Published: Thursday, Jul. 16, 2009

Updated: Thursday, Jul. 16, 2009

Building group facing lawsuit: The Concession development lots under foreclosure

MANATEE — A development firm for the Concession Golf & Residences is facing a foreclosure lawsuit.

Wachovia Bank is seeking to foreclose on the Concession Land Development, LLC over a $24 million loan the firm allegedly owes, according to a lawsuit filed July 6 in Manatee County Circuit Court.

The foreclosure is sought on 113 home lots that are remaining from a residential expansion between State Road 70 and University Parkway at The Concession. The developers are in default of $24 million owed Dec. 14, 2008, the suit says.

Wachovia is seeking foreclosure on the unsold home lots that remain on 255 lots that The Concession began selling in 2004 as part of its second residential phase.

Kevin Daves, developer of The Concession, said Wachovia Bank filed the suit, knowing The Concession was about to launch a marketing effort to attract buyers for the lots.

Donald Kirk, a Tampa attorney representing Wachovia, declined to comment on the case because litigation is ongoing.

Daves said Wachovia requested The Concession’s financial plans late last year after it wanted to rework its loan with the development firm.

At a fall meeting, according to Daves, both parties agreed investment would continue to go into the $15 million clubhouse so it could be completed in June. The Concession Land Development, LLC planned to use the completed clubhouse as a sales tool when promoting the 113 home lots.

“We put all our resources into that, they knew we were taking our resources and putting it into that,” Daves said. “While a lot of developers have walked away and let the grass grow, we continually put substantial amounts of cash in there. Coincidentally, when we had an answer in place, they wanted to foreclose.”

Rates for the 113 undeveloped home lots ranged from $700,000 to $1.1 million. The bank valued the loan against each lot at $185,000.

“The value of the lots is significantly more,” Daves said. The Concession Land Development plans to file a countersuit within the next few weeks.

“It will come fairly quickly, and will start the process and litigation,” Daves said.