City Still Wants to Move Redevelopment Forward with Vlass

Vlass Temple Terrace, the company hired to build a downtown area for Temple Terrace, should soon be receiving a default notice from the city.

The City Council voted unanimously Tuesday to allow City Attorney Mark Connolly to serve the notice to the Vlass group in case the two sides are unable to work out their differences amicably.

Temple Terrace Mayor Frank Chillura made it clear that the city’s objective is to work with the Vlass group, which signed on to the project in 2009 and agreed to build a $160 million complex on a 21-acre property at the south end of Temple Terrace that would include a residential area, retail, a cultural component and office space.

At the end of March, the city received a letter from the Vlass group stating that Vlass wants to walk away from the redevelopment project.

Since City Manager Gerald Seeber began his position at the end of April, the city has been asking for a meeting with the Vlass group to discuss a compromise.

“Our goal is to have a viable redevelopment project and have Vlass as the exclusive developer—I mean, that’s the track we’re on,” Chillura said Tuesday. “Now, if they do not want to play ball based on the MDA (master developer’s agreement) terms and conditions, they cannot be forced to do so. So that’s the purpose of meeting with them—we are trying to exhaust every and all avenues before the next step is taken.”

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Connolly said he talked to Vlass’ attorney, David Smith, last week and asked when the Vlass group could meet. However, a meeting has not been set and Connolly recommended Tuesday that the council authorize him to send a default notice to the Vlass group. The notice is the first step in the legal process should the matter require litigation.

“My preference is always to avoid litigation,” Connolly said. “However at the same time, if we can’t reach an amicable resolution of the unwind with the Vlass team, then the only option to get the property back is to file a lawsuit to do it.”

Connolly said the notice will be based on Vlass’ failure to take certain actions under the MDA, a legal document that dictates what the developer must do. Those actions include:

• Failure to submit proposed building plans and obtain the necessary building permits for the Arts Center

• Failure to begin and complete construction of the Arts Center in a timely manner

• Failure to submit draft condominium documents to the city no later than 60 days prior to the deadline for submission of proposed building plans

• The anticipatory breach of contract with regard the Vlass group telling the city it doesn’t plan to construct Building K, which would be located south of the Arts Center and must be complete by July 1, 2014

Once the Vlass group receives the default notice, it will have a certain amount of time take action on these items, Connolly said.

Councilman David Pogorilich made the motion to allow Connolly to serve the notice.

“It would be in our interest and everyone’s interest if we could work this out amicably,” Pogorilich said, “but I think we still have to take the necessary steps to protect the project, protect the city, and protect the interest of our citizens moving forward.”

A call Wednesday morning to Mike Vlass, head of the Vlass group, requesting comment was not immediately returned.

Read more downtown redevelopment news here.