San Sebastian Harbor developer forced to bankruptcy

A familiar name in St. Augustine and St. Johns County by Historic City News local reporters has gone the way of other high profile residential and commercial real estate development companies over the past few years according to public records.

Almost two years, to the day, after Historic City News reported that they had entered an agreement that was to bring The Westin St. Augustine and The Residences at The Westin St. Augustine to the San Sebastian Harbor, creditors of the developer were in court demanding payment of $18.3 million from The Devlin Group, Inc., Devlin Group Properties, LLC, Wallace R. Devlin, Jr. and Wallace R. Devlin, Sr.

Wally Devlin, like most other developers, has struggled in the recession.

In 2006 and 2007 Devlin filed liens for millions of dollars against Auchter Co., a well-known Jacksonville-based commercial developer that was ultimately forced to shutter its doors.

February 4, 2008 things looked good for Jacksonville Beach-based The Devlin Group Inc. when they announced a deal with Starwood Hotels and Resorts Worldwide Inc. that was slated to be complete by the fall of 2010.

Sebastian Inland Harbor Resort was to consist of approximately 13.5 acres on the San Sebastian River. The contemplated development will incorporate five distinct real estate product types including condominium, resort hotel, luxury spa, high-end retail, and yacht slip marina with boardwalk promenade.

But, in 2009, the Ocean Grande at Serenata Beach in South Ponte Vedra Beach filed for Chapter 7 bankruptcy. Devlin was one of the development partners of that upscale oceanfront condominium project.

Then, on February 2, 2010, Bruce Orlofsky, Orlo St. Marks Pond, LLC and Orlo Nine Mile, LLC, sued The Devlin Group, Inc., et. al., in Florida Middle District Court.

Now, on last Friday, March 4, 2011, the creditors were listed on an involuntary petition for Chapter 7 bankruptcy liquidation.