Despite a slowing housing market, demand for residential remodeling services appears strong in Central Oregon, according to a developer who's planning a new design center in Redmond.
That's because people who were not necessarily able to sell their homes spent money on remodeling them, said Ron Lusk, a Bend developer.
Lusk and Don Bauhoufer, a Bend-based developer, plan to build the Redmond Plaza, a 38,000-square-foot design center on the west side of U.S. Highway 97 north of Odem Medo Road.
Bauhofer sold the BT golf course sometime earlier this month, a venture he said was a chronic money-loser. This was after he got 140 $50,000 deposits from "equity holders" (BT course members), and subsequently then sold the gold course to Seattle investors, who will now put hotels, condos, retail, and parking all over this stately community.If I was Lusk, I'd watch the various details of this agreement. Bauhofer seems to come out smelling like a rose at the expense of the other party. He also seems to be able to turn money-losing ventures into bonanzas for himself.
I guess we know where the gold course proceeds are going! Yet Another Real Estate Venture. Which just goes to show, even when a market is going into the crapper, people seem to be myopic about getting into other areas. Why this guy is going into another RE-based biz now, is beyond me. Of course, turning a sows ear into a silk purse, does seem to be this guys forte.
6 comments:
TROON GOLF
January 17, 2007
To the Broken Top Membership:
We hope this letter finds you enjoying the start of 2007. The New Year is bringing many exciting changes and opportunities to Broken Top Club. As you may have heard, Troon Golf has been hired to supervise and direct the management and operation of the Club and its facilities. Troon Golf is the leading upscale golf management company in the world, with a reputation for delivering pristine golf course conditioning, personalized member service, outstanding food and beverage experiences and world-class retail offerings at over 185 private and upscale public golf facilities around the world.
During this transition period, Troon Golf is committed to keep members of Broken Top well informed. At this time, the existing Convertible Equity Membership program is still in effect. In the event that the new ownership elects not to go through with the existing Convertible Equity Membership (CEM) program and decides to implement another membership structure, all participating members will be compensated for their CEM investment. Options are currently being evaluated and we anticipate a more formal announcement in the near future as redevelopment plans progress. (Important note: If the redevelopment plan is implemented and new ownership elects not to proceed with the CEM program, all CEM members will receive compensation at least equal to the amount they contributed to buy into the program.)
Keep in mind that facilities under Troon Golf’s management enjoy many benefits including corporate operational and agronomic expertise, national purchasing accounts and facility staffing, training and oversight provided by an impressive group of industry veterans. Members of private clubs managed by Troon Golf benefit from special programs designed for Troon operated private club members, inclding the Troon Advantage Program. This is a benefit designed to provide advance access and preferred rates at all facilities managed by Troon Golf worldwide that accept public play. The Troon Advantage Program allows members of private clubs managed by Troon Golf to enjoy special privileges at great golf facilities all around the world.
We look forward to our involvement with Broken Top Club and we will be arranging a meeting next week with the advisory board, while Mitch Harrell is on property, to go over any questions they may have regarding the current status. Details on schedule to follow. In the mean time, if you have any questions or concerns about this transition, please contact myself or Mitch Harrell at Troon Golf. You can also visit the club’s new website at www.experiencebrokentop.com for the latest updates.
Sincerely,
Scott Van Newkirk Mitch Harrell
Troon Golf Troon Golf
Senior Vice President, Business Development Senior Vice President, Operations
Message from Cate Cushman
There have been mis-representations on the Broken Top Club blog that I would like to correct.
My property, Tract H, which has always been a real estate sales office, IS NOT part of the plan by the new club owners. The property is not for sale and I have not been approached by anyone to buy my property. The lawsuit filed against me by the BTCA is to determine whether or not my permitted use is valid. In the letter I sent out to Broken Top property owners in response to the HOA newsletter regarding the declaratory ruling, my legal firm Ball Janik advised that “The land use permits specifically allow a real estate office on Tract H, the use cannot be expanded or changed without an application to the City and a process to amend the master plan…” My property is permitted and I am the permit holder!
I spoke with Mike Parker regarding comments that my property was to be the sales office. He told me that he had only said that the Broken Top master plan shows that my property is a real estate sales office. That is exactly my point. It has been a real estate sales office since 1992.
As a CEM of the club and a Broken Top resident since 1994, I would like to say that I have watched the club struggle for 14 years and would hope that the new owners plan will evolve into the solution that will breathe life into the club and increased real estate values for all of us invested in the community.
