BayWalk owner says foreclosure near

BayWalk's owner is in default on his mortgage loan and anticipates that foreclosure will follow for the downtown St. Petersburg entertainment complex.

"My indication is that they are in fact going to file a foreclosure, and we have no intention of fighting them," local developer and complex owner Fred Bullard Jr. said late Thursday.

Bullard had pledged to invest heavily in renovations and improvements but now is ready to walk away. "We're not going to throw good money after bad," he said.

That spells trouble for tenants of the struggling complex who were counting on a major overhaul. Once viewed as a spark plug for downtown retail, BayWalk had trouble shaking a reputation as a hangout for rowdy teens. The vacancy rate stood at 25 percent in the summer.

"It's been mismanaged for years," said Bruce Rabon, who owns two clothing stores and has rented space since BayWalk opened in 2000. He hopes the foreclosure will lead to new, more effective management.

"To me, that center has nothing but 'win' written all over it," he said. "People should be clamoring to have a retail space in there."

The mortgage showdown stems from September when Bullard secured controlling interest in the site from partner and project developer Sembler Co. Terms weren't disclosed for the deal, which added Sembler's 50 percent managing partner interest to the 50 percent Bullard already held.

Bullard said that, before the sale, he had talked with mortgage holder Wachovia Corp., which "indicated a willingness to try to work through the difficulty of BayWalk and allow us some time to see where we were and what we needed."

Bullard said he was shocked to learn the deal triggered a violation of the partners' loan agreement, prompting Wachovia to demand payment of the $17-million mortgage in full. Wachovia spokeswoman Kathy Harrison declined to comment Thursday, saying privacy policies prevented the bank from disclosing information about customers.

"No one (else) would refinance it in today's environment," Bullard said. "We were kind of stuck with the existing lender and hoped we would work our way through."

Wachovia subsequently transferred the loan to a trustee in Dallas, but negotiations were stagnant. Bullard refused to make monthly payments of about $120,000 on the loan.

"We are a little bit puzzled as to why they wouldn't cooperate and help us get this project back on its feet," he said. "We had been prepared to invest in the property and pay all its negative cash flow."

At a standstill, Bullard sent a letter to the trustee earlier this month. "I said, 'We're not going to throw good money after bad. And if you think you can run it better than us, that's fine with me. You can have it.' … All of the tenants are having an enormous amount of problems. We don't really know if we can rejuvenate it or not."

BayWalk opened in November 2000 at a price tag of $50-million. Including the garage, BayWalk boasts 130,000 square feet of retail space plus a movie theater owned by Muvico Theaters LLC.

Sembler tried unsuccessfully to find a buyer before Bullard stepped in. Long active in the bay area, Bullard may be best known for developing Feather Sound, formerly running Durango Steak House and owning the former USFL Jacksonville Bulls pro football franchise.

City officials were enthused when Bullard took full control, anticipating a reinvigoration. The city doesn't have a financial stake in the retail complex but owns the BayWalk parking garage.

BayWalk's plaza was almost silent Thursday except for faint music from the upstairs restaurants and the ringing of the Salvation Army bell. A few customers strolled through the center, but shopkeepers looked bored until closing time.

Several prominent spaces, including the two bottom-story shops flanking Muvico, had "For Lease" signs hanging in the window. The upper level dining sign advertised four restaurants and "Another Fine Tenant Coming to BayWalk."

"To be honest, it's not really surprising," she said. "It's been so slow. Things have been closing right and left."

Times staff writers Cristina Silva and Ernest Hooper contributed to this report. Jeff Harrington can be reached at (727) 893-8242 or harrington@sptimes.com.

Comments on this article

by StPeteBB	Nov 24, 2008 8:44 PM
Thugs? Not any time I've been there. Unruly pre-pubescent kids? No more than at any other place where movies are shown. The problem is image, not reality. That, and ditto-heads spouting "facts" that don't exist just to continue the culture wars.

by Vetla	Nov 24, 2008 7:35 AM
The public's sentiment that young people didn't have a right to hang out there is what ruined Baywalk. That, and the high prices and rude security.

by Alex	Nov 24, 2008 7:35 AM
For all the people saying it was "thugs" who ruined Baywalk -- you should travel to some vibrant big cities and see how people of various colors and economic situations co-exist and have vibrant downtowns.

by Isa	Nov 23, 2008 5:07 PM
.... good at least you are the only teen to read -a- paper.

by Isa	Nov 23, 2008 5:07 PM
and Paul: Nove 23, 8.01 AM... you must be 13.

by Isa	Nov 23, 2008 5:07 PM
Tracy, Even 4 teens, it s uncool to hang out in a dead space. NOW, no link with the feds or Obama... The CITY -is- useless. No tax break, no touristic (sports field, beach)or education development (bring in a uni), just NEW constructions allowances

by Chuck	Nov 23, 2008 5:00 PM
A friend who was eating dinner with his family at Marino's, stopped to talk to his supervisor at the hospital, and Baywalk security rudely told them to move along. He said I will never go there again. Those are the true thugs.

by Dan Marino	Nov 23, 2008 8:02 AM
1st it was the thugs and the fights, then it was the war protesters, then the Uhurus and gay rights marches. Do you expect people to want to hang out in that type of environment?

by Melinda	Nov 23, 2008 7:43 AM
The economic impact of Major League Baseball alone should be enough to keep this place afloat.

by Johnny	Nov 23, 2008 7:36 AM
In 8 years the Mayor has ripped this city apart by his aggressive construction plans. Approximately 70 buildings that met preservation guidelilnes have went under during his administration. He won't be gone soon enough for me and many others.

by Joseph	Nov 23, 2008 7:32 AM
Close the place down. Families don't want to go there till you put cops all over the place. So, close it.

