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Bankruptcy Filing May Sound Taps For Trump Tower Tampa

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By SHANNON BEHNKEN | The Tampa Tribune

Published: June 18, 2008

TAMPA - The developers of Trump Tower Tampa filed for Chapter 11 bankruptcy Tuesday - a sign the tower may never go up.

It has been more than three years since Tampa-based SimDag/Robel LLC announced plans to build the 52-story luxury tower downtown along Ashley Drive. Vertical construction on the tower never started because SimDag couldn't obtain financing.

The project got mired in liens and lawsuits, even one from Donald Trump, for whom the project is named. Trump sold naming rights to SimDag and said in his suit he wanted his name removed because the tower was off schedule and the developers owed more than $1 million in fees.

The bankruptcy filing lists SimDag's debt at $10 million to $50 million. Developers estimate there are more than 200 creditors.

When sales in the proposed tower began, buyers put down 20 percent deposits on the condos, originally priced at $700,000 to $6.5 million. Half of the money was put in escrow so it could be returned to buyers. The rest was turned over to SimDag and used for site preparation.

Several buyers have sued to get their money back.

Part of SimDag's problem was the real estate market. When the market tanked, traditional lenders steered clear.

Developers looked for financing from hedge funds, a risky, expensive method to fund projects.

All the hedge funds also turned them down.

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

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