Friday, July 24, 2009 8:51 PM CDT
OUR VIEW: Resurrecting Eagle Creek Resort not easy, but needed
By the JG/T-C editorial@jg-tc.com
The Eagle Creek resort near Findlay opened with much promise just shy of 20 years ago.
The facility includes a championship golf course, an attractive waterfront setting with fishing and other outdoor activities readily available. The Lake Shelbyville area has several areas to camp, some cabins and small motels nearby, but lacked a large hotel/dining facility that also could accommodate conferences and other events, including wedding receptions, anniversary celebrations and the like.
The resort on state-owned land looked like a good addition that would benefit all concerned. The first developer, Ed Forester, added a few events including a short-lived wintertime lights festival in an effort to attract guests during the offseason. In not too many years, Forester was on down the road, which was not a surprise.
Many people knew Forester was not the right fit for Eagle Creek, but a second or third owner should have a chance to make the financials work with reduced debt and a more established facility.
Now the resort’s future is very much in doubt, though the state’s Department of Natural Resources, which owns the land, says it wants to reopen Eagle Creek in a year or so.
In the latest development, the holders of the debt have dropped their foreclosure case, meaning they see more liabilities on the horizon than could be recovered from asset sales. Remediating an airborne mold problem is one issue; the fact that the facilities in general are ready for updating is another.
Any effort to reopen would require a substantial investment. The state is in no position to support that investment in a big way. It’s hard to imagine a developer going solo to put up the kind of investment it would take to overhaul Eagle Creek facilities.
That said, a state official sounded an optimistic tone this week, saying there have been inquiries. The resort occupies a prime lakefront property on a body of water that continues to be attractive on a local and regional basis. The golf course is nice, and the surrounding area offers recreational opportunities as well as the Amish country, an outlet mall, a modern theater and other similar attractions.
The conference business has slowed for now, but still has promise.
What appears to be most cloudy is whether any development/promotion group can make required upgrades and move forward with a serviceable debt load that would generate sufficient cash flow to make Eagle Creek a going concern. The prospects of such a development look suspect now.
We would hope some group might step forward to make it work, as Lake Shelbyville is a regional asset, and success of an entity like Eagle Creek bodes well for the area.
— JG/T-C Editorial Board
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Mike P wrote on Jul 27, 2009 2:55 PM:
Leases to each of the three business types, need to be looked into. The 3 each need independent management skilled in sustaining and eventually expanding one business they know inside and out. They need to be independant of eachother, rather than profits from one filling holes in another, or libalities of one, draining the potential of others. The 3 can be complimentary to each other, but pooling all their resources and management in one package has failed to work for 2 decades. Its time for a better approach, rather than continually hoping for more of the same to finally produce different results.
If the 3 are more independant, their libilities are as well. If its set up right, 3 different groups running the 3 segments of business, could have more options for getting each sustainable and eventually thriving, compared to what they had or will ever have, being lumped in one pot. As each eventually profits, they could pool portions, to do more and more as a group effort, to build customer bases and exposure at all 3.
They can possibly pool some resources, but keeping their books divided, should aid each in producing more favorable results. The golf course might be contracted to landscape and maintain the entire place. The food segment, can cater events at the other 2. Put on a continental breakfast, or other desired complimentary functions, but maintaining complete financial separation. Services rendered should be subject to contracted arrangements, or immediate payment. No more long deep lines of credit, extended between the 3 segments, without all having their interests protected constantly.
Many hotels, have a 3rd party operating a restaurant. Golf courses have hotels, completely managed by 3rd parties. All 3 segments, need to be able to focus on their bottom lines, without them necessarily crossing. Only then can they focus on incrimental expansion from making ends meet, to the thriving gem in the rough this could have and should have been 20 years ago.
Once each segment is soundly on its feet, things like light festivals, tournaments, conventions, retreats, fine dining, and catering, can grow gradually to being a part of contributing to a successful sustainable niche filling venture. "