Colony Lender's redevelopment plan accepted

 

Colony Lender's redevelopment plan accepted

 

Date: March 30, 2011
by: Kurt Schultheis | City Editor

 
 

The strategic consultant who is working with the Colony Beach & Tennis Resort Association to find the right development plan for the shuttered resort has accepted a 15th proposal.

Toronto-based Horwath HTL (Hotel, Tourism and Leisure) principal Joel Rosen has accepted a proposal that Colony Lender LLC representatives David Siegal and Randy Langley submitted to a Colony bankruptcy trustee more than a year ago.

Siegal told the Longboat Observer two weeks ago he thought the association would have considered the proposal already submitted, because he and Langley discussed the proposal with the association and a bankruptcy trustee in 2010.

Siegal said he and Langley resubmitted the proposal to Rosen last week.

“We called Mr. Rosen last week and asked whether anybody was interested in our plan,” Siegal said. “Mr. Rosen said he had never seen it. We sent the same plan we sent the trustee, and it was accepted.”

Colony Association President Jay Yablon, who oversaw an association board meeting Monday, confirmed that Colony Lender’s proposal has been accepted and said the proposals were discussed at length in the private meeting. The association will whittle down the proposals over the next couple of months and hold interviews with the top developer candidates.

In 2009, Colony Lender purchased longtime Colony owner Dr. Murray “Murf” Klauber’s $10 million overdue bank loans, upon which the company wants to foreclose. Colony Lender has a May 10 hearing in Sarasota County Clerk of Court to set the amount due for the loans.

Colony Lender’s renovation plan has three different development options; all options include a proposal of paying Klauber $12 million in exchange for his departure from resort affairs and acquiring all of his property and on-site businesses.

Colony Lender’s preferred development option includes investing $20 million to return the Colony into a “brand-new, five-star hotel and resort.”

But, in exchange for that proposal, all 232 unit owners must sign over the titles to their units to a trust, converting the resort from its current state into a timeshare-resort facility. Currently, the owners hold titles to each unit.

The 232-unit owners will eventually select the winning renovation proposal by a 75% majority vote.
 



Klauber questions Colony re-opening
Longtime Colony Beach & Tennis Resort owner Dr. Murray “Murf” Klauber attended the Thursday, March 24 Longboat Key Town Commission regular workshop and urged commissioners not to approve a partial re-opening of the resort until all repairs at the property are made.

“The Colony Beach & Tennis Resort property, in its present condition, is dangerous, deplorable and a disgrace to Longboat Key,” Klauber said. “I encourage the commission and town staff to accompany me on a viewing of the shameful site. Until all repairs are made, there should be no re-opening, because I am concerned about liability for the town and all concerned.”

Past Colony President and General Manager Katie Moulton also attended the meeting, explaining that her concern is that if the resort is partially opened, other areas of the resort will not be safe for those staying at the property.

David Karins, of Sarasota-based Karins Engineering, however, took to the stand to explain that his company is actively working with the Colony Association and the town to “restore the safety of the buildings in a way so portions of the resort can be occupied.”

“Buildings are spread out throughout the property, and unsafe portions of the property can be sequestered and protected,” Karins said.

Town Manager Bruce St. Denis confirmed that safety is a top priority before any portion of the resort would re-open.

“It’s also a top priority from a staff standpoint to do everything the town can do to give the Colony the best chance to be the Colony we remember,” St. Denis said.

Contact Kurt Schultheis at kschultheis@yourobserver.com

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Currently 1 Response

  • 1.
  • Are you kidding? The two greedy hucksters who allowed that property to get so rundown are now concerned about the safety of those structures?

    This gets funnier by the week.
  •  
  • Jon Hart
    Sat 2nd Apr 2011
    at 5:51pm
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