Chuck Whittall meets June 1 payment deadline

Chuck Whittall is one step closer to developing the Colony Beach and Tennis Resort property.

The president of Unicorp National Developments, who intends to submit a new proposal for the site on June 26, met a milestone deadline last week: the developer had until June 1 to pay $22 million to Colony Lender LLC or risk losing control of the former resort's recreational facilities.

On June 2, Whittall told the Longboat Observer he had met his obligation.

“It’s done,” Whittall said. “It’s finished.”

In July 2016, Whittall announced his company's $22 million acquisition of Colony Lender LLC’s 2.3 acre recreational property at the former Colony Beach and Tennis Resort. A federal court document dated March 16, 2017 affirmed the June 1 deadline.

"Colony Lender reports the purchase price remains unpaid by Unicorp, and that unless the price is paid by June 1, 2017, Colony Lender can regain (by foreclosure) or can sell ("voluntarily and independently") the debtors' assets for Colony Lender's benefit,'' the document reads.

Colony Lender LLC principal David Siegal confirmed that Whittall had met the deadline.

“Chuck Whittall paid his obligation,” Siegal said. “So that’s over.”

In that same court document, U.S. District Judge Steven D. Merryday affirmed a bankruptcy judge’s ruling that Colony Lender LLC had not acquired a recreational lease associated with the property. Colony Lender sued unit owners in 2014 seeking more than $5 million in damages and back rent on the lease. Earlier this year, Siegal said he will continue to appeal the case unless unit owners come to a final agreement with Whittall for redevelopment of the property.

At an April meeting with members of the Colony Association’s development committee, Whittall said he would keep intact his initial offer to unit owners ($130,000 to $200,000 per unit) and agreed to dismiss the appeal of the recent recreational lease ruling in exchange for the Colony Association waiving its sanctions recovery, “resulting in final closure of those disputes with no further legal costs.”

After the discussion, Colony Association President Jay Yablon said in an email to unit owners that the committee would schedule a public board meeting to discuss these new developments.

“It will be the committee’s recommendation to the board and to the owners to continue the present development agreement with Unicorp, as necessarily amended to address these positive changes,” Yablon wrote.

Whittall said he is looking forward to submitting a new proposal for the property. The plan will include a maximum building height of 65 feet above elevation, Whittall said, and meet all of Longboat Key’s setback and open requirements.

“It’s still going to be a five-star resort,” Whittall said. “It’s going to be an awesome plan.”