Scientologists buy huge swath of downtown Clearwater

CLEARWATER — The Church of Scientology and companies run by its members spent $103 million over the past three years buying up vast sections of downtown Clearwater.

They now own most commercial property on every block within walking distance of the waterfront, putting the secretive church firmly in control of the area’s future.

Most of the sales have not previously been reported. 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.

Even city leaders said they didn’t know the full extent of the purchases until they were shown maps created by the Times.

The church, its members and companies they control now own 185 properties that cover 101 acres in the center of downtown. Half the properties were bought since January 2017.

The purchases started as tensions grew between the church and the Clearwater City Council. Each had proposed major redevelopment projects, designed to lure new business into the empty storefronts that surround the city-owned waterfront and the church’s spiritual headquarters.

Then the council interfered with a land deal that Scientology demanded for its plan. The church stopped communicating with the city.

Almost immediately, a decades-long trickle of purchases by church members turned into a flood.

Nearly all of the properties were bought through limited liability companies, which are required to disclose their operators but not their owners. Although that arrangement is standard in real estate, it makes it impossible to know whether the properties are owned by the Scientologists who manage the companies, the wealthy church or another hidden party.

But companies controlled by different parishioners bought neighboring properties that create clear assemblages of land.

Scientology’s extraordinary influence over its members has been documented in government investigations and testimony from former parishioners throughout its 65-year history. That has led defectors from the church and city leaders to believe there is little chance parishioners are making significant real estate deals around Scientology’s mecca without the church’s involvement.

The church has shed no light on its plans. Clearwater Scientology spokesman Ben Shaw and international spokeswoman Karin Pouw did not respond to repeated requests for an interview with Scientology leader David Miscavige.

In response to detailed memos summarizing the reporting, the church criticized the Times for portraying its members as “mindless robots” and for having a “preconceived agenda to present every Scientology story in a false and unfavorable light.”

“There is nothing unnatural about Scientologists wanting to live in the same city that houses the international spiritual headquarters of their church,” said a letter signed by Scientology attorney Gary Soter. “The Church was unaware of the significant number of properties owned by Scientologists in the Clearwater area and are delighted you provided the information.”

Asked directly whether Scientology orchestrated or paid for any of the sales, the church did not answer.

The Times also contacted representatives of all 32 companies it identified that bought downtown real estate over the past three years. Most did not respond or declined to comment.

The few willing to answer questions said Scientology has no influence on their real estate dealings.

“I don’t 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.

In interviews, sellers said most of the transactions unfolded the same way. A broker who was a Scientologist approached a downtown property owner. Made an offer. Paid in cash.

Many of the properties weren’t on the market. And half the sales were for more than double what the properties were valued by the county property appraiser, the Times found. In six cases, buyers paid quadruple the property’s value.

Most of the new owners have done little with their acquisitions. Block after block, vacant lots sit untouched, and storefronts remain empty.

The city wants to turn downtown into a regional destination for food, drink and entertainment. Longtime City Manager Bill Horne said he can’t tell whether the church wants the same thing.

“Ever since I’ve been here, and ever since I’ve dealt with Scientology officials, I have heard the leaders articulate that they want to see a vibrant downtown,” Horne said. “However, it hasn’t always been clear to me as to just what does that actually mean.”