Welfonder, Tallman make pitch to Colony

The Colony Beach & Tennis Association Board eliminated the proposal submitted by Manfred Welfonder’s Longboat Key-based MW Development Group in August, but Welfonder believes he has the right vision for the Colony’s future.

Now Welfonder and Sarasota developer Jay Tallman, president of Ascentia Group LLC, have partnered in hopes of bringing that vision for the Colony to fruition. Tallman got his start in Longboat Key real-estate development in the early 1990s with the Vizcaya luxury condominiums and later joined forces with Thomas Brown to develop the 21-unit en Provence, which sold out in three weeks for a total $52 million, according to the Gulf Coast Business Review, an Observer newspaper. Tallman and Brown went on to develop the Beau Ciel in downtown Sarasota, Orchid Beach Club on Lido Beach and The Founders Club in Sarasota. Tallman served as a consultant for the Longboat Key Club and Resort’s $400 million Islandside redevelopment-and-expansion program. Tallman told the Longboat Observer that he is now setting his sights on the Colony because of its significance to the Key and region.

“I would just love to have a hand in the ultimate recreation of the property,” Tallman said. “I think it’s had a wonderful, storied history, and I’d like to see it carry on the legacy that’s been involved with Longboat Key and at the same time redevelop it and be proud of it.”

The board has made clear its intent to proceed with Club Holdings LLC as its development partner. At least 75% of unit owners would have to approve of any plan to move forward. The vote was originally scheduled to take place at the annual unit owners meeting, scheduled for Monday, April 2, and Tuesday, April 3, but has been pushed back.

Welfonder said that he wants the board to consider putting at least three proposals out for unit owner consideration.

“The board has picked one proponent,” Welfonder said. “We, in addition to other people, don’t believe they will get the 75% of votes.”

Jay Yablon, president of the Association board, declined to comment on Welfonder’s assertion that the board was unlikely to get the necessary unit owner vote. But he described the problem with presenting multiple plans to unit owners.

“We had multiple people presenting multiple proposals that told us very clearly that they were not going to get involved in a process where their proposals were going to be put in the public domain or widely exposed to dozens of people,” Yablon said. “While I understand the dramatic intrigue of an ‘American Idol’-style process, trying to do that at the Colony would have driven out a number of well-qualified proponents, to the detriment of our unit owners.”

The Association originally received 20 proposals from developers earlier this year. MW Group’s proposal made it to the final six before being eliminated in August when the board whittled down the pool to four proposals; it ultimately chose Club Holdings’ proposal.

Unit owners received a detailed draft of Club Holdings’ proposal via email earlier this month. The specifics of the proposal were confidential, however, it includes three options for owners, including a buyout, one-eighth ownership or full ownership. The draft plan includes 174 tower residences, located toward the back of the property near Gulf of Mexico Drive, along with 64 bungalow-style villas; the re-creation of 12 existing beachfront units; a welcome center with meeting, banquet and conference space located directly above; full-service spa; expansion of the former Monkey Bar, restaurant and beach pool and construction of a second adult pool; private beach cabanas; and a tennis and fitness club that would include nine courts, a stadium court, tennis retail shop and celebrity tennis plan.

MW Group, which recently purchased the domain colonyowners.com, posted the details of its proposal in February. Welfonder’s proposal overview also lists three options for unit owners: one-thirteenth co-ownership at no cost to current owners and prices ranging from $99,000 to $179,000; 100% fee simple interest at prices ranging from $331,000 to $686,000; or a buyout offer that would pay owners an average of $75,000 to $85,000 per unit. The plan calls for the construction of 160 hotel units built in one or two mid-rise buildings developed and/or managed by an international hotel company and owned by the developer; the construction of 180 vacation ownership units/residences; 10 private residence clubs; and a three-meal restaurant, pool bar, ballroom, meeting rooms, spa, Har-Tru tennis court and an agreement with nearby golf courses allowing for the use of the facilities.

Tallman said that many unit owners have expressed interest in MW Group’s proposal.

“We’ve heard from many unit owners who feel like MW’s proposal wasn’t adequately reviewed and would very much like there to be further consideration of that proposal,” he said. “It’s definitely a challenge but, frankly, looking at both proposals, I think ours has many merits relative to Club Holdings’ proposal from the perspective of the owners.”

Klauber comments
Longtime Colony Beach & Tennis Resort owner Dr. Murray “Murf” Klauber sent the Longboat Observer the following statement about the plan presented to unit owners by Club Holdings LLC:

I have reviewed the proposal that was presented to the unit owners and find it missing too many critical and material details for anyone to be able to make a qualified and educated decision regarding its viability at this time. The annual unit owner meeting is taking place next week and I believe that no matter how much dialogue occurs during those two days, many unanswered questions will remain.

Their plan is unworkable since they do not own the land that makes the resort functional, i.e. the tennis courts, swimming pool, restaurant, etc. This is a sham. The definition of sham in Webster’s deluxe unabridged second edition dictionary is “a deception; to be what one is not; to make false pretenses.”

Incidentally, there are two very strong proposals waiting in the wings. It is my hope that when new board members are seated these other options will have a proper opportunity to be evaluated by all unit owners as we contemplate a proper simple beach elegant renovation, rebuild or redevelopment of the resort. Giving the unit owners only one choice, and one that is missing so much information, lacks transparency and seems unfair to me for such a significant decision the owners are being asked to make for our luxurious island.