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The plan for the Seasons of Sarasota called for 298
individually owned condominium units with one to three bedrooms,
a 30,000-square-foot clubhouse, and an 80-unit assisted living
facility. Pursuant to the plan, construction of 98 condominium
units would start in the fall of 1996. The construction of the
Seasons of Sarasota was to be financed in phases with each phase
consisting of approximately one-third of the projected 298
condominium units.
On June 24, 1996, Provident Bank (Provident) relayed to
Thomas the possibility of Provident’s lending funds to ALD.
Provident would make the loan only if certain conditions were
met. One condition was that HEI be a comaker of the loan and
agree to certain financial covenants such as maintaining a stated
debt to equity ratio and a stated minimum net worth. A second
condition was that ALD procure in the first phase of construction
at least 45 firm contracts to purchase condominium units with a
total gross sale price of at least $10.8 million and total
initial earnest money deposits of at least $1.62 million. A
third condition was the monthly payment on the loan of accrued
interest and principal. A fourth condition was that the loan be
secured. A fifth condition was that the earnest money from sales
be deposited with Provident.
Through June 30, 1996, 34 condominium units in the Seasons
of Sarasota were reserved with refundable deposits. By the
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