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Friday, July 24, 2009 8:51 PM CDT
OUR VIEW: Resurrecting Eagle Creek Resort not easy, but needed



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:

" Eagle Creek is basicly 3 separate business platforms. Hotel/convention center, high end food, and golf, all 3 of which are each tough going on their own most of the time. Compound that with middle of nowhere location, limited advertizing and exposure, the 3 businesses being combined, and several other factors, its always going to be hard to maintain this business model.

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. "

yocsmotel wrote on Jul 28, 2009 9:54 AM:

" I wonder how many people who comment on Eagle Creek have stayed there in the dead of winter, like I have. There is just no way you're getting people out there during that time of year. I had a reason to be there--a funeral--but there aren't enough funerals in the Moultrie-Shelby area to take this place through the winter. As for the conference business--you have a chance at pulling a few small events out of Decatur--small and few. Other than that, where is it coming from? If it's from someplace far off, like Chicago or St. Louis, you're asking them to bypass countless places with more amenities. Those places have their OWN state of the art conference facilities, and they do a landslide business hosting them. Eagle Creek, on the other hand, has amenities like the '90's--no in-room wireless for example, and old TVs with dinky screens. Was there an in-room on-demand movie if you wanted to hang around the hotel, like almost all conference hotels have? Nooooooo. Yes, that can be changed (at the same time they're working on the mold problem and the run-down condition of the place)--by pouring more money in. However, the location is probably still a deal buster for almost everyone. My travels tell me that the conference business now goes to places that offer a complete menu of entertainment options. The attractions mentioned by Mike P. are a significant distance away and some of them are "now and then"--conference goers can't count on pursuing some familiar, tried and true form of entertainment night of the week, like you can at a city-based conference. Just one small example--people like to eat at a variety of places when they travel, not just at the hotel they're staying at. Where will that be in that area--if you remove fast food, the pickings are slim. Mike P., you obviously have some business knowledge, and your ideas about promotion and making sure the distinct businesses stand on their own is a good one. But--I think more important than that--is to begin with a market analysis. Who exactly ARE the real customers for this place? Once that is answered, the question is--can a capable manager be found to run a staff that understands and meets their needs--if they do in fact exist. "

Mike P wrote on Jul 28, 2009 2:54 PM:

" One of the biggest red herrings with this veture has been and always will be it being leased from the state. How many times have they bailed this thing out now. Owners rack up bills, go under and lenders get stuck. The state takes it over, finds another and the cycle starts again. Its been 20 years, and nothing substancial has changed, except the management several times, in pretty much the same direction.

Some places seek venues that are retreats from all the distractions, so they can focus on their meeting retreat or convention. Yes it needs some 21st century updating, but it needs to find its niches, and build up from there. If they fixed it, went wifi, and put 50" flat screens in every room, would not change enough on its own. They need to find markets, adapt to maximzize potential in them, and get on their own two feet, or have another sale of assets, and just let the deer have their golf course back. "

medic57 wrote on Jul 29, 2009 8:56 AM:

" They have a decent Golf Course, that's about it, but I've play'ed better for less money, Hulman Links comes to mind. "

onlooker wrote on Jul 29, 2009 9:46 AM:

" Remember when Michael Jordan tried to purchase this land years ago? Wonder what it would look like now? Maybe the state should try to renegotiate a deal. "

steve senteney wrote on Jul 29, 2009 11:57 AM:

" Since the state has spent money and will probably spend more money on this facility, the state should make a commitment to the facility.

All state government agencies hold meetings and conferences each year. Some are for employees and some are for the public. If the state would hold their conferences there, it would increase the chances of the place being a financial success.

The facility should be able to offer rates that can't be beat in other locations. It is believed excellent employees are available in the area to be hired for the facility which can result in excellent service and treatment of customers.

If the state moved their meetings and conferences to this facility, it would result in less distractions to those attending as they are somewhat in isolation versus being in downtown Chicago. The meetings and conferences could probably be shorter in duration and more attention paid to the material presented and discussed.

However, it is believed state government is controlled by Chicago politiceans and they will probably not agree to support this facility in this manner since it is located in Central Illinois.

