Posted 1/6/2014 12:00 am
The proposed auction of the Gaillardia Golf & Country Club in Oklahoma City is moving forward after court approval on Dec. 20.
You might recall that the 275-acre spread, featuring a 7,240-yard championship course and 55,000-SF clubhouse, is owned by Little Rock businessman Phil Herrington.
However, control of the property was taken from Herrington on June 27 after foreclosure action started.
That was precipitated by Herrington failing to pay property taxes, water bills and more as well as defaulting on two loans totaling more than $8.3 million. The total outstanding debt is estimated at upwards of $9 million.
An affiliate of Concert Golf Partners of Newport Beach, Calif., bought the first mortgage position from Little Rock’s Bank of the Ozarks in August.
CGP is in shopping mode for financially distressed private golf clubs. Its portfolio includes Heathrow Country Club and Legacy Club at Alaqua Lakes, both in Orlando, Fla., Carrollwood Country Club in Tampa, Fla., Golf Club of Amelia Island (Fla.) and Country Club at Woodmore near Washington, D.C.
In addition to CGP, a group of Gaillardia members intend to bid on the club. That effort is led by Jeff McDougall, president of JMA Energy Co. of Oklahoma City.
“We’ll see who shows up,” said Ford Price, Gaillardia’s court-appointed receiver.
Would-be bidders are required to file the qualification paperwork by Jan. 17, qualification notices will be sent by Jan. 21 and the auction will be conducted on Jan. 24 in open court before Oklahoma County District Court Judge Patricia Parrish.
Liberty Bank of Oklahoma City holds a second mortgage of more than $1.5 million behind Concert Golf’s $6.8 million claim.
Liberty’s foreclosure complaint alleged that Herrington spent insurance money collected for storm damage to the clubhouse elsewhere instead of repairing a leaky roof.
Allied Bank of Mulberry (Crawford County) holds nearly $2 million of Herrington debt partially secured by his stock ownership of Gaillardia, which now appears to be worthless.