Developer Cameron Kuhn buys Church Street Station
» April 6,2007 - Orlando, FL
Developer Cameron Kuhn, who bought the former Church Street Station for $34 million Thursday, vowed to revive the long-distressed entertainment complex in the heart of downtown Orlando.
Kuhn, the only bidder during a public auction in U.S. Bankruptcy Court, said he wasn't ready to disclose his plans for the 7.3-acre property. But he said the finished product would focus on entertainment and dining.
He said the possibility of a new downtown arena going up only a block from the eight-building complex was a plus but not a decisive factor in his making the bid.
"I believe I can make this property work," he said.
The first step in the property's redevelopment, however, may be the removal of the few businesses now in the complex: Under the sale agreement approved by bankruptcy Judge Arthur Briskman, Kuhn is under no obligation to honor their leases.
Those tenants include Club Paris, Orlando Improv Comedy Club & Restaurant and the Pearl Steakhouse.
"Right now, we want the tenants out. The leases don't make economic sense," said Kuhn's lawyer, Roy Kobert.
But Fred Khalilian, owner of Club Paris -- which initially used socialite Paris Hilton to promote itself -- said he hopes to negotiate a new deal with Kuhn for his nightclub. He said he talked Thursday afternoon with Kuhn, who agreed to meet with him next week to discuss the possibility of staying.
Khalilian said he has been paying $550,000 a year in rent and has invested $3.5 million in the club.
Kuhn has been redeveloping properties in the city center since 1994, including the post office building on Robinson Street as well as the former Angebilt Hotel and former J.C. Penney department store, both on Orange Avenue.
Three years ago he took on the rebuilding of an entire city block between Orange and Magnolia avenues, less than a block east of Church Street Station. That mixed-use project, The Plaza, which he is just finishing, is the biggest downtown redevelopment in city history.
Now his sights are trained on a property that two decades ago was one of the biggest-drawing attractions in Florida.
"I have been thinking about this property for years," Kuhn said. "I plan to restore it to its past glory. There hasn't been a plan for this property since Bob Snow."
Snow is the entrepreneur who took a blighted half-block of west Church Street in the early 1970s and created a dining-and-entertainment complex that drew both tourists and locals with attractions such as as Rosie O'Grady's Good Time Jazz Emporium and the Cheyenne Saloon & Opera House.
"I just hope he makes it a vibrant part of downtown Orlando again," said Snow, who attended Thursday's auction in bankruptcy court in Orlando.
The Church Street property has had a succession of owners since Snow sold his remaining interest in the business in 1989.
Its most recent owner, band-boy creator Lou Pearlman, has run into legal and financial problems that, among other things, led to the property's bankruptcy.
Scott Shuker, a lawyer for FF Station LLC, the Pearlman entity that owned the complex, said the existing businesses will be dispossessed.
"We believe it's appropriate and in the best interest of the creditors," he said.
More than a half-dozen business are in the complex, including a wine shop and the Absinthe Bistro & Bar. They must vacate the premises by the end of May unless they can persuade Kuhn to let them stay.
Shuker had urged Briskman on Thursday to approve the sale to Kuhn, noting that the property has been hemorrhaging cash at a rate of about $300,000 a month, excluding escalating interest costs on the property's debt.
Secured creditors -- Bank of America chief among them -- have claims totaling about $33 million against the property. The city of Orlando is owed about $1.7 million.
The property straddles Church Street from the CSX railroad tracks west to Interstate 4. It includes a historic railroad station just east of the tracks, a large ballroom-and-banquet facility just south of the main buildings, and the former Church Street Exchange building just to the north at Garland Avenue and Pine Street.
Pearlman, known internationally for creating the boy bands 'N Sync and Backstreet Boys, has vanished. The state is investigating an investment program, operated by his Trans Continental Airlines subsidiary, that may have collected more than $300 million from investors.
FF Station LLC filed for bankruptcy court protection Feb. 20.
Initial interest in the property had raised the possibility there would be multiple bidders at Thursday's auction.
Elizabeth A. Green, another lawyer representing FF Station LLC, said the property was advertised nationally to nearly 60,000 brokers and 70,000 investors. More than 90 prospects registered to view a confidential Web site, and more than 20 of them toured the property.
But Kuhn, who initially made public a $40 million offer, later withdrew it. And when Briskman convened the Thursday morning hearing, only Kuhn had submitted a new bid. The sale is to close by May 31, though both the seller and the buyer said it could occur much sooner.
Frank Billingsley, Orlando's economic-development director, noted Kuhn's track record of downtown development.
"Time and time again, I have seen Cameron Kuhn take sites and buildings and turn them into tremendous assets for downtown," he said. "I'm excited over what he may do with that property."
The Plaza, which encompasses the entire block between Orange and Magnolia avenues and Church and Pine streets, is an all-new development. It includes office space, condominiums and retail, and will have the first downtown movie theater in decades.
In 2001, Kuhn brought in a Mini showroom -- the first auto dealership downtown in more than a decade -- as part of redevelopment at Orange and Jefferson Street.
Jack Snyder can be reached at jsnyder@orlandosentinel.com or 407-420-5094.
About Kuhn Companies
Customer service is truly important to us and we strive daily to make sure each building and every space is perfect for our tenants and their guests. Kuhn Management has been adding to the development of Orlando for the last twelve years by purchasing old, rundown properties and turning them into unique buildings with distinct personalities.
Our goal is to create spaces that allow our tenants to be successful by creating an atmosphere that allows them to focus on their businesses without worrying about the buildings.
