General Development Corporation
| Company type | Public |
|---|---|
| Industry | Real estate development |
| Predecessor | Florida Canada Corporation, The Mackle Company |
| Founded | 1958 |
| Defunct | 1991 |
| Fate | Bankruptcy; assets transferred to municipal authorities |
| Successor | Atlantic Gulf Communities |
| Headquarters | Miami , United States |
Key people | Charles H. Kellstadt (CEO and Chairman, 1962–1973), David F. Brown (Chairman), Robert F. Ehrling (President) |
| Products | Residential real estate developments, infrastructure construction |
General Development Corporation (GDC) was a Florida-based land development enterprise established in 1958 through the consolidation of Florida Canada Corporation and the Mackle Brothers. It emerged as a key entity in the real estate sector, specializing in extensive residential projects.
Origins
Initially founded in 1928 under the name Chemical Research Corporation in Canada, Florida Canada Corporation transitioned from its original focus on mining and petroleum equipment to real estate by the mid-1950s. By 1956, the company had fully dedicated its operations to property development in Florida, merging four subsidiaries into a single entity known as General Development Corporation.
The Mackle Company, established in 1908 by Frank E. Mackle, Sr. in Jacksonville, was recognized as Florida’s largest homebuilder before relocating its headquarters to Miami in 1937. Following Frank Mackle Sr.’s passing, his sons Elliott, Robert, and Frank Jr. assumed leadership roles.
In 1958, the merger of Florida Canada and the Mackle enterprise resulted in the formation of GDC. However, after a disagreement with chairman Gardner Cowles Jr., the Mackle brothers departed in 1962 to launch Deltona Corporation, which became a direct rival to GDC.
Further history
Charles H. Kellstadt, previously chairman and CEO of Sears, took on the roles of CEO and chairman at GDC from 1962 until 1973, also serving as president between 1965 and 1970. During the late 1970s, GDC encountered increasing financial obligations due to commitments for construction on thousands of lots. To mitigate cash flow challenges, the corporation broadened its approach by acquiring, planning, and marketing additional lots to fund development on already sold parcels.
Legal troubles and dissolution
In the late 1980s, GDC’s leadership faced criminal charges related to fraudulent home sales. After an extensive federal probe into inflated housing prices lasting two years, the company pleaded guilty to federal mail fraud in March 1990. As part of a plea deal, GDC agreed to create a restitution fund for homebuyers who purchased properties between 1982 and 1989. The corporation filed for Chapter 11 bankruptcy protection in April 1990.
Prior to bankruptcy proceedings, Chairman David F. Brown and President Robert F. Ehrling resigned and admitted guilt to mail fraud charges. Both were convicted in August 1992; Ehrling received a ten-year prison sentence on forty counts of fraud, while Brown was sentenced to up to five years along with conspiracy convictions. Additional executives, including senior vice president Torre DeBella and marketing vice president Richard Reizen, were also sentenced for offenses connected to fraud. Subsequently, GDC’s operational assets were transferred to municipal authorities.
Later developments saw the United States Court of Appeals for the Eleventh Circuit overturn Brown’s and others’ convictions, dismissing all charges and effectively clearing General Development Corporation (see US v. Brown, 79 F.3d 1550 (1996)).
Succession
Following GDC’s bankruptcy, Atlantic Gulf Communities was established as its successor. After Ehrling’s convictions were reversed on appeal and he was released in 1996, he reunited with Reizen—also freed by appellate court decisions—and together they resumed activities in real estate development. They acquired over 3,000 undeveloped lots from Atlantic Gulf Communities as part of an initiative aimed at generating $200 million by selling half of its holdings totaling 87,000 acres along with nine water treatment facilities. However, this plan "never fully materialized," leading Atlantic Gulf Communities to seek bankruptcy protection in 2001. These transactions contributed to the foundation of New Vista Properties.
Communities created by GDC
- Port Charlotte, Florida
- North Port, Florida
- Port Malabar, currently a neighborhood within Palm Bay, Florida
- Port St. Lucie, Florida
Operations
GDC was responsible for constructing essential infrastructure in its developments, including roadways, sewage and water treatment facilities, golf courses, marinas, and waste disposal sites, fostering a "company town" environment. Significantly, upon North Port's incorporation, the initial City Council consisted of GDC personnel.
Errata
From 1990 to 1991, Thomas J. Hutchison III held the position of court-appointed chief executive officer.
See also
External links
- "General Development Corporation 1954-1991": Sarasota History Center
- History of Palm Bay
- ING Direct Board of Directors: Reference to Thomas J. Hutchison III
- "Charges Seen for Developer": New York Times; February 1, 1990
- "COMPANY NEWS;Stake Is Reduced By United Capital": New York Times; May 3, 1990
- Defunct real estate companies of the United States
- Corporate crime
- Sarasota County, Florida
- Charlotte County, Florida
- Brevard County, Florida
- Palm Bay, Florida
- Port St. Lucie, Florida
- Companies based in Miami
- American companies established in 1954
- Real estate companies established in 1954
- Companies disestablished in 1991
- 1954 establishments in Florida
- 1991 disestablishments in Florida
- Defunct companies based in Florida
- Companies of the United States by year of establishment