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Ocean Tower HighRise Project on South Padre Cancelled
753 Views ::
5 Comments ::  :: South Padre Island |
The construction of Ocean Tower has been terminated with no immediate prospects for completion. Leaving a 25 Story Tomb on the Island's north-end
The official letter:
November 4, 2008
Dear Ocean Tower buyer:
 We are deeply disappointed to report that the construction of Ocean Tower, which was suspended in May, has been terminated with no immediate prospects for completion.
Over the past six months, we attempted to maintain the commitment of Ocean Tower’s general contractor and lenders while studying the settlement and repair of the building.
Unfortunately, our efforts have been unsuccessful. Last week, with a proposal pending for the study and repair of the tower, the general contractor discharged its subcontractors and walked off the job.
Not coincidentally, the contractor’s refusal to participate further in the study comes at a time that Ocean Tower’s lenders have refused to advance additional funds for the study, repair, and/or construction of the tower.
With the future of Ocean Tower in serious question, we release you from your purchase agreement and plan to immediately return your earnest money.
This has been a difficult decision for us to make, but under the circumstances and given our desire to maintain your trust, we feel that we have no alternative. Obviously, no one anticipated the extensive delay or the problems the project is presently suffering. We are taking steps to have your earnest money returned. Please take a look at the attached release.
Once again, thank you for your support and trust in our project.
Sincerely,
Antun T. Domit
Ocean Tower SPI
 This is a good example of why you want a Realtor on your side when purchasing in a new construction project.
Your Realtor and our associations are there to look after your interests before and after the sale - and especially in rare cases like this where there is a lot of confusion and you need someone on your side who knows the real estate laws and local issues.
We are standing by to help anyone who has questions or issues with this project. |
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| Comments | |
By
Fannie Marquez @
Friday, November 21, 2008 5:00 PM | |
So what's going to happen to the tower?
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By
Alice @
Friday, November 21, 2008 6:51 PM | |
No one knows for sure until the bank decides what they will do with it. I have been told that if the structural problems cannot be corrected which seems to be the case or if it is too expensive to correct the building will have to be imploded. Until that decision is made it will sit there empty. It could be awhile before we know what will actually happen but we will continue to keep you informed. |
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By
Gary Milburn @
Saturday, November 22, 2008 5:40 AM |
It's good to see those buyers finally get their money back. I seriously question whether Domit was directly responsible for the foundation problem, but regardless, he sure didn't handle it in an honest manner. The original marketing literature made note of the strong foundation, with a clear implication that this was one of the building's great features.
Then the foundation problem was discovered. At first they tried outright denial, with the Ocean Tower rep telling the public this:
"We have heard speculation ranging from sinking, to tilting, to water damage, and there was even one irresponsible report the the building was not going to be completed. "
Then when it became clear the building did have major foundation problems, Ocean Towers had the nerve to try and enforce a "casualty loss" provision in the individual purchase contracts, while still insisting that "...your unit WILL be delivered, and the building will be stronger and safer than ever".
Now it's kind of funny that Domit is blaming the contractors for walking off the job, when he also admits in same statement that his lenders cut off funding. Talk about finger pointing! Mr. Domit doesn't seem to want to take responsibility for ANYTHING. But isn't taking responsibility for EVERYTHING on a project the core purpose of the developer?
I agree 100% with the above statement that this is a classic example of why you want a realtor working for you. I sure wouldn't want to be confronting "Mr. Finger Pointer Developer" and his lawyers all by myself. On the other hand, after all the problems with Ocean Towers and Sapphire, I'm not so sure I can trust any realtor who seriously suggests on their front web page that "Now is a good time to buy the newer products on South Padre Island". To me it seems like whole concept of honesty and integrity were thrown out the window during the Clinton administration, and you can't trust anybody anymore. (A more honest statement by realtors would be: "Don't touch the newer products on this island with a ten foot pole, and many of the older products should be avoided as well. I've got lots of experience on this island, so let me show you some properties that are rock solid!")
My own opinion is that what this island needs right now is some MUCH stronger building codes. In all fairness many of the older buildings had major problems with Dolly, and Dolly was only a Cat 2. What happens when we get hit by a Cat 4? Will that be the end of the island as we know it today? At a minimum, every new building should be able to survive a cat 3. That would make new construction more expensive, but we can't risk any more shabby construction from ruining this island for everybody else. It's time for the politicians on this island to take a strong stand on this issue, for the sake of all property owners, and the next generation.
I do however have great sympathy for the agents on this island. They are also innocent victims of circumstances largely beyond their control, and they have families to feed. This island has been hit this year by the "perfect storm": serious problems with the world economy, a hurricane during the high season, major beach erosion, and the unpleasant discovery of many buildings that are "less than ideal" for the island's tropical weather. The island will eventually recover to it's former self, but it will probably take a few years. For example I just heard about a new beach restoration project that should be completed by next spring, giving us an extra 60 feet of beach! There is still great hope for the future.
Have a great holiday season everybody. I really enjoy Xmas on the island. This is still the greatest place in Texas.
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By
George H. @
Sunday, November 23, 2008 2:44 PM | |
It's open for debate as to whether the developer cut corners on the design. We'll probably never know the truth. But we can be sure that half-completed monument to poor construction practices isn't helping the island's real estate business. Let's do whatever we can to have it torn down and hauled away ASAP! |
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By
Drake @
Thursday, November 27, 2008 12:46 PM |
The debris from this project may be a good man made reef project. It appears to be mostly cement/rebar so far.
Whether right or wrong this property has been stigmatized. No amount of physical repair will cure a bad first impression, especially in this price point.
Sorry to see this happen to what would have been a beautiful and unique project if the defects were not part of the deal. |
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