FW: The truth about the golf course

[Newt]

Everyone:

 

As a remote homeowner, I am informed that the golf course is “lost” for play this summer and will require additional funds (and possibly multiple seasons) to reconstitute it for play due to intransigence among RSPT, TMA, and NewTrac/Credit Suisse..

 

I have been asked by another to forward to the Tamarack homeowner Google groups this letter and its two attachments from  RSPT’s attorney, , in an attempt to allow homeowners to more fully appreciate the situation and issues.   

 

I am not involved in this litigation and have not conversed with any of the parties, principals or their attorneys (including the TMA board and staff) and I have no special knowledge.  And I am not aware of strategies and expectations involved in the litigation.  However, for what it is worth, it appears to me as a homeowner that the remaining issues appear to include unpaid LOMA dues and assurances of future LOMA payments (from RSPT - which appear to me to be attempting to squeeze blood from a turnip) , on the one hand, and on the other hand, apparent lack of urgency, or even  interest, on the part of NewTrac/Credit Suisse and their representatives, in funding summer amenities at Tamarack including saving the golf course.   

 

I believe that if the parties can resolve these two issues now, the golf course with additional funding might be salvageable and ready for play next summer or the summer after that. 

 

Newt Lesh

*************************************************************************************************
Sent: 6/22/2015 2:48:15 P.M. Pacific Daylight Time
Subj: The truth about the golf course

 

Dear friends,

 

I have included you in this email because we are friends or acquaintances and because we share a common love of Tamarack Resort – this letter is not confidential and you can do what you want with this information and the attachments (except publish it on Facebook!).   There have been some false statements made about my involvement as a lawyer for RSPT, since I am a homeowner.  I want this email to clear those false rumors.

 

I can assure you that I did not envision pursuing legal claims against the TMA when my law firm was approached by RSPT to become its court appointed attorney to recovery money that was stolen by Matthew Hutcheson.  In fact, I enjoyed an excellent relationship with TMA’s counsel for many years before the current events and I represented several current and former TMA board members in the past.  This relationship made be believe issues with TMA would be the least of RSPT’s concern.  That changed when it became apparent that certain TMA board members and others who wished to continue in their present positions recognized that they would soon be serving at the pleasure of Credit Suisse or its syndicate members.

 

The Set Up.

 

The present situation was precipitated by the decision to stop collecting dues for the Club at Tamarack.  Many of us own lots that require club membership, including me.  I can personally admit that I was not a big fan of the expensive club dues, but I did accept a deed to a lot that requires those dues and I have nobody to blame but myself for that decision. However, my personal beliefs are not the issue.  Once the Club stopped paying for the golf course, payments to the lender stopped – that was in 2008 or early 2009 if I am not mistaken.  No payments have been made since then. But property taxes have continued to accrue and LOMA/TMA claim that dues continued to accrue to the tune of $220,000 per year even though the TMA was itself using the clubhouse amenities for all TMA homeowners.  Critically TMA has proposed no adjustments to the dues structure that was based in part on lease payments from the Club and TRLLC with a lease revenue in excess of $700,000 per year.

 

For good or bad, TMA rallied the homeowners, including myself, and we supported a plan to keep the course an asset for the resort since it helped all of our property values and many of us love to golf.  Clearly we, as homeowners, benefit from the course being there.  It is also clear that the course is designed as an amenity to help the developer sell lots.  So it is also clear that the developer benefits from the course.  In fact, the developer, Credit Suisse’s syndicate, benefits substantially more than anyone else from the golf course.  Did you know there are over 1000 lots left to develop and by far most of them are destined for property owned by the Credit Suisse syndicate’s company, NewTRAC?

 

RSPT only benefits from the golf course if it can be sold for more than what is owed for taxes that accrued during TMA’s free use of the course, and other expenses.  Notably, my attorney fees are not driven by this dispute at all.  I was court appointed and get paid only when there is a recovery for the RSPT fraud victims.  One of the false statements being spread is that somehow I have personally profited by worsening this situation in terms of attorney fees.  If the fees are expensive, and you believe the dispute is being driven by attorneys who profit from that, it is not accurate to point criticism for that at me. In fact, providing high quality legal service to these fraud victims has been quite burdensome on me.  I took this case because cases like this are few and far between – helping people who really need and have difficulty obtaining quality legal representation. Given my background it would have been wrong NOT to help them.

