Crescent Resources Bankruptcy Update – Expected Effect on Local Golf Courses
The Confirmation Hearing for Crescent’s Plan for Reorganization is scheduled for May 20. The plan has good news for club members.
Palm Coast, FL – May 13, 20 – Crescent Resources LLC is expected to emerge from Chapter 11 bankruptcy soon. Crescent and 130 of its subsidiaries declared bankruptcy June 10, 2009. Over the last decade, Crescent and its local subsidiaries, primarily Landmar Group LLC, constituted the second largest real estate development company in Palm Coast and Flagler County, FL. Of particular concern to local residents has been the uncertain fate of the four golf courses owned (in whole or in part) by Crescent – the three courses comprising The Grand Club (Cypress, Pines, and the closed Matanzas course) and Grand Haven Golf Club.
Eligible creditors’ opportunity to vote to accept the Reorganization Agreement ended May 10th. Crescent’s appointed information contact, The Garden City Group, Inc. failed to respond to repeated requests by GoToby.com to confirm the results of the vote. The confirmation hearing to accept the plan will be on May 20, 2010. If accepted, the effective date will follow shortly. The plan should give club members optimism.
Inspection of one of the bankruptcy documents, the 344-page Plan Supplement in Support of the Debtors’ Revised Second Amended Joint Plan of Reorganization should put some club members’ concerns to rest. A section headed "CONTRACT RELATED DOCUMENTS, Exhibit D: Schedule of Executory Contracts and Unexpired Leases to be Assumed Pursuant to Section 11.1 of the Planl. It’s list included the following items among contracts to be assumed :
Grand Haven Golf Club – Landmar Group LLC – Operating Agreement
Grand Haven Golf Club – Landmar Management LLC – Operating Agreement
The Grand Club – Landmar Group LLC – Operating Agreement
The Grand Club – Landmar Management LLC – Operating Agreement
Hampton Golf Inc. – Landmar Group LLC – Operating Agreement – Grand Haven Golf Club
Hampton Golf Inc. – Landmar Management LLC – Operating Agreement – Grand Haven Golf Club
Hampton Golf Inc. – Landmar Group LLC – Operating Agreement – The Grand Club
Hampton Golf Inc. – Landmar Management LLC – Operating Agreement – The Grand Club
Hampton Golf Inc., 20% – Landmar Management – Joint Venture Agreement – Grand Haven Golf Club
Hampton Golf Inc., 20% – Landmar Management – Joint Venture Agreement – The Grand Club
Further Clarification comes from another section in the same document – Exhibit F: Schedule of Customer Programs to be Assumed Pursuant to Section 11.10 of the Plan which states:
Schedule of Customer Programs to be Assumed Pursuant to Section 11.10 of the Plan
In the ordinary course of business and as is customary in the real estate development business, the Debtors instituted and engaged in certain activities to develop and sustain a positive reputation and relationship with their customers. To that end, the Debtors implemented various customer programs and policies designed to ensure customer satisfaction, drive sales, meet competitive pressures, develop and sustain customer relationships and loyalty, improve profitability, and generate goodwill for the Debtors and their products and services. Pursuant to
Section 11.10 of the Plan, the following is a list of the communities or projects at which the Debtors intend to (i) honor all of the rights (monetary or otherwise) of their customers arising under the various operating agreements, membership agreements, and transfer agreements (the “Customer Programs”) relating to such communities or projects, and (ii) perform all of the Debtors’ post-Effective Date obligations associated with such Customer Programs.
To the extent that any Customer Program is contained in or made part of an executory contract or unexpired lease, such agreement appears on the Schedule of Executory Contracts and Unexpired Leases to be Assumed Pursuant to Section 11.1 of the Plan.
Inclusion herein shall not expand or alter any rights or obligations under any of the Customer Programs, nor shall it create any rights or obligations that do not otherwise exist, if at all, under the terms of the Customer Programs. Likewise, inclusion herein shall not alter or otherwise modify the Debtors’ or Reorganized Debtors’ rights to modify the rights and obligations relating to the Customer Programs pre- or post-confirmation in accordance with the terms of such Customer Program.
The Schedule F list includes both Grand Haven Golf Club and The Grand Club.
One cannot be certain of what will happen until the new company emerges from bankruptcy, but local club members should be encouraged based on the contents of this document. Matanzas’ future remains murky. Clearly no golf course renovation can be expected there until the value of existing courses exceed the cost of renovating Matanzas.
Worth more as Golf Course
So they will just sit and wait for a recovery,just like many homeowners are doing. The court couldn’t force the sale, as the highest and best use is still as a Golf Course, due to the land locked layouts. You can bet a reduction in appraised value will be granted by the county assessor, now that the court has dropped the hammer.
Reply to George
August 1976
Mr. and Mrs. George E. Chuddy
28 Lake Drive
Darien,Connecticut 006820
Dear Mr. and Mrs. Chuddy:
Because you have made a commitment in Palm Coast by establishing your home here, we believe you should be aware of an agreement that we recently reached with the Federal Trade Commission.
