GoToby.com originally reported the payment was due by the end of 2011. Read Mercer Reynolds’ letter to property owners.
As is common in our industry, the company has operated with a line of credit financed by a group of banks. With the support of these banks, we have been able to operate within this credit line even during this soft real estate market. The question has been asked often, and we think it is important for you to know, this credit line is for use only by Linger Longer Development Company (LLDC), its joint ventures, affiliates, and the businesses owned by LLDC and its subsidiaries, namely Reynolds Plantation, Great Waters, The Landing, and Achasta. As mentioned previously, other projects which are either owned or managed by Reynolds Companies outside of the Lake Oconee area are completely separate from the ownership and management of LLDC and are not financed or otherwise funded by LLDC.
The line of credit was up for renewal at the end of 2010. In order to be granted a three year renewal of our credit line, Jamie and I have pledged a number of additional assets (totaling approximately $60 million) to the banks. In addition to our contribution, a significant paydown of $45 million is required within our debt structure by the end of April 2011.
Knowing this line of credit was going to be up for renewal, the company pursued a number of different alternatives over the past year to generate the funds needed to satisfy the paydown requirement. These options included selling off non-core property, raising funds through 3rd party investments into LLDC, and a host of other alternatives. After reviewing these alternatives, we concluded the best way to generate the $45 million paydown in this tight market is the sale of the Club assets and amenities (golf courses, clubhouses, marinas, Lake Club, pools, tennis facilities, etc.).
Given the significance of this decision, we have spent a considerable amount of time evaluating a number of purchasers; these include:
* An independent third party, which has made an offer
* A smaller group of property owners
We are proud of all that has been accomplished here at Reynolds Plantation over the past twenty plus years. There is no doubt the success we have enjoyed to date and the future successes of this community are heavily dependent on the satisfaction and support of our property owners. Our decisions will be based on what best preserves your property values, lifestyle, environment, and the character of the community.By working together, we are convinced we can accomplish all of our mutual goals.
1. How do you expect the sale of the Club to affect my membership or my use privileges?
2. What happens to my initiation deposit paid to the Club?
3. What is the financial status of the Club operations?
4. What will happen to my membership dues when the Club is sold?
5. How will you ensure the quality of Club services is not affected after the sale?
6. What is being done to ensure the long term stability of LLDC?
- The long term extension of the line of credit by the banks which shows strong support for the viability of our business.
- The recent contribution of an additional $60 million in assets by the Reynolds family demonstrates their continued confidence and commitment.
- There will be a substantial reduction in debt with the sale of the Club amenities.
- We have significantly reduced cost to improve the ongoing operational efficiencies of the company while maintaining the Reynolds Plantation lifestyle.
A: Golf courses, clubhouses, maintenance facilities, marina facilities, pools and cottage rental operation, The Lake Club, the Jackson House, the Nature & Heritage Center, Administration Building, Central Services Building and furniture, fixtures and equipment related to such facilities.
8. What is the company’s investment in the Club amenities?
9. How will the sale of the Club affect the construction of the Richland Golf Course?