Wyndandsea Resort Survival Is Now Day-To-Day

A day after a British Columbia Supreme Court Justice lifted a court order protecting Marine Drive Properties Ltd., and its Wyndansea Oceanfront Golf Resort development near Ucuelet, optimism for the future of this luxurious project seems as high as ever.

"It doesn't mean just because we've won this action the whole thing goes out the window," said John McInnon, a spokesman for the loan syndicate. "Nothing has changed. The master plan is still in place."

The following contains files written by Keven Drews for the WESTCOASTER.ca

The proposed plans for the Wyndansea Oceanfront Golf Resort call for an 18-hole golf course, designed by Jack Nicklaus, the Jack Nicklaus Golf Club of Canada, an exclusive 30-lot subdivision called Signature Circle and a five-star hotel and luxury condo development on 148 hectares of land.

However, court records show three companies - Marine Drive Properties Ltd., Wyndansea Hotel Inc., 0707624 B.C. Ltd. - owned by Ucluelet developer Elke Loof-Koehler ran out of money more than one year ago, haven't been able to sell lands, arrange financing or find a new partner and owe creditors $52,097,498.

On Jan. 15, Loof-Koehler applied for protection under the Companies' Creditors Arrangement Act. B.C. Supreme Court Justice Bruce Butler issued an order, staying all proceedings against Loof-Koehler's companies that same day. However, when the stay was lifted this past Tuesday, Feb. 10, Justice Butler ruled that any plan of compromise or arrangement was "doomed to fail." He also said a number of mortgagees are opposed to any compromise.

According to McInnon, the loan syndicate hopes to get court backing so it can finish off the Signature Circle subdivision and get some of the lots on the market. He says he still backs the project and calls the 148 hectares, upon which the resort is to be built, a great site and a great location.

When work eventually resumes, Loof-Koehler could still be involved by herself or with a partner.

"I hope she does get a partner," says McInnon..

In fact, an affidavit filed by Loof-Koehler in the Supreme Court of B.C. Jan. 28, identifies one potential investor as PolarStar Investments Ltd.

Supporting documents indicate the company was willing to invest $20 million for 50 per cent equity in the golf course, hotel, and real estate, $12 million for preferred shares and $18 million for securitized mortgages. PolarStar is also asking for board representation and a six per cent arrangement fee.

A Jan. 18 letter written to Loof-Koehler from John R. Deelman, president and CEO of Oakstreet Capital, an investment brokerage firm, indicated PolarStar was interested in drafting a memorandum of understanding and wrapping up final terms by the end of February.

Meantime, Jack Nicklaus and the Nicklaus Companies say they continue to support the project. "Although these are difficult times for many projects around the world, it is our understanding that Marine Drive Properties is confident in the progress they have made toward finding additional financial sources capable of completing the project," said Scott Tolley, director of communications for Jack Nicklaus & the Nicklaus Companies, in an email to the Westcoaster.ca.

"We look forward to the opportunity to complete the design of the golf course at Wyndansea. It is a spectacular setting for golf in a beautiful part of the world, and hopefully the opportunity will come soon to realize the collective vision for this unique golf experience."

The Wyndansea Oceanfront Golf Resort remains on the Nicklaus design website, (http://www.nicklaus.com/design/ucluelet/).

Former Ucluelet mayor Dianne St. Jacques, who is currently a candidate for the BC Liberal Party in this spring's provincial election, said she, too, is confident the project will continue.

"It's a great project," she said. "Anybody that's been on the property can see how spectacular it is."

Keven.drews@westcoaster.ca