Two Crescent Resource Golf Communities Wonder What Will Happen Next
One golf community with 150 unsold lots, another nearly built out, both in Arizona face an uncertain future as real estate development company Crescent Resources LLC declares bankruptcy.
Palm Coast, FL – July 1, 2009 – According to Crescent Resources contacts, the four Palm Coast, FL golf courses affiliated with Crescent are not part of the bankruptcy of Crescent and 120 of its subsidiaries. Unfortunately, two Crescent golf communities in Payson, Arizona are not so lucky. Both Rim Golf Club and Chaparral Pines, face uncertain futures according to a Monday post on Payson Roundup.
Rim Golf developer, Rim Golf Investors (RGI), was one of the 120 Crescent subsidiaries joining the parent in bankruptcy. The community is only partially developed with 150 unsold lots. The monthly membership dues are $995. Until recently, RGI subsidized club expenses by paying a nearly $150,000 monthly dues payment for the unsold lots. But when sales stopped and the financial climate worsened, RGI stopped paying.
Members were upset when RGI continued to promote lot sales while avoiding dues payment and began a lawsuit. The Chapter 11 bankruptcy filing has stalled the lawsuit. RGI is already approximately $450,000 in arrears while members continue to pay their monthly dues. Members wonder what will happen next. The answer is in the hands of the bankruptcy court and its appointed trustee, but it looks like the club will have to find a way to continue with a $150,000 monthly deficit until the bankruptcy is resolved.
“RGI has already cut back on many club services, fired staff and told the club’s golf pro, head chef, head agronomist and several of the security personnel that their jobs are in jeopardy because of the lack of funds, which was caused by RGI’s failure to pay monthly dues,” said members’ attorney Jeffrey Goulder.
Chaparral Pines Investors is the other Payson area Crescent subsidiary included in the Chapter 11 filing. Unlike Rim Golf, Chaparral Pines is nearly built out. Crescent owns only 13 lots. Here the bankruptcy did not interrupt a lawsuit but causes concern among members none the less. A deal had been struck for members to buy the club for $3.5 million. The contract was to close Oct 10, but the bankruptcy judge may block the sale because the club might fetch more for creditors at a public auction, leaving members in limbo.
Hampton Golf Club sells Grand Club
I have heard that the Grand Club (Pine Course,Cypress Course and Mantanzas Course ) owned by Hampton Golf Clubs have sold to Club Corp., out of Dallas, Texas. Is this true ?