News and Opinion from Sisters, Oregon

Aspen Lakes in the rough

Aspen Lakes Golf Course and Lodge has been served with a notice of foreclosure. A public auction is scheduled on July 27 on the Deschutes County Courthouse steps.

"There will be no auction on the 27th," Matt Cyrus said in an interview with The Nugget Thursday. With sister Pam Mitchell and brother Grant looking on, Matt said that the March 12 foreclosure notice was simply due diligence on the part of the bank.

The total due through March is just over $4.5 million according to official documents, with monthly payments of roughly $30,000.

In an open letter to Aspen Lakes homeowners last Thursday, Cyrus acknowledged that "we are currently behind in our mortgage payments, and the lender is obligated to follow a pre-designated protocol of notices to protect their interests."

Cyrus predicted that he would have a letter in hand from the bank this week that would detail a new accommodation with the bank, possibly including the liquidation of some other Cyrus family properties.

In his letter to homeowners, Cyrus also stated: "We are currently engaged in ongoing negotiations with our lender and are very optimistic that we will arrive at a positive outcome in the near future. These negotiations prevent us from discussing any details other than to say that we are working to market some properties other than the golf course in order to reduce debt and enhance cash flow and that normal water delivery to homeowners will not be impacted."

An official at Ball Janik LLP, the law firm handling the default, explained that in these situations there are three typical outcomes: there is an accommodation; there is a postponement; or the auction takes place as planned. Roughly half of those properties that enter this phase go to auction. 

Cyrus told The Nugget that it is a tough time to be operating a golf course.

"I think we are more a sign of the times than an exception. 114 golf courses closed down in the U.S. in the last 12 months; only 44 new ones opened," Cyrus said.

Even if the Cyruses succeed in getting out of the rough in this round, the long- term viability of the business is in question. The Cyruses believe their future depends on development as a destination resort - a prospect that has been intensely controversial with neighbors and will likely involve years of land-use wrangling and may require changes in state law.

"We built the lodge, restaurant and grounds to accommodate a resort-level operation," said Matt Cyrus.

"If we were just going to operate the golf course we would be far better off just operating out of the trailer," said his brother Grant, who manages the course. 

The operation is also behind $163,202 on property taxes. Matt Cyrus said that priorities have come down to paying taxes in full or keeping people at the golf course employed.

At the peak of the summer season, Aspen Lakes employs just short of 100 people.

Aspen Lakes' financial situation has roused interest and concern among homeowners and the local business community.

The Cyruses expressed concern that rumors about the enterprise's financial health could, in themselves, be damaging to business.

"We're already seeing the impact from that - from the rumors going around out there," Matt Cyrus said.

He also said that he and his family appreciate the support they have received.

 

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