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Clearwater Cay Club condos up for auction

Millions of dollars in debt and sued by dozens of disgruntled customers, the developers of the Clearwater Cay Club are liquidating some of their property to try to stay afloat.

The Clearwater luxury condominium complex has hired auctioneer J.P. King to sell 26 units, 20 boat slips and six adjoining commercial parcels. The on-site auction is scheduled for 10 a.m. June 14 at 2704 Via Murano.

During the real estate boom, Cay Club partners Dave Clark and Dave Schwarz made millions selling condo-hotel units to 1,600 investors at 14 separate luxury destinations from Las Vegas to the Florida Keys.

In Clearwater, the pair promised to convert apartment buildings into luxury condominiums on Old Tampa Bay modeled after Las Vegas' Venetian and Bellagio hotels.

Investors from across the country sued, saying Cay Club violated securities laws by luring them into contracts with promises of quick appreciation and easy rental income.

Instead, many units are worth only half of what buyers paid for them. Cay Club also reneged on promises to rebate part of the purchase price through a "lease back" program that put units in a rental pool.

At the auction, 10 of the condos and 10 of the boat slips will go to the highest bidder without a reserve price.

Clearwater Cay Club condos up for auction 05/26/08 [Last modified: Thursday, May 29, 2008 10:46am]
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