If anyone has any additional questions regarding my property, I would welcome direct contact so that false statements are not perpetuated
Cate Cushman, Principal Broker
Cushman & Tebbs Sotheby's
111 Sutter Street
Suite 950
San Francisco, California 94104
TEL 415.397.2200
FAX 415.397.1646
Cohenfinancial
Real estate investment banking
To the Broken Top Membership:
I am very excited to announce that on behalf of the ownership I have hired Troon Golf of Scottsdale, Arizona to manage day to day golf operations and empowered them to answer all membership questions and inquiries. For those of you that know them, they need no explanation. For those of you that do not, they are widely recognized as not only the largest, but arguably the best golf management company in the world.
There are many rumors swirling around Broken Top and we thought a few facts would shed some light on the current situation. The shares of Broken Top Partners LLC were purchased recently by my client Bend Acquisitions LLC which is owned by a Seattle based family trust.
I will have an ongoing management role for the LLC and assist Troon golf in the transition. J.B. Corbitt, an experienced golf financial consultant has been representing ownership on-site during the transition. Troon formally takes management control on January 29th.
Contrary to rumors that have been relayed to us, Don Bauhoffer has no ownership interest or ongoing participation in the ownership or proposed redevelopment. Negotiations to purchase the LLC interest from Don began in early October and concluded in late October. One of the stipulations that Don put on the negotiations was that it would be kept completely confidential until closing and no contact with membership was allowed. We complied with Don’s request for confidentiality.
Last week several small focus groups were held where a conceptual ‘village’ redevelopment plan was discussed. We have heard feedback that it was inappropriate to discuss new development in the focus groups and not address the convertible equity membership (CEM) issue. Our intention was not to ignore the CEM problem, but to use the new development proposal to help shape an overall solution that was a win/win for ownership and members. We greatly underestimated the unhappiness with the current CEM status and for that we apologize. Mike Parker truly was not given a solution as one did not yet exist. His job was to gather information that could be used to formulate the ‘complete’ solution.
Included here is a letter from Troon addressing the CEM issue. Future communications relating to golf or membership questions and inquiries should be made through Scott Van Newkirk or Mitch Harrell of Troon at 480-606-1000 or the General Manager Andy Heinly. Issues and communication relating to the proposed development should be made through Mike Parker of ESP Marketing. A web site on the proposed development will be available later this week at www.experiencebrokentop.com
Sincerely,
Angus Cameron
Director, Capital Markets Unit
111 Sutter Street, Suite 950
San Francisco, CA 94104
(415)591-3131 Direct
(415)397-1646 Fax
I also attended the Monday meeting (01/15/07) and have a few adds to Tina's report plus some personal observations:
As the presentation started, several members stated emphatically that having several small presentation meetings was the wrong approach and the lack of communication from the developer team to the membership and home-owners as a whole was very detrimental to obtaining consistent understanding of the developer's proposed concepts and goals. This has sponsored rampant rumors and speculation. Mike agreed that they would do it differently in the future.
The presentation by ESP/Mike Parker was generally the same material as reported from previous "focus" meetings which actually were presentations describing some possible development concepts prepared by the consultants retained by the Seattle family trust (e.g., Cohen Financial/San Francisco; Troon Golf , Myher Architects ).
Mike also mentioned his previous marketing affiliation with the Pronghorn development and his familiarity with the greater Bend community.
The current concept has no land-use or zoning entitlements as yet to allow the required changes to the existing PUD. Very significant infrastructure improvements will also be required to build out the concept.
Parker stated that the concept presentation would be made to the BTCA this Wednesday. (Ron Webber, Chair of the BTCA Board states that no contact of any sort has been received by the BTCA Board or administration so no meeting has been scheduled as of this date).
The periodic mention of 5-Star hotels (The Four Seasons and Ritz Carleton) was simply an example of the quality being proposed for the 112 room hotel. Mike pointed out that Broken Top is an ideal location for a high-end hotel due to its physical location in the Bend urban environment and proximity to major recreation opportunities. The 112 room hotel units will be sold as fee-simple property, rented out if desired by the buyer and with a required BTC membership. These will not be time-shared or joint fractional ownership units. Guests will be allowed play on the BTC course with a substantial fee-($150 mentioned).
He acknowledged that Bauhofer's Tetherow development was competition for the hotel.
The "Village" concept will allow significant public access to two levels of specific elements of the "resort" (hotel, commercial shops, public dining, fitness center via membership
54 condo units are proposed on the existing BTC parking lot which eliminates the existing Community Swimming Pool and Tennis Courts. Consideration will be given to locating new tennis courts in the resort area along with a member swimming pool.Mike indicated that the lawyers (along with Cohen people) will be coming to Broken Top sometime this week.When asked what the Trust's plans would be if the resort concept was not approved by the homeowners or City of Bend, Mike reiterated that Don Bauhofer would not return as he is out and the developer would seek other approaches, not specific.
