Judge refuses to stop Sundial construction in St. Pete

A global investment firm’s attempt to halt construction on the Sundial in downtown St. Petersburg has failed after a circuit court judge ruled in favor of the retail center’s ownership.

New York-based Florida 2005 Theaters LLC, an entity created by the Carlyle Group, sought a preliminary injunction to stop renovations on the plaza’s courtyard. The private equity firm owns and operates the AMC Sundial 12.

Judge Thomas Ramsberger issued an order Monday denying the ownership group’s request. “The court concludes that Florida Theaters failed to satisfy all of the required elements for preliminary injunctive relief,” he wrote.

Paradise Ventures CEO Mike Connor and Andrew Wright, CEO of Tampa-based Ally Capital Group, plan to revitalize the open-air retail center at 152 2^nd Ave. N. Construction commenced on the courtyard in February and will now conclude on schedule.

“We’re very pleased with the outcome,” Connor told the Catalyst. “It just gets us one step closer.”

Florida 2005 filed an April 16 lawsuit alleging that courtyard construction violated long-established operating agreements. The company also believes a ground-floor bar would negatively impact theater operations.

Project renderings show a covered courtyard bar as part of a community gathering space. Connor maintains that it is simply a shaded structure that will increase much-needed foot traffic and could one day become a bar.

Ramsberger verbally ruled in the Sundial ownership’s favor at a Sept. 3 hearing. He issued the official written order Monday.

A soft opening for the courtyard is Oct. 17. Connor believes the judge has identified the plaintiff’s “delay tactics, and he’s ready to move this thing along.”

“I think the judge wants to get to the truth,” he added. “And I think the sooner we get to that the better it certainly is for us, our tenants and the theater, quite frankly. The theater will do a lot better once we have some more activity in front of it. So, that’s our goal.”

Photos shown in court highlight the theater’s increased visibility with the new courtyard. Image provided.

Connor said he expected a positive outcome but was surprised at the quick ruling. However, like the construction, the legal battle will continue.

Documents show that Florida 2005 sought to change operating agreements before Paradise Ventures closed on the property – less than a quarter mile from bustling Beach Drive – for $30 million in February 2022. Connor and Wright announced a $3 million renovation project a year later.

Florida 2005, which leases the space to AMC, inherited “reasonable approval rights” for ground-floor establishments. Connor believes the lawsuit stems from his refusal to lift residential use restrictions.

The Sundial’s owners planned for Forbici Modern Italian, a popular restaurant in Tampa’s trendy Hyde Park area, to anchor the reimagined courtyard. Locale Market formerly occupied the space.

“I think we proved it’s very reasonable to have Forbici in there on the first floor, because of what’s been there before,” Connor said. “They’re just trying to drag this out as much as they can and make our redevelopment as painful as possible.”

Florida 5000 did not object to the previous restaurant or a Wet Willie’s bar that once operated from the plaza. In addition, Connor’s lawyers submitted images showing renovations increasing the theater’s visibility.

“And they’re objecting to what we’re going to do, which, I promise you, is not going to be anywhere as risqué as a Wet Willie’s,” Connor said. “It’s idiotic. The arguments they’re making have no basis in real-world facts.”

He hopes a judge – and preferably, Ramsberger – will rule on the project’s restaurant component by the end of the year. One of the new tenants, Serontin Centers medical spa, recently opened on the 85,537-square-foot property’s east side.

Connor said retail space buildouts on the western end are ongoing, and tenant interest remains strong. “We’re happy with the progress we’re making,” he said. “Both with the courtyard and the leasing.”