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Judge Clears Way For Trump Tower Refunds, Lawsuit

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By SHANNON BEHNKEN | The Tampa Tribune

Published: July 18, 2008

TAMPA - Trump Tower Tampa buyers, with $3.6 million in deposits held in escrow, might get that money back. And the lawsuit involving Donald Trump and a local developer who failed to build the tower can move forward, a federal bankruptcy judge ruled today.

"That's great news," said Trump buyer Don Wallace, who has held meetings with other buyers to keep everyone up to date on developments. "I've already received my escrow money back, but I know some other people haven't."

The developments are just the latest turn of events in a case that is moving painfully slowly for buyers who plunked down 20 percent deposits on units originally sold at up to $6.5 million.

Half of buyers' deposits was put into escrow to be returned. Tampa developer SimDag/Robel LLC used the rest for site preparation.

Attorneys representing SimDag had requested the motion for the return of the escrow money.

Attorneys for Trump had requested their lawsuit proceed. It had been on hold since SimDag filed for Chapter 11 bankruptcy protection in June.

The 52-story waterfront Trump Tower Tampa was announced in early 2005, but the developer was not able to secure financing on the $300 million tower and vertical construction never started.

The project also got stuck in liens and lawsuits from buyers and contractors. Even real estate mogul Donald Trump, for whom the tower was named, sued, saying he sold SimDag the naming rights to the tower and is owed more than $1 million in fees.

Trump has said he wants his name off the tower plans.

SimDag's bankruptcy filing lists debts of $10 million to $50 million to an estimated 200 creditors.

Reporter Shannon Behnken can be reached at (813) 259-7804 or sbehnken@tampatrib.com.

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