Condo complex facingforeclosure

MANATEE — A pair of Chicago developers is facing a second $20 million foreclosure lawsuit in Manatee County, court records show.

Bank of America sued MCZ/Centrum Florida XIV LLC in Manatee County Circuit Court last week, accusing the development venture of defaulting on $44.8 million in loans used to buy the Serenata Sarasota condominium complex in southern Manatee County.

The suit contends MCZ/Centrum defaulted on the loans by failing to pay 2008 property taxes and owes $22.4 million in principal, interest and late charges.

The suit seeks to foreclose on 64 units owned by MCZ/Centrum, a joint venture between Centrum Properties and MCZ Development Corp. The bank also seeks a court-appointed receiver to manage the 240-unit complex near the northwest corner of University Parkway and Tuttle Avenue.

Calls to Centrum and MCZ were not immediately returned Friday. But the complex’s sales director said that the owners and the bank have reached an agreement that will resolve the suit.

“It will be business as usual in Serenata,” Terri Kotaska said. “It will not affect the (condominium) association. It will not affect sales and closings.”

A Tampa attorney representing the bank had no immediate comment.

It’s the second foreclosure suit that a MCZ/Centrum venture is facing in Manatee.

National City Bank and Orion Bank sued MCZ/Centrum Florida IX LLC in May, contending it owed the banks $27.1 million. The suit also sought to foreclose on 788.2 acres on the north side of Buckeye Road midway between U.S. 41 and Interstate 75.

The land is the site of Curiosity Creek, a proposed development with county approval for 1,594 homes and 150,000 square feet of commercial space. The venture recently submitted an alternate plan that would allow up to 7 million square feet of light-industrial space to be substituted for residential.

The venture contends it was current on the loan, whose maturity date was extended while the alternate plan went through the county review process. The banks then arbitrarily decided against a second extension and initiated foreclosure proceedings because of their “own financial mismanagement,” the venture contends. That foreclosure case is pending, court records show.

Duane Marsteller, transportation/growth and development reporter, can be reached at 745-7080, ext. 2630.