Club Holdings, Colony could end agreement

The Colony Beach & Tennis Resort Association board and its development partner, Club Holdings Ventures LLC, will reconsider their agreement at a Monday, May 14 board meeting that will be open to unit owners.
Jay Yablon, president of the Association’s board, wrote in an email to unit owners today:

“We have been in discussions with Club Holdings Ventures (CHV) regarding the current circumstances and the existing Development Agreement between themselves and the Association. CHV has expressed a desire to terminate the Development Agreement, but suggested a willingness to continue discussions regarding a new arrangement.”

Yablon told the Longboat Observer that the board’s agreement with Club Holdings includes a provision that allows either side to walk away with the agreement by May 15 without penalty.

No decision has been reached about whether to continue the agreement with Club Holdings, according to Yablon. However, if the board chooses to terminate the existing agreement, it will explore other options for redeveloping the Colony, including Club Holdings’ offer to negotiate a new arrangement.

On April 2 and April 3, Club Holdings presented its proposal to unit owners with three options: whole ownership, one-eighth fractional ownership or selling the unit.

The board is now concluding a straw poll that asks unit owners which option they would likely choose and whether they would buy additional units. The final question asks owners whether they would vote “yes,” “no” or “undecided” if voting today on the Club Holdings proposal.

Since the April meeting, some owners have expressed concerns about the proposal, which would range from the low $200,000s to mid-$300,000s for most units up to the mid-$700,000s at the high end for whole ownership, unit owners say. Owners of approximately 110 of the 237 units would need to opt for whole ownership, according to the current plan.

Any plan requires the approval of at least 75% of unit owners to move forward.

The many legal issues surrounding the property remain unresolved. Last week, U.S. Bankruptcy Court Judge K. Rodney May scheduled three hearings for July 13 to separately address three rulings involving the shuttered resort.

For more information, pick up a May 17 copy of the Longboat Observer.

Contact Robin Hartill at [email protected].