Association seeks extension

The Colony Beach & Tennis Resort has until Dec. 31 to become an operational resort or risk losing the grandfathered status that allows 237 units to exist on just less than 18 acres.

But the Colony Beach & Tennis Resort Association is now seeking an 18-month extension to the deadline the Longboat Key Town Commission set in March 2011 in granting the first extension, according to a 20-page letter sent last week by Don Hemke, the Association’s attorney for planning and zoning issues, to the town’s Planning Zoning & Building Director Robin Meyer.

Without the first extension, the town would have considered the tourism use of the property abandoned Aug. 15, 2011 — one year after the resort closed. If the tourism use is deemed abandoned, the property could be limited to six units per acre on 15 acres, or just 90 units.

The letter states that Colony Lender, which holds a 15% interest on the property’s three recreational acres and the mortgage on longtime Colony owner Dr. Murray “Murf” Klauber-related entities’ 80% interest on those three acres in addition to a mortgage on other Klauber-related entities’ interests, along with Andy Adams’ Breakpointe LLC, which owns a 5% interest in the recreational properties, have no objection to extending the deadline.

Klauber, reached by the Longboat Observer in Toronto, said that he could not yet comment on whether he supports the petition.

Association members have, in recent months, discussed the possibility of re-opening a limited number of units in an attempt to continue the tourism use of the property before the deadline.

But the letter indicates a change of direction, stating that, although limited tourism operations could resume at the Colony by the deadline, “such resumption would be costly, probably wasteful and almost certainly damaging to the Colony ‘brand’ and to the Longboat Key ‘brand.’”

The letter cites “legal restraints” as a major obstacle in the property’s redevelopment, along with the complexity of selecting a new development partner, following the termination of an agreement with previous partner, Club Holdings Ventures.

At press time, U.S. Bankruptcy Judge K. Rodney May had not yet ruled on three separate cases involving the Colony that he heard July 13.

Commissioners expressed frustration in March when the parties attended the meeting to give a status update about what they felt was a lack of progress in resolving their legal disputes. Several commissioners warned that without signs of progress, they would not vote for another extension.

But at its July 2 meeting, commissioners expressed concerns that the looming deadline was placing undue hardship on the property, which, according to a May report compiled by the town, contains many building, health and life-safety issues.

But, the letter states, May’s ruling won’t necessarily be the end of “legal restraints” involving the rehabilitation or redevelopment of the Colony.

Any party dissatisfied with the Bankruptcy Court’s decision could appeal to the District Court; any party dissatisfied with the District’s Court’s order could then appeal to the 11th Circuit Court; and any party dissatisfied with the 11th Circuit Court’s decision could attempt to bring the matter to the U.S. Supreme Court.

The Association would be willing to provide periodic status updates to the commission, as suggested at July’s meeting, the letter states.

Read Don Hemke’s letter to PZ&B Director Robin Meyer here.