Palm Coast, Florida – March 31, 2009 – Tesoro Club manager J.R. Congdon informed Tesoro Club members today that the chapter 7 (liquidation) bankruptcy sale of Ginn-LA assets closed today. The sale price was reported to be $10.9 million. It included two golf courses, the clubhouse, 353 building lots, and some commercially zoned land. One golf course transferred subject to a mortgage and a lease. The sale did not include the beach club property or Tesoro Preserve lots.
The chapter 7 sale of Ginn-LA assets at Quail West near Naples was also expected to close today. The value of that transaction for 262 building lots, two golf courses, and clubhouse is $13.5 million. The buyer is QW 2009 Investors, LLC. The investor group (registered March 13, 2009 with the State of Florida) consists of prominent Quail West builder, John McGarvey and some Quail West property owners.
The Tesoro communication to members announcing the sale is reproduced below:
March 31, 2009
Dear Tesoro Member,
I know that there has been much speculation about the pending sale of Tesoro and The Tesoro Club assets. I am pleased to announce that the Sale Closing has taken place and that West Coast Investors, LLC of Wellington, Florida has now taken possession of the club and property along with oversight of day to day operations, effective immediately. West Coast Investors, LLC and its affiliates are not new to country club ownership as it currently owns Palm Beach Polo Golf & Country Club and Martin Downs Country Club along with many other business interests throughout the country.
As part of the transition from Bankruptcy Control to West Coast Investors, LLC, the entire Club will be closed on Wednesday, April 1st 2009. Please understand this is a normal business practice with large scale transactions such as this one. Please accept our sincere apology for any inconvenience this may cause. It is our full intent to reopen on Thursday, April 2nd with a normal operating schedule, business as usual.
Additionally, it is fully understood that there is a lot of anticipation as to what changes, if any, will be made with respect as to how the Club and POA will operate, along with any new sales and marketing strategies. To that point, I am sure that everyone can appreciate it will take ownership some time to wrap their arms around all those issues plus many more, as this is a very large, complex project with many different operating aspects. As operating plans and strategies become finalized, details of those plans will be released via email.
One change of note that is for immediate release is that AlliedBarton, a national security firm, will be taking over the security detail for Tesoro effective Wednesday, April 1st. I am pleased to announce that as part of the agreement with AlliedBarton, the roving vehicle security patrol will be reinstated.
Thank you for your understanding and cooperation during this transition period and we look forward to seeing you around the club.
Please don’t hesitate to contact me if you have any questions.
Director of Club Operations
The Tesoro Club
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