General Development Corporation
Corporate brand
UnclaimedGeneral Development Corporation was a Florida land-development company that created large planned communities before collapsing into bankruptcy after fraud-related prosecutions.
Last updated November 4, 2026
AI crawler reads
No AI crawler has read this profile yet.
Overview
General Development Corporation, commonly known as GDC, was a major Florida land-development company associated with the creation of several large planned communities during the postwar growth of the state. Its developments included Port Charlotte, North Port, Port Malabar, Port St. Lucie, Sebastian Highlands, Gulf Cove, South Gulf Cove, and Englewood East. Rather than merely selling parcels, GDC typically attempted to create self-contained communities by laying out roads, installing water and sewer systems, developing golf courses and marinas, and operating other services such as landfills. This infrastructure-heavy model gave some of its communities the character of company towns, with the developer exercising substantial influence over local services and, in the case of North Port, having employees represented on the first city council after incorporation. The company emerged from the combination of two businesses with different origins. Florida Canada Corporation had been incorporated in Canada in 1928 as Chemical Research Corporation and initially worked on technical processes and equipment for the mining and petroleum industries. During the 1950s, its activities increasingly shifted toward Florida real estate, leading to the Florida Canada name. The Mackle Company, founded by Frank E. Mackle Sr. in Jacksonville in 1908, had become one of Florida's largest homebuilding firms and moved its operations to Miami in 1937. The Mackle family business and Florida Canada created and consolidated Florida property-development subsidiaries during the middle of the decade, and the two organizations were merged in 1958 to form General Development Corporation. The Mackle brothers—Elliott, Robert, and Frank Jr.—later separated from GDC after a dispute with chairman Gardner Cowles. In 1962 they established Deltona Corporation, which became an important competitor in Florida community development. That same year, former Sears chairman and chief executive Charles H. Kellstadt became GDC's chairman and chief executive. He held both positions until 1973 and also served as president from 1965 to 1970. GDC's expansion created substantial long-term obligations. By the late 1970s, the company had accumulated liabilities connected with promised construction and infrastructure for thousands of previously sold lots. As cash became constrained when construction began, management pursued a cycle of acquiring, planning, and selling additional land, using proceeds from newer sales to support development commitments made earlier. The model became increasingly vulnerable as costs, obligations, and the company's ability to generate new cash diverged. The company encountered severe legal and financial problems in the late 1980s. Federal investigators examined allegations that GDC had falsely inflated house prices and engaged in fraudulent home sales. On March 16, 1990, the corporation pleaded guilty to federal mail-fraud charges and agreed in principle to establish restitution for qualifying purchasers who bought homes between January 1, 1982, and December 31, 1989. GDC filed for Chapter 11 bankruptcy protection in April 1990. A court-appointed chief executive, Thomas J. Hutchison III, served during 1990 and 1991 while the company proceeded through bankruptcy and restructuring. Chairman David F. Brown and president Robert F. Ehrling resigned shortly before the corporate plea and were prosecuted separately, along with marketing executives Torre DeBella and Richard Reizen. The executives were convicted and sentenced in 1992 and 1993, but the United States Court of Appeals for the Eleventh Circuit later reversed the convictions and ordered the charges dismissed. The appellate decision, United States v. Brown, 79 F.3d 1550 (11th Cir. 1996), became an important later qualification to the initial account of the prosecutions and was described as exonerating the men. GDC's bankruptcy produced Atlantic Gulf Communities, which assumed or controlled various assets and development interests. A proposed effort to raise approximately $200 million by selling part of Atlantic's land and water-treatment assets did not fully materialize, and Atlantic sought bankruptcy protection in 2001. Former GDC executives Ehrling and Reizen later returned to real-estate development and acquired more than 3,000 vacant lots from Atlantic, helping create New Vista Properties. GDC itself did not continue as an operating developer. Its lasting significance lies in the scale of its Florida communities, its infrastructure-led development model, and the legal and financial consequences of attempting to fund extensive promised improvements through continuing land sales.
