The Pellucid Perspective - June 2012 - (Page 6)

GOLF COURSE SALES MetLife, Daniel Corp. unveil Reynolds Plantation plans New club, upgraded amenities promised, assuming that enough current members sign on By Jim Dunlap he uncertainty which has “lingered longer” than an- to keep their residences but not join the new club would be to ticipated for residents, members and property owners at lose access to the very amenities which attracted them to the Georgia’s upscale Reynolds Plantation development may Reynolds community in the first place. be over soon. As reported in last month’s issue of this publicaFor some, the rub may come in with the fact that the distion, Birmingham, Ala.-based Daniel Corporation is poised to solution of the prior club will mean that any hope of recoupbecome part of the new Reynolds Plantation ownership group, ing their initiation deposits will disappear along with the club. in partnership with insurance giant MetLife. Members had hoped that their initiation deposits, which were In a joint letter from the membership Task Force and the in fact structured as loans to LLDC for tax purposes, could be MetLife/Daniel ownership group, club members and property recouped either entirely or in part, but that will no longer be owners were informed that the new owners plan to form a new a possibility with no club and LLDC insolvent. On the other club which current members are invited to join at no new ini- hand, no further initiation or transfer fees will be required by tiation fee and no increase in monthly dues. Additionally, they the new club’s owners, and neither MetLife nor Daniel Corp. were told that plans will be forthcoming to reopen the shuttered has any access to those member monies paid to LLDC. The Great Waters Clubhouse, build a new National Clubhouse, pro- issue of refundable initiation fees will be moot under the new ceed with development of an additional golf club’s structure, as the new owners will opcourse, aggressively market and develop new One other significant erate on a non-refundable deposit basis for residential real estate on the approximately the time being, although they reserve the aspect of the new 5,000 acres of developable land that is part right to change that policy in the future. of the purchase, and generally expand and One other significant aspect of the new ownership is that upgrade the community and club amenities. ownership is that club revenues will be desclub revenues will According to the letter, it is necessary to ignated for use only on club operational form a new club because the previous club, needs. At the heart of some members’ unbe designated for owned by the original developing entity, happiness with LLDC was the suspicion use only on club Linger Longer Development Corporation that some club funds were being used to (LLDC), is encumbered by substantial debt pay for LLDC’s real estate sales and expanoperational needs. to lenders and members which MetLife and sion activities. That will no longer be an isDaniel are not liable for in the terms of the sue, with dues revenues strictly allocated to sale. The club and its amenities had been in operation of club amenities. receivership for more than a year, after LLDC filed for bankWhile the MetLife/Daniel group gave no timetable for the ruptcy when the company could not sell off sufficient assets to reopening of the Great Waters clubhouse, development of a pay down on and renew a Bank of America line of credit of National Clubhouse or construction of an additional golf course approximately $150 million. in the Richland community, they did say those projects are unThe one major contingency cited by MetLife and Daniel in der consideration. their letter to current members and owners was that if an inTo date, there has been no announcement of the sale price sufficient number of those members opt to join the new club, for the land, club, amenities and a Ritz-Carlton on the property, MetLife and Daniel retain the option to renege on the pur- although it will almost certainly be in the 9-figure range. chase. According to several people familiar with the situation, Members and owners will have some time to consider their that would appear to be relatively unlikely, given that the new decisions regarding membership in the new club, but not much. club will not require any additional initiation fee for current The secured lenders in the complex transaction have stipulated members in good standing, and MetLife and Daniel have in- that the sale close by August 1 of this year, and MetLife and dicated that their intent is to keep dues at their present levels Daniel Corp. will certainly want to know where the club memn for the foreseeable future. The alternative for those who choose bership stands before they sign on the dotted line. T 6 The Pellucid PersPecTive June 2012

Table of Contents for the Digital Edition of The Pellucid Perspective - June 2012

The Pellucid Perspective - June 2012
Contents
EZLinks sues ex-employee, GolfNow for $100 Million
MetLife, Daniel Corp. unveil Reynolds Plantation plans
Chip Brewer’s Callaway Legacy off to rough start
CNL adds Fore Golf Partners to manage EAGLE lease portfolio
Brown fields turning varied shades of green
May weather impact: 5 for 5, streak continues!
Golf business brewing steadily in St. Louis
Netherlands group buys Orlando’s Grand Cypress Resort
Casey at the bat, for at least 2 days

The Pellucid Perspective - June 2012