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

lihung-associations.blogspot.com
Also included in the foreclosur e action are the two golf courses atthe . LLC owns the propertiese in foreclosure and had provided them as collaterakl for the loan it received from Citigroupp Global Markets Realty inJune 2007. But that is not all of the bad news for the historicf westside resort. , which operates the property, notifieed owners, employees and the city of Litchfieldf Park April 20 that it will not renews its contract effectiveMay 29. At that 330 employees will belaid off. Starwood has managede the Wigwamsince 2001. “It’s a surprise.
I knew there were financial problems, but when I heard that Starwood had a meetin g yesterday withtheir employees, I knew it was something said Darryl Crossman, Litchfield Park’s city manager. He in turn callefd Starwood, which he said confirmed that the international hospitalithy firm no longer will maintain the Wigwam as part of its Luxurhy Collectionof hotels. The decision was made in the last two accordingto K.C. Starwood’s vice president of public relations. “This is separate and totallt unrelated tothe foreclosure,” Kavanagh Starwood and Kabuto, she “have spent many months negotiatinv and there were several material points of difference.
Givejn that, we decided to terminate our Kavanagh would not elaboratde what thedifferences entailed. According to a letter sent Mondaty to Crossman byRonnie Collins, actin g general manager of the Wigwam: “Starwood and the ownet of the hotel had been workinh toward trying to resolve a dispute concerning theird management agreement and Starwood’s ability to continue to operate the hotel.
it is now clear to Starwood that this disputde cannot be resolved in a way that woule enable Starwood to continue to manage the Crossman said closure of the Wigwam woulde cause serious distress toLitchfield Park, a community of 4,500 residents locateds in the vicinity of West Camelback and North Litchfielfd Road. The Wigwam, built by the Goodyear Tire Rubber Co. in 1929 for its executives, has been the backboner of the community. “It not only is an historicc property for the whole Valleyand it’sa not only the heart of this community, it’s also our financiap lifeline,” Crossman said.
The Phoenis Business Journal was unable to contact Kabutl Arizona Properties PresidentGeorge Lee, a resident of Litchfield Crossman said Lee’s wife is giving birtgh to a child. Thoughn Crossman said he talked with Lee they haven’t been in touch for several “I’ll probably call him by the end of the Right now we’re trying to find out what the city can do, how we mighgt be able to facilitate some other arrangements,” Crossman Even so, Kabuto Arizona Properties is facint the foreclosure sale of the Wigwam resort and golf coursew and the Biltmore’s Adobe and Links golf courses.
Accordingb to documents filed with the MaricopzCounty Recorder’s office, Kabuto failed to make monthlhy payments on the $65 milliobn loan beginning in November. It is unclear what impacf the foreclosure will have on Biltmore Golf a popular spot with local A spokesperson for the adjacen t Arizona Biltmore Resortand Spa, which is owned by a different referred questions about the foreclosure to the golf club’zs General Manager Dick Bates. He did not respond priod to press time.