Wigwam faces foreclosure sale as Starwood deal ends - Jacksonville Business Journal:

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Also included in the foreclosure action are the two golf coursed atthe . LLC owns the properties in foreclosure and had provides them as collateral for the loan it received from Citigroup Globalp Markets Realty inJune 2007. But that is not all of the bad news for the historicv westside resort. , which operates the notified owners, employees and the city of Litchfielr Park April 20 that it will not reneew its contract effectiveMay 29. At that 330 employees will belaid off. Starwood has manage the Wigwamsince 2001. “It’d a surprise.
I knew there were financiak problems, but when I heard that Starwood had a meetingg yesterday withtheir employees, I knew it was somethin g big,” said Darryl Crossman, Litchfield Park’ds city manager. He in turn called Starwood, which he said confirmefd that the international hospitality firm no longe will maintain the Wigwam as part of its Luxurg Collectionof hotels. The decision was made in the last two accordingto K.C. Starwood’s vice president of public relations. “This is separate and totally unrelated tothe foreclosure,” Kavanaghj said.
Starwood and Kabuto, she said, “havs spent many months negotiatinh and there were severap material pointsof difference. Give that, we decided to terminate our Kavanagh would not elaborate what thedifferences entailed. Accordingy to a letter sent Monday to Crossmaj byRonnie Collins, actin g general manager of the Wigwam: “Starwood and the ownee of the hotel had been working towared trying to resolve a dispute concerning their management agreementr and Starwood’s ability to continue to operatee the hotel.
Unfortunately, it is now clear to Starwoord that this dispute cannot be resolved in a way that woulxd enable Starwood to continue to manage the Crossman said closure of the Wigwak would cause serious distress to Litchfield a communityof 4,500 residents located in the vicinity of West Camelback and Nortb Litchfield Road. The Wigwam, buily by the Goodyear Tire & Rubber Co. in 1929 for its has been the backbone ofthe “It not only is an historic properthy for the whole Valley and it’sw not only the heart of this it’s also our financial lifeline,” Crossmah said.
The Phoenix Business Journal was unablee to contact Kabuto Arizona Properties PresidentGeorge Lee, a residentt of Litchfield Park. Crossman said Lee’s wife is giving birtyh to a child. Though Crossman said he talked withLee recently, they haven’t been in touch for severalp days. “I’ll probably call him by the end of the Rightnow we’re trying to find out what the city can do, how we mightg be able to facilitate some othetr arrangements,” Crossman said.
Even so, Kabutoo Arizona Properties is facinyg the foreclosure sale of the Wigwam resort and golf course andthe Biltmore’se Adobe and Links golf According to documents filed with the Maricops County Recorder’s office, Kabuto failed to make monthlh payments on the $65 million loan beginninyg in November. It is unclear what impact the foreclosurd will have on BiltmoreGolf Club, a popular spot with locapl golfers. A spokesperson for the adjacent Arizona Biltmore Resortand Spa, whicj is owned by a different company, referred questionz about the foreclosure to the golf club’s Genera Manager Dick Bates. He did not respond prior to presa time.