History
General Development Corporation was created in 1958 through the merger of Florida Canada Corporation and the Mackle Brothers' business. Its corporate lineage reached back to Chemical Research Corporation, incorporated in Canada in 1928 to develop technical processes and equipment for mining and petroleum applications. During the 1950s, Florida Canada redirected most of its activity toward Florida real estate and adopted its later name. In October 1954, Florida Canada and the Mackle interests established four jointly connected subsidiaries for property development on Florida's east and west coasts. Those subsidiaries were consolidated in 1956, forming the operating structure that preceded GDC. The Mackle side originated with the Mackle Company, founded by Frank E. Mackle Sr. in Jacksonville in 1908. The company moved to Miami in 1937 and became one of Florida's largest homebuilders. After Frank Mackle Sr.'s death, his sons Elliott, Robert, and Frank Jr. assumed control. The family's participation in GDC ended after a dispute with chairman Gardner Cowles. In 1962, the brothers founded Deltona Corporation, which competed with GDC in the development of large Florida communities. GDC's business model went beyond selling undeveloped acreage. In each community, it could construct roads, water and sewer facilities, golf courses, marinas, and other basic amenities, and it sometimes operated landfills. The resulting developments were planned at a scale that made them resemble company towns. GDC was involved in Port Charlotte, North Port, Port Malabar, Port St. Lucie, Sebastian Highlands, Gulf Cove, South Gulf Cove, and Englewood East. North Port became particularly associated with the company's civic influence because GDC employees constituted the first city council after the community was incorporated. Charles H. Kellstadt, formerly chairman and chief executive of Sears, joined GDC's leadership in 1962. He served as chairman and chief executive until 1973 and was also president from 1965 through 1970. The company continued expanding its land-development program, but the infrastructure commitments attached to previously sold lots created growing liabilities. By the late 1970s, GDC had promised construction and improvements for thousands of lots. When development costs came due, available cash became inadequate, encouraging the company to purchase, plan, and sell more land in an effort to finance work promised on earlier sales. The resulting financial pressure coincided with allegations concerning the marketing and pricing of homes. Federal authorities investigated GDC for approximately two years over claims that house prices had been falsely inflated. In the late 1980s, the company's management faced criminal indictments for fraudulent home sales. On March 16, 1990, GDC pleaded guilty to federal mail fraud. The company agreed in principle to establish a restitution fund for purchasers who bought homes during the period from January 1, 1982, through December 31, 1989. GDC filed for Chapter 11 bankruptcy in April 1990. Thomas J. Hutchison III served as court-appointed chief executive from 1990 to 1991. David F. Brown and Robert F. Ehrling, respectively the company's chairman and president, resigned shortly before the corporate guilty plea and were tried separately. Marketing executives Torre DeBella and Richard Reizen were also prosecuted. The defendants were convicted in August 1992 and sentenced in January 1993: Ehrling received a ten-year sentence, Brown and Reizen received sentences of up to five years, and DeBella received eight years, alongside fraud and conspiracy convictions as applicable. The Eleventh Circuit subsequently reversed the convictions and ordered all charges dismissed. United States v. Brown, 79 F.3d 1550 (11th Cir. 1996), provided the controlling appellate discussion and substantially altered the legal conclusion suggested by the original convictions. The bankruptcy process produced Atlantic Gulf Communities, which became associated with GDC's remaining development assets. Atlantic held extensive land and nine water-processing plants and considered a plan to raise approximately $200 million by selling part of those holdings, but the plan did not fully materialize. Atlantic filed for bankruptcy protection in 2001. After leaving prison following the appellate reversal, Ehrling rejoined Reizen in real-estate development; the pair acquired more than 3,000 vacant lots from Atlantic, contributing to the formation of New Vista Properties. GDC therefore ended as an operating company, while many of its communities continued as established Florida places whose roads, utilities, layouts, and land-use patterns reflected the company's development program.
- 2001
Atlantic Gulf Communities files for bankruptcy
[1]The successor entity associated with GDC's bankruptcy sought bankruptcy protection after an asset-sale plan failed to fully develop.
