Longboat Key residents Randy Langley and David Siegal on March 1 purchased a loan worth more than $8 million from Bank of America that was in default under Colony Beach & Tennis Resort Chairman and Owner Dr. Murray “Murf” Klauber.
If the loan is not paid back by Klauber before a foreclosure is pursued by the new loan holders, Langley and Siegal would gain a controlling interest in the loan’s collateral, which includes the resort’s tennis courts, The Colony Dining Room restaurant, the swimming pool and various businesses owned on-site by Klauber.
Also listed as collateral in the loan is The Monkey Room bar, tennis shop Le Tennique, a penthouse unit used as Klauber’s office, the beachfront three-bedroom Vagabond unit and 3.75 acres of recreational property that includes the tennis courts.
In April 2009, Bank of America filed foreclosure against three loans valued at $8.1 million owed by Klauber and his resort corporations in an attempt to gain control of his assets and some resort property.
But according to an assignment of mortgage executed in Sarasota County Clerk of the Circuit Court dated March 1, Colony Lender LLC, of which both Langley and Siegal are listed as managers, was assigned the mortgage for an undisclosed price estimated to be half the cost of the original mortgage.
The 232-unit owners that purchased individual condominiums on-site at 1620 Gulf of Mexico Drive constitute the rest of the resort property. The assignment of mortgage does not affect the unit owners, who are seeking to dissolve Klauber’s hotel operating partnership that exists in bankruptcy court.
Langley, who could not be reached for comment this evening for this story, is the owner of Cedars Tennis and Fitness Club Inc. and Barrier Island Realty Group, which just purchased the former dentist office at 7000 Gulf of Mexico Drive (see related Web story).
Klauber’s hotel operating entity filed for Chapter 11 bankruptcy Oct. 5 in the Tampa-based U.S. Bankruptcy Court’s Middle District of Florida.
Langley attended a Colony bankruptcy hearing Monday in Tampa in which his attorney expressed an interest in continuing the foreclosure process that Bank of America started.
By expressing an interest to foreclose on the loan in court, Langley and Siegal could become players in any renovation or future development of the property unless Klauber is able to come up with the more than $8 million he now owes them.
Langley and Siegal also could sell the loan they purchased to another entity.
But the possibility exists that Langley and Siegal may work with Klauber to revitalize the resort.
When asked about the purchase of his loan, Klauber said: “I am very pleased Randy and David have purchased the Colony's mortgage from Bank of America. Randy and I have been talking about this for a while.”
Katie Klauber Moulton, president and general manager of The Colony, expanded on her father’s statement by saying that “having the ability to work with somebody eyeball to eyeball rather than a large corporate entity makes it a little bit easier to work through the challenges toward a resolution on the debt.”
Moulton also told The Longboat Observer she wouldn’t rule out a partnership with Langley and Siegal’s corporation.
“We have talked to Mr. Langley for several months about the challenges and opportunities that exist,” Moulton said. “It’s possible he may be able to assist in some way.”
For more information, pick up a copy of March 18 edition of The Longboat Observer.
Contact Kurt Schultheis at [email protected].
Colony bankruptcy update
In other news, Tampa-based U.S. Bankruptcy Court Middle District of Florida bankruptcy Judge K. Rodney May made a ruling today to grant a request by The Colony Beach and Tennis Resort’s Association, which forces Colony Beach & Tennis Resort Chairman and owner Dr. Murray “Murf” Klauber to pay for about $472,000 in attorney fees and legal costs associated with the association’s bankruptcy case last summer.
The judge announced that Klauber owes $449,866.50 in attorney fees and $22,666.43 for legal costs.
“We are very happy Judge May once again did the right thing,” said Colony Association President Jay Yablon.
The association also filed in court last week a motion urging the judge to eject the partnership (Klauber’s hotel entity) from using the owners’ 232 units in the operation of the hotel based on what it claims as numerous breaches of the partnership agreement.
Said Katie Klauber Moulton, president and general manager of The Colony: “The association has breached the partnership by not maintaining the property. We don’t believe their demand to return their units to them is reasonable because we believe the association is in default and to blame.”