Commercial Development News - Appraisal Development International

Irish bank group protests port's Channelside vote
By Mark Holan
Tampa Bay Business Journal
Published: May 28, 2013

Attorneys for the Irish Bank Resolution Corp. have issued a blistering letter to the Tampa Port Authority regarding its rejection to transfer the lease for Channelside Bay Plaza.

The issue was scratched from the port board's May 21 meeting as the public agency feuded with Liberty Channelside LLC developers Punit Shah and Santosh Govindaraju. Hillsborough County Commissioner Sandra Murman added the item back to the agenda during the meeting with support from the rest of the board.

In rejecting the IBRC's request to transfer the lease to Liberty, the board effectively killed the developer's proposal to redevelop the property.

IBRC is selling the assets of Anglo-Irish Bank, which held the defaulted $27 million mortgage of former Channelside ownerAshkenazy Acquisition Corp. The amount of Liberty Channelside's offer to the IBRC is unknown.

"The conduct of the Authority and the board in this matter evidences a complete disregard for IBRC's financial investment in Channelside Bay Plaza, for Liberty's right to a fair and reasonable process, and for the right of the tenants of Channelside and the public to speak to a properly noticed agenda item before the board,â€ says a
May 24 letter from Barbara Hart of Stichter, Riedel, Blain & Prosser.

The seven-page letter also hints at a potential lawsuit.

"The board's uncalendared and unnoticed vote are certain to have a detrimental effect on IBRC's ability to market the ground lease, which will directly result in significant financial damages to IBRC,â€ it says. "IBRC will be expected by its shareholders to seek legal relief for its damages.â€

The port has not immediately responded to a request for comment on the letter.

Mark Holan's beats include commercial real estate and residential real estate