Church Street sale is delayed
» May 31,2007 - Orlando
Cameron Kuhn puts off closing the deal to handle several 'surprises.'
Jack Snyder
Sentinel Staff Writer
The developer who plans to buy bankrupt Church Street Station in downtown Orlando was supposed to close on the purchase today, but he got a three-week extension after his lawyers complained of several "surprises" that have delayed the process.
Bankruptcy Court Judge Arthur B. Briskman approved the extension Thursday with several provisions, including the stipulation that Cameron Kuhn pay the shortfall in operating expenses and other costs, such as accumulating interest on debts and real estate taxes, during the 21-day delay.
Kuhn's lawyer, Roy Kobert, said the developer has discovered that the complex contains less leasable space than previously thought, is missing some records, and has fire and safety issues in buildings that in some cases date to the 1800s.
Kobert said Kuhn is "earnestly working toward closing" the deal.
Elizabeth A. Green, a lawyer for F.F. Station LLC, the corporate entity that owns the property, first challenged the delay request, saying she didn't think Kuhn has the money to close the deal.
Kobert denied that, saying the financing is in place through Tremont Net Funding LLC of Boston and an equity partner he wouldn't identify.
"Mr. Kuhn is anxious to close," the lawyer said. He said that since making his successful bid to buy the property, Kuhn has:
Designed a hotel for the complex, with interest from three possible operators.
Received extensive lease commitments for space in the complex.
Hired a general contractor to start work as soon as the sale is completed.
Green later concurred with the extension, after Kuhn's lawyer said the developer would cover continuing costs until the rescheduled closing on June 21.
Kuhn, currently the dominant developer in downtown Orlando, has said he intends to restore the entertainment complex to its former glory. David Dix, president of The Kuhn Cos., was present at the bankruptcy court hearing and said Kuhn is meeting the lender's requirement that 85 percent of the complex's space be leased in advance. The complex totals just less than 253,000 square feet of space.
That space total is nearly 50,000 square feet less than the developer had anticipated, Kobert said. After remeasuring the space, the developer is having to go back to prospective tenants with different numbers, the lawyer said.
Kuhn was the only buyer at last month's bankruptcy court auction of the property, bidding the $34 million minimum set by Briskman. Secured creditors are owed $33.2 million, with interest accruing at the rate of more than $10,000 a day.
Kobert also said Wednesday in court that Kuhn has decided to pay $500,000 for all of the complex's personal property -- including the locomotive and train cars parked by the historic railroad depot. Kuhn had first bid $400,000, excluding the train. The personal property includes such things as chandeliers, office furniture and a piece of Dale Chihuly glass art.
Church Street Station -- one of the biggest-drawing attractions in Florida in the 1980s -- was most recently part of Orlando businessman Lou Pearlman's holdings until his empire began crumbling. Pearlman, best known as the creator of boy bands the Backstreet Boys and 'N Sync, has disappeared, and his business operations are under investigation.
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.
