Judge allows Sundial construction to proceed in downtown St. Pete
By Henry Queen
Tampa Bay Business Journal
Published: Sep 10, 2024

The renovated Sundial courtyard in downtown St. Petersburg is scheduled to open this fall following a court order in favor of the mall's ownership.

Circuit court judge Thomas Ramsberger signed an order on Monday denying the owner of the nearby AMC theater from its attempt to immediately halt construction.

Paradise Ventures and Ally Capital Group began renovating the open-air lifestyle center in February. Carlyle — a multinational investment and private equity firm that owns the AMC theatre and is listed as Florida 2005 Theaters in court records — opposed them.

"The court concludes that Florida Theaters failed to satisfy all of the required elements for preliminary injunctive relief," Ramsberger wrote in his brief order. He verbally ruled in favor of the Sundial's owners at a Sept. 3 hearing.

The lawsuit has not ended, but the lack of a preliminary injunction means that Paradise Ventures and Ally Capital Group can continue renovating.

The soft opening of the courtyard is scheduled for Oct. 17, said Paradise Ventures CEO Mike Connor. He said the buildout of the ground-floor retail on the east side will begin in three weeks.

Connor said in court that the movie theater's owners "have been very consistently unreasonable." He alleged that the lawsuit was in retaliation for his refusal to lift the restriction on residential uses at the movie theatre's property.

Connor told the Tampa Bay Business Journal that Florida 2005 Theaters has shown "disrespect to the judicial process, our tenants, their tenant and Sundial patrons [because of] business negotiations that did not go the way they hoped."

A spokesperson for Florida 2005 Theaters said the company is pursuing legal action for the benefit of tenants.

“We believe the proposed additions to the mall would violate the operating restrictions that protect Sundial mall tenants from competing businesses. Florida 2005 Theaters, LLC will continue to seek to enforce our rights under the mall operating restrictions," the spokesperson said.

The movie theater owner, among other accusations, has alleged that the new canopy in the courtyard is a violation of an existing operating and easement agreement between the parties. The canopy is expected to house an outdoor bar concept.

One of the main goals of the Sundial renovation is to bring more foot traffic to the 85,537-square-foot property. Ever since it opened under the name of Baywalk in 2000, the plaza has failed to shine.

The latest plans include cafe-style seating and programming to draw people in. One of the new tenants on the east side of the property—Serotonin Centers medical spa—opened this week.