- 1996
Appellate reversal of executive convictions
[2]The Eleventh Circuit reversed the convictions of former GDC executives and ordered the charges dismissed.
- 1990
Mail-fraud plea and Chapter 11 filing
[1]GDC pleaded guilty to federal mail fraud in March and filed for Chapter 11 bankruptcy in April.
- 1962
Mackle brothers form Deltona
[1]Following a dispute with GDC chairman Gardner Cowles, the Mackle brothers left and established Deltona Corporation, a future competitor.
- 1962
Charles H. Kellstadt becomes GDC leader
[1]Former Sears chairman and chief executive Charles H. Kellstadt became GDC's chairman and chief executive.
- 1958
General Development Corporation created
[1]Florida Canada Corporation and the Mackle business merged to form General Development Corporation.
- 1956
Florida Canada focuses on real estate
[1]Florida Canada consolidated its development subsidiaries and concentrated most of its operations in Florida real estate.
- 1954
Florida development subsidiaries established
[1]Florida Canada and the Mackle interests created four related subsidiaries for property development on both coasts of Florida.
- 1937
Mackle operations move to Miami
[1]The Mackle Company relocated its operations from Jacksonville to Miami as it expanded in Florida.
- 1928
Chemical Research Corporation incorporated
[1]The Canadian company that later became Florida Canada Corporation was incorporated under the name Chemical Research Corporation.
Products and positioning
A large-scale Florida master developer that marketed residential land and planned communities supported by developer-built infrastructure and amenities.
Real-estate development
Master-planned residential communities
GDC's principal offering was large-scale residential communities assembled from subdivided land. The company planned entire districts rather than isolated house sites and marketed communities such as Port Charlotte, North Port, Port Malabar, Port St. Lucie, and Sebastian Highlands. Development commonly included internal roads and arrangements for utilities and public-facing amenities.
Residential real estate
Residential lots and homes
GDC sold residential lots and, in some cases, homes connected with its planned communities. The company's later legal problems centered on allegations that it had falsely inflated home prices and used fraudulent sales practices during the 1980s.
Infrastructure services
Community infrastructure and amenities
The developer built or operated infrastructure intended to support its communities, including roads, water-treatment and sewer facilities, golf courses, marinas, and landfills. This vertically integrated approach helped GDC present its developments as functioning communities rather than simple land subdivisions.
Controversies
1992
Convictions of former executives
Former chairman David F. Brown, president Robert F. Ehrling, and marketing executives Torre DeBella and Richard Reizen were convicted in connection with the fraud prosecution. The convictions were later reversed by the Eleventh Circuit, which directed that the charges be dismissed.
1990
Fraudulent home-sales allegations and corporate mail-fraud plea
Federal investigators examined allegations that GDC falsely inflated house prices and used fraudulent sales methods. The corporation pleaded guilty to federal mail fraud on March 16, 1990, and agreed in principle to establish restitution for qualifying purchasers from 1982 through 1989.
Brand decisions
1990
Chapter 11 restructuringOtherBackground
GDC faced growing infrastructure liabilities, fraud-related legal proceedings, and declining financial capacity.
Action taken
The company filed for Chapter 11 bankruptcy protection and operated with a court-appointed chief executive.
Aftermath
The bankruptcy process led to Atlantic Gulf Communities and the disposition of GDC-related land and utility assets.
1962
Mackle family separates and forms a competitorStrategyBackground
The Mackle brothers disputed with GDC chairman Gardner Cowles after the merger.
Action taken
Elliott, Robert, and Frank Jr. Mackle left GDC and founded Deltona Corporation.
Aftermath
Deltona became a competitor in Florida's large-scale community-development market.
1958
Merger creates General Development CorporationM&ABackground
Florida Canada Corporation and the Mackle business had developed related Florida property operations and subsidiaries during the 1950s.
Action taken
The two businesses merged to create General Development Corporation.
Aftermath
GDC became a major Florida land developer and expanded a model based on large planned communities and developer-provided infrastructure.
Sources4 sources
Cite this profile: Cite the canonical profile. /brand-wiki/general-development-corporation · Editorial policy · How profiles are compiled