 

RSPT had to consider the cost to continue maintaining the asset, and paying taxes, and make an assessment as to whether it was more likely than not that it would spend more on maintenance and taxes before the asset could be sold than  it will cost to bring the course back if it dries up.  This might have been a more difficult decision for RSPT if there was some endgame besides hoping and praying for a white knight.  Unfortunately, it became obvious that NewTRAC (and the predecessor, Credit Suisse) were not in any hurry to complete a foreclosure and sell the future phases to a well-capitalized developer. 

 

RSPT needed a plan that it could afford, even if it takes many more years.  RSPT clearly could not afford to pay $220,000 in dues per year, plus real estate taxes of $140,000 per year, while allowing the course to be used by homeowners for free.  Not only were the taxes higher due to the operating condition of the resort, but the dues are driven by market value as well.  Not operating the course will bring the taxes down and allow RSPT to hold on for the long term.  Even if the cost to repair the course is $100,000 per hole, after just a few years the decision to close and lower holding costs makes financial sense.  Consider that the RSPT victims do not recreate at the resort and their retirement savings have been stolen.  Would you want the remainder of your retirement fund spent keeping up a golf course without some endgame?

 

 

The Plan is Hatched.

 

The TMA covenants allow a foreclosure sale to wipe out dues that accrue before the sale date, but they accrue against the lender after the sale occurs.  RSPT and TMA knew this.  RSPT made several offers before any litigation between the parties arose.  The final offer, attached, was rejected by TMA but would have allowed free use of the course by TMA, resolved the dues, going forward, and paid TMA $10,000 per year.  RSPT was prepared to pay the property taxes as part of that agreement. 

 

RSPT had already heard that there might be a plan by Credit Suisse to use the golf course taxes and dues to bleed out the RSPT victims so they could acquire the course much more cheaply.  When TMA board members responded to the concerns about go-forward dues with statements like “just finish your foreclosure and then we can work out something on the dues later” it became clear that this threat was something to take seriously.  Why would RSPT negotiate something later when it could be negotiated in advance, BEFORE dues of $220k/year were owed by RSPT?  Something was fishy with that.

 

Despite the cordial relationship between TMA’s counsel and RSPT’s counsel, TMA’s lawyer mysteriously and without comment ceased responding to telephone calls in February, 2014.  Going dark in the middle of negotiations isn’t a good sign since lawyers are not ethically allowed to lie to each other or third parties.  It appeared the silence was to avoid being in a position where truth is going to be discussed.  This followed reports to RSPT that TMA counsel, TMA board members and Credit Suisse attorneys were having a  “secret” meeting in SLC in February, 2014.  It was now beginning to appear that the alleged plan to deprive RSPT of any recovery through a war of attrition was in fact underfoot.  RSPT later confirmed that in a telephone call with the TMA executive director where that precise strategy was described as NewTRAC’s plan to deal with the owner of the village.  This suspicion caused RSPT to cancel the sheriff sale and look for other solutions, even though it could have conducted the sale on the same date as Credit Suisse.

 

 

Problems Going Forward.

 

RSPT does not want to be in a war of attrition. These type of battles are often not even worth winning.  Looking at the important documents relating to the resort, RSPT noticed there are several requirements affected by loss of the golf course.  One of them is that the golf course cannot cease operating for more than 18 months without causing a default in the state lease.  Those 18 months are ticking, now.  RSPT also noticed that the liquor licenses for the resort depend on the golf course.  Closure of the golf course may cause some or all of the licenses to vanish.  Assuming that the developer wants amenities to help sell lots in the future, at least in the next 5-10 years, one would expect a solution to come about before the problems spread to skiing and dining as well.

