A circuit court judge ruled in favor of Jacksonville Jaguars owner Shad Khan’s Stache Investments in the lengthy foreclosure lawsuit with developer Steve Atkins over the Barnett Bank building.
In a final judgment of foreclosure filed Thursday, Circuit Judge James Daniel set the amount Barnett Tower LLC owed Stache Investments at $4.6 million.
The amount consists of the $3 million Stache Investments loaned Atkins to purchase the building and $1.2 million in interest as of Thursday, along with other fees and taxes. The judgment will continue to accrue interest until paid.
A second loan of $165,764 to Atkins from Stache Investments was not addressed in the judge’s order.
Daniel ordered if the judgment isn’t paid, the building will be sold at a public auction Sept. 14 to the highest bidder for cash or electronic sale via city website. Proceeds would first go to Stache Investments.
Atkins in a statement Friday morning said Barnett Tower consented to the foreclosure to avoid further litigation.
He went on to detail some of the history of his involvement in the project, which included Barnett Tower partnering with Las Vegas-based The Molasky Group of Cos. after Stache Investments terminated its initial joint venture.
When Mayor Lenny Curry’s administration said in January funding for all Downtown projects was on hold until pension reform, Southeast and Molasky exercised patience, the statement said, but “Stache Investments chose to advance the foreclosure of the property.”
Khan’s company loaned Atkins and his Barnett Tower LLC $3 million in 2013 to purchase the building at 112 W. Adams St.
Atkins had planned to convert the vacant 18-story Downtown tower into a mix of residences, businesses and a ground floor bank.
For years, he talked about that project being done in concert with the Laura Street Trio renovation. Neither has occurred.
Stache Investments sought foreclosure on the building last June claiming no payments had been made on the loan.
Atkins said it was not a typical loan and his company wasn’t supposed to repay the money.
Instead, he said, the two parties had an arrangement that third-party funding would help Stache Investments recover its money.
Gunster attorney Bill Adams, who represented Stache Investments in the matter, said he could not comment Thursday afternoon.
Jim Woodcock, a spokesman for Stache Investments, said in a statement the legal decision speaks for itself.
“As to the future of the Barnett Building, time will tell,” he said.
A non-jury trial to settle the matter had been postponed several times and was most recently scheduled to take place Sept. 5.
***
Breakdown of charges (as of Thursday)
Principal: $3 million
Interest as of Thursday: $1,235,864.84
Late charges: $163,247.24
Documentary stamp taxes advanced: $10,500
Insurance: $23,339.23
Attorneys’ fees: $105,016.79
Unpaid property taxes: $82,090.31
Costs: $2,111
Total: $4,622,169.41
@writerchapman
(904) 356-2466