Will Fashion Square Mall's foreclosure suit affect Eatonville development?

EATONVILLE, Fla. — Eatonville town leaders took a big step Tuesday night toward developing 100 acres of land.

The council unanimously agreed to move forward with a company's proposal to buy the land for $20 million to build housing, and retail space and bring job opportunities to revitalize the historic town.

The developer chosen by the council is UP Development, the team behind the new Whole Foods store in Winter Park and the remodeling of the struggling Orlando Fashion Square Mall.

But foreclosure proceedings were initiated against the Fashion Square Mall this week after the lender claimed that the facility’s owners had defaulted on a nearly $42 million loan.

Bancorp Bank filed a foreclosure complaint Tuesday in Orlando federal court, claiming that UP Development failed to make loan payments totaling more than $400,000 in July, August and September.

The time stamp shows that the foreclosure was filed nine hours before the council met to vote.

Eatonville's chief administrative officer, Roger Dixon, said officials knew nothing about the suit before Tuesday night's meeting and will now have to talk to their legal team to find out what to do next.

Dixon also said that when they reviewed UP's financial documents, town leaders were excited and confident about the project.

A UP Development representative said the mall project falls under a different LLC within the company than the Eatonville project. In a statement, the company said: "We are financially secure and fully committed to working side by side with the town council and residents of Eatonville to realize their vision."

The Orange County School District owns the Hungerford property and has to give the deal the green light.

There is no word on whether the lawsuit will play into the district’s decision.

Cox Media Group