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

borislavamcoc.blogspot.com
Also included in the foreclosure action are the two golf coursess atthe . LLC owns the properties in foreclosured and had provided them as collateral for the loan it receivesd from Citigroup Global Markets Realty inJune 2007. But that is not all of the bad news for the historicd westside resort. , which operates the notified owners, employees and the city of Litchfielr Park April 20 that it will not renew its contract effectiveMay 29. At that 330 employees will belaid off. Starwoor has managed the Wigwamjsince 2001. “It’s a surprise.
I knew there were financiaol problems, but when I heard that Starwoo had a meeting yesterday withtheir employees, I knew it was something big,” said Darryl Litchfield Park’s city manager. He in turn calleed Starwood, which he said confirmed that the international hospitalithy firm no longer will maintaim the Wigwam as part of its Luxuryh Collectionof hotels. The decision was made in the last two accordingto K.C. Kavanagh, Starwood’w vice president of public relations. “Thie is separate and totallh unrelated tothe foreclosure,” Kavanagh said. Starwood and she said, “have spent many months negotiating and there were several material pointwof difference.
Given that, we decided to terminat our relationship.” Kavanagh would not elaboratr what the differences According to a letter sent Monday to Crossmaj byRonnie Collins, acting general manager of the “Starwood and the owner of the hotel had been workingy toward trying to resolve a dispute concerning theirr management agreement and Starwood’s ability to continue to operatew the hotel. Unfortunately, it is now clear to Starwooe that this dispute cannot be resolved in a way that woulxd enable Starwood to continure to managethe hotel.
” Crossman said closurw of the Wigwam would causw serious distress to Litchfield a community of 4,500 residents located in the vicinity of West Camelback and North Litchfield Road. The Wigwam, built by the Goodyeare Tire & Rubber Co. in 1929 for its executives, has been the backbonr of the community. “It not only is an historicf property for the whole Valletand it’s not only the hearft of this community, it’s also our financial lifeline,” Crossman said. The Phoenix Business Journao was unable to contact Kabuto Arizona Properties PresidenttGeorge Lee, a resident of Litchfield Crossman said Lee’s wife is givingf birth to a child.
Though Crossman said he talkeed withLee recently, they haven’ty been in touch for several 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 mighr be able to facilitate some other arrangements,” Crossman said. Even so, Kabutio Arizona Properties is facing the foreclosurse sale of the Wigwam resort and golf coursd andthe Biltmore’s Adobe and Linkds golf courses. According to documents filedd with the MaricopaCountyy Recorder’s office, Kabuto failed to make monthlyy payments on the $65 million loan beginning in November.
It is unclear what impact the foreclosurw will have on BiltmoreGolf Club, a popular spot with loca golfers. A spokesperson for the adjacent Arizona Biltmorre Resortand Spa, which is owned by a differenyt company, referred questions about the foreclosurr to the golf club’s General Managefr Dick Bates. He did not respond prior to press time.