Times Square project goes on auction block
The mega Times Square redevelopment project that could have changed the face of Fort Myers Beach will be all but over when the property goes on the auction block.
According to court records, parcels that include the Pier View Hotel, Seafarer’s Plaza, which include Cabasca’s and Jimmy B’s Restaurants; residential units and Gulf front lots once occupied by Howard Johnson, Days Inn and Sandman Motels, “will be sold by the clerk of this court at public sale, at 11 a.m. on Nov. 18, 2009, to the highest bidder or bidders, for cash, at the Lee County Justice Center.”
On Monday, according to the Lee County Clerk’s Office, Fifth Third Bank filed a motion to delay the sale for 60 days. As of press time the order had not been signed but is expected to be approved this week.
The project that had proposed building a luxury 269-room hotel, thousands of square feet of space for high end retail stores; a 600-car parking garage and three pedestrian overpasses over Estero Boulevard will need a major miracle to keep it alive.
“Part of me says, ‘it’s really sad for the Town of Fort Myers Beach,'” said Beach businessman John Richard, adding that he isn’t optimistic that the properties will be developed as one project. “I don’t think anybody can move forward in this economic time and find the money to develop the project right now.”
Jerry Murphy who was the town’s community development director when the redevelopment project was proposed to the town, said he doubts that the project will be developed as one entity.
“I always thought it was a tremendous opportunity as a higher project,” Murphy said. “If the property is split up in the auction process then I think the reassembly is going to much more difficult in the current economic situation.”
Murphy said he doesn’t believe there is any one person to blame for the project’s failure.
“It’s the market – the invisible hand,” he said.
The Times Square project’s troubles began last year when Fifth Third Bank announced the properties would be going into foreclosure with five loans totaling $21.5 million.
Gregory McCoskey, attorney for Fifth Third Bank that holds multiple notes on the parcels, said in an interview with the Observer last year that the bank had to take matters into their own hands and file foreclosure notice.
“At this point the loans are in default and we’ve been unable to resolve the matter with our borrower and so Fifth Third has filed a foreclosure case to foreclose on a number of the properties that make up this whole consolidation down there,” McCoskey said.
Former Beach mayor and local businesswoman Anita Cereceda said she would like to see the town step in and buy the property.
“I think the town ought to buy that property on both sides of the street and turn it into one, big public park,” she quipped.
Cereceda said she has always been in favor of the project but believes developers didn’t do a good job of communicating with the town and general public.
“Over the years, the tragedy of that parcel and that project as a whole is that it became the boy who cried wolf,” Cereceda said. “Too many people said too many things and none of them coming true. Nobody ever knew what to believe and that’s what made it both politically and realistically difficult to get your hands around. And that’s a pity because it’s done so much harm to those of us who are still in business and to the town in general.”
Rick McCormack, the architect for the troubled project, said he was disappointed that the property will be sold at auction.
“That project, to me, meant the entry and the advancement of a solution of a lot of the parking issues which is the entry to Fort Myers Beach,” McCormack said. “It was a beautiful, well conceived project that should be built. Hopefully whoever buys it will do something with it.”
Bonita Springs developer Dave Meyers, who represented owners of the land parcels, said he could not comment on the sale at this time.
Former Beach mayor Bill Van Duzer said he was disappointed that the properties are up for auction and blames the foreclosure on a bad economy.
“I’m very disappointed,” he said. “I thought it was going to be really something to help that area down there. But what I can basically say is that it came along at the wrong time and that’s unfortunate for everybody that was involved with it. I hate to see anybody lose their investment.”
As to when he believes the area will be redeveloped, Van Duzer said it could be a long time.
“Not in my lifetime,” he said.
The date of the sale was not determined by the clerks office at press time, but expected to be early next year.