Fears of foreclosure and potential closure for Ridgemark Golf
and Country Club and its corporation have been put to rest for now
because shareholders have approved the ownership transfer to an
investor who has a
”
vision
”
and eventual plans for a new
”
destination
”
hotel, the club’s president told the Free Lance.
HOLLISTER
Fears of foreclosure and potential closure for Ridgemark Golf and Country Club and its corporation have been put to rest for now because shareholders have approved the ownership transfer to an investor who has a “vision” and eventual plans for a new “destination” hotel, the club’s president told the Free Lance.
A large majority of Ridgemark shareholders approved the deal last week in which Silicon Valley investor John Kehriotis absorbed the corporation’s debt and officially took over ownership. He had purchased the corporation’s real-property deed about two months ago and threatened foreclosure without the approval.
Ridgemark President Mark Davis noted how the financially troubled corporation and its 850 or so shareholders had faced the likelihood of closing the business, which has 77 employees, without the deal. Davis called the transfer a “good thing for the county” and pointed out the investor, also a minority owner of the Sacramento Kings, has shown willingness to fund improvements to the property, which include the golf course, cottages, clubhouse and restaurant.
Davis noted how the investor wants to make money and “he’s got a vision.”
“From the perspective of San Benito County, we have somebody who is willing to not only talk the talk, but also walk the walk,” Davis said.
He said Kehriotis is willing to spend money to “get this place to a point where it becomes bankable – because golf is not a bankable commodity these days.
“That’s a good thing for the county.”
Davis confirmed that one of the “elements” of the new owner’s long-term plan is a “destination resort sort of hotel” with 65 to 75 rooms. That is just one of the changes on the way, he said. There isn’t, however, a specific timeline for progressing on such a project.
“It would allow for multiple things to be going on at one time,” Davis said, “a golf tournament and corporate meetings and a wedding all at the same time.”
In the short term, however, there already have been improvements made at Ridgemark, he said. Davis pointed out how there have been “significant maintenance improvements” to the golf course, such as aerating the fairways and replacing bunker sand. The fairway aeration had not occurred at Ridgemark for 17 years, while industry standard calls for every year or two, he said.
He also said there are short-term improvements planned or underway at the lodging facility and clubhouse.
Kehriotis actually had been making his mark on Ridgemark for several weeks as the agreement unfolded.
It started in March when the Ridgemark board had agreed to pursue Chapter 11 bankruptcy. Shortly after, Kehriotis bought the deed from Fremont Bank. He demanded defaulted payments and he informed the Ridgemark board the interest rate kicked in on the note set to expire in 2013. To prevent foreclosure, however, shareholders agreed to the transfer.
Look back for more on this story.
