Article Courtesy of Palm Beach Post

By Jane Musgrave
Published October 19, 2006

 WEST PALM BEACH — One way or another, it appears the 30-story hurricane-ravaged 1515 Tower along South Flagler Drive is going to come tumbling down.

If it's sold, its latest suitor says it plans to raze the building. If it isn't sold, the city of West Palm Beach will likely order it to be torn down.
  
The high-rise avoided the city-ordered wrecking ball last month by promising that steps would be taken to secure the pock-marked, plywood covered building just south of downtown. 

But city construction services director Neil Melick said no plans have been submitted for what was to have been a $200,000-$400,000 project. 

The failure to submit plans puts the condominium board in violation of last month's order of the city's Construction Board of Adjustments and Appeal, Melick said. Next month, Melick said he will ask the board to reinstate his order that the building be demolished.

Daryl Cramer, an attorney for the condo board, said it would make no sense to get a permit to secure the building when its future owners plan to tear it down.

"The buyer intends to demolish it, so it's really silly for the association to spend a couple hundred thousand dollars to hire a contractor when the work would be interrupted for the building to be destroyed," he said.

Stillwater Capital Partners began sending out purchase contracts to the 119 unit owners last week, Cramer said. About half of them have been returned. A closing on the 1515 Tower is set for Dec. 15.

Although Stillwater documents show the building is being purchased for $35 million, the contract price is $36.5 million, Cramer said. The New York-based hedge fund also has a contract to pay $43.75 million for land belonging to the still-unbuilt Opera Place. 

Stillwater said that even though the 1515 Tower is structurally sound, it would raze it so it could enlarge the size of the units in a new luxury high-rise. 

Melick said he is aware of the looming sale. But he also knows that another deal fell apart and doesn't want the building to sit vacant and dilapidated for another year. 

In the spring, Palm Beach developer Thanos Papalexis agreed to pay $56 million before his financing fell through. His offer was $11 million higher than Stillwater's because it included the money Papalexis estimated he could recover from QBE Insurance. Last month, the association settled with the insurance company for $2.25 million.