by Julio	Nov 23, 2008 7:26 AM
With Obama in power more of these will continue to happen. More welfare, more taxes more thugs that do nothing but depend on the government. But hey you elected him, you live with him...

by deep thought	Nov 23, 2008 7:25 AM
sucker,ha,ha.sembler screwed you.sembler screws everyone,and w/baker gets what he wants.and don't ever forget 40million of tax payer money went into that hole.we even gave sembler the $,screwed us too,but nothing we could do about it, t verdi next.

by Jose	Nov 22, 2008 10:51 PM
We learnt our lesson in Ybor with Centro, perception is reality. People won't come if they think there will be thugs waiting there to stab you. At least Centro instituted a curfew for teens. Why did BayWalk not do that???

by Jackson	Nov 22, 2008 1:15 PM
People need to abandon of their closed minded suburban mediocrity. Baywalk was a big part of adding a sense of legitimacy to St. Pete and creating a true downtown feel. Stories of misguided youth are perpetuated by news media seeking ratings.

by Mike	Nov 22, 2008 1:10 AM
Is it possible that citizens are just saying "I have more important things to do with my time and my money than shop"? For God's sake the place is a monument to excessive spending. Name one product sold there that you NEED to live a happy life?

by Bill	Nov 22, 2008 1:10 AM
An upscale shopping district for riff-raff and miscreants! St.Pete has turned into an obscene version of "A Clockwork Orange."The entire southern part of Pinellas County will be uninhabitable.

by Mark	Nov 22, 2008 1:09 AM
You mea to tell me that nobody with a family wants to take their kids to a place where the exemplary youth of St. Pete hang out and harrass the patrons? What a surprise. Too bad for the city. Where's the Mayor on this? He is too busy being impotent.

by Mona	Nov 21, 2008 11:04 PM
I have been away out of the area off and on for 2 years and every time I return and try to go back to Baywalk "one more time" it is a joke. There are tons of Southside thugs hanging outside and acting out in the movies. They need to be arrested!

by Nick	Nov 21, 2008 9:56 PM
Nothing but a bunch of THUGS ("unruly teens"?) hanging out there. The cops do nothing because Easy Money (Chuckie Harmon) has no freaking backbone. This is a microcosm of the future of the US. Stock up on your ammo and weapons before Obama takes over

by Paul	Nov 21, 2008 7:27 PM
I've rarely been there the entire time its been open. Reason? Its not St Pete. Its an attempt at upscale shopping that just doesn't jive with the local vibe that makes St Pete unique. I'd much rather visit a shop or eat at a mom and pop place.

by Jake	Nov 21, 2008 7:26 PM
Buch of dirty animals that hang out there.

by Carol	Nov 21, 2008 5:43 PM
Umm, Jocephus..., I've seen them.

by Spencer	Nov 21, 2008 5:43 PM
BayWalk is a nice place, but the unruly amount of pre pubescent teens there on Fri and Sat nights annoys most folks I have talked to. As for the Thugs and Gangs, were in a city lets be real about our surroundings, but there virtually nonexistant

by Kristi	Nov 21, 2008 5:22 PM
What in the world does Obama have to do with Baywalk? You alarmist right wing racists just need something to fret over all the time don't you? Get over it already. I'm just ticked that the theater now sells Pepsi products instead of Coke.

by Isa	Nov 21, 2008 5:21 PM
I do go to Bay walk and I have to say... not a place to go on fridays or saturdays. -It is- unruly. 2ndly, lower the property tax/insurance and we ll have the $ to spend there. Or with all the city has received, why dont they help Bay Walk.

by Bob	Nov 21, 2008 4:37 PM
The problem is "Image". Baywalk like many other places has had it's share of incidents involving unruly people. The companies that have managed Baywalk have never tried to promote it's Image as a fun shopping entertainment center.

by Allen	Nov 21, 2008 4:35 PM
Rick Baker and his LAPDOG chief of police killed Baywalk, period. Now comes Bullard trying to leverage Wachovia into a debt deal that suits him. Note must not have pers. recourse - not that Bullard doesnt know how to file BK when the need suits him.

by Cynt	Nov 21, 2008 4:33 PM
James you comments are not necessary. Who in the hell can you call a animal? It takes one to know one, idiot

by Dorine	Nov 21, 2008 4:31 PM
The city has failed BayWalk by looking the other was as thugs and gangs took control in the absence of law enforcement. Thank the Mayor, Chief of Police and City Council. Until people feel safe at BayWalk, it cannot succeed.

by Jocephus	Nov 21, 2008 4:20 PM
To everyone talking about "thugs" and "gangs" - have you really been to Baywalk, or are you just repeating what you've heard? I go there frequently, and I never see these things. Maybe you're confusing your racist fantasies with reality?

by Don	Nov 21, 2008 2:37 PM
Too Bad the developer, the owner, the bank and our city government do not understand that the success of any business depends on happy repeat customers. High overhead,no equity, poor management and no security = no customers = OOB. It is called BS101

by Arnold	Nov 21, 2008 2:37 PM
Time to round those teen thugs/punks up, and send them off to prison. They aren't going to contribute to society, so let's lock them up so they don't reproduce. Shame on their parents for not discipling them. Stop welfare, and force them to work.

by KG	Nov 21, 2008 2:36 PM
It was great to go to Toojays and the movies. Now Toojays is gone and the teenage thugs make it unpleasant to go to the movies. Why is it acceptable to be rude and obnoxious? Everyone is afraid to be sued, just ridiculous.

by Keri	Nov 21, 2008 2:33 PM
To those that stopped going to Baywalk because of the thugs where is your spine? I mean really you can't stand up to teens. You are letting them win and if you don't demand that your police force works for you then they won't. Get involved,Don't Flee