The developer who was once in charge of several Daytona Beach boardwalk projects in Florida recently filed for a Chapter 7 bankruptcy. According to the bankruptcy filing, the developer has $39 million in liabilities, with a large portion of that debt coming from a $17.5 million loan he had taken out for Ocean Walk Shoppes.
According to sources, a few years ago the developer had interests in several beach properties, including the Boardwalk, Ocean Walk Shoppes and a water park. However, the Ocean Walk Shoppes are currently in foreclosure, and the developer is reportedly no longer involved in the Boardwalk or water park.
When looking at his reasoning behind deciding to file, the $16 million loan that he signed for in order to build the Ocean Walk Shoppes complex seems to be a rather large reason for his debt. The complex is a five-story beach front rental that also has a movie theater and restaurants. And while the complex was deemed a success in 2002, it has since fallen into foreclosure proceedings, which are not expected to be affected by the developer's recent bankruptcy filing.
In the past, this exact same developer has also tried his hand at redeveloping the Daytona Beach boardwalk area, however, in the 80s the company he owned, Boardwalk Convention Hotel Partners, Ltd., had also filed for bankruptcy.
Overall when looking at this bankruptcy filing it's important to note that the developer had signed for a loan for a redevelopment project just a few years before the recession hit and tourism slowed down as people suddenly no longer had the money to go out as much.
In general, this developer is not the first in the area - or throughout the country - to fall into tough personal financial times because of the most recent nationwide economic downturn.
Source: Orlando Sentinel, "Daytona Beach Board Boardwalk project files for bankruptcy," Ludmilla Lelis, 25 June 2011