SEBASTIAN — Flagship Marina and two would-have-been residential developments in Sebastian will go on the auction block in May as a result of falling into foreclosure. Combined, the three properties had a foreclosure judgment of $12 million.
Flagship Marina, owned by Sebastian resident and businessman Damien Gilliams, will be sold off at the Indian River County Courthouse on May 24 at 11 a.m. He had filed for bankruptcy last year in an attempt to stave off the foreclosure auction of the property. That bankruptcy filing was denied and the property’s auction was rescheduled.
According to court records, Gilliams has also been ordered to pay Oculina Bank – the mortgage holder – more than $10,500 in rents, profits and income from the property.
Gilliams told VeroNews.com last year that the reason the property fell into foreclosure is because the tenants who owned Mike’s Hula Grill pulled out of their lease. He said the owners had tried to get a liquor license from the state, but never received one.
The owners had operated the restaurant for nearly four years before leaving the site.
The property is listed for sale at $2.7 million, though Gilliams had the site appraised for $3.8 million.
The site includes a waterfront restaurant, marina, and deepwater dock space for boats. While in operation, the Hula Grill welcomed patrons coming by water and by land.
The land where Sebastian River Park was to be built will also be up for bids on May 21 at the courthouse after the developer’s creditor, National City Bank, won a $7.05 million foreclosure judgment.
The 160-plus acre development that had been planned for 400 single family homes is located on the northeast corner of County Road 510 and 86th Avenue, next door to the defunct Blue Water Bay development.
Developer Sebastian River Park 160 LLC claimed in court records that it was the bank’s fault the project fell into foreclosure. In a counter-suit that was later withdrawn, the developer said the bank, then-Fidelity Federal Bank and Trust, interfered with its ability to develop by awarding a mortgage to a competing development next-door – Blue Water Bay.
Indian River County planning officials approved both residential projects and told the two developers to work out the transportation improvements needed to both SW 86th and SW 89th streets.
Sebastian River Park 160 LLC said that shortly after approval, Blue Water Bay’s developer, 510 Group LLC, began having financial difficulty. The developer went on to say that the bank, wanting to protect its investment in 510 Group, funded the transportation and drainage improvements, without Sebastian River Park 160’s approval.
The developer claimed in the counter-suit that those improvements made it difficult to develop the site, in particularly the drainage, which took water off 510 Group’s land and flowed it onto Sebastian River Park’s land, causing flooding.
In December 2009, Sebastian River Property 160 LLC worked out a settlement agreement with National City Bank, now-PNC Bank, calling for the land to be auctioned.
On May 11, another residential development that had been planned in the Sebastian area will be auctioned at the courthouse. Sebastian Village LLC had plans to build 15 townhome buildings on 10 acres of property. The project, called Bristol Lakes Townhouses, would have been located on the north side of Barber Street, just east of Bristol Street, and had 84 units.
Compass Bank won a $3.1 million foreclosure judgment against Sebastian Village LLC after the developer failed to make payments.
The foreclosure auctions are open to the public and will be held in Room 136 at the Indian River County Courthouse, 2000 16th Ave., Vero Beach, at 11 a.m.
