Redevelopment not in purview of Association

Charles Bartlett, attorney for longtime Colony Beach & Tennis Resort owner Dr. Murray “Murf” Klauber, disagrees with the Colony Beach & Tennis Association’s claims that it can proceed with developing the historic resort.

In response to correspondence sent last week by the Association to the town, Bartlett reiterated that the ruling of U.S. District Judge Steven D. Merryday, which favored the Partnership that ran the Colony, gave U.S. Bankruptcy Court Judge K. Rodney May two options, one of which included returning the Partnership to its Chapter 11 bankruptcy status and returning full operating control of units.

“Judge Merryday’s ruling, notwithstanding the Association’s appeal, is the law of the case and is binding on the bankruptcy court and the litigants unless and until reversed,” Bartlett wrote. “Any attempt to interfere with the court’s jurisdiction by altering the footprint of the Colony or changing any of the unit boundaries may be in violation of the bankruptcy stay and would thereby be prohibited.”

Hemke wrote in his Jan. 16 letter that part of the Association’s proposal involves terminating the existing condominium and the establishment of a new condominium — which, his letter states, would require a supermajority vote of unit owners, rather than unanimous approval. Bartlett responded, writing that with no such vote having been taken, “the Association Board is attempting to act outside its authority in proposing any plan to the town that would have such a result” and that town consideration of such a request would be “premature at best,” given the many issues surrounding the property.

But Association attorney Jeffrey Warren disputed the argument that consideration of the plan would be premature, writing in an email to the Longboat Observer that “it would be irresponsible for the town to unnecessarily delay consideration of the Project in light of the significant positive impact it will have on the entire community for decades to come … ”

Warren wrote: “our presentation to the town assumes that Judge Merryday’s rulings (which are on appeal and may eventually be the subject of future proceedings in the Bankruptcy Court and further appeals), are not changed. Therefore, the success of the Project, in terms of what it will mean to the Longboat Key community, is not dictated by the outcome of the litigation.”

The parties previously attempted to resolve many of these issues in court-ordered mediation, which was determined to be at an impasse Dec. 15. Another mediation conference is scheduled for Feb. 10.

In the meantime, the Colony Association’s board continues to make its case to unit owners for the resort’s redevelopment partnership with the Broomfield, Colo.,-based Club Holdings LLC and will hold its annual meeting of unit owners April 2 and April 3.

According to a Jan. 17 email to unit owners from Yablon, that meeting will serve as “the kickoff to conducting the owner vote to accept the proposal, which is planned to occur during the month of April.”