Grossman, Florida Panthers Involved In Litigation Over Arizona Biltmore

PHOENIX? Grossman Company Properties was ousted as manager of the Arizona Biltmore on June 17 by Florida Panther Holdings which owns a majority stake in the resort property. As a result, Grossman filed a suit against Florida Panther Holdings, saying that the company violated terms of its 10-year management contract by not giving 30-day written notice that it wanted to terminate the agreement. The suit also alleges that the Florida Panthers Holdings used the Biltmore Hotel Partnership to guarantee $340 million in debt for other Huizenga projects without permission of the limited partners. But a spokesperson for Florida Panthers Holdings said there is no basis for the claim and that the termination was necessary because Grossman was mismanaging the resort. ?We didn?t approve of the way they managed the Biltmore and are conducting an audit of their management as we speak,? said spokesperson Stan Smith. Florida Panthers Holdings is now managing the resort and has named David Feder as senior vp/managing director of the Arizona Biltmore. Feder has more than 20 years experience in the hotel industry and has served with a number of properties. He previously held positions with the Breakers in Palm Beach, FL, The Plaza in New York and the St. Francis Hotel in San Francisco. Feder will now be reporting to Michael Glennie, senior vp for all resort operations for the company. ?As owners of the Arizona Biltmore we have decided to manage the property just as we manage our other five resorts,? said Smith.Florida Panthers Holdings said it filed a complaint on June 9 alleging that Grossman violated the management agreement. Grossman alleges that it never had any notice from Florida Panthers Holdings about changes in how it wanted the Biltmore managed. Grossman owns a minority stake in the Arizona Biltmore worth about $34 million. In March 1998, Florida Panther Holdings acquired a majority stake in the 70-year-old Phoenix landmark for $289.5 million. At presstime, Grossman Company Properties could not be reached for comments on the subject.