Look at the recent budget passed by the Illinois legislature and see all the pork given to organizations and private groups in the Chicago area. "

Mike P wrote on Jul 29, 2009 4:15 PM:

" The issues with this facility, and many other convention center venues, are exactly why Mattoon should not be propping up the coles center with beyond required curb connects. Same goes for the Mall. Biggest mall owners in the country are going bankrupt.

St elmo is putting up an old riverboat. Decatur and many other bigger cities have had trouble with theirs staying viable, for years, Memphis has a brand new one sitting empty, that was constructed like a pyramid. This business persuit is full of lots of risks. Propping them up to get them started with tax dollars, is irresponsible.

All the shopping tolls need curtailed or scrapped. Let the city just give up a percentage of their take, and stop tacking shopping toll taxes on. Ideally we should be dropping the kicker tax too, and get all sales tax down to 6%. Everyone else is raising taxes for anything and everything. If we were a constant 6%, consumers and business from all over would seek the 2 or 3 percent savings. If business made a point to keep prices down, to offer additional savings, they would have better potential to see more profit. Less percent profit or tax, times more business, can yield much better returns. We need to stop doing what everyone else is doing, and focus on being a low tax, lower cost area of business. Folks who come to save, may also eat, some may get a hotel, and the savings still yields everyone more money in the end. Chicago sales tax is 10% or more. Many EIU students come from the Chigago area. Many big purchases, for 4 or more percent less, would be worth the drive or train ride. Niches can be carved out, and less equals more can benefit everyone. TIF overuse, abuse, and shopping tolls is the wrong direction.

Sustainable development plans are supposed to be long term, not hurry and prop up as much as possible, ignoring the cost and consequences, ventures. Many of these issues need to be curtailed, and responsible concerted efforts need made to get back asap to 6.25% sales tax across the area. Duplication needs to be diversly complimentary to existing or completely on the developers dime, no if's and's or but's about it. If they made this a cost savings area, schools, libraries, parks and more, would see better revenue. That goes for property taxes, assessments, and misc. fees. If they all got on the same page, made keeping cost to consumers low a priority, they would all see better revenue, and growth would be more probable, than has been the reality for decades.

If agracel wants to venture into the murky waters, of a convention center, it needs to do it on its own. Not having a shopping toll, would boost their potential, in the end as well. That additional 1% prop up tax on recipts, strikes a cord with many. 7.25 vs 6.25 across the street, or down the road, impacts many folks decisions on where they spend their money. People go to murphys just to save 3 cents a gallon. They will go elsewhere if various taxes and fees keep digging deeper and limiting buying power. Every one else is doing it mentality, is just keeping us on par with other areas, that are struggling constantly and digging deeper at taxpayers to fill more and more broadening gaps. "

Harry Potter wrote on Jul 30, 2009 7:08 AM:

" If agracel wants to venture into the murky waters, of a convention center, it needs to do it on its own.


Yeah right, like that's gonna happen.

It seems that nothing happens in Mattoon anymore unless the tax payers pick up the bulk of the tab, one way or the other. TIF, tax abatement's, state and federal government funding and grants are the new standard for our shrinking little town.

Agracel is just another in the growing list of entities scrambling to climb on the gravy train. "

julio wrote on Jul 30, 2009 8:58 AM:

" Would love to see the course reopened but could care less about the hotel and resturant.
The rooms are nasty as is the food and service. Bulldoze and build a small pro shop. End of story. "

The Question wrote on Jul 30, 2009 12:34 PM:

" For how many decades do taxpayers care to pour money down a rathole? "

bam24 wrote on Jul 30, 2009 1:41 PM:

" The resort has struggled for years and years because the perception in the area has taken negative hit after negative hit regarding the quality of the hotel and the facilities. It will be extremely difficult but with a tremendous amount of hard work and vision the property can be successful. First, I would like to comment on Mike P who did suggest that the resort should be divided into (3) different businesses. The size of the resort I believe only has 130 guest rooms, a few meeting rooms, a small ballroom a dining room and an 18 hole golf course. In reality it is a very small operation to have it run by (3) different operators. The average profit margin on rooms revenue is between 74%-78%. The profit margin on Food and Beverage for Banquets is between 48%-55%. The profit margin for casual dining is between 12%-18%. The profit margin for the golf course should be between 55%-60%. The resort needs to run between a 66%-70% occupancy year around to be successful. If the sales are there you can see exactly what type of profit the resort can generate if properly managed. The other positive piece is that when you are under (1) umbrella you share one vision and can cross utilize employees to minimize your labor dollars. In these very difficult times it will take someone that has a (3-5) year vision to turn the resort and the communities perception around. It would be great to see the resort renovated and open again. "

The Question wrote on Jul 30, 2009 3:32 PM:

" This "business" has had government subsidies SINCE THE BEGINNING and has always failed. It's flat-lining. Pull the plug. "

Mike P wrote on Jul 31, 2009 11:01 AM:

" How many rooms has the old sheraton got?

