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Court Orders Conduct Of Sale For Golf Development
A Supreme Court of British Columbia court ordered foreclosure sale of some 300 acres in Ucuelet where a proposed $650-million oceanfront golf development was to be built, including a Jack Nicklaus-designed signature course, may now have a better chance of being dealt with, says John L. McKinnon, a spokesman for the first mortgage loan syndicate.
In addition to the Victoria court issuing a conduct of sale for several properties owned by Wyndansea Hotel Inc., a receiver manager has also been appointed.
In an article by Keven Drews, writing for the Westcoaster.ca, an independent news source for the Alberni-Clayoquot region on Vancouver Island, McKinnon is quoted as saying: "It just basically puts everything into a structured and organized form that can be dealt with,"
"It's good for Ucluelet. It will probably be easier for someone to move forward now."
Elke Loof-Koehler, a Ucluelet developer, planned to develop the $650-million Wyndansea Oceanfront Golf Course on the lands. Plans included 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.
McKinnon said the orders cover several Ucluelet properties, including the Signature Circle lots, the site of a proposed hotel, the site of proposed condos, the proposed golf course lands, several residential lots and a chunk of property known as Lot 5 - a total of approximately 300 acres.
McKinnon said many of the properties were subject to liens and charges and were not finished.
Under the conduct of sale, said McKinnon, Loof-Koehler still owns the property and she can approach the loan syndicate if she gets a new investor to back her project, but the loan syndicate can also sell the properties with court approval if a new investor comes forward.
He said the receiver manager also has borrowing power, initially for $50,000, allowing him to write a report to the court that would examine and explore what must be done and recommend a budget to the court, primarily to finish the Signature Circle lots.
McKinnon said it appears that a bond currently held by the District of Ucluelet is not sufficient to finish the Signature Circle lots.
After making a presentation to the court, McKinnon said, the receiver manager could apply for further borrowing powers to finish off Signature Circle lots. But before the court approves any borrowing, the receiver manager must prove to the court that borrowing will enhance value, he added.
McKinnon said Loof-Koehler still has all her rights and remedies under foreclosure proceedings.
"I really hope Elke does find a partner."
Whoever develops the property, added McKinnon, still owes the District of Ucluelet $1 million.
Keven.drews@westcoaster.ca
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