The developers of the Hunters Point golf course and housing community in Nampa have filed for Chapter 11 bankruptcy, saying the weak economic climate and the squeeze on home mortgages has dried up the companys cash flow. Greg Bullock, a managing member of Hunters Point Golf Community LLC, said the company wasnt able to meet its financial commitments at the golf course because of the inability to complete home sales.
Monday, May 26, 2008 08:32 MDT
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by Simon Shifrin
One of the major triggers for the filing, he said, was a halt to the fifth phase of the housing development, a high-end segment with frontage on the golf course. He said 34 of those lots presold. Yet by the time building permits were secured, financing fell through on 32 of the lots.
“That’s just a good example of what the real estate market has done,” he said. “The real estate market, and then the crunch down on bank credit, has really put the screws to the project.”
Construction at Hunter’s Point, a 312-acre planned unit development at the intersection of Greenhurst and Middleton roads, started in 2006. The centerpiece of the 600-home project is a 7,000-yard, 18-hole golf course designed by Gene Bates, of Bates Golf Design Group, Palm Beach Gardens, Fla.
The bankruptcy filing, which so far only involves the golf course, shows that company has $3.9 million in property assets but $16.3 million in liabilities. Court papers show that the biggest creditor is Hopkins Financial LLC, which provided $10 million in financing for the golf course, $1.19 million of which is secured with collateral. Bullock said he expects a bankruptcy filing for the entity behind the housing development next week and that the two cases will be handled together.
Bullock said he’s confident that the project will move ahead despite the tough economic climate and bankruptcy process.
For one thing, he said his company has already signed an agreement with a California company, which he declined to name, that owns and operates several golf course communities and is now in the process of trying to find financing to complete the project.
“We’re going to the courts with a real strong plan to be able to pay off all creditors and go forward with the project as originally designed,” he said. “We’re committed to taking care everybody who’s been with us these last few years.”
Bullock said the golf course, which was originally scheduled to open in May 2008, is nearly complete. It has already sold out its 50 charter memberships.
“Really, we could open now, except that this cold spring has delayed the growth of the grass in what we call the pit, the first six holes,” he said. “If we’d have had any decent weather up to this point we’d be ready to open.”
Bullock said he expects that members will be provided with some access to the course starting this summer, though that will be decided as part of the bankruptcy plan.
He also noted that 120 families are already occupying homes on the site, while 40 lots have been sold. Another 60 finished lots are up for sale.
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