There is a big difference between the state or feds doing stuff, and local GOB councils and boards funding straight from local pockets, the size of the pools its evaporating from.

State has a hotel in Springfield. Seems like they were renovating it with tax dollars. They have resources and tourism they aren't very good at. Many would say after three consecutive years of overtime, budget failures, and grid locked morass legislating, they aren't real thick with basic business savy in the first place. One wrote a letter here to explain not paying bills to fund other stuff wasn't borrowing, in legalese he doesn't even seem very fluent in.

I am someone if something has been tried several times the same way and failed, the chances of perpetuating that trend are pretty good. Narrow down the variables, and stop simply repeating tired behaviors. For them to diagnose any basic problems, expensive studies need done, comittees formed, and then results have to be presented and agreed on. Try getting a light bulb changed under those conditions, like the old joke of how many, fill in the blanks it takes to do it. Might be months or years before they decide if the bulb is actually out, the building needs rewired, or a futuregen needs built to fix it.

Some folks get on some idea and keep trying it over and over, hoping pretty much the same variables, handled pretty much the same way, will give a more favorable than miserably failed result. It usually gets done with taxdollars. Private investment is more likely to reach a point of cut your losses, sooner. Folks playing with free money, don't seem to value or appreciate it like folks who have to actualy earn with results and work.

Want to be wrong up to 70% or more of the time, and still have a job, be a politician, work for the government, or be a weatherman. How many private companies can you make near a million dollars in mistakes or failures, in one year, and not only keep your job, but get a raise? How many companies let basic responsibilities slide, to create new responsibilities of the same kind, they say they already can't afford to keep up with? How long would private sector folks get away with failing to do their basic responsibilities at an acceptable level, so they can be self imposed multi hat wearing multi taskers on things beyond the scope of their job?

Turning Eagle creek into 3 distinct small businesses, still seems better. The lease already limits direction. Limiting it further by consolidating management has failed several times.

One area filling gaps in others managent has disrepair and mold shutting them all down. This is not the first time it has been taken from operators since it opened. Operators need to be liable, and post a sizable bond evidently, before giving them the keys. Quarterly accounting, and inspecting needs monitored, and debt and repairs is capped by the bond.

How is it the state keeps letting tennants run this into the ground and not sue for full restitution. Once they get over their head, they need to get out, not keep piling up debt and responsibilities, hoping eventually they will turn the corner.

New overpass from 57 pretty much straight to their door has been open for a while. Did they get some billboards and signs up to potentially expand their opportunities.

One year not being maintained for a golf course, can make the time and expense just to reopen it, huge ammounts.

This has been a state supported asset, since the first lease holder failed there. Build it and they will come, only worked in one movie. Why is it tax dollars keep being used to prop up too good to be true proposals, schemes, and ventures? "

medic57 wrote on Aug 1, 2009 12:23 PM:

" How many rooms has the old sheraton got?

Don't know, but they're working on it now. "

Mama says wrote on Aug 12, 2009 2:20 AM:

" Eagle Creek could be a retirement community with the hotel, and have meals for the retirees, can play golf, and be eligible for other STATE help when cater to the retirees.
Set aside maybe few rooms for others who visiting their families there.
The fishing there be good, swimming,
walking, scenery, be good for us ole folks. PRICE MENU too high and not all would go there just for a meal. Put up a MAMA BUFFET,,,,,and the American and different country each weekend, might draw some more people, and put one of the RIVERBOATS on the water for LEGAL GAMBLING in area. Those make money.
Some evenings have like a 1920s flapper dancing revue. Have good talent like EFFINGHAM and they are doing good.
I am too old to do this. Needs someone younger with energy and GIT IT DONE.
The new owners make the same ole mistakes as the other owners. Not a good sign at all. This was to last for many years, well it didn't. "

 

 




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