Council has cancelled Earthmark Companies' plans for a 199-room resort on the island.

Earthmark had a development agreement approved in February 2006. However, since June, back taxes owed and liens have prevented the company from turning over a roughly half-acre parcel at mile marker 47 oceanside to the city to build the sewer plant. The council also voted on Oct. 27 to begin eminent-domain proceedings to obtain the land.

Earthmark's was one of several agreements approved by the City Council during the tail end of the real estate boom in 2005, after enactment of an ordinance that allows RV spaces and hotel or motel rooms to be redeveloped into one-, two- and three-bedroom luxury condo-hotel units.

Earthmark's plan for Knights Key also includes a spa, restaurant, marina with charter boat slips, three pools, and a welcome and conference center.

The council has been hesitant to cancel the agreement while the economy is struggling, and considered once again extending the development agreement during last week's regular meeting. Councilman Dick Ramsay was adamantly opposed.

"I am very unhappy we're even considering extending this development agreement. We need to put our foot down and say enough is enough," he said. "I think its about time the city of Marathon stop fooling around and take a position in the best interest of our city, and that is to stop fooling around with development agreements that are going nowhere."

Other development agreements approved by the council that have stalled or are yet to move forward include:

--Marlin Bay, an 88-unit luxury housing complex on Louisa Street bayside. The development agreement was signed in July 2005 but the developer has since gone belly-up.

--Key Colony Bay Resort, a 72-unit Peebles Corp. project. The development agreement was signed in November 2005, but now the property, just south of Crawl Key, lies overgrown and fenced up.

--Faro Blanco Resort & Yacht Club, an 84-unit Spottswood Companies project. The development agreement was signed in February 2006. No work has been done except the demolition of old buildings that were on the site.

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