HomeMy Public PortalAboutTamarack ResortWestRock now
is Tamarack
Latest name
is third for resort
in Valley County
By Michael Journee
The Idaho Statesman
Taking its cue from a
grove of trees on the shores
of Lake Cascade, the West-
Rock resort is changing its
name to Tamarack.
A lack of name recogni-
tion is the main reason for
the change, the resort's top
manager said Tuesday as he
introduced the new name
and logo.
"It seemed the name itself
wasn't sticking in people's
minds as much," said Jean-
Pierre Boespflug, CEO of
WestRock Associates, the
resort's parent company.
Boespflug also said the
name was hard to pro -
nounce and that a ski resort
name containing the word
"rock" can conjure up im-
ages of gouged or broken
skis.
"It was not the most
graceful thing," Boespflug
said.
Western Tama-
rack trees are one of
very few conifers
with needles that
change colors with
the seasons, so were
selected to represent
the four - season resort
because of the trees'
changing colors and
range.
A 10 -acre grove of
the trees exists on the
resort site. They turn
a brilliant gold in the fall be-
fore they shed their needles
in the winter, Boespflug said.
"We definitely can say the
Tamarack is an Idaho tree,"
Boespflug said.
The $1.2 billion resort,
which is under construction,
will be the first major moun-
tain resort featuring down-
hill skiing to be built in
North America in 20 years.
But it's creators hope to
draw outdoor recreationists
12 months of each year with
golf, mountain biking, fish-
ing and access to central Ida-
ho's Frank Church River of
No Return Wilderness area.
WestRock, about 100
miles north of Boise in Val-
ley County, has faced its
share of controversy. How-
ever, Boespflug said the re-
sort's stormy past had "lit-
tle to do" with the decision
to change the name.
Boespflug and the resort's
other principals had to fight
/ 2,A4 2- o t 2,,,
for a state land lease earlier
this year. The lease gives the
resort access to a 1,100 -acre
ski hill.
And legal challenges from
opponents contending the
resort would create envi-
ronmental and economic
problems for Valley Coun-
ty played out in the courts
recently — all in the resort's
favor.
Idaho lawmakers still
must approve a special ex-
tension for the land lease
granted by the state Land
Board earlier this year to
take effect. Without the ey-
tension, the resort probably
would face less- than- favor-
able financing terms from
banks for its construction
loans.
Boespflug said Tuesday
that a bill for the lease ex-
tension will be pre-
sented to the Legis-
lature in January.
Tamarack is the
third name for the ski
resort. The idea for
building the resort
first began circulat-
ing in the early 1980s,
when it was known
as Valbois.
Tuesday's name
change comes just
days before the re-
sort opens its Nordic skiing
complex to the public for the
first time Sunday.
"Smart brand positioning
is the first important step any
