Adams withdraws his Colony plan

AdamsMark L.P., a company owned by W. Andrew “Andy” Adams, is no longer seeking to redevelop the Colony Beach & Tennis Resort.

According to an email sent to unit owners July 6, Adams withdrew from the process, leaving three developer candidates: the Naples-based Coral Hospitality, Longboat Key resident Manfred Welfonder’s MW Corp. and the Atlanta-based Capella Group in affiliation with West Places.

Adams’ entities own at least 48 of the resort’s 237 units. Because 75% of unit owners must approve any redevelopment project, anyone who owns 60 units — i.e., 25% — would have to approve a proposal for it to move forward.

Additionally, Adams owns a 5% undivided interest in the resort’s three-acre tennis courts and recreational property.

The Longboat Observer could not reach Adams for comment.

AdamsMark L.P. was one of four finalists to redevelop the resort last year. The Colony Beach & Tennis Association chose Club Holdings, in Broomfield, Colo., as its development partner but then voted to sever the relationship in May.

Adams resubmitted last year’s proposal in June.

The proposal called for a renovation, inside and outside, at a cost of approximately $135,000 per unit.
The proposal stated that AdamsMark would be willing to buy out the interests in the recreational property for a to-be-determined amount and sell it back to the Association at cost plus 5.5% interest.

It suggested negotiating with other neighboring recreational facilities, such as the Longboat Key Club and Resort, TENCON and public tennis resorts if the Association can’t reach an agreement with longtime Colony owner Dr. Murray “Murf” Klauber and Colony Lender LLC for the remaining 95% of the recreational property.

The board will consider the three remaining proposals via videoconferences this week.

The July 6 email included an attachment with a summary of key issues and questions, many of which represent the major hurdles a developer will face, one of which is:

“Are you prepared to immediately commence renovations on an estimated 40 units and open those units for tourism use (as well as mutually agreeable owner use) to retain our unit density and good standing with the town of Longboat Key as well as provide some usage/return on owner investment? How would you see this evolving?”

Meanwhile, the legal battle involving the properties continues, with three separate hearings scheduled for Friday, July 13, before U.S. Bankruptcy Judge K. Rodney May in Tampa.