Thursday, April 29, 2010

MCZ Centrum in Breech of Contract w/HOA

MCZ Centrum is in breech of contract with the Teeca Woods H.O.A. as shown by the certified letter sent to the developer and owner of the Boca Teeca golf course. No response was received by the HOA within the 15 days notice cited in this letter.
March 15, 2010


MCZ/Centrum Florida V Owner, LLC
5800 NW 2nd Avenue
Boca Raton, Fla 33487

Attn: Dennis Taback

NOTICE OF BREACH: Agreement dated August 6, 2007

Dear Mr. Taback,

Let this letter serve as formal notice that you are in breach of your agreement dated August 6, 2007 by and between MCZ/Centrum Florida V Owner, LLC and Teeca Woods Homeowner's Association with respect to your development plan re Ocean breeze Golf and Country Club. As you are well aware, development approvals have been granted and all 'legal challenges' to your development plan approvals have been removed and none are withstanding as of year end 2009. Therefore all appropriate considerations noted within this August 6, 2007 listed on page 2, paragraph 1, sections a thru e, are post due and hence this NOTICE OF BREACH. You will be granted 15 calendar days from the date of this notice to effectively satisfy and cure all said relevant conditions and considerations.

Please note that the conditions and considerations referenced in the August 6, 2007 agreement are not contingent on economic downturns or upturns for that matter. Also be advised that a copy of this notice of breach will be sent to the city of Boca Raton given that said agreement was submitted to them upon execution by both parties. Failure to timely satisfy and cure said breach will assuredly result in Tecca Woods Homeowner's Association pursuing all appropriate remedies as we will should other consideration so referenced in said Agreement not be complied in a timely fashion.


George Gershon,

Do you believe MCZ Centrum claims to fight foreclosure?

Yet another foreclosure by banks versus a development project by MCZ Centrum partners, but according to the report of the SunSentinel they are planning to fight this foreclosure. Do you believe that this developer has the financial resources to oppose this foreclosure and live up to the contracts and promises made to residents?

From the SunSentinel:
Boca Teeca owner vows to continue redevelopment plans despite foreclosure notice
By Angel Streeter - Sun Sentinel - Tuesday, March 30, 2010

Owners of the Ocean Breeze Golf & Country Club in the Boca Teeca subdivision said they plan to continue with their plans to build townhomes on a portion of the golf course despite facing foreclosure. Last week, Wachovia filed a notice of foreclosure to MCZ/Centrum Florida V Owner, LLC, for a $7 million mortgage. But Dennis Taback, one of the club's owners, said they are working closely with the bank to extend the loan. "There's no doubt in our mind we will be moving forward with the project," he said. "We believe the project has value. We are not looking to lose the property."

MCZ/Centrum, which bought Ocean Breeze in 2004, won city approval in December 2007 to build 211 townhomes on 30 acres of the golf course. The project included upgrades to the Boca Teeca clubhouse, adding rooms to the Inn at Ocean Breeze and creating a nine-hole executive golf course on the old south course. But final approval of the development from the state was stymied by legal challenges from Save Boca Raton Green Space, a group of Boca Teeca homeowners opposed to the development. That prevented the owners from moving forward with their plans, Taback said.

State approval finally came late last year, and now plans are progressing, he said. The owners are meeting with architects and construction firms. The first part of the project to be done is a 10,000-square-foot social center for some Boca Teeca residents. The center is part of an agreement the developer reached with residents to get them to approve lifting a deed restriction, allowing the developer to build on the 30 acres. Most of the 1,600 unit owners in the subdivision wanted the new development, seeing it as an opportunity to revive the aging community. So the foreclosure notice raised anxiety among many residents.

"I hope they don't foreclose or it will turn to garbage," George Gershon, president of the Teeca Woods Homeowners Association, said about the golf course. "That's what we've been fighting."
When MCZ/Centrum bought the Boca Teeca golf course, it already was in dire financial straits and close to bankruptcy, Gershon said. MCZ/Centrum's promises to fix up the community and the golf course won over residents who initially were skeptical, he said. Now, residents are afraid the development won't happen.

"My phone is ringing off the hook," said Sallie Friedman, president of the Boca Teeca Unit Owners Association. "People are very concerned…It would be a crime to just let [the golf course and club] go." The owners seem to think so as well. They hope to start construction on the townhomes in one or two years, counting on the real estate market to rebound by then.
"It will spark new life into the community once it happens," Taback said.

Another MCZ Foreclosure in Palm Beach County

MCZ/Centrum’s stalled Arches mixed-use project in Boynton Beach has been targeted in a $17 million foreclosure action. PNC Bank filed the foreclosure lawsuit April 13 against Boynton Ventures I, along with guarantors John McLinden, Arthur Slaven and Michael Lerner, according to Palm Beach County Circuit Court records. They are the principals of Chicago-based MCZ/Centrum – a partnership between MCZ Development and Centrum Properties that made a major push into South Florida during the real estate boom.

There were six other foreclosure lawsuits filed against affiliates of MCZ/Centrum in Florida, including the Boca Teeca golf course, now named the Ocean Breeze country club. The developer owns the 4.7-acre site, at 100 S. Federal Highway in Boynton Beach – a mostly vacant site the city’s community redevelopment agency hoped to see improved. It received approval to build 378 residential units and 40,000 square feet of retail space. Although it got a $17 million loan from PNC, construction never began. The loan matured on Dec. 31. West Palm Beach attorney Alexander del Russo, who represents PNC in the lawsuit, said the developer didn’t repay the loan at maturity. “It’s still a great location and a great parcel,” del Russo said. “It’s just that the market for high rise condos has changed a bit.

Read more: MCZ/Centrum’s Arches project in $17M foreclosure - South Florida Business Journal:

MCZ Centrum in Foreclosure - Again

As reported in the March 25th edition of the South Florida Business Journal:

In the sixth pending foreclosure lawsuit against it, MCZ/Centrum could lose control of a 202-acre golf course in Boca Raton. Wachovia Bank filed the foreclosure action on March 18 against MCZ/Centrum Florida V owner and President Michael Lerner, along with managing members Arthur Slaven, Laurence Ashkin and John McLinden, according to Palm Beach County Circuit Court records. It concerns the Ocean Breeze Golf & Country Club at 5800 N.W. Second Ave.

The developer – a partnership between MCZ Development and Centrum Properties – planned to build 211 homes on the golf course. Many residents opposed it, and it never took off.
The developer bought the site for $7.2 million in 2004 and obtained a $7 million mortgage from Wachovia. The loan matured in May 2009. West Palm Beach attorney Lawrence Rochefort, who represents Wachovia in the lawsuit.

MCZ/Centrum purchased prominent properties in South Florida during the height of the real estate boom. It successfully converted The Wave and The Tides in Hollywood, and the nearly 1,700-unit Flamingo in Miami Beach. However, things started unraveling last year, when lenders filed foreclosure lawsuits against its residential projects Parc Central Aventura, Palms Club Condominiums in Orlando, Mirabella Condominiums in Orlando, the Serenata Sarasota Condominiums and a 788-acre site in Manatee County.

Read more: MCZ/Centrum faces foreclosure in Boca Raton - South Florida Business Journal: