Here’s a link to today’s U-T article on the judge sending the case to arbitration:
An excerpt on where the trouble started, the refinance of the property:
The very public quarrel over management of Aviara landed in court after Broadreach, owner of the resort since 1998, notified Four Seasons in late March that it was terminating its contract for failing to run the property in a “cost-effective manner.”
Broadreach wants to replace the Four Seasons management group with New Jersey-based Dolce Hotels and Resorts.
Four Seasons, however, would not go quietly, refusing to leave the resort and turn over hotel records and books to the owners. It went so far as to erect barricades at the entrance to the 329-room resort, according to the owners’ attorneys.
In a statement earlier this month, Four Seasons maintained that the dispute relates to the 2009 operating budget for Aviara and the owner’s “obligation to provide working capital necessary to fund debt service.”
While Aviara is profitable at the operational level, Four Seasons said, the owners took on more debt than “the resort can now service” when they refinanced the property in 2006.
When the Four Seasons took over in 1998, the timing couldn’t have been better – a number of new Aviara tracts were underway, and values soared. The Four Seasons resort and the Aviara community grew together, are they still intertwined?
Dolce may be a fine hotel group (their portfolio: http://www.dolce.com/portfolio/portfolio.asp) but they don’t have the same sizzle as the Four Seasons.
If the Four Seasons gets the boot, could it have an effect on surrounding home values?
When KSL took over the La Costa Resort in 2002, they spent millions on improvements – but it was a weathered facility and needed every penny of it. It is an older and more storied resort, having hosted PGA events for years, and a stop on the women’s tennis tour. But today there isn’t much relationship between the resort and surrounding real estate values, if any.
Four Seasons Aviara resort and the surrounding community has had a mutually-beneficial relationship when the real estate values were on the rise, could a nasty public dispute have an effect on today’s buyers?