One side contends the written contract is just that — a written contract that should be upheld, meaning foreclosure of the historic Barnett Bank building should begin.
The other counters the agreement for the redevelopment of the Downtown building was nontraditional. That conduct displayed proves that and legal judgment shouldn’t be so hasty.
Attorneys representing Jacksonville Jaguars owner Shad Khan’s Stache Investments and developer Barnett Tower LLC presented arguments Wednesday morning before Circuit Judge Jim Daniel.
It was the first hearing for the high-profile foreclosure case, stemming from a May filing by Stache on Barnett Tower.
Khan loaned the group $3 million to buy the Barnett building in mid-2013 and an additional $166,000 almost a year later.
Barnett Tower is led by Jacksonville developer Stephen Atkins.
No payments have been made, a fact both sides agree on.
“No good deed goes unpunished here,” said Gunster principal Bill Adams, who represents Stache.
Adams said the agreement between the two sides was laid out in a written contract. Any changes like Barnett Tower claims are outside the “black letter of law.”
Rogers Towers attorney Scott Kennelly, representing Barnett Tower, maintained the agreement between the two sides was nontraditional and the plaintiff was using traditional means now. He said Barnett Tower received no invoices seeking payment.
Kennelly said Barnett Tower originally was supposed to be a placeholder that would transfer the Downtown building to the owner of an Orlando charter school the day it closed.
But, three days prior to closing, things changed. Stache Investments nixed that and wanted Khan-supported entities like One Spark and KYN in the building, according to Barnett Tower’s defense.
The $3 million was simply for acquisition, he said, with another $15 million to $20 million needed to make the building viable.
Kennelly said Barnett Tower didn’t have the money to repay the loan and wasn’t a typical borrower meant to make payments starting the first month.
He also said Barnett Tower was dealing with Jim Zsebok, the former chief investment officer for Stache, who is no longer with the company.
The almost $166,000 loan made in 2014 was to help prepare the building for One Spark, Kennelly said — further showing the partnership aspects. Additionally, he said, Stache said it would offer money to entities, such as a bank, that were willing to become tenants in the building.
“These are not things a lender does,” said Kennelly.
Daniel said he would review the case over the next several days and hoped to provide an answer early next week on the summary judgment for foreclosure.
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