Unicorp and Colony Association end litigation

A years-long legal dispute involving the former Colony Beach & Tennis Resort has come to an end.

The announcement was made through an Aug. 7 email, signed by developer Chuck Whittall, president of Unicorp National Developments, and Jay Yablon, president of the Colony Association.

“All litigation has finally been resolved after seven years and brought to an amicable peaceful end that paves the way for a new resort to be developed at the former Colony,” the statement reads. “This settlement is effective immediately. It is not contingent or dependent on any future events.”

Last fall, Whittall agreed to pay Colony unit owners between $130,000 to $200,000 per unit. Despite the failure of the March referendum that would have allowed the development of Whittall’s initial proposal for the site, Whittall affirmed at a meeting between himself and the Colony Association’s development committee in April that he will keep intact the agreed-upon price for units. Sales agreements, though, have not been executed on the outstanding units. 

Of the 237 units, Unicorp owns 25. Whittall’s company needs 90% approval from unit owners to terminate the Colony Association. He said his company is moving forward with buying units and working to finalize a deal with Andy Adams, who controls 75 units.

Whittall also 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.

In July, Unicorp submitted a new proposal for the 18-acre property with the town. It includes a 166-room hotel, operated by luxury hotelier St. Regis, along with 102 residential condominium units.

Yablon said the Colony Association supports Unicorp’s plan.

“We are excited about the opportunity to finally get families back on the beach again, enjoying the sunsets, and contributing to the community life of Longboat Key,” the Aug. 7 statement reads. “It is everyone’s goal to begin construction in the middle of 2018 with an opening early in 2021.”

Before that can happen, though, the town will have its say.

The earliest date the proposal could go before the Planning and Zoning Board is at the group’s Oct. 17 meeting. The board will review the plan, then forward its recommendation to the Town Commission as early as November for a decision.

The two regulatory paths proposed by Unicorp to move forward with the project require amendments to the town’s zoning code, but not a referendum.

Also, immediate neighbors of the Colony property aren’t fully sold on the plan, either.

In April, Unicorp entered into a contract with residents of Aquarius and Tencon, extending “membership privileges” for residents of the two properties in exchange for support of a Unicorp project that meets certain criteria.

Dennis Haley, president of the Tencon Beach Association, said some of the parameters have changed.

“I’m just extremely disappointed,” Haley told the Longboat Observer. “This is just not the agreement we reached.”

The new plan changes the building setbacks agreed upon in the contract, which specifies no building will be constructed within 185 feet of the beachfront erosion control line or 70 feet from the property lines of Tencon or Aquarius.

Unicorp’s new proposal includes setbacks of 150 feet from the beachfront erosion line and 45 feet from the neighboring properties.

Whittall said he plans to meet with Haley to discuss the new proposal.

“I hope that means that there’s something that can be done,” Haley said.

Frank Morneau, speaking on behalf of Aquarius, said he will wait to comment on Unicorp’s new proposal until after Haley and Whittall meet.