Personal Notes re: The Proposed "Concept"
The simple fact of this deal is the developer (who apparently is well financed ?) wants to create additional developable real estate within the Broken Top Club area and thereby create a high density destination resort attached to the existing single family residential community. The existing PUD masterplan for Broken Top never contemplated such a project within the community when it was approved by the Deschutes County Commission prior to its being annexed by the City of Bend, nor by the City of Bend when reviewing the masterplan prior to annexation. As I understand the approval process for the Cascade Highlands Resort (now Tetherow and under construction) it was planned and approved outside of the primary BT residential sub-division and PUD masterplan.
The proposed "concept presentation" has totally ignored the environmental assets that make up the exceptional attractions and natural beauty of the Broken Top site and inserts major architectural impediments into the view planes (4-6 stories = approx. 60 to 70 vertical feet). Destruction of the Lake for underground parking not only negates the enjoyment of a water feature as an enhancement to the dining experience at Broken Top, but adds a major, focused traffic generator (525 cars) to the entry circulation patterns, combined with concentrated air pollution. Placement of a primary entrance at Simpson/Washington (especially linked directly to a roundabout) will add major congestion to the exit system.
The functional elements and activities of a major resort being planned as an adjunct to an existing single family residential community, rather than being initially planned as a destination resort, is fundamentally incompatible with the natural environment of Broken Top-both physically and emotionally.
If the primary goal of the BTC members is to acquire the ownership of the Broken Top Club and not destroy the community in the process, how can we work with the new owner to that end (assuming they want to proceed in that direction considering it will be less profitable but less financially risky). A few ideas have been informally mentioned. Hopefully, some of our savvy and objective members can put the numbers together and offer some approaches.
Six Degrees of Separation
The thoughts and conjecture regarding the future of Broken Top seem perhaps a bit premature.
Is the future of BT important? Yes, vitally important to all of us. But, my brain is stuck. I can’t seem to think about the future until I understand the present. Without having the present as a foundation, logical thoughts about the future are difficult at best.
In my previous post More Questions Than Answers, I posed several unanswered questions. But, most importantly it all comes down to the one key answer we need, “who are the new owners?”
I've been doing some sleuthing (between emails), using the few clues we have. I've found dozens of dead ends, and then, bingo...
Sandpines saga still unfolding:
New clubhouse, restaurant, banquet facility and lodging bring a 'resort' look to the critically acclaimed Florence golf course
The Register-Guard
By Mike Stahlberg
Published: Tuesday, August 29, 2006
FLORENCE - The golf at Sandpines has always been top-shelf. Indeed, within months of its opening in 1993, Golf Digest labeled the Rees Jones layout the "Best New Public Golf Course in America."
Other honors followed for the 7,252-yard, par-72 course set amid pine forest and sand dunes, but the facilities at Sandpines have never come close to living up to the "resort" status that the original developers envisioned.
After a dozen years and a two sets of owners, however, Sandpines Golf Links is finally showing signs that it may, indeed, become a "destination resort."
An interim pro shop that would have fit right in at a mobile home park has been replaced by a luxurious 9,000 square-foot clubhouse overlooking the finishing holes. The pro shop at the eastern end of the two-story building has been open for several weeks, and the Tavalo Restaurant and bar on the west side of the main entry opened Saturday.
The $3.5 million facility - designed by the Myhre Group of Portland and built by Vik Construction of Eugene - is just one sign that Sandpines' current owners are serious about developing an upscale golf resort on property that was zoned for just that. The owners are Robert Bocci and John Pearson, both Portland real estate developers. They purchased Sandpines' 250 acres from Japanese businessman Kenzo Ariki for $6.5 million in 2004.
Another sign that things are looking upscale at Sandpines came earlier this year when Troon Golf signed a management contract.
Headquartered in Scottsdale, Ariz., Troon Golf is the world's largest golf management company. Troon Golf's portfolio includes more than 185 courses worldwide, 32 of which have received "Top 100" ranking. Sandpines is Troon's first Oregon property.
A third sign should come in October, when construction is scheduled to start on a 4,000 square-foot banquet facility to be built just west of the new clubhouse, according to Diane Haworth, Sandpines' general manager. Construction should take about six months.
Then, early next year, Haworth said, work should begin on the first overnight lodging units for golfers, in the form of a "boutique" hotel consisting of up to 50 bungalow-style units and a day spa, to be located to the west of the new banquet facility.
All of these facilities - plus several hundred residential housing units to be located on 75 acres of undeveloped land around portions of the golf course's perimeter - were included in the "planned unit development" approved by the City of Florence prior to construction of the golf course, Haworth said.
"It's what it was meant to be from the beginning, but unfortunately it took us until our third owner to finally have the capital to create all this," said Haworth, who came to work for Ariki in 1996 and is now employed by Troon Golf.
All the facility improvements obviously make Sandpines much more appealing to traveling golfers. For local golfers, however, it's a bit of a mixed blessing.
The stunning views afforded by the new restaurant and bar, which overlook a lake surrounded by the 16th, 17th and 18th holes - invite golfers to linger at the "19th hole."
On the other hand, all the improvements are reflected in green fees that are the highest in Lane County. Peak season rates for 18 holes are $95 Friday-Sunday and $80 Monday-Thursday. No other local course charges as much as $50.
"Our green fees are in line with the typical Rees Jones course," Haworth said. "If you look at others he's done, we're right in the ballpark."
Haworth said Sandpines' rates are "a bargain" compared to the two other Oregon Coast golf resorts with which it compares itself - Salishan (with a top weekend rate of $119) and Bandon Dunes ($185 for those staying on site, $240 otherwise).
After all, Golf Digest, Golfweek Magazine and Golf Magazine have all given Sandpines Golf Links top-100 rankings over the years.
Golf Digest's current "Best Places to Play" book gives the course 4.5 stars. Only Bandon Dunes and Pacific Dunes, with 5 stars, are rated higher in Oregon.
Not surprisingly, Sandpines' clientele has changed as prices have gone up.
"It's kind of a natural progression," Haworth said, adding that there are fewer local retirees and more "resort" golfers. "But that was the reason for bringing in Troon, to kind of expand our customer base" among upscale golfers.
Lest one think Sandpines has turned its back on local golfers, the course does offer "Twilight" specials (after 2 p.m.) for Oregon residents ($50 weekdays and $65 weekends during peak season). Also, the price drops to $45 anytime during November and December.
"We're one of the few courses in the state that can boast year-round playability - if you don't mind getting wet - because the water just soaks right into the sand," Haworth said.
Troon's goal is to log "between 30,000 and 45,000" rounds of golf a year once the resort is fully developed. The course record was 29,900 rounds in its first year, Haworth said.
What impact will the addition of hotel rooms and private homes have on the golfing experience at Sandpines?
"Not much," said Bob Rannow, head professional at Sandpines since 2000, who points out the course will continue to play "pretty much exactly as Rees Jones designed it."
Rannow says "the overall condition of the course has never been better. ... It's firmer and faster and we're getting more roll out there, so people can play links-style golf shots. The greens are really fast. We're getting a lot of compliments on the condition of the course."
Future development will have a visual effect on a few holes, however, Rannow said.
"Like No. 6 - the left side of that will have a residential component. ... There'll also be a little bit on the right side of No. 4, and a little on the east side of No. 9," he said. "At No. 1, you'll probably see a few more cars driving up as you're teeing up, that kind of thing.
"But the heart of the golf course will maintain the same feel and playability that it does now."
Golfers someday, however, may have to travel a little farther to warm up prior to their rounds. The site-plan posted on the Sandpines Internet site shows townhouses eventually being located between the first and second fairways, where the driving range is now.
The long-range plan is to relocate the driving range on the south side of 35th Street, and to make it accessible via a cart-path tunnel under the road, Haworth said. A larger hotel - 130 units or so - would also be built on the south side of 35th.
Haworth said the development of 650 residential units on Sandpines property, to be "phased in over time," won't hurt the golf.
"They're going to have the homes set back in the trees, it's going to blend in really nicely," she said.
In fact, development of homesites will have a positive impact "because those homes will generate people" who will become regular players, dine in the restaurant and, because of their relatively high disposable incomes, help boost the local economy.
_________________________________________________________________________________
Myhre Group Architects developed the plans that were presented at the Broken Top member meetings. Drawings of Sandpines on their web site.
Sandpines Golf Resort
Myhre Group Architects was responsible for the masterplan for this Planned Unit Development resort community in Florence, Oregon. This unique resort community on the Oregon Coast will be built around the Sandpines golf course, designed by world-renowned golf course architect, Reese Jones. There will be multiple phases of 2- and 3-story, high-density condominiums, timeshares, and vacation rental houses complementing the previously constructed single-family homes and cottages. The design includes 644 dwelling units with 825,000 square feet of housing and 61,000 square feet of commercial space on a 270-acre site. In addition to the PUD, Myhre Group is designing a 7000-square-foot golf course clubhouse. The approximate construction cost is $102 million.
Wow! Thanks DeepThroat.
That's good reading.
Post a Comment