$23 million Colony judgment attracts four bidders

Four bidders, including Delray Beach-based Ocean Properties Ltd. and Orlando-based Unicorp National Development, are making a play for the coveted $23 million judgment against Colony Beach & Tennis Resort unit owners that U.S. Bankruptcy Trustee William Maloney is seeking to sell.

The following four bids for the judgment were submitted by 4 p.m. Thursday:

• Newcomer Bluewater Oceanfront Investments LLC, a new Windermere-based corporation that was formed July 17 by registered agent Robert Butler, submitted a $4 million bid with a $400,000 deposit.

• The Colony Beach & Tennis Resort Association submitted a $3 million cash bid with a $300,000 deposit;

• Unicorp submitted a $3.5 million bid with a $350,000 deposit.

• Naeco LLC, a New Hampshire-based organization controlled by Ocean Properties, submitted a $3.7 million bid with a $370,000 deposit.

All offers except the association’s bid would still allow the winning bidder to assess unit owners for the $23 million judgment they are seeking as part of a redevelopment plan for the resort.

U.S. Bankruptcy Judge. K Rodney May will review the bids 10 a.m. Sept. 8, when he holds an all-day auction for Maloney’s judgment against unit owners and decides who is the winning bidder.

Bid parties will be able to explain to May why their offer should be approved and can raise bids at the auction.

SKIN IN THE GAME:

Bluewater Oceanfront Investments LLC

$4 million bid

Bluewater Oceanfront Investments, a Windermere-based corporation that was formed July 17 by managing member Robert Russell, is the only new bidder and Colony player for the $23 million judgment.

Russell declined to comment about his plans for the Colony or the judgment.

“This is a very emotional issue for a lot of people and I’ve had several people call me already to talk about my intent,” Russell said. “I’ve been advised by my counsel not to say anything further.”

Russell is also listed as a managing member of Windermere-based Blitz Telecom Services, a company that provides voice origination and conferencing solutions. Russell is also listed as the owner of Orlando companies Origination Services LLC, FMI Golf Orlando LLC, Local Access Holdings LLC, National Access Connect LLC and B.U.D. Holdings Inc. Blitz Origination LLC.

Colony Beach & Tennis Resort Association

$3 million bid

Colony Beach & Tennis Resort Association President Jay Yablon told the Longboat Observer earlier this month the board of directors is ready to control its own destiny by seeking both Maloney’s judgment and through a $600,000 settlement the association has reached with U.S. Bankruptcy Chapter 7 Trustee Douglas Menchise, who controls a recreation lease judgment for $2.5 million. 

Yablon, who was unavailable for comment, has said unit owners will vote next month whether to assess themselves an extra $15,000 per unit to help fund the money needed to pay for Maloney’s bid and the rec lease settlement.

The association wants control of the judgment because it doesn’t want a developer to gain access to assess owners for the money over time.

Asked two weeks ago what would happen if the association doesn’t attain the winning bid, Yablon said: “If we do come to own it, we will bury it. If we don’t come to own the judgment, we will fight it.”

Unicorp National Development

$3.5 million bid

Unicorp National Development President Chuck Whittall jumpstarted Maloney’s auction when he signed a $3.5 million contract offer for the judgment in May. The offer prompted Maloney to ask May to hold an auction for the $23 million judgment for $3.5 million or whoever bids higher and has the best offer. May granted Maloney’s request in June.

Whittall and Colony Lender LLC were sanctioned in May for seeking more than $5 million in damages for unpaid rent plus interest on a disputed recreational facilities lease. May ruled those actions violated an automatic bankruptcy stay.

If Whittall acquires the judgment, he likely will assess unit owners for the judgment money.

“We’re delighted to be a qualified bidder,” Whittall said.

Asked if he intends to assess unit owners for money if he wins the judgment, Whittall said: “We haven’t decided what we are going to do yet.”

Ocean Properties

$3.7 million bid

Naeco LLC, a New Hampshire-based organization, is controlled by Ocean Properties Vice President Mark Walsh. Although his company is based in Delray Beach, it got its start in the hotel business in New Hampshire.

Walsh did not return phone calls seeking comment for this story.

In April, Walsh told the Longboat Observer that he “would love to be involved in any way I can, and we keep an eye on what’s happening there. It’s a beautiful property.”

If Ocean Properties acquired the pieces needed to acquire and redevelop the shuttered resort, it would be its third Longboat Key resort. The company also owns the Longboat Key Club and Zota Beachfront Resort that’s under construction.

In December 2014, the company placed the winning bid of $2.45 million for the bankrupt Colony Partnership estate that included the $23 million judgment.

U.S. District Bankruptcy Judge Steven D. Merryday canceled that auction after Colony Lender filed an emergency appeal.

"If we do come to own it, we will bury it. If we don't come to own the judgment, we will fight it."

— Colony Beach & Tennis Resort Association President Jay Yablon