U.S. Bankruptcy Judge Jacob Brown dismissed the bankruptcy petition April 17 by PB Riverfront Revitalization of Jacksonville LLC, former developer of the former Berkman II condominium site at 500 E. Bay St. Downtown.
The dismissal sets up a rescheduling for the foreclosure auction that was ordered to be conducted May 25, but was canceled because of the bankruptcy filing.
PB Riverfront Revitalization filed the Chapter 11 bankruptcy petition March 22 in the U.S. Bankruptcy Court, Middle District of Florida.
The filing was three days before the March 25 auction of the property ordered by the 4th Judicial Circuit Court in favor of Choate Construction Co., the creditor in the state court’s $5,125,739 judgment and lien on the property.
PB Riverfront managing partner Park Beeler appeared in court April 17 without an attorney to represent him and also without filing several documents that are required to be included in a Chapter 11 petition.
Brown ordered Beeler at the first hearing April 10 to retain counsel and file the documents before his next court appearance.
Brown also ordered Beeler to pay Choate $46,985, equal to one month’s interest on the foreclosure amount, before the April 17 hearing.
Choate’s attorney, Lee Wedekind, a partner at Nelson Mullins, said at the April 17 hearing that Beeler had not made the interest payment and also had not provided proof of insurance on the property.
In dismissing PB Riverfront’s bankruptcy petition, Brown said Beeler was given ample time to retain an attorney to represent him and to file the documents required to proceed with the petition.
According to U.S. Bankruptcy Court, Middle District of Florida Local Rules, a debtor failing to be represented by an attorney in itself constitutes reason for dismissal of the debtor’s petition, Brown said.
“I have been very patient with you” and “it doesn’t appear anything has changed,” Brown said as he dismissed the petition.
Beeler has 14 days from April 17 to appeal the dismissal order. He must provide a bond equal to 10% of the foreclosure amount – more than $500,000 – to proceed with an appeal.
Wedekind said he will make a motion on Choate’s behalf in the 4th Circuit Court to reschedule the foreclosure auction 61 days from April 17 to allow for the appeal period, if Beeler chooses to contest the dismissal.
This is not the first time Choate, the general contractor on the Berkman II project, foreclosed on the property.
Choate was the lone bidder in a foreclosure auction and secured the property for $100 in April 2014 after securing a $10.2 million judgment and lien.
In April 2021, with the concrete shell sitting as it had since late 2007, Beeler announced his plan to demolish the unfinished structure and build a $135 million mixed-use project in its place.
That didn’t happen, so after months of delays, the city condemned the property and took over the demolition preparation from PB Riverfront in January 2022.
City Council approved a $1.2 million emergency appropriation to pay PB Riverfront’s demolition contractor, Pece of Mind, to finish its work.
The concrete shell was imploded March 6, 2022, after being abandoned nearly 15 years earlier.
The original project was stopped in December 2007 after the parking garage for the building collapsed during construction, killing one worker and injuring others.