 

 

Solutions Going Forward.

 

RSPT is committed to finding a solution going forward.  Whether that is working directly with NewTRAC given the newly opened direct line of communication or working directly with TMA (which is effectively controlled by NewTRAC).  All involved will benefit from a dialog.  It is not apparent why a dialog is not occurring to me, other than unreasonable demands for confidentiality by TMA. A solution that will bring golf back to Tamarack quickly will involve a clear outlook on the future for RSPT.  RSPT needs to see how it exits this position with money before it will consent to golfing on the course. Arguments for the status quo are not going to work given the events described above.

 

Clearing up the Misstatements.

 

I am not personally profiting from the closure of the course or any of the litigation with TMA – my fees are only paid as a percentage of the ultimate recovery, if any.  I am personally authorized to and willing to meet with TMA, its lawyers or whomever TMA wants to use to discuss matters.  RSPT is not holding up discussions, quite the contrary.  If you doubt that, ask Leonard de los Prados for his independent assessment. I do not relish seeing the assets deteriorate and it is not my personal decision anyways.  I am just a lawyer representing Jeanne Bryant, also a lawyer, who was appointed by the court to recover stolen money.  She is responsible for making decisions on behalf of RSPT, not me or other attorneys in my office.  Moreover, as can been seen from the second attachment , option 3 clearly contemplated that the course would be shut down if RSPT’s concerns were not addressed – there should be no surprise to TMA that it happened since no arrangements were made to avoid this.

 

I apologize about the length of this email.  It could be even longer -- to tell all that needs to be told it would fill a book, a book that probably nobody would want to read.  I agree generally with the sentiment that litigation should be avoided.  Unfortunately, if somebody steals $3.2MM there is going to be litigation in order to get it back – it does not matter whether the lawyer is a homeowner or not.  In fact, I doubt a lawyer who did not understand the asset as well as me would have even felt it was appropriate to give TMA the opportunity to accept an offer like the attached.  While it might not appear that closing the course until there is a resolution makes sense, slowly bleeding out is also not an attractive solution for the victims.

 

I appreciate our relationship and hope this email helps explain some of the misinformation that has been spread to deflect attention of the real answer as to how we got here.  I also hope that by understanding how we got here, we might find a way to a solution.  Please let me know if you have any ideas.

 

 

Sincerely yours,

 

T. J. Angstman

[PRAD...@aol.com]

Newt

 

Everything is possible if the "parties" agree to a cease fire and stop the war, which caused the resulting collateral damage to the course.

 

A little background. On May 22 after much to do I was able to broker a telephone conversation with David Hill and TJ Angstman. The subjects of the talk were protected under a confidentiality agreement reviewed  by Steve Lord. We did not make too much progress but achived the start of a face to face dialog. My motivation in this endeavor was to try to salvage the course. If the two parties would have been able to reach common ground, the course would still be green, and just maybe, golfing would have been possible, Morel would be open and the pool and spa in operation. (It is inconceivable that there is no food concessions in the Resort this summer) 

 

The TMA staff maintained the course in pristine condition through May 31. Kudos to these group of people who's dedication and goals are not driven by other agendas. The motivation of others is subject to a lot of speculation. As you properly described "intransigence" has prevailed. Their intriguing manner of resolving differences started in January 2014 way before the litigation had commenced.

 

The course was still in good condition during the week of June 1, but in jeopardy as high temperatures descended on the mountain. On June 9, out of desperation, I sent a proposal to David Hill and TJ Angstman to prevent the course from dying during the next 20 weeks. This would have been a benefit to all concerned, including the owners of lots and property which no doubt will suffer a decline in market values resulting from the disappearing of a summer amenity. I received one small donation from TJ and no response from anyone else.    

 

On June 14, out of increased desperation, I reached out to the homeowners through the goggle group site for help and received five pledges, including ours, in the amount of $ 5,000 to cover a deficit in the cost of maintaining the course for 20 weeks. For your information this would have been the funds needed:

 

TMA                    $  59,611 (including $ 56,067 sunk cost from the execution of the equipment lease)

RSPT                      20,000 (pledged by TJ)

New Track               40,340 (balance never discussed,considered or offered)

 

Total                      119,951  

 

The rest is now history.  

 

Carol and Leonard De Los Prados

[Patti Henderson]

Are you saying that the golf course is going under over $40,340?

Patricia Henderson 

cowellpr...@comcast.net

office 540-286-2221

cell    650-279-2083

Cowell Properties

PO Box 530 

Holualoa HI 96725

Real Estate Mgt Solutions

1000 Queen Anne Dr

Fredericksburg VA 22406

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[Randy Hopkins]

FYI…I have done my best from my persective…..RSPT and TJ’s approach makes absolutely no sense to me either.   We are the owners of the golf course of course subject to the RSPT debt and we accommodated the TMA to run the golf course.

 

I have sent a direct email to TJ…..two weeks ago…..as for me…the ONLY BUYER FOR THE GOLF COURSE IS ULTIMATELY THE NEW BUYER OF THE ENTIRE RESORT…so why damage the underlying asset that your loan is secured by?

 

In these times…..many weird positions have to be taken when there is 3^rd party adversarial situations…..in this one I cannot see how this is in the interest of his client, the RSPT and the pensioneers……and of course it de-values homeowners and the resort overall.  Maybe his logic is that Credit Suisse will step in and buy them out at some point?

 

I can simply say I have been a lender on many things (that we have had to foreclose on) and I would not be doing what he is doing and they are doing.

 

RANDY HOPKINS

President / CEO

Idaho Mortgage and Real Estate Broker

NMLS# 102246 | MLO# 4059

RE License# DB3674

P.O. Box 670, Meridian, ID 83680

910 E. Carol Street, Meridian, ID 83646

Ph: (208) HOP-KINS / (467-5467)

Cell:  (208) 250-5534

Toll Free: (800) 597-7154

Fax: (208) 323-0667

www.hopkinsfinancial.com

NMLS# 2631 | MLB# 910

 

Hopkins Financial Services, Inc. is an Equal Housing Opportunity broker and financing is available to all persons

regardless of race, color, religion, sex, handicap, familial status or national origin.

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[PRAD...@aol.com]

Yes!!!!!!!!!!  Correction. The golf course is already under over $40,340. If action will be taken immediately it will take north of $500,000 to restore and three years to bring the course back to playing conditions. 

 

Leonard De Los Prados
Certified Public Accountant
8671 Wilshire Boulevard
Suite 700
Beverly Hills, Ca 90211
(310) 652-5116 voice
(310) 652-5131 fax
(310) 415-1521 mobile

[R.Scot Thomas]

R. Scot Thomas

[pradoscpa]

A damn shame Scot. A multimillion dollar asset killed in three weeks. Win the battle. Lose the war. Real smart. Leonard.

 

Sent from my Verizon Wireless 4G LTE smartphone

[R.Scot Thomas]

I am so ashamed of the people representing our asset, this did not have to happen and everyone involved gets to pay the price.

 
R. Scot Thomas

 

--

[Randy Hopkins]

TMA and Homeowners:

I just read TJ's statement thoroughly.  Whatever damage is done is done now.  Maybe recovery could happen for next season. 

TJ - could u send me the attachment with the offers the u have TMA - on iPhone I do not see them?  I hate to see waste!

 I would like to see them as you all know two of the five hopkins "mortgage and real estate backed funds" are still present owners of the lodge and golf course.

I will say that I have expressed huge disappointment in the RSPT approach but i will say one thing that I believe TJ says that is accurate - the dues to the owner of the lodge and the golf course should come down!    Whether for one off buyer or for new buyer for the whole resort!

I have told the TMA in the past years that I believe that any real buyer for the resort has to:

1.  Get the state of idaho and North Lakes Sewer district to discount the LID on the entire resort, 

2.  The TMA has to reduce the annual fees on the commercial space at the resort.

3.  Get regional air service to McCall would be helpful in my opinion - probably not mandated but a path there in a 5 to 10 year window.  

I have studied the project thoroughly (maybe more intimately than anyone since we made many attempts to recover our equity out of the lodge and golf course) and we have in Real estate for over 30 years.  In that attempt I have investigated expansion of the McCall airport, talked to the State of Idaho, the TMA, got bids from local Boise Idaho contractor to finish the Village, etc.   I have done projections on the entire resort. 

It is a small resort - possible but not easy at all even under best of circumstances with today's reality. 

Big problems need big solutions.   I believe the solution for Credit Suisse or any new buyer is to figure out 1 and 2 and 3.

So I will admit I have also have thrown TJ under the bus (still think he was wrong but maybe he is on to something as it relates to TMA (the homeowners) thinking about adjusting the fees and lowering them on the commercial space.  

It is my opinion this needs to also happen on the village......the fact is any new developer will lose a ton of money annually out of the gate on the commercial space so they will have to subsidize it - these high fees make it more difficult for any new buyer.

Have a good Sunday - TMA Board you might think about it on behalf of homeowners?

Please excuse typo's as this email is sent from an iPhone.

Cell:  208-250-5534

Office: 208-HOP-KINS (467-5467)

Randy Hopkins

Hopkins Financial Services, Inc.

www.hopkinsfinancial.com

"Over $500 Million Funded"

Real Estate and Mortgage Broker

RE license # - DB3674

Mortgage - NMLS# - 102246

MLO# - 4059

[pradoscpa]

Newt. Please post in the Google site. Randy. I do not believe TJ has access to the site but I can sent copies of the offers Monday.

Sent from my Verizon Wireless 4G LTE smartphone

-------- Original message --------
From: Randy Hopkins <ran...@hopkinsfinancial.com>
Date: 06/28/2015 9:10 AM (GMT-08:00)
To: "<tamarack-...@googlegroups.com>" <tamarack-...@googlegroups.com>
Cc: wm...@googlegroups.com, new...@roadrunner.com

www.hopkinsfinancial.com<http://www.hopkinsfinancial.com>

"Over $500 Million Funded"
Real Estate and Mortgage Broker
RE license # - DB3674
Mortgage - NMLS# - 102246
MLO# - 4059

On Jun 27, 2015, at 4:59 PM, R.Scot Thomas <sco...@earthlink.net<mailto:sco...@earthlink.net>> wrote:

[image1.jpeg]

R. Scot Thomas

On Jun 23, 2015, at 12:49 PM, PRADOSCPA via Tamarack Homeowners <tamarack-...@googlegroups.com<mailto:tamarack-...@googlegroups.com>> wrote:

Yes!!!!!!!!!!  Correction. The golf course is already under over $40,340. If action will be taken immediately it will take north of $500,000 to restore and three years to bring the course back to playing conditions.

Leonard De Los Prados
Certified Public Accountant
8671 Wilshire Boulevard
Suite 700
Beverly Hills, Ca 90211
(310) 652-5116 voice
(310) 652-5131 fax
(310) 415-1521 mobile

In a message dated 6/23/2015 11:42:49 A.M. Pacific Daylight Time, cowellpr...@comcast.net<mailto:cowellpr...@comcast.net> writes:
Are you saying that the golf course is going under over $40,340?



Patricia Henderson

cowellpr...@comcast.net<mailto:cowellpr...@comcast.net>

office 540-286-2221
cell    650-279-2083

Cowell Properties
PO Box 530
Holualoa HI 96725

Real Estate Mgt Solutions
1000 Queen Anne Dr
Fredericksburg VA 22406

On Jun 23, 2015, at 2:20 PM, PRADOSCPA via WMPMA at Tamarack Resort <wm...@googlegroups.com<mailto:wm...@googlegroups.com>> wrote:

Newt

Everything is possible if the "parties" agree to a cease fire and stop the war, which caused the resulting collateral damage to the course.

