City to Vlass: Let’s Not Sue Each Other Yet

The City of Temple Terrace and Vlass Temple Terrace LLC, the company developing the downtown area, have promised that they won’t sue each other in the next couple months.

The City Council approved the execution of what’s called a forbearance agreement at their June 18 meeting. The agreement is effective until Aug. 21.

“Essentially, it just gives us an opportunity to talk to each other without either party having to run to the courthouse,” said Mark Connolly, city attorney, who prepared the agreement and suggested the council accept it.

City officials and Vlass representatives met June 6, but neither side has talked about what was discussed.

“We’ve entered into a confidentiality agreement, which is something that is very common when you’re having settlement discussions because it’s the only way that people can speak with each other frankly without those discussions being used against them if litigation does, in fact, ensue,” Connolly said.

The forbearance agreement does not mean that the parties will come to a resolution by Aug. 21, he explained. It does, however, put pressure on both sides to meet and discuss what happens next.

“At this point, we’ve had one meeting, and if there is going to be an amicable resolution short of litigation, I suspect that we will need at least a couple more meetings to get something done,” Connolly said. “Whether or not we can ultimately reach an amicable resolution—at this point, we just don’t know.”

In April, the Vlass group filed a letter with the city that cited a desire to terminate its part in the downtown redevelopment project. Since then, the city and Temple Terrace Mayor Frank Chillura have been trying to work with Vlass to move the project forward.

The Vlass group signed on to the project in 2009, agreeing to build a $160 million complex on a 21-acre property that would include a residential area, retail, a cultural component and office space.

A conflict between the two sides began in February 2012 when the Vlass group proposed building a 214-unit apartment complex at the northeast corner of the redevelopment site with residences on the first floor instead of retail.

The city said retail on the first floor was necessary for a walk-able downtown. Vlass said banks wouldn’t finance such multi-use structures.

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