[Steve_ Shaffer]

Doesn't look good for the future. Still in Bankruptcy Court. A lot of litigation. The lawyers meters are running...

http://www.philly.com/philly/news/local/20130206_Cherry_Hill_s_Woodcrest_golf_club_has_future_up_in_the_air__closing_threatened.html

Here is last year's update:

http://www.golfclubatlas.com/forum/index.php/topic,51851.0.html

[Joe Bausch]

A couple of years ago on a Halloween I walked Woodcrest and snapped a few pics:

http://xchem.villanova.edu/~bausch/images/albums/Woodcrest/

(yes, I need to cull the herd in that album as it has over 200 photos!)

[Patrick_Mucci]

Steve & Joe,

I always liked Woodcrest and felt that the club was a victim of the non-pure golfer member's quest to create a Taj Mahal  focused on non-golf activities.

I think so many clubs expanded to ridiculous proportions.

Someone stated it very well when they said that clubs expanded their facilities to handle the very large, very rare event, ignoring the club's ability to handle the routine bread and butter events which were where the utilization was.

Too bad, it's a neat course with some really great holes

[Mark McKeever]

Very unfortunate to see this is still on a downward path.  I really need to get over there to see the course if they do somehow open back up in the spring...

Mark

[Steve_ Shaffer]

Similar article from the Courier-Post:

http://www.courierpostonline.com/apps/pbcs.dll/article?AID=2013302050029&nclick_check=1

[Jim Eder]

Joe,

Thank you for the link to the photos. Personally I am glad you didn't remove some. Great photography.

It looks like an absolutely wonderful place to play golf. I hope that things work out for the course and the members.

[Dan Herrmann]

Woodcrest has some wonderful par 3's, and I'd love to see them recover and rediscover the Flynn that's still there under the trees.

[Joe Bausch]

Any chance W'crest gets a 'sweet deal' from the township like LuLu did?  I'm guessing not as the debt is ginormous.

[Jason Walker]

Any chance W'crest gets a 'sweet deal' from the township like LuLu did?  I'm guessing not as the debt is ginormous.

0.0% chance

[Joe Bausch]

Any chance W'crest gets a 'sweet deal' from the township like LuLu did?  I'm guessing not as the debt is ginormous.

0.0% chance

Dear Jason,

So you're telling me there's a chance... *YEAH!*

Sincerely,
Lloyd
-----------------

[Bob Harris]

Not a good sign, Woodcrest is no longer listed as a member club on the GAP website and this letter is on the Woodcrest website:

February 12, 2013 
 
Dear Club Members:
As many of you know, the Bankruptcy Court has appointed me to serve as the
chapter 11 trustee for the Woodcrest Country Club ("Club").  This means that the
Board and management are no longer running the Club.  My responsibility as
Trustee is to take over that role and to take control of the Club and all of its assets,
which I have done.  Be assured, your personal property is secure and we will
notify you of specific dates in the near future when members may pick up their
possessions.  Please, do not just show up at the Club as no one is authorized to let
you in.   
 
We are presently assessing the situation of the Club to determine if we will be able
to open for the spring golf season.  We also are considering a possible sale of the
property.  Some of you have heard rumors that the Club is being sold at the end of
February.  That is not correct.  No decisions have been made at this juncture. 
 
I will keep you informed as this process develops.  Should you have any questions,
do not hesitate to contact by email at fatell@blankrome.com.

[Dan Herrmann]

Ughh.  Nobody wants to get THAT letter!

[Eric Strulowitz]

Not a good sign, Woodcrest is no longer listed as a member club on the GAP website and this letter is on the Woodcrest website:

February 12, 2013 
 
Dear Club Members:
As many of you know, the Bankruptcy Court has appointed me to serve as the
chapter 11 trustee for the Woodcrest Country Club ("Club").  This means that the
Board and management are no longer running the Club.  My responsibility as
Trustee is to take over that role and to take control of the Club and all of its assets,
which I have done.  Be assured, your personal property is secure and we will
notify you of specific dates in the near future when members may pick up their
possessions.  Please, do not just show up at the Club as no one is authorized to let
you in.   
 
We are presently assessing the situation of the Club to determine if we will be able
to open for the spring golf season.  We also are considering a possible sale of the
property.  Some of you have heard rumors that the Club is being sold at the end of
February.  That is not correct.  No decisions have been made at this juncture. 
 
I will keep you informed as this process develops.  Should you have any questions,
do not hesitate to contact by email at fatell@blankrome.com.

So Sad.  Woodcrest was the first private club I ever played.  It was a great day out, was treated like royalty by someone looking for my business, and they got it!

I understand golf in Jersey is having a tough time.  An amazing golf state, no so much for public, but private is just amazing.  I stay in touch with family and friends  up there, understand times are real tough, memberships much easier to come by, bargains to be had.

[Joe Bausch]

The latest on Woodcrest:

http://www.philly.com/philly/news/20130215_Judge_refuses_to_reconsider_trustee_for_Cherry_Hill_s_Woodcrest_golf_course.html

[Patrick_Mucci]

Joe,

I'm totally stunned by the amount of debt.

Over the years I visited Woodcrest I couldn't help but notice how it was evolving into a Taj Mahal vis a vis additions/renovations to the clubhouse.

But the amount of debt is staggering.

The members and board have no one to blame but themselves

They were reckless, financially irresponsible.

What on earth possessed them to go down the path of grandiose expansion without paying as you go ?  ?  ?

I thought the par 3's were exceptional and really liked the course.

