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ST. PETERSBURG — A bank is suing the Florida Holocaust Museum for $1.6 million plus interest, saying it defaulted on two loans.
But an attorney said museum officials were surprised by the lawsuit, and he said it does not reflect any financial problems for the institution in downtown St. Petersburg.
"I'd say there's certainly disappointment," attorney Michael Brundage said, when asked about the museum's reaction. "I think the museum would have preferred to resolve this out of court."
The museum is a memorial to those who died in the Holocaust and is also an educational and cultural institution. It is designed to teach visitors about atrocities committed by the Nazis and to prevent similar oppression against others.
The loans are mortgaged on property next to the museum, including a parking lot. But Brundage said the loans have nothing to do with the museum building itself, which is at 55 Fifth St. S.
Whitney National Bank filed the lawsuit last week against the museum and its affiliated History, Heritage and Hope Foundation.
The lawsuit says the museum "has failed and refused" to make payments, "which has resulted in Whitney accelerating the balance due."
But Brundage said the situation unfolded this way:
The loans were set to become due, meaning the museum would have to either pay the balance or negotiate new terms. Therefore, the museum chairman began negotiating last summer with a bank representative, suggesting a new plan for the loan. The representative planned to take the proposal to the bank's board, Brundage said.
But that didn't happen because the bank representative lost his job, Brundage said. After that, he said, the lawsuit was filed.
"Essentially, Whitney Bank came back to the museum and said, 'Okay, you've got to pay the mortgage in full,' " Brundage said.
An attorney for the bank could not be reached Thursday.
Curtis Krueger can be reached at ckrueger@sptimes.com or (727) 893-8232.
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