Settlement deadline passes in Colony case

The global COVID-19 pandemic threatens a confidential sales agreement between Unicorp National Developments Inc. and the last remaining opponent in a civil case to bring the former Colony Beach & Tennis Resort land under new ownership.

Attorneys for unit owner Andy Adams and Breakpointe LLC claim in court filings that Unicorp allowed to pass a March deadline to close a confidential deal for Adams’ 74 units, and seeks damages, court costs and forfeiture of a monetary deposit.

Unicorp attorneys claim the global pandemic and its effect on life and business in Florida made it impossible to close the sale on time and seeks a new date “after the pandemic has been lifted and the foregoing disruptions have subsided.’’

Details of the sales contract between the two parties, agreed to “on or about Feb. 21,’’ are sealed as part of a confidentiality agreement, though Unicorp’s filing refers to “consideration, promises, releases, and covenants set forth in the agreements.’’  Unicorp also paid an undisclosed deposit on Feb. 24.

The simultaneous closing on all 74 units was planned to take place at a Bradenton escrow office on March 31.

Unicorp says Orange County, where Unicorp headquarters are located, is under a stay-at-home order and the business is not labeled as essential by Gov. Ron DeSantis. Further, Unicorp claims in its filing “time is not of the essence’’ for the closing and that “Unicorp has not been able to function at its normal capacity.’’

Lawyers for Breakpointe and Adams claim the agreement and sales contract “mandate that the parties perform their respective obligations on or before a date and time certain’’ and that there was no accounting for alternative dates or delays.

Breakpointe lawyers say they are  “now ready, willing, and able to comply with the terms of the agreement and sales contracts by conveying property as required by the agreement and sales contracts, and performing all other obligations required of them under the agreement and sales contracts.

"Unicorp has failed and refused to perform their part of the agreement and sales contracts.”

This is not the first time effects of the pandemic have affected the case. 

A series of case-management hearings, ordinarily held on the sixth floor of the Judge Lynn Silvertooth Judicial Center, have been held via video conference, and the beginning of the non-jury civil trial was moved from an April 13 start date to May.

At trial, Circuit Judge Hunter W. Carroll is expected to rule on how the property at the former Colony resort would be sold, following the dissolution of the Colony Beach and Tennis Club Association.

Unicorp is pushing for a direct sale, which would leave the Orlando company in control of the 17.6 acres at 1620 Gulf of Mexico Drive, paving the way for development of a  St. Regis Hotel and Residences. The combination resort and condo complex was given the initial go-ahead by Longboat Key’s Town Commission in March 2018.

Adams and Breakpointe LLC, which he controls,  sought a possible public auction for the remaining property and a partitioning of the land, possibly leading to multiple owners.

The buildings on the land were demolished two summers ago following a determination by town building officials condemning 25 of the 26 buildings as an imminent danger to public health, safety and welfare in the coming hurricane season. The town’s worry was the buildings, which hadn't been maintained since 2010, would be hazardous to surrounding property in a windstorm.

Ultimately, the beachfront mid-rise building was condemned and was the last to be torn down by November, 2018 just days before the death of Murf Klauber, the longtime owner of the resort.