Owners weigh plans for Colony’s future

Unicorp National Development LLC President Chuck Whittall presented a plan to unit owners Dec. 15, at the Colony annual board meeting that could present major hurdles under town codes.

Whittall told unit owners that a portion of the 360-unit project would be residential-only, although the majority would consist of hotel units and condos that allow for hotel-type stays of periods between 30 and 60 days.

Whittall presented a $30 million all-cash offer to unit owners Dec. 15 that includes $126,000 for most units or a guaranteed 30-day use at a new five-star resort, plus an additional $200,000 premium for oceanfront units.

“For a project of this caliber, it requires a combination of hotel rooms, fractional unit condos and full-time ownership units,” Whittall said.

Whittall said he has spoken with the town about a rough draft concept with 56 fractional unit condos allowing for short stays and the balance of the 180 condos (124 units) being available for full-time residential use.

Because the Colony’s 237 units were built on 18 acres before the town created its tourism resort commercial classification that allows for just six units per acre, 129 of the resort’s 237 units are considered grandfathered, or legally nonconforming. If that grandfathered use disappears, only 108 units, or six units per acre would be legally allowed.

“If they (Unicorp) come in with a new proposal for residential units, they lose the grandfathered tourism units on the Colony site,” said Planning and Zoning Board Chairman and former Mayor Jim Brown. “It’s as simple as that.”

Planning, Zoning and Building Director Alaina Ray concurred.

“The resort was built for tourism, and if they choose to see changes, it could limit what they do going forward,” Ray said.

Ray, though, said she would seek a legal opinion if the town receives an application for full-time residential units.

Whittall said he would not jeopardize the number of existing units with the request.

“If we need to do a referendum to request that type of residential, we will do that or whatever it takes,” he said.

At the meeting, unit owners also heard from MW Development Group principal Manfred Welfonder, who is teaming up with Naples-based The Lutgert Cos. to offer unit owners another development option. Welfonder’s group is offering to build a $195 million project of 400 tourism units in a main midrise building near Gulf of Mexico Drive and in two- and three-story villa buildings.

But Unicorp has something MW/Lutgert Cos. doesn’t have: rights to the 2.3 acres of recreational property currently controlled by Whittall, who is under contract with Colony Lender LLC to purchase the property.

“We’re the right choice because we control the entire center, and we plan to develop the entire property,” Whittall said.

Welfonder, though, says his development proposal shouldn’t be overlooked because it comes with a speedier approval process that doesn’t require a nine- to 12- month referendum approval process for residential-only units.

Unlike Whittall, Welfonder declined at the Dec. 15 annual owners meeting to present a hard-figure offer to unit owners, noting only that past sales of units have fetched an average of $50,000. Welfonder said he and his development partner are prepared “to make a cash total buyout offer” to unit owners next year.

Welfonder believes the two companies will convince unit owners their project is superior, which would then pave the way to purchase the 2.3 acres from Whittall and Colony Lender.

“The Lutgert Cos. has the funds available to move forward to purchase all necessary assets at the Colony,” Welfonder said.

Colony Beach & Tennis Resort President Jay Yablon, meanwhile, said he welcomes any project that satisfies both the financial needs of unit owners and can get approval from the town.

“If Whittall or any other developer can convince the town to do a project without impediment while keeping 300 to 400 units on the site, that’s a project I have no problem with,” Yablon said.