The future of a 42-story condominium in downtown St. Petersburg could be in jeopardy due to a legal challenge from a neighbor who wants the developer to halt construction.
An LLC tied to Tampa investment firm Third Lake Partners filed suit against developer Kolter Urban in Pinellas County Circuit Court on June 3. The LLC — referred to in the suit as “Priatek” — says that construction of Kolter’s Art House condo tower has caused “substantial physical damage” to a commercial property it owns at 200 Central Ave.
That property was once home to The Mill, a restaurant that shuttered in January. A post on The Mill’s Facebook page said it was closing because of damage from nearby construction, though the restaurant also owed about $150,000 in unpaid taxes, according to state records.
An April 2023 engineering report commissioned by Priatek and cited in the lawsuit stated that Priatek’s commercial building suffered damages from Kolter’s construction, including “significant cracking of the interior floor slab, increased separation along the expansion joints within the floor slab, (and) distress to wall and ceiling joints and finishes.”
In addition to attorney’s fees and compensation to cover damages and lost revenue, Priatek is seeking a judgment to halt construction on Art House until Kolter stabilizes the foundation.
The Tampa Bay Times contacted Kolter and Third Lake Partners as well as the attorneys representing both parties. Neither was immediately available for comment.
Kolter bought the vacant land where Art House is being built from Priatek in 2021 for $20.45 million. Crews broke ground on the luxury condo in June 2022. Once completed, it will rise 450 feet and include 244 condos.
Priatek gave Kolter permission to work on the commercial building’s foundation to help safeguard the property from damage during construction.
Priatek commissioned an outside engineering firm to review Kolter’s plans and, according to the lawsuit, red flags were raised before work even began. Priatek allowed Kolter to move forward under the condition that it would pay for any losses Priatek might suffer as a result of construction, the suit said.
Management at The Mill reported cracks in the concrete floor slab and damage to interior walls, ceilings and the plumbing system, the lawsuit said. Another report from Priatek’s engineering firm echoed The Mill’s concerns.
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The Mill eventually abandoned the premises and stopped paying rent before its lease ran out in December 2022, according to the lawsuit.
Priatek also claims that faulty work by Kolter caused sewage to back up into the commercial building. One of the tenants, Taverna Costale, was forced to close for one day as a result, causing nearly $18,000 in lost sales that Priatek was forced to cover.
Priatek acquired the property at 200 Central Ave. in 2017 for $65.7 million. It includes a two-story retail building, the tallest office tower in St. Petersburg and the land immediately adjacent to Kolter’s construction site. Priatek, also the name of a local startup technology company, is the main office tenant in the 200 Central Ave. property.
Over the past two years of construction, the lawsuit said Kolter ignored recommendations made by the engineering firm Priatek commissioned.
“Although Kolter has repeatedly acknowledged its responsibility for the damage it has caused Priatek and its obligation to pay for it, Kolter has refused to take any corrective action,” the lawsuit said.
Read More: Lawsuit involving Art House condo in St. Petersburg could halt construction