Remington Ranch Files Chapter 11 - Good news?

[Pete_Pittock]

Remington Ranch owners have filed for Chapter 11 bankruptcy protection.

http://www.bendbulletin.com/apps/pbcs.dll/article?AID=/20100122/BIZ0102/1220360 (most info)

http://portland.bizjournals.com/portland/stories/2010/01/18/daily46.html

The resort near Redmond, Oregon had planned, among other things, three golf courses, the most prominent being Doak's Wicked Pony. I think nine holes had been completed. Reported liabilities were  $10M-$50M with fewer than fifty creditors.

[Tom_Doak]

I heard from the client last week about that.

They have filed Chapter 11 because they are actually trying to reorganize and get the first course finished!  I will believe it when they start paying again, but it was surprisingly good news.

While I'm on the subject, I'll also mention that I heard from the new general manager at St. Andrews Beach last week ... the course has officially been sold to new ownership.

[Pete_Pittock]

Great to hear that he hopes to get the course completed.

[David_Tepper]

Tom D. -

If only you had done a feasibility study!

DT

[Mac Plumart]

Told ya!!   

[Tom_Doak]

David:

I always did have my suspicions about the fate of this particular project ... all of Bend was clearly in a bubble when we started construction; rental houses for the crew were astronomical for a small town in Oregon.  And of course there were 3-4 other big projects going on concurrently, in a town of 60,000.  But when people in Seattle and California started being unable to sell their homes in order to move to Bend, the market collapsed VERY quickly.

All that said, it's a beautiful place to live, and once liquidity returns to the housing market perhaps it will start growing again.

[Rob Rigg]

Tom,

I think WP will really put Bend on the map as a great golfing destination which is why I have always been so interested in the course, and of course it was planned to be very walkable (unlike Brasada and pretty much unlike Tetherow) which is much appreciated.

Do you think the course could survive as a stand alone in that area without a ton of homes to support it?

Is the Developer planning on doing that or still clinging to the dream of selling sites?

Are they considering creating a "destination" course with a lodge, some basic cottages, etc.? What a place that is to golf with the cascades in the distance and the high desert air.

Also - Nine have been finished right? Have they gone to rot or were they maintained the past year or so? It would be shame if they had to re-seed all of them as I would imagine that is not cheap.

Best of luck on getting back in there!

[Garland Bayley]

Robb,

Oregon land use laws require these resorts that get permitted and built to have a destination component. That is why Tetherow for example will have a hotel and guests will be able to play the course. However, the bad news about WP is that the resort is planning three courses, one of which will be for the resort guests. The other two will be private. One of the privates is WP.

[Tom_Doak]

Rob and Garland:

The model for Wicked Pony is (or was) a bit more complicated than either of you have stated.  I'm not sure they are still thinking the same ... for example Garland, the first course would have to have a public access component until a second, resort course was open for play.

But, it's not worth worrying about until they get started up again.  If they do, I'll let you know.

[Rob Rigg]

Garland,

That is why I was wondering if they would alter the model - make it more like Tetherow will supposedly be at some point.

There is a way that the developer could finish the course, have a private element but also have a public and public lodging element.

To really consider building 3 new courses, a million homes and a big hotel in Bend these day would require a lot of bong hits.