The Colony Beach & Tennis Resort Association is no closer to reaching an agreement to resolve ongoing litigation than it was four months ago, according to a quarterly report submitted to the town Jan. 2.
However, the first quarterly report, sent by Association attorney Jeffrey Warren, reveals that Association officials are holding discussions with all Colony affected parties to resolve litigation issues, in an attempt to gain control of approximately three acres that sit in the middle of the 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.”
The report states that “there is no pending agreement,” and the Association said 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 (agreement between the hotel and the unit owners) in the Chapter 7 bankruptcy case. Colony Lender, whose principals include Longboat Key residents Randy Langley and David Siegal, acquired certain Klauber loans. 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 Sarasota County Clerk of the Circuit Court, in which it has an 80% undivided interest. 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.
The letter states 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 last 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.
Colony Beach & Tennis Resort Association President Jay Yablon said a debate among unit owners about whether the resort should be renovated or torn down and rebuilt is still ongoing.
Currently 0 Responses
Paint the town red and green
This year, we won’t just be on the lookout for the most festive holiday lights on the Key. We’ll be on the prowl for anything that embodies the happiness of the holidays with our new “Spirit of the Season” contest.
Pettingell tradition is as sweet as pie
For the sixth consecutive year, Pettingell delivered pies from Yoder’s Restaurant in Sarasota to his customers at Thanksgiving.
Former Key Club manager takes on new role
Former Longboat Key Club & Resort General Manager Michael Welly has a new gig.