A little background. On May 22 after much to do I was able to broker a telephone conversation with David Hill and TJ Angstman. The subjects of the talk were protected under a confidentiality agreement reviewed  by Steve Lord. We did not make too much progress but achived the start of a face to face dialog. My motivation in this endeavor was to try to salvage the course. If the two parties would have been able to reach common ground, the course would still be green, and just maybe, golfing would have been possible, Morel would be open and the pool and spa in operation. (It is inconceivable that there is no food concessions in the Resort this summer)

The TMA staff maintained the course in pristine condition through May 31. Kudos to these group of people who's dedication and goals are not driven by other agendas. The motivation of others is subject to a lot of speculation. As you properly described "intransigence" has prevailed. Their intriguing manner of resolving differences started in January 2014 way before the litigation had commenced.

The course was still in good condition during the week of June 1, but in jeopardy as high temperatures descended on the mountain. On June 9, out of desperation, I sent a proposal to David Hill and TJ Angstman to prevent the course from dying during the next 20 weeks. This would have been a benefit to all concerned, including the owners of lots and property which no doubt will suffer a decline in market values resulting from the disappearing of a summer amenity. I received one small donation from TJ and no response from anyone else.

On June 14, out of increased desperation, I reached out to the homeowners through the goggle group site for help and received five pledges, including ours, in the amount of $ 5,000 to cover a deficit in the cost of maintaining the course for 20 weeks. For your information this would have been the funds needed:

TMA                    $  59,611 (including $ 56,067 sunk cost from the execution of the equipment lease)
RSPT                      20,000 (pledged by TJ)
New Track               40,340 (balance never discussed,considered or offered)

Total                      119,951

The rest is now history.

Carol and Leonard De Los Prados

[pradoscpa]

Scot. Both sides expected  each other to give in first and act to save the course. Major miscalculation since neither one  gave in; hence no couse. The old high school game of chicken with the course as a price. 

course; hence no course. 

Sent from my Verizon Wireless 4G LTE smartphone 

-------- Original message --------

From: "R.Scot Thomas" <sco...@earthlink.net>
Date: 06/27/2015 9:54 PM (GMT-08:00)
To: tamarack-...@googlegroups.com

Subject: Re: The truth about the golf course

I am so ashamed of the people representing our asset, this did not have to happen and everyone involved gets to pay the price.

R. Scot Thomas

> On Jun 27, 2015, at 10:17 PM, 'pradoscpa' via Tamarack Homeowners <tamarack-...@googlegroups.com> wrote:
>
> A damn shame Scot. A multimillion dollar asset killed in three weeks. Win the battle. Lose the war. Real smart. Leonard.
> 
>
>
>

> Sent from my Verizon Wireless 4G LTE smartphone
>
>
> -------- Original message --------

> From: "R.Scot Thomas" <sco...@earthlink.net>
> Date: 06/27/2015 3:59 PM (GMT-08:00)

> To: tamarack-...@googlegroups.com
> Cc: wm...@googlegroups.com, new...@roadrunner.com
> Subject: Re: The truth about the golf course
>
>
>

> R. Scot Thomas
>
>
> > On Jun 23, 2015, at 12:49 PM, PRADOSCPA via Tamarack Homeowners <tamarack-...@googlegroups.com> wrote:
> >
> > Yes!!!!!!!!!!  Correction. The golf course is already under over $40,340. If action will be taken immediately it will take north of $500,000 to restore and three years to bring the course back to playing conditions.
> > 
> > Leonard De Los Prados
> > Certified Public Accountant
> > 8671 Wilshire Boulevard
> > Suite 700
> > Beverly Hills, Ca 90211
> > (310) 652-5116 voice
> > (310) 652-5131 fax
> > (310) 415-1521 mobile
> > 
> > In a message dated 6/23/2015 11:42:49 A.M. Pacific Daylight Time, cowellpr...@comcast.net writes:
> > Are you saying that the golf course is going under over $40,340?
> >
> >
> >
> > Patricia Henderson
> > cowellpr...@comcast.net

[R.Scot Thomas]

Sounds like a head on collision instead of a car in the ditch

R. Scot Thomas

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