This is what happens when you deal with a con man
I've deliberately not blogged on this matter before. Oh, not because it's embarrassing, but because who the hell would believe it. It seems something right out of a bad comedy play.
Summary: small 'city' wants to revitalize its downtown. It puts out for bid the entire project and really sweetens the deal. A flamboyant man from the the 'big city' comes in and sells the 'city' council on a great plan. Tells the rubes exactly what they want to hear. Even though he has no experience in performing such a large project, they award it to him anyway. Gives him money and virtually gives him the land, etc.
And of course, the deal goes sour. Little is accomplished. They can't even find the man after he defaults. The land he was given he get a loan on, which he defaults. You know, a real cheesy play written by a has-been hack.
Well, not exactly.
OCALA - City Shops & Walk developer Jorge Gutman might be willing to walk away from the project - but not for free.
City Shops & Walk is a planned 40,000-square-foot open-air retail and restaurant center just across Southeast Fort King Street from City Hall. Gutman owes the city $1 million for the Sprint property on which the project was to be built and $1.5 million for the loan Ocala provided to jump-start the project.
Gutman's attorney, Steve Zucker, has said the developer would deed the land back to the city, but he wants to be compensated for his investment in the project so far, City Manager Paul Nugent said Monday. (The man has balls. Wonder if the Ocala Council has.)
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Recent attempts to provide Gutman with notice of two lawsuits filed against him and his company have been unsuccessful. No one answers the gate at the entrance of his residence, said City Attorney Pat Gilligan. (GILLIGAN! You gotta be kidding!)
Until Gutman, or someone living in his residence, has been provided notice of the suit, the city cannot move forward with the litigation process.
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The City Council's confidence in Gutman's ability to complete the slow-moving venture began to wane in July, when he stopped returning staff phone calls after liens filed against the property put him in default of his contract.
On Aug. 7, the council called Gutman into default on the $1.5 million loan for the project because of two late interest payments. At a special meeting on Aug. 10, Gutman said he would repay the city in full for its $2.5 million investment, as well as continue work on the project.
When that didn't happen, the council decided Aug. 21 to file suit. A second suit was later filed for violation of the mortgage agreement concerning the Sprint property as a result of unsatisfied liens and an additional $130,000 mortgage Gutman took out against the property.
Kind of embarrassing, as I said. And of course who today would believe any story that had a city slicker taking the hicks to the cleaners?
Summary: small 'city' wants to revitalize its downtown. It puts out for bid the entire project and really sweetens the deal. A flamboyant man from the the 'big city' comes in and sells the 'city' council on a great plan. Tells the rubes exactly what they want to hear. Even though he has no experience in performing such a large project, they award it to him anyway. Gives him money and virtually gives him the land, etc.
And of course, the deal goes sour. Little is accomplished. They can't even find the man after he defaults. The land he was given he get a loan on, which he defaults. You know, a real cheesy play written by a has-been hack.
Well, not exactly.
OCALA - City Shops & Walk developer Jorge Gutman might be willing to walk away from the project - but not for free.
City Shops & Walk is a planned 40,000-square-foot open-air retail and restaurant center just across Southeast Fort King Street from City Hall. Gutman owes the city $1 million for the Sprint property on which the project was to be built and $1.5 million for the loan Ocala provided to jump-start the project.
Gutman's attorney, Steve Zucker, has said the developer would deed the land back to the city, but he wants to be compensated for his investment in the project so far, City Manager Paul Nugent said Monday. (The man has balls. Wonder if the Ocala Council has.)
**************
Recent attempts to provide Gutman with notice of two lawsuits filed against him and his company have been unsuccessful. No one answers the gate at the entrance of his residence, said City Attorney Pat Gilligan. (GILLIGAN! You gotta be kidding!)
Until Gutman, or someone living in his residence, has been provided notice of the suit, the city cannot move forward with the litigation process.
**************
The City Council's confidence in Gutman's ability to complete the slow-moving venture began to wane in July, when he stopped returning staff phone calls after liens filed against the property put him in default of his contract.
On Aug. 7, the council called Gutman into default on the $1.5 million loan for the project because of two late interest payments. At a special meeting on Aug. 10, Gutman said he would repay the city in full for its $2.5 million investment, as well as continue work on the project.
When that didn't happen, the council decided Aug. 21 to file suit. A second suit was later filed for violation of the mortgage agreement concerning the Sprint property as a result of unsatisfied liens and an additional $130,000 mortgage Gutman took out against the property.
Kind of embarrassing, as I said. And of course who today would believe any story that had a city slicker taking the hicks to the cleaners?
posted by RightinFlorida | 6:44 PM
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