recent news story on Blue Grotto.
who'd be crazy to pay $2 million or more for this place?
You'd never be able to recover your initial investment from Scuba diving operations.
Blue Grotto dive resort owner rejects $2 million purchase offer
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by KATHY RICHARDSON
WILLISTON, Florida (18 Dec 2005) -- An offer of over $2 million to purchase Blue Grotto, a well-known diving resort near Williston, was rejected Thursday by the owner.
Ed Paradiso had contracted with National Auction Group, which markets and auctions unique properties all over the country, to sell the 14 acre site that features a home, dive shop and clear-water diving cavern.
But the top bid of $1.5 million fell "considerably" short of the price owner Edward Paradiso sought, and he immediately exercised his right to refuse it, according to the National Auction Group, which arranged the sale at the water's edge last week.
Blue Grotto, which is off of Alternate 27 between Williston and Bronson, is the largest clear-water cavern in the state and reputed to be among the best scuba-dive locations in Florida.
Seven bidders registered but hundreds had inquired, including some interested in the right to bottle the grotto's water.
Auctioneer Eddie Haynes started the bidding for the property at $3 million, but his suggestion was met with stone-faced silence from the dozen or so people gathered under the tent. The first offer was $1 million. Once the bidding went to $1.5 million, the auctioneer stopped the process for a "5-minute break" in order to allow those attending time to "think about what was being offered."
Haynes explained that the property was being sold "today" not tomorrow. He indicated that he didn't want anybody regretting their decision not to bid higher after the fact.
The high bid was offered by Jeff Chadwick, a developer from Largo who said he had planned to improve the dive center and market it better. He boosted his bid to over $2 million in post-auction negotiation, but Paradiso wanted more.
Neither Paradiso, Chadwick nor the auction company would reveal Paradiso's asking price.
According to the county property appraiser's website, the property is appraised at about $335,000. It also shows Paradiso to have purchased the property in 1988 for $324,000.
Paradiso apparently felt the property was worth more than the high bid due to a permit issued in June 2001 by the Southwest Florida Water Management District that allows him to pull 100,000 gallons a day from the grotto. He had wanted to withdraw the water and have it trucked to another site for bottling.
The auction company, based in Alabama, played up Blue Grotto's potential as a water source, claiming it cycles 3 million gallons of water a day.
In the summer of 2003, Levy County's Board of County Commissioners rejected a request by Paradiso to change the zoning of nearby property to commercial to allow a transfer station to be constructed.
After the county denied Paradiso's request, he filed a lawsuit in the spring of 2004 contesting the county's right to deny the zoning change.
According to the county attorney's office, Levy County has spent $23,586.51 in the past two years defending legal actions taken by Paradiso.
SOURCE - Williston