I also liked the original design with the holes across the road.
Other than # 1, there are some really neat early holes.

Too bad, it was a really neat course.

[Dan Herrmann]

Holy cow.  You're right on the money, Patrick.  Just read the article:  "In a reorganization plan filed in January, Woodcrest reported claims of more than $20 million, including $11.8 million by the bank. The plan promised Sun $3.4 million, based on an appraisal of the property."

As horrible Woodcrest's BOD must have been to incur such debt, where the heck were the lending institution's controls to prevent such loans from being made?  

While the rest of the nation was in recession and focused on REDUCING debt, Woodcrest was spending like they were printing their own money.  Seems like incompetence, or worse, was omnipresent.

[Eric Strulowitz]

Joe,

I'm totally stunned by the amount of debt.

Over the years I visited Woodcrest I couldn't help but notice how it was evolving into a Taj Mahal vis a vis additions/renovations to the clubhouse.

But the amount of debt is staggering.

The members and board have no one to blame but themselves

They were reckless, financially irresponsible.

What on earth possessed them to go down the path of grandiose expansion without paying as you go ?  ?  ?

I thought the par 3's were exceptional and really liked the course.

I also liked the original design with the holes across the road.
Other than # 1, there are some really neat early holes.

Too bad, it was a really neat course.

Indeed, it was a REALLY neat course.  So many smart people there, just mind boggling some of the poor decisions that must have been made. 

A gem of a course.  I hope a Plan B surfaces somewhere. 

[Jason Walker]

Holy cow.  You're right on the money, Patrick.  Just read the article:  "In a reorganization plan filed in January, Woodcrest reported claims of more than $20 million, including $11.8 million by the bank. The plan promised Sun $3.4 million, based on an appraisal of the property."

As horrible Woodcrest's BOD must have been to incur such debt, where the heck were the lending institution's controls to prevent such loans from being made?  

While the rest of the nation was in recession and focused on REDUCING debt, Woodcrest was spending like they were printing their own money.  Seems like incompetence, or worse, was omnipresent.

Follow the money....

One hint--some of the Sun guys may or may not have been influential members at one time

[Mike_Trenham]

I would like to know how much of the debt is third party hard dollars, vs. interest and penalties or member deposits.

That appraisal looks way too low given the number of acres, value must be on a forced sale not a seller wiling to wait for a proper buyer.

[Steve_ Shaffer]

Jason,

You are correct. Follow the money. Sun and Woodcrest were intertwined for years. Officers of the bank were on the Board if I remember correctly. I suggest you look at prior Woodcrest threads   for details.

[Steve_ Shaffer]

Follow the money:

http://articles.philly.com/2010-10-27/business/24953565_1_club-leaders-new-clubhouse-club-president

[Patrick_Mucci]

Jason,

I wouldn't care if the Presidents of ten banks were members, $ 20,000,000+ of debt equals $ 50,000 or $ 66,667 per member at 400 and 300 members respectively.

What  kind of BOG and what kind of membership would agree to that insanity.

In addition, at 5 %, that's $ 1,000,000 a year in interest or $ 2,500 or $ 3,334 per member at 400 and 300 members respectively.
So in addition to operational costs reflected in your dues you have to factor in interest and principal payments and I'll guarantee you that they didn't carry the full weight in their dues with an amortization period of 20 years or less.

It is reckless and grossly irresponsible on both the membership's and BOG's.

This is what happens when:

1.    You transition a golf club to a country club:
2.    Accept new members who aren't "golfers"
3.    Try to be all things to all factions of the membership

The amount of debt is so staggering that I wouldn't have believed it had I learned of it by word of mouth.

"Pay as you go" and avoiding ANY debt is the only prudent way to run a golf/country club

I'd like to see how and why they acquired $ 20,000,000+ in debt

[BHoover]

Patrick, I couldn't agree more. Unfortunately, fiscal responsibility does not seem to be popular over the past 10-15 years, whether among golf/country clubs, individuals or governments.

It's incredible, and at the same time unbelievable, that a board and membership would be so blind as to incur a mountain of debt for, let's face it, frivolity. An ostentatious clubhouse and/or other facilities seem to be the ticket to financial ruin. A board that approves these things likely is negligent at best or reckless at worst. The only thing protecting the board from breach of fiduciary duty is that the members also stupidly approved taking on the debt.

[Steve_ Shaffer]

Brian& Pat,

100 members left after the vote to expand the clubhouse. They knew.

There's more to this than meets the eye. Read the article I just posted.

[Patrick_Mucci]

Steve,,

The article explains $ 8,000,000, but where is the other $ 12,000,000 coming from.

Even $ 8,000,000 is staggering.

By making the club and not each member responsible is an indication that the membership did NOT support the clubhouse project, but the BOG wanted to go ahead despite the lack of member support and obligation.

Both factions have no one to blame but themselves.

I would assume the property is zoned for single family homes, but with the waterways running through the property, I don't see how they can come up with a high number of home sites.

At 8 or 20 million of debt the banks are going to take a bath if they sell it for development or to a party interested in maintaining the golf club.
And, the longer they hold onto it, the more the value as a club deteriorates, and the longer the Federal government will hammer them for holding a non-performing asset and/or bad loan

A lot of very smart guys made a lot of stupid mistakes, but the words of the great "H" told to me when I was 22, ring true.
"I don't care how smart they are or how successful they are, the moment the front wheels of their cars pass through the front gate, they turn into idiots."

Truer words were never spoken at Woodcrest

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