EAST TAMPA - A pallet business is at the center of a lengthy dispute among neighbors, code enforcement inspectors, city officials and, most recently, the property's new owner.

Code enforcement officials say Rusty's Pallet Services, 5315 N. 37th St., is operating illegally and has built illegal structures, including open storage sheds and an accessory building. The city began levying $250 daily fines on Jan. 26, 2005. The total fines top $200,000 and are climbing, records show.

In February 2006, the business was referred to city legal staff for possible foreclosure, a code enforcement memorandum shows.

Neighbors on 37th Street, and East Giddens, East Frierson and East Shadowlawn avenues, say they have endured the dust-generating business for years. Nearly 200 people signed a petition in 2004 asking the city council to close the business.

'It has really been a long battle,' resident Toinette Gaines said. 'City council told us it was zoned for that business and there was nothing much they could do.'

Benedict Flahn disputes that his business violates code. But along with property owner Spencer Kass of Landmarc Realty, he has provided several plans to correct violations. All have been rejected. Flahn submitted another plan to the city last week.

'He's attempting to jump through various hoops to accommodate the city and other residents,' his attorney, David Plante, said.

Residents often call code enforcement about tractor-trailers rumbling through the streets. They also complain of rats and snakes breeding under pallet piles and showing up in their yards, and about the pounding of pallets being assembled.

'The dust is flying,' resident Betty Joe Whack said. 'Long trucks hit oak trees and limbs fall off.'

She and others say Rusty's employees began working Sundays a few weeks ago but stopped after neighbors complained.

'You hear that 'pap, pap' all day,' Whack said. 'Nobody wants to hear that Sunday, too.'

Kass bought the property in 2006 as fines were mounting. City code holds the landowner, not the renter, responsible for violations.

Kass said a title search did not reveal the property's problems.

'I would never have bought the property if I knew about that,' said Kass, who is negotiating with city officials to void or cut the fines.

In trying to meet city requirements, Kass said he has spent thousands of dollars in the past six months on site plans and filing fees.

He said eviction may be his only option.

'I feel very bad that it's going to happen,' he said. 'I'm not looking to run anyone out of business. At the same time, I can't be under the duress of the city.'

Reporter Kathy Steele can be reached at (813) 835-2103 or ksteele@tampatrib.com.