NORTH PORT — When Gene Vaccaro walked through the doors of the Warm Mineral Springs Day Spa on Feb., 6, 2009, he thought the place should be condemned.

Although the city of North Port and Sarasota County jointly bought the 81-acre spa for $5.5 million a year later, Vaccaro, of Cypress Lending, knew the operation was in bad shape. Hundreds of thousands of dollars were spent in upgrades before the joint purchase, and the spending has continued. Cypress Lending wanted to bid for the long-term contract, now in limbo.