ITT Community Development Corporation ( ICDC) has signed a Consent Agreement with the Federal Trade Commission (FTC) concerning the furture development of Palm Coast. Signing the agreement does not constitute an admission that any law has been violated, as the agreement itself states. We feel the agreement is important in order to attain our primary goal — the development of Palm Coast as a balanced, well-rounded community.
An important part of the Consent Agreement calls for the execution of plans, within six years, which we believe, in the long run, will be good for Palm Coast. In brief, among other things , we have agreed to the following:
1. A shopping center with at least 400,000 square feet of floor space will be provided.We are already in contact with prospective developers of individual stores, including a supermarket.
2. With appropriate governmental agreement, a traffic interchange on Interstate Highway 95 will be constructed to serve Palm Coast according to plans we submitted to the Florida Department of Transportation in August 1972. ICDC will pay for the interchange as originally designed.
3. An office and research park area will be developed with appropriate roads and utilities to serve it and landscaping to make it an attractive part of Palm Coast. Planning for this already is under way.
4. A multi-purpose office building, with at least 5,000 square feet of floor space, will be constructed for tenants in the office and reserch park. This structure, also, is under planning.
5. We will move the headquarters of ICDC to Palm Coast. We plan to be substantial employer contributing much to the economy of Palm Coast and Flagler County.
The agreement also provides for us to restrict our developoment efforts to 42,000 acres for a period of 15 years ( with possible extension for another five years). This will allow appropriate construction in areas set aside for commercial establishments, light industry, recreation, preservation and conservation and other residential uses. Moreover, during this 15- or 20-year period, sales will be limited to 48,000 registered lots of which over 36,000 already have been sold.
The aforementioned are some of the most important points contained in the Consent Agreement as it affect you and the balanced development of Palm Coast. You will also be interested in knonwing of additional projects that we believe further enhance the community.. Here are some examples:
We have donated two acres of land, adjoining the furture Emergency Services Building site, to the Palm Coast branch of the YMCA to be used as the location fo a Community Activities Center. We will bear the cost of constructing this facility for all community residents and for sharing in operational expenses during its first three years — a gift totalling more than $400,000.
We have provided as a gift a site of 57 acres to the Flagler County School Board for a junior-senior high school. The first class of proud seniors was graduated from Flagler-Palm Coast High School last spring.
We have designated a number of sites for recreation parks, preservation and conservation, and other public areas. One site, in Section 1-A, now is being developed and a paved bicycle path has been constructed. Another bike path, starting near the Yacht Club, is in use. We are working with the Palm Coast Civic Association so that Palm Coast residents can form a legal entity to which we can donate oa one-acre site and an Emergency Services Building to house fire and security forces, an ambulance, and facilities for community activities. A preliminary blueprint fo the structure has been approved by a committeee from the Community.
As you know, we donated a $36,000 pumper fire truck to the Palm Coast Volunteer Fire Department , which will be stationed in the Emergency Services Building..
Palm Coast’s first church building, St. Mark by the Sea Lutheran Church, ws dedicated on the morning of July 4. Catholic and Baptist church organizations have purchased sites for their proposed churches. And Temple Beth Shalom is considering building a Synagogue. We at ICDC are very pleased, as we know citizens of Palm Coast are, to witness this growth and progress in the vitally important religioius life of our community.
Palm Coast’s first financial institution, a branch of the Security First Federal Savings and Loan Association, recently opened for business. We believe others will follow with the growth of the community.
These and many other facilitites will be needed to serve Palm Coast’s growing population. And it is growing. During the last nine months, construction of over 200 homes began. We now have over 1,000 people living and enjoying the good life at Palm Coast.
In closing, let me assure you that the ITT Community Development Corporation believes very strongly in the furture of Palm Coast and that we are determined that it will grow and progress in a balanced and healthy manner.
Sincerely yours,
Alan Smolen
President.
Reply to George
August 1976
Mr. and Mrs. George E. Chuddy
28 Lake Drive
Darien,Connecticut 006820
Dear Mr. and Mrs. Chuddy:
Because you have made a commitment in Palm Coast by establishing your home here, we believe you should be aware of an agreement that we recently reached with the Federal Trade Commission.
ITT Community Development Corporation ( ICDC) has signed a Consent Agreement with the Federal Trade Commission (FTC) concerning the furture development of Palm Coast. Signing the agreement does not constitute an admission that any law has been violated, as the agreement itself states. We feel the agreement is important in order to attain our primary goal — the development of Palm Coast as a balanced, well-rounded community.
An important part of the Consent Agreement calls for the execution of plans, within six years, which we believe, in the long run, will be good for Palm Coast. In brief, among other things , we have agreed to the following:
1. A shopping center with at least 400,000 square feet of floor space will be provided.We are already in contact with prospective developers of individual stores, including a supermarket.
2. With appropriate governmental agreement, a traffic interchange on Interstate Highway 95 will be constructed to serve Palm Coast according to plans we submitted to the Florida Department of Transportation in August 1972. ICDC will pay for the interchange as originally designed.
3. An office and research park area will be developed with appropriate roads and utilities to serve it and landscaping to make it an attractive part of Palm Coast. Planning for this already is under way.
4. A multi-purpose office building, with at least 5,000 square feet of floor space, will be constructed for tenants in the office and reserch park. This structure, also, is under planning.
5. We will move the headquarters of ICDC to Palm Coast. We plan to be substantial employer contributing much to the economy of Palm Coast and Flagler County.
The agreement also provides for us to restrict our developoment efforts to 42,000 acres for a period of 15 years ( with possible extension for another five years). This will allow appropriate construction in areas set aside for commercial establishments, light industry, recreation, preservation and conservation and other residential uses. Moreover, during this 15- or 20-year period, sales will be limited to 48,000 registered lots of which over 36,000 already have been sold.
The aforementioned are some of the most important points contained in the Consent Agreement as it affect you and the balanced development of Palm Coast. You will also be interested in knonwing of additional projects that we believe further enhance the community.. Here are some examples:
We have donated two acres of land, adjoining the furture Emergency Services Building site, to the Palm Coast branch of the YMCA to be used as the location fo a Community Activities Center. We will bear the cost of constructing this facility for all community residents and for sharing in operational expenses during its first three years — a gift totalling more than $400,000.
We have provided as a gift a site of 57 acres to the Flagler County School Board for a junior-senior high school. The first class of proud seniors was graduated from Flagler-Palm Coast High School last spring.
We have designated a number of sites for recreation parks, preservation and conservation, and other public areas. One site, in Section 1-A, now is being developed and a paved bicycle path has been constructed. Another bike path, starting near the Yacht Club, is in use. We are working with the Palm Coast Civic Association so that Palm Coast residents can form a legal entity to which we can donate oa one-acre site and an Emergency Services Building to house fire and security forces, an ambulance, and facilities for community activities. A preliminary blueprint fo the structure has been approved by a committeee from the Community.
As you know, we donated a $36,000 pumper fire truck to the Palm Coast Volunteer Fire Department , which will be stationed in the Emergency Services Building..
Palm Coast’s first church building, St. Mark by the Sea Lutheran Church, ws dedicated on the morning of July 4. Catholic and Baptist church organizations have purchased sites for their proposed churches. And Temple Beth Shalom is considering building a Synagogue. We at ICDC are very pleased, as we know citizens of Palm Coast are, to witness this growth and progress in the vitally important religioius life of our community.
Palm Coast’s first financial institution, a branch of the Security First Federal Savings and Loan Association, recently opened for business. We believe others will follow with the growth of the community.
These and many other facilitites will be needed to serve Palm Coast’s growing population. And it is growing. During the last nine months, construction of over 200 homes began. We now have over 1,000 people living and enjoying the good life at Palm Coast.
In closing, let me assure you that the ITT Community Development Corporation believes very strongly in the furture of Palm Coast and that we are determined that it will grow and progress in a balanced and healthy manner.
Sincerely yours,
Alan Smolen
President.
bunch of liars
I built a house behind the 15th green of the Matanzas Woods Golf Course. I looked at a dozen lots before selecting. The minute ground was broken for my house, the course was closed. As a "Founding Member", joining Nov. 2007, I was assured the Grand Club would go private and Matanzas was to be renovated like the other two. The two golf courses that were renovated are nothing more than a daily fee course, just like the course the city of Palm Coast bought from Centex and renovated. I mostly play the city course.
I had expected to be able to fall out of bed and play Matanzas Woods. This has become nothing more than a land preserve, with all kinds of local wildlife inhabiting Matanzas Woods. People go walking, jogging and cycling on this property, even though they are tresspassing. I have been told that several kinds of poiseneous snakes, have been spotted, since Matanzas Woods is permanently closed.
Of course, anyone who moves for whatever reason, no longer lives on a golf course. As we all know golf course lots command a greater value.
The real rub is that I have been told by people who played Matanzas Woods, that it was the best of the three.
SHOCKER!
There are actually poisonous snakes out there! Well now that calls for action…
The Golf Courses
Matanzas Woods Golf Course was the best, but before the fires! I am very disappointed to hear that it has closed and is wasting away. Stopped in Palm Coast years ago to check it out, and later ITT came to my house in NY and offered me a free trip back to Palm Coast and I played golf. Bob Flanders from ITT took us around and showed us some building lots, and we purchased one, which we still have. Over the years we vacationed there and I always played golf. I met many people living there, It was nice,, the golf was affordable back then, you could be a member for $1800 a year, and play all 4 golf courses. And the golf courses were busy!
We are not so sure we want to move there now, seems a lot of changes have taken place, and not so sure the changes going on are appealing.
The Golf Courses
Matanzas Woods Golf Course was the best, but before the fires! I am very disappointed to hear that it has closed and is wasting away. Stopped in Palm Coast years ago to check it out, and later ITT came to my house in NY and offered me a free trip back to Palm Coast and I played golf. Bob Flanders from ITT took us around and showed us some building lots, and we purchased one, which we still have. Over the years we vacationed there and I always played golf. I met many people living there, It was nice,, the golf was affordable back then, you could be a member for $1800 a year, and play all 4 golf courses. And the golf courses were busy!
We are not so sure we want to move there now, seems a lot of changes have taken place, and not so sure the changes going on are appealing.