» Fort Lauderdale, Florida Marina Files for Chapter 11

Fort Lauderdale, Florida Marina Files for Chapter 11

Brandon, FL (Law Firm Newswire) October 18, 2012 - Fort Lauderdale Boat Club Ltd., recently filed for Chapter 11; the Boat Club had in excess of a reported $13 million in assets, with an estimated $10 million in liabilities.

Investors purchased the site for $16 million in 2006. Losses of some $3 million in just a few years, much of which likely occurred in or about 2008 when the national economy began to collapse, appear to have been too difficult to overcome.

Fort Lauderdale is home to numerous coastal areas, including many docks and residential slips for personal watercraft. Plans for a new marina there didn’t survive the Great Recession, however. The unemployment rate is at 7.7 percent, and while construction work is picking up, the economy is still stuck in a very slow recovery. Luxury items like leisure craft are not expected to be sold at a rate as in boom times, and docking facilities are finding they are not in high demand.

“It is unfortunate when large construction projects founder, because they have the potential to contribute a great deal to the local economy,” said Brandon bankruptcy attorney O. Reginald Osenton.

Much of what has damaged the national economy is related to issues in the mortgage industry, specifically the issuance of loans to the under-qualified and of loans too large to realistically be repaid. The mortgage-backed security has been an investment vehicle for decades, but the recent explosion in the creation of such investments played a role in many bankruptcies. Construction is a very large part of the Florida economy, and when housing starts slowed drastically, other types of construction, such as marinas, also dried up.

The twelve-acre marina was slated to have 330 dry slips. Such an ambitious construction project probably seemed viable when the economy was booming, but was cast in a much less favorable light post-recession. How the Chapter 11 filing is handled will impact the value of the property in the future. It may turn out that a mixed-use facility is built in the future after the state and national economy has recovered enough to support new construction.

Osenton Law Office, PA
500 Lithia Pinecrest Road
Brandon, Florida 33511
Call: (813) 654-5777

  • Special Limits on Wage Garnishment
    In a previous blog post, http://www.brandonlawoffice.com/2016/06/heres-how-much-of-your-wages-can-be-garnished-to-pay-your-debts, we covered the broad limitations that federal and state laws place on wage garnishment. Wage garnishment is when a creditor sues you to have part of your income diverted directly to them to pay your debts. There are certain general limitations on how much of your income may be […]
  • Here’s how much of your wages can be garnished to pay your debts
    If you do not pay your debts, your creditors may try to take a portion of your income directly from your employer. This is called wage garnishment. Fortunately, there are limits to how much of your income may be garnished so that you can hopefully keep paying your basic living expenses. The limits are based […]
  • Another family law reform bill falls to Gov. Scott’s veto pen
    Florida Gov. Rick Scott vetoed a contentious bill that would have reformed the state’s alimony system and altered rules on child custody in divorces. The bill would have required judges in divorce proceedings to adopt a premise for approximately equal time-sharing of children between spouses. Judges could adjust the split based on 20 factors listed […]

See other news sources publishing this article. BETA | Tags: , , , , , , , ,



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required