Colony Lender sues unit owners

Colony Lender LLC filed a lawsuit against Colony Beach & Tennis Resort unit owners Friday, in the U.S. District Court’s Tampa Division seeking more than $5.1 million in damages.

The suit seeks $4,594,276.40 for accrued unpaid rent plus interest on a disputed recreational facilities lease for the period through Oct. 29, 2008 through Aug. 15, 2014, plus $525,244.82 in unpaid real estate taxes plus interest, and attorney fees.

The suit states that rent continues to accrue at a rate of $785,303.32 annually.

Colony Lender principal David Siegal sent a demand letter to unit owners in August seeking damages.

Colony Lender previously purchased overdue bank loans on the properties formerly controlled by Dr. Murray “Murf” Klauber and the Colony Partnership, including an 80% interest 2.3-acre recreational property, from Bank of America for a rumored $4.5 million, followed by a 15% interest in the 2.3-acre property.

Last year, Colony Lender received a judgment of more than $14.3 million in a foreclosure trial, which increased by several hundred thousand dollars as interest accrued each month. It received a judgment of more than $14.3 million in a foreclosure trial last September, which increased by several hundred thousand dollars as interest accrued each month. It placed a winning $15,200,001 bid in a July auction to become 95% owner of the recreational property and 100% owner of the other properties.

Colony Lender has an agreement to sell its resort assets to Orlando-based Unicorp National Development Inc.

The Colony Beach & Tennis Association contends that the interest Colony Lender LLC owns consists only of real property and does not include the recreational facilities lease. It also argues that the Florida Legislature outlawed such leases in 1975.

Chapter 7 Bankruptcy Trustee Douglas Menchise filed a motion last month seeking sanctions against Colony Lender LLC for its assertions that it controls a recreational facilities lease constituted a stay violation that Colony Lender’s attorneys insist did not exist.

For more information, pick up a Sept. 18 copy of the Longboat Observer.

Contact Robin Hartill at [email protected].