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July 27, 2002Bank 'optimistic' Sugar Loaf buyer is for real- Auction for troubled ski resort again delayedBy BILL ECHLINRecord-Eagle staff writer LELAND - Huntington Bank on Friday delayed for a second time a sheriff's sale of Sugar Loaf Resort but said it is optimistic there will soon be a deal with a "credible, financially able" out-of-state buyer who would revitalize the resort and bring back skiing. The bank said in a statement that the potential buyer would be able to make new capital investment in the property and resume full operations there. The sheriff's sale was originally set for July 19 but was delayed a week by the bank to allow for more discussions between the potential buyer and resort owner Remo Polselli of Bloomfield Hills. Polselli and his Pacific XIX partnership are in default to the bank. "Huntington has facilitated the negotiations and is optimistic that the negotiations will result in the purchase of Sugar Loaf," Huntington senior vice president Larry Kennedy said in a press release. "Our desire is that the property will be transferred to new owners that will ultimately return the resort to the valuable asset it once was." The statement went on to say the bank is "eager to see new owners with a fresh vision and new capital that will restore the tax and employment base and the return of skiing for area residents and visitors alike." Kennedy said potential buyers are financially "credible" and "that's why we have a positive outlook for an announcement of a deal, possibly as early as next week." Kennedy said all parties are bound by an agreement to not disclose the name of the potential buyer or the terms of the deal. Huntington and Empire National Bank, which Huntington acquired, have provided financing to a series of owners of the resort over the past 25 years. When each of the succession of three owners and operators ran into financial problems, the bank played a key role in helping to find new buyers and financing deals. Huntington received a default judgment on loans to Polselli and the Pacific XIX partnership from Circuit Judge Philip Rodgers in April. The bank claims about $3.3 million plus interest is owed on a loan granted when Polselli and his partners bought the property in 1997. The ski hill has been closed since early 2000 following two weak ski seasons that caused financial problems. The problems were aggravated by the fact that the state Liquor Control Commission refused to transfer a liquor license to Polselli, saying he lacked the needed assets. That made it very difficult to sell groups and businesses on holding meetings at Sugar Loaf, former managers said. A new owner might be able to gain approval for a liquor license, but would also face some other issues related to unpaid bills for sewer and water service to the resort's neighboring townhouses. Townhouse owners have sued Polselli's Pacific XIX partnership, but the case is on hold pending the outcome of the sale. Friday's announcement said the auction will now be held at 11 a.m. Aug. 2 at the Leelanau County Courthouse unless a deal makes it unnecessary. |
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