By SCOTT HAMILTON
Senior WriterA deal that would have given Donald Trump control of troubled Running Horse Golf and Country Club – once earmarked for a PGA Tour event – fell apart July 3 when Trump and course owner Mick Evans couldn’t finalize what appeared to be a done deal.
The two sides agreed to an arrangement in late June that would have had Trump pay $25 million in advance along with an additional $15 million from future profits. But attorneys for Trump sent a formal written withdrawal of that offer after the two sides couldn’t come to terms primarily on what classified as operational expenses following the sale and what profits would go toward creditors in the course’s bankruptcy case.
According to Al Berryman – an attorney for Fresno-based law firm Baker, Manock and Jensen that represents Trump – the real estate mogul, however, may still end up owning Running Horse.
Evans, who purchased the property earlier this year from original developer Tom O’Meara, has not announced any new deal with another buyer, though his attorney, Harry Paszucci, said Evans has received more than a half dozen offers.
If a deal materializes, it will be presented before the court. If it is approved, the court then will schedule an auction, giving other parties an opportunity to outbid the court-approved offer.
La Jolla Loans, a San Diego-based direct commercial private money lending company, is the largest secured creditor – it is owed $12.5 million and holds a deed of trust on a majority of the property. It has scheduled a hearing Aug. 8 to request the court terminate the bankruptcy stay to permit it to complete a foreclosure proceeding that began prior to the filing. If successful, Trump could acquire the property at its foreclosure sale for a significantly reduced price.
“The Trump Organization does intend to remain in the loop,” Berryman said. “If the debtor puts together another sale with anyone else, we will attend the court hearing to overbid.”
Regardless of ownership, Running Horse still is eyeing a Tour event.
The property was set to host a tournament in October. But those plans unraveled when construction at Running Horse halted last year because of financial problems. The event also had failed to land a sponsor. That prompted the Tour to award the tournament instead to Ginn Sports Entertainment, which will host the Ginn Classic at Tesoro, a Ginn Resorts community in Port St. Lucie, Fla. (
Golfweek, June 16 issue). The $4.5 million event will fill the next-to-last date during the Tour’s fall finish.
A Tour spokesman said it could add an eighth event to its fall schedule to include Fresno. Paszucci said each of the offers made to Evans have included the ultimate goal of hosting a Tour event at Running Horse.
“We are very cognizant that we need to get our deal together and before the bankruptcy court,” Paszucci said. “We will explain the significance of having a Tour stop here at that development, get it sold by Sept. 1 so construction can resume and the PGA can come to Fresno (in fall of 2008).”
• • •
Scott Hamilton is a
Golfweek senior writer. To reach him e-mail
shamilton@golfweek.com.
Posted: 7/9/2007
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