Previous Up-dates on Potential Sale of Lodge
01-20-2010 back to 04-18-08
Purchase agreement for sale of Telemark Resort: 01-20-2010
From TIOA Board of Directors :
We are pleased to inform you that today the TIOA Board of Directors and the Telemark Partners, LLC signed a purchase agreement for their acquisition of Telemark Resort and associated property.
The signatures of both seller and buyer on this agreement represent one major step in our journey to complete the resort sale. The next step in the process is to produce and mail each of you a newsletter detailing the terms of the sale and announcing the special membership sale vote meeting on March 6, 2010. That newsletter and a proxy ballot will be forthcoming on or about the first week in February. In the meantime, we assure you that we are committed to keeping the resort open and fully operational as we work through completing the sale process. Your approval of the purchase agreement on March 6 will be required for us to reach a successful conclusion.
Between now and March 6, 2010 there are other steps to complete to reach the desired resort sale. A key step will be working to satisfy a Buyer's purchase agreement contingency that portions of the current Town of Cable and Bayfield County Comprehensive Land Use Plans and some Telemark property zoning designations are amended to accurately reflect current uses and future potential. The process for that to occur is also in the works. The sale notification newsletter will provide you with further information on this contingency and will suggest ways you can advocate for the changes that will satisfy that contingency.
It has been a journey of a thousand steps of which less than a handful remains to be taken. For now, thank you for your continued membership support and our quest for a brighter future for the TIOA.
Wayne McGown's passing: 02-13-09
From Gary Crandall:
It is with a heavy heart that I relay the sad news that TIOA Board Member Wayne McGown passed away on Tuesday February 10.
Funeral services will be held at 11 a.m. Saturday February 14 Madison Christian Community, 7118 Old Sauk Road, Madison.
Visitation will take place at the Gunderson Funeral Home, 7435 University Ave., Middleton, from 5 to 7 p.m. Friday February 13.
Memorial contributions may be made to the UW Foundation, U.S. Bank, PO Box 78807, Milwaukee, WI 53278.
For Wayne's obituary please visit: http://www.pcgazette.com/obits/2009/feb09/mcgown2-10.htm.
On behalf of the TIOA Board of Directors, the members of the Telemark Interval Owners Association and the management and staff of Telemark Resort we send our condolences to Hildy McGown and the entire McGown extended family.
Commercial Real Estate Listing: 01-19-09
As noted in the recent real estate tax bill enclosure, the TIOA had contracted with Coldwell Banker-Burnett to handle a commercial real estate listing of Telemark Resort and the associated property.
As part of that listing agreement our agent created a web URL as a component of the marketing program for the listing. If you log onto www.telemarkresortforsale.com or www.telemarkdevelopmentopportunity.com you will be directed to this web site location.
With this listing the TIOA has greatly broadened the search for a qualified buyer for the Telemark Resort. The site will direct interested parties to our broker for further more detailed information.
Update 01-05-09: The following will be included in the real estate tax billing.
Greetings Telemark Interval Owners: January 2009
The best of the New Year to each and every one of you in the Telemark Interval Owners Association. The Board of Directors of the TIOA welcomes the New Year as a renewed opportunity to continue our focus on solutions to the financial realities of Telemark Resort ownership.
On the potential sale of the resort front, we have broadened our search for a buyer in several ways. In mid-December the TIOA signed a contract with Coldwell Banker Burnet in Stillwater, MN to professionally represent our association with a commercial property listing. At this writing the contract has been signed, background materials exchange, information meetings held with the broker and a Telemark Resort listing web site is currently being designed. When that listing URL is available in the near future, we will post it on the www.telemarkresort.com web site under the owners page link. This listing will provide the TIOA with a broad reaching program for marketing the sale of the resort.
While that is taking place, our discussions with the Lodge Management Group with whom we have been engaged for some time, are still on the table as they continue their search for the equity components of the transaction. In addition, members of the Board of Directors, Telemark management and our commercial broker met with another interested development group regarding the opportunities available at the resort.
As we broaden our horizons on the potential sale front, it is important that we keep the asset viable through our winter business, groups and convention sales, owners resort support and transient business. We encourage everyone to make one trip or one extra trip to Telemark in 2009. Support your resort by spending some money for recreation passes, discounted room rates, good food and beverages. At this time the trails are great! The food fantastic! Take a glass of wine or a warm beverage to enjoy by the fireplace!!
Our Annual TIOA Membership meeting on October 18 was well attended and well received by many. Annual reports on finances, operations, a resort sale update, maintenance fees and a lively question and answer period helped keep all owners informed of the year at Telemark Resort. Those of you who were unable to attend the annual meeting who would like a copy of the Annual Meeting booklet including all the financial reports can send along a $5.00 check to cover copy and postage charges to Marge Mergen at PO Box 609, Cable, WI 54821. The dialogue between those in attendance, the Board of Directors and management can be characterized as concerned, sincere, valuable and thought provoking as we all discussed the realities of the ownership and operation of Telemark Resort in a difficult economic time. Todd Roth and Susan Wiik were re-elected to the Board of Directors and they will be joined by new board member Mike Kocon for a three year term.
Unfortunately, we have to report to you our owners that a fire in the middle of December of suspected electrical origin, consumed the Pump House at the base of Mount Telemark. The building and contents which provided pumping for the snowmaking equipment and electrical service to the tubing and snowboard hill and Cross Country Fever Trail was a complete loss. Immediately after the fire we put in motion the repair of the electrical service to the recreational hill which was completed in time for firing up the lights and lifts for our holiday season. The pumping function repair will not be attempted for this winter season. Currently we are still awaiting final insurance review and bids on the repair for the pumping operations. This winter we will rely on Mother Nature for adequate snow and so far she has come through quite well.
As a cautionary note, we'd like to suggest that those owners who are investigating timeshare resale listing agreements and timeshare purchase programs should carefully review the documents and legal parameters of these programs before enlisting the services and paying any fees. While many timeshare resale and relief companies provide good service for the investment required, many others are simply charging high fees for listing services that are unproductive or offering title transfer services that may not be legally completed. Please consult your legal advisors before working with any of these types of companies.
Don't forget to frequently consult the Owners Link on the Telemark Resort web page for any additional information about your resort, the potential sale, Board of Directors contacts or other updates. It is the best way for us as Board of Directors to keep you informed. If you have questions of the Board of Directors please direct you letters, emails or telephone calls to Gary Crandall, President of the TIOA. The contact information is on the www.telemarkresort.com web page or at the top of this letterhead.
Enclosed with this letter is your annual real estate tax bill. These tax bills are payable upon receipt per the instructions on the invoices. We also encourage you to pay your annual fees if you have not done so already.
Finally, we want to acknowledge that it is the continued support of you the TIOA members along with the hard work of the resort management and staff that keeps Telemark Resort a viable entity. On behalf of all TIOA members, we extend many thanks to those who have paid your fees in full and on time. We greatly appreciate your understanding and patience as we continue to work diligently toward solutions that will benefit the members of the association now and in the future. Your positive encouragement is appreciated as we strive to move the TIOA to a better more satisfying place for all.
Best regards throughout the New Year
The Board of Directors Telemark Interval Owners Association
Update on Potential Sale Transaction 10-18-08
Note: The following text is from the commentary presented at the TIOA Annual Membership meeting on October 18, 2008. The commentary is from the agenda item that dealt with an update on the sale negotiations. Items referred to in the commentary yet not included in the commentary are available via email request to the Board of Director's President, Gary Crandall.
Sale Negotiations Review and Q & A.
An important topic of the day is the status of the sale negotiations with the development entity that is committed to the purchase and redevelopment of Telemark Resort
Brief History of the Parties Involved.
The basic discussions began in April of 2005, when David Thie came to Darrell Buchmann and Gary Crandall to present an idea for the future of Telemark. He had no equity source to complete the project, but expressed a strong vision for the future development that would provide a vital economic boost to the area.
From that first encounter, over the years that have passed, the entity we have negotiated with has changed as partners were added to the principal group and their equity search proceeded. First we talked with David Thie & Associates regarding the conceptual formulation of an agreement. Then as partners were added we continued with the Telemark Holding Company with more detailed discussions and development of purchase and maintenance agreements. The next negotiating entity was the Lodge Management Group, a previously existing LLC that absorbed the members of the previous group into a new partnership.
Eight weeks ago a major equity member was added to the LMG group. This missing component, that of the major source of equity was a welcome development as this addition signaled that perhaps we could actually get this negotiation to the next steps of approval and a membership vote.
Purchase & Maintenance Agreement development.
This is by no means a simple real estate transaction. It includes a detailed relationship agreement that defines payments for services rendered over time. It includes a comprehensive retained trail easement agreement with many maps detailed maps describing trail locations and uses. Throughout our negotiations, the basic nuts and bolts of what was to be sold for how much haven't altered to any great extent. But the details of the agreement have been in a state of flux as each party developed the concept further. Many versions have been volleyed back and forth, detailing the finer points. Why has it taken so long?? One thing we learned was that each change in the document took a minimum of 4 to 6 weeks as each group discussed the change, then sought their side's legal opinion, then formulated a response to the other side. And the cycle continued over many exchanges. As they say, we have been close but no cigar. Within the last 9 months, on several occasions both sides felt they were within several clauses of Agreeing to Agree. Once we agreed to agree and signed the agreement, and received the earnest money check, we could bring the agreement to the membership for a vote. We thought we were going to get there for the last annual meeting, but could not rush the process. We thought at the time of the spring/summer newsletter we would get there, but again not all the ducks were in a row. We thought we would make the vote announcement in this fall's newsletter. We worked to the goal of having a vote at the annual meeting. Then the adding of the fourth partner, the equity source to the discussion, opened up a whole new due diligence discussion period. Finally, as reported in the last newsletter we were working diligently toward the goal of finalizing the purchase and maintenance agreement in time for this annual meeting, agreeing to agree if you would and moving the process along with an announcement of such at this meeting. As you read in your meeting packet that goal was not reached.
Most Recent status.
The most recent discussion, some call it a ripple, others a tidal wave occurred when a third party simultaneous resale of the land agreement fell through. This third party land sale was to provide the equity portion of the LMG purchase of the resort, allowing them to begin their ownership without a mortgage. The purchaser withdrew from his agreement with LMG, on a contingency that involved a road running through the property he was about to purchase being granted a designation as an ATV trail.
If you refer to your meeting packets, we have included an article from this weeks Sawyer County Record that details the issue at hand as it relates to the ATV trail designation and its impact on the Telemark Resort negotiations.
We point this out not to point a finger at the Town of Cable, for they like all volunteer boards are tasked with the important task of decision making on difficult topics, nor to lay blame on the motor sports advocates for their trail development endeavors are worthy and reasonable. We include this article to characterize the impact of that decision on the negotiations to date.
Again turning to your meeting packets, the latest correspondence from LMG is included. In this letter they make reference to: the status of their reply to our latest volley of the Purchase and Maintenance Agreements, the status of the land sale equity portion of the deal, the general state of the economy as it relates to borrowing at this time, and importantly they comment that they are committed to the process moving forward.
Why have we persisted in this negotiation for so long??
That is a good question, and there are a number of reasons why we have stuck with it:
This is a complex negotiation due to the interrelationship of lodge operations and condo owner amenities with the potential purchaser. Indeed we are trying to complete the sale but we are not leaving once the sale is concluded. The buyer has been willing to work out a relationship agreement with the TIOA for maintenance and access to the amenities following the potential sale.
The buyer has agreed to grant permanent and recorded trial easements.
The buyer is willing to heavily reinvest in the redevelopment of the lodge.
The buyer is willing to accept the clouded ownership of the Hytte building and the land it sits on.
The buyer has accepted the fact that because of the Lodge Suites we could not deliver clear title to the entire building.
The buyer has a track record of successfully owning and operating Northwood's themed resorts.
Where do we go from here??
As this new board meets we will examine the other alternatives to this sale that have been part of our ongoing discussions for quite some time. At our morning Board of Director's session, we approved an action plan, supported by the entire board, to pursue a listing with a real estate broker with whom we have had previous discussions, augmenting our efforts to bring a sale of the lodge to the forefront.
Considering the state of the economy this may or may not be the most opportune moment to make this move, but it is a step that we may be able to initiate shortly. However, rather than sit on the sidelines to wait for our Bird in the Hand to develop further, we will move in earnest to find alternative opportunities or develop the current one.
Conclusion and Transition to Question & Answer Session.
With that I feel we have brought you the membership up to date on the potential sale of the resort. At this time I like to open up the floor for a short time for a few questions on this topic.
Please remember if we can not get to your question, you have an opportunity to bring it up at our break out session following the regular meeting. Any questions?
Update on Potential Sale Transaction 10-02-08
As a follow up to the latest round of exchanges between the potential buyers and the TIOA, I am providing this sale negotiation update for you today.
As noted in our Fall 2008 newsletter, the prospective buyers group added a fourth person to their team creating a new bargaining entity. The addition of this fourth person was a welcome one as his company's role will be to provide the equity needed for the redevelopment phases of the post sale Telemark Resort.
After a period of due diligence entailing further legal review of the Purchase Agreement in progress, this new bargaining group presented the TIOA Board of Directors with a revised purchase agreement for consideration at our September 20 director's meeting. The Board of Directors reviewed the new document, noted items that were either acceptable, not acceptable, needing legal clarification or needing further discussion. The TIOA Board of Directors presented their reply to the revised purchase agreement to the buyer's team on Monday September 29, 2008. At this time we await their response.
The process continues as we narrow the points of discussion in the purchase agreement documents to hopefully achieve the final document that will come before the Board of Directors for final review in the near future.
Our focused goal is to finalize the agreement between the parties, sign it and accept the earnest money into escrow prior to the October 18, TIOA Annual Membership meeting. Of course this may or may not occur.
Should we accomplish this goal, the membership will be informed of the agreement signing at the Annual Meeting and the dates set for the vote of the membership on the agreement at a later date.
As in all previous updates on the sale negotiation progress, there is no set deadline for accomplishing our goals, other than the parties strive to come to an agreement as soon as possible so that the process can move toward completion.
We will continue to update you on the progress of these discussions as updates are warranted.
As always thank you for your patience, understanding and continued diligent efforts to support the day-to-day operations of Telemark Resort as we work toward the goal of bringing the sale question to a vote of the membership.
Update on Potential Sale Transaction 8-19-08
As a follow up to the August 16 Board of Directors meeting, I thought I'd provide an update on the sale negotiations to date. The good news is that the process continues with the discussions with the potential buyers. Recently, we were informed that the development group has added a new partner whose presence strengthens their approach to the project. As this partner has been just added to their team, some additional time will be required for them to review the existing purchase and maintenance agreements. It is our hope that the process will continue to a positive outcome.
The focus of both parties continues to be that of coming to an agreement that will provide success for all involved. At which time the TIOA and potential buyers come to a mutual agreement, that agreement is signed and the earnest money deposited into the escrow account, the TIOA membership will be notified of a special meeting to vote on the agreement.
We do not have that accepted and signed agreement yet. Without a reliable crystal ball we cannot at predict at which time we will have or if we will have an acceptable and signed agreement. In the meantime, the response to the question of "How is the sale going?" remains, "Both parties are working on it and hope to come to an agreement soon." Simply stated there are no more details to share than that.
We are in the process of preparing the Fall TIOA newsletter to officially announce the Annual Meeting on October 18, 2008. In consideration of the required notification of members for items to be voted on at the Annual Meeting it is evident that we will not be voting on the sale question in October. We do however hope to have further confirmed information about the sale process or other alternatives to present at the Annual Meeting.
Again, we thank you for your patience, support, confidence and continued good wishes as we work through this important item on the TIOA agenda.
Update on Potential Sale Transaction 6-16-08
Following the Saturday June 7, 2008 TIOA Board of Directors meeting, on behalf of the BOD, I am passing along an update of the status of the ongoing sale negotiations.
First bear in mind that while these negotiations have continued for quite some time and the process continues into the future, as that time goes by both parties continue to make forward progress toward the mutual objective of agreeing to agree and then bringing the question of the potential sale of the Telemark Resort to the TIOA membership for a vote.
We have had thorough discussion of the purchase and maintenance agreements that will make up the details of the potential sale. These are quite lengthy and detailed legal documents spelling out not only the potential sale terms but also the future relationship agreement between the potential buyers and the TIOA.
There have been offers, counter offers, reply to the counter offer, reply to the reply to the counter offer and then another revision to try to get to the document that both parties agree to sign. It has taken some time, continues to take time and we appreciate your patience as we work through the process to hopefully achieve our goal receiving a reasonable price and acquiring a win/win partnership that will sustain our timeshare operations well into the future.
At this point it appears that the two parties have come to at least a verbal agreement on the many detailed elements that will constitute the purchase and maintenance agreement. Our sincere desire and objective, is that this next go around of communications will finalize that legal paperwork to each parties satisfaction. It may or may not happen but we are focused on working toward that objective.
When and if both parties come to an agreement, both parties will sign the agreement. When and if this happens and the required earnest money is deposited in escrow, the process for notifying the membership of the special meeting for a vote will begin.
At this writing, two versions of the TIOA spring/summer newsletter are being prepared; one announcing a special meeting of the membership to vote on the sale and the other confirming that the process is still on going and we will keep you posted. When and if the time comes that we announce a Special Membership Meeting to vote on the sale, a second newsletter will be printed for first class membership mailing including details of the agreements and time and place for information meetings to be held prior to the Special Membership Meeting date.
Thank you for your continued faith, patience, understanding, and positive good thoughts as we continue to work toward our objective of sending out the Special Membership Meeting announcement.
Update on Potential Sale Transaction 4-18-08
Much time has passed since the 2007 TIOA Annual Meeting announcement and the first posting on the Telemark Resort web page of the ongoing sale negotiations. At that time, we indicated that as definite updates were available that new postings would be added.
In the past six months, the TIOA Board of Directors and the interested parties have meet in person, via telephone and via email. Both parties, with their legal council's guidance, continue to work toward finalizing a bilaterally acceptable final offer to purchase and maintenance agreement.
While we have made substantial progress in the negotiations and legal efforts to detail our understandings in the legal documents, we have not finalized those documents.
At which future time, the Board of Directors approves the language of the offer to purchase and maintenance agreement, the announcement for the special meetings at which the vote of the TIOA membership will take place will be sent via first class mail to the TIOA membership. While there is no definite guarantee that a mutually agreed upon agreement will be reached, both parties are working diligently to that end.
We thank you for your patience in waiting for a definitive announcement on these proceedings. We will continue to work toward finalizing the agreement as soon as possible.
Thank you all for your continued support of the Telemark Interval Owner's Association
For more information contact Telemark at firstname.lastname@example.org
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