Developer lawsuit tied to Central project quietly dismissed

A legal fight between two prominent St. Petersburg development partners ended almost as quickly as it began.

Backstreets Capital, a local real estate investment firm led by developer Will Conroy, voluntarily dismissed a lawsuit Friday against Ellison Development, Ellison Construction and company founder Casey Ellison in Pinellas County Circuit Court. The dismissal was filed without prejudice, meaning the claims could be refiled later.

The dispute stems from construction delays at two high-profile downtown projects where the firms previously partnered: The Central redevelopment in the EDGE District and the Nolen luxury condominium tower near the waterfront.

The companies had worked together for years on several St. Petersburg developments. Those collaborations included the Salvador condominium tower and the Nolen, a 23-story luxury building at 126 Fourth Ave. NE that recently neared completion with units priced between roughly $2 million and $5 million.

Their partnership expanded further with The Central, a $200 million mixed-use redevelopment at 1301 Central Avenue on the former site of the St. Petersburg Police Department headquarters.

The project, once known as Orange Station, is being developed by a joint venture that includes Ellison Development, Backstreets Capital, DDA Development and J Square Developers.

Plans for the 2.1-acre site include a 15-story Marriott Autograph Collection hotel, a Class A office tower called Halcyon, retail space, workforce housing and a large public plaza. A 540-space parking garage tied to the development opened earlier as the first completed component.

The legal conflict between the partners escalated over the past several months.

Court filings indicate the first flashpoint occurred late last year when Ellison Construction sued a development entity connected to Backstreets over payment issues related to the Nolen project. That case was later voluntarily dismissed as the parties attempted to resolve the matter outside court.

Tensions resurfaced this year when Backstreets filed new claims accusing Ellison Development of delaying key elements of The Central project.

According to the complaint, Backstreets alleged that Ellison failed to begin construction on planned office and residential components of the development, and withheld financial and operational information from partners. The lawsuit also accused Ellison of self dealing by hiring its affiliated construction company to work on the project without competitive bidding.

Backstreets argued that the delays could potentially place the development team in violation of agreements with the City of St. Petersburg tied to the redevelopment of the former police headquarters site.

Ellison Development denied the allegations.

In statements responding to the dispute, representatives for the company described the claims as baseless and said the city had extended development timelines for the project. The firm also said it had invested millions of dollars in the redevelopment since assuming control of the project after years of inactivity, and had already completed the public parking garage.

The dispute was further complicated by separate litigation involving the Nolen project.

A development entity tied to Backstreets and DDA Development later sued Ellison Construction over missed construction milestones and a multimillion dollar lien filed shortly before several condominium closings. Ellison Construction responded with a counterclaim alleging the developer withheld millions of dollars owed for work performed.

The competing claims illustrated the breakdown of a partnership that had produced several major St. Petersburg developments.

The developers are now also competing in another arena. Both groups are associated with rival proposals to redevelop the 86-acre Tropicana Field site following the Tampa Bay Rays’ planned departure.

For now, the Central related lawsuit has been shelved.

Backstreets’ filing Friday formally ended the case, though the dismissal without prejudice leaves open the possibility that the dispute could return to court if negotiations fail or tensions resurface.

The Central project itself continues to move forward in stages. Developers previously indicated the hotel and other major components could open later in the decade once construction progresses.