Colony submits settlement update

 

Colony submits settlement update

 

Date: January 4, 2013
by: Kurt Schultheis | Managing Editor

 
 

 

The Colony Beach & Tennis Resort Association is no closer to reaching an agreement to resolve ongoing litigation that would revive the entire 18-acre Colony Beach & Tennis Resort site than it was four months ago, according to a quarterly report submitted to the town Jan. 2.

However, the first quarterly report Association attorney Jeffrey Warren sent to the town reveals that Association officials are holding discussions with all affected parties to find common ground and resolve litigation issues, in the Association's attempt to gain control of approximately three acres that sit in the middle of the dilapidated 15-acre Colony property controlled by the unit owners.

The quarterly report, which is mandated as part of a resolution passed by the Longboat Key Town Commission last year when it gave the Association a one-year extension to rebuild the property with its current number of units, explains unit owners have “actively pursued a fair and reasonable resolution of all of the controversies with the various parties.”

Explaining “there is no pending agreement,” however, follows the above statement, and the Association says it cannot divulge details of any settlement negotiations.

The Association does reveal, however, it’s working with longtime Colony owner Dr. Murray “Murf” Klauber’s controlling entities to pursue a challenge to Colony Lender LLC’s claims against the Colony Partnership (the agreement between the hotel and the unit owners) in the Chapter 7 bankruptcy case. Colony Lender acquired certain loans made both to the Partnership and Klauber, and it’s believed a successful challenge to those claims in bankruptcy court could help speed up settlement negotiations. 

Colony Lender is also pursuing a foreclosure of Klauber-controlled properties in which it has an 80% undivided interest in Sarasota County Clerk of the Circuit Court. The Association is closely watching that foreclosure case, which could go to trial later this month, because it could also speed up a settlement.
Currently, the foreclosure doesn’t allow Klauber to deliver clear titles to any properties as part of a proposed settlement because of the foreclosure proceedings.

Association officials have also met with Andy Adams, the owner of several Colony units, who also owns a 5% undivided interest in Colony outparcels through Breakpointe LLC.

Development partner discussions are also ongoing, according to the letter.

“The Association can report that it is currently working with several prospective development partners who have expressed significant interest in the redevelopment of The Colony,” the letter states. “The Association has encouraged these potential development partners to seek and propose resolutions for all of the disputes and controversies as part of their proposals to the Association.”

The Association also delivered a $50,000 cash bond to the town this week as part of its agreement with the town. The bond guarantees a list of conditions set forth that includes securing unsafe buildings and sprucing up the outward appearance of the property while litigation matters linger.

For more information, pick up a copy of Thursday’s Jan. 10 Longboat Observer.

Contact Kurt Schultheis at kschultheis@yourobserver.com.
 

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