The owners of the Sundial, in St. Petersburg, say they are remaining firm on their plans to redevelop the open-air retail center, despite ongoing efforts from Florida 2005 to halt construction.
Florida 2005 Theaters, based in New York, owns the AMC Sundial 12 movie theater which sits adjacent to Sundial. Last week, Florida 2005 filed paperwork to halt the construction of a canopy structure being built in the courtyard, further construction of a bar and restaurant and reopening a walkway that allows access to the theater.
The paperwork, filed this week, disagrees with these claims and cites previous paperwork filed. In the counter documents, being filed on behalf of Paradise, which is referred to as Pelican Walk in the paperwork, cite previous documentation that it says refutes claims by Florida 2005.
Paradise counters that plans for the canopy structure and the restaurant and bar addition have been previously included in other plans approved and that the walkway construction is nearly complete and not the only access to the theaters. In its counter paperwork, Paradise cites paperwork filed in January.
“Florida 2005 had each of these details regarding the canopy in its possession when it responded to the January 18 letter, on February 2, and asserted no objection whatsoever to the Canopy,” the response says.
Paradise Ventures, which owns Sundial in partnership with Tampa-based Ally Capital Group, is currently working on projects in the courtyard including adding pillars to hold canopy coverings. In addition, it’s working on renovating the space for the future Forbici Modern Italian, on the first floor. The space previously was home to Locale Market.
Mike Connor, chief executive officer of Paradise, says the lawsuits are a “Ploy,” to derail construction.
At the heart of the back and forth with the property is the intent for the property. The owners of the AMC theater want to sell the property for vertical development, which would catch a much larger price tag, says Connor.
“2005’s sole concern is to create enough unreasonable aggravation to pressure Sundial into removing the residential restrictions on the property,” says Connor. “We look forward to clearly stating our position in court.”
This point is also included in the counterclaim filed by Paradise.
“Florida 2005 believes that its Movie Parcel would command a much higher sales price if it could be developed as a high-rise residential building. [Paradise Ventures] believes that Florida 2005’s handling of the issues involved with the lawsuit has little to nothing to do with the actual issues and instead, is collateral damage for Florida 2005’s ultimate goal to pressure PV to agree that Florida 2005 may be excused from the residential prohibitions of the [Operation and Easement Agreement].”
Under the current development plans, Sundial, located at 153 2nd Avenue North, in downtown St. Petersburg, will feature multimillion-dollar improvements intended to revitalize the retail shopping center. The plans were conceptualized and designed by St. Petersburg architects Behar and Peteranecz.
Florida 2005 Theaters is an ownership entity created by the Carlyle Group investment firm. The limited liability company rents the space to AMC, which is not involved in the ongoing real estate disagreements. Tampa Bay Business and Wealth has reached out to the Carlyle Group for comment and will continue to update this story as new information becomes available.
