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Developer Wants Mired Trump Tower
By Tampa Tribune
SHANNON BEHNKEN
Published: Feb 13, 2007

 
Towering In Limbo: Facing $3.3 million in construction liens, the stalled Trump Tower Tampa may have a new suitor
 

TAMPA - Facing $3.3 million in construction liens, the stalled Trump Tower Tampa may have a new suitor with experience in the Trump brand of condominiums.

Donald Trump, who has repeatedly expressed frustration at the lack of progress at the riverfront site, is encouraging the acquisition and says the new company can turn the project around.

The Related Group, the Miami-based developer building three Trump projects in South Florida, wants to buy the development rights to the 52-story riverfront project at 111 S. Ashley Drive, Trump said by telephone Monday.

"Out of my 70-plus developments, this one in Tampa is the only one not moving," said Trump, who sold the naming rights for the tower to a local developer. "But I think it will be successful in the end. I'd like to see it be a great success."

Trump Tower Tampa was announced more than two years ago and quickly generated a waiting list for reservations to purchase, but Tampa-based SimDag LLC has struggled to get it off the ground. Plagued by rising construction costs, problems with unstable ground, and trouble lining up financing, SimDag in November sold the $260 million project to Mirabilis Ventures LLC, an Orlando-based private equity firm. SimDag remained as a partner.

Trump had tried for months to buy out the project but was outbid by Mirabilis. He said Monday that the Orlando company may choose to partner with the South Florida developer or may decide to go it alone.

Representatives for SimDag and Mirabilis did not return phone calls. The Related Group declined to comment.

The Related Group is building Trump Towers in Sunny Isles Beach and plans to break ground this spring on Trump Hollywood in Hollywood, Fla. Trump said he is working with the company to build an additional condo tower in West Palm Beach.

David Hooks, spokesman for Trump Tower Tampa, confirmed that "discussions are under way this week among SimDag, Mirabilis, Related and the Trump Organization."

"We need to settle the ownership issue before moving forward with the next step," Hooks said. "The new development program is being finalized."

As for the liens, Hooks said, "those are all going to be satisfied."

Meanwhile, the project is being rebid to subcontractors, and some companies who already completed work say they haven't been paid.

Henry Lewis, president of the City Blue Print in Tampa, said SimDag hasn't paid him since June. Lewis said his company printed construction plans on Trump Tower as well as two other SimDag projects, Plaza Channelside and Antigua Bay in Clearwater.

Mirabilis also acquired the Antigua Bay project in November, and representatives said then that plans were under way to purchase seven to nine more of SimDag's luxury condo projects.

Lewis says SimDag owes him $32,000.

"This has been going on for a long time, and we're tired," Lewis said. "I call and they don't call back, and when I do talk to them, they always have a different story."

While Lewis is waiting to get paid, the developers are already ordering work from another blueprint company. Cory Deermont, vice president of Tampa Reprographics & Supply, said his company received an order from SimDag late last week to print 75 copies of the new construction plans.

Deermont said he was told the project would be rebid. "Costs have gone up, so I don't think they can hold contractors to old prices," Deermont said, noting that he has always been paid promptly by SimDag. .

The first general contractor for the Trump project, Dallas-based Turner Construction Co., was dismissed in April and filed a $1.2 million lien against the property two months later. Case Atlantic Co., which installed foundational support pillars on the property, filed a $1.9 million lien in October and two smaller contractors, Finke Bros. and L.R. Penny & Associates, filed liens of $97,000 and $2,500 respectively in January.

"I had to file to protect my rights," said Rodney Finke, co-owner of the site preparation company. "I hope they'll get their act together, take care of whatever problems they have and pay us."

Finke said he has been paid for work he's doing on other SimDag projects, but Lauren Penny, owner of the survey company, said that company hasn't.

Penny said a lien is also being filed against Antigua Bay in Clearwater. Payment for work on both projects is more than 90 days late, Penny said.

"We've done a lot of work for [SimDag] and they're terrific," Penny said. "I feel terrible, but the situation is at such a point I had to file to protect myself."

Construction deadlines have been pushed back multiple times. The last completion date, announced in October, is mid-2009.

In the past two years, SimDag has parted ways with two contractors and passed on at least $40 million in construction increases to buyers with reservations to purchase units. Condos originally sold for $700,000 to more than $6 million.

Rebidding the project now raises questions about how much more it will cost developers to build the tower. Some Trump buyers have been asked to pay tens of thousands more to offset rising costs. Some paid; others dropped out.

Now that most purchase agreements have been converted to hard contracts, those prices can't be changed.

Reporter Shannon Behnken can be reached at (813) 259-7804 or sbehnken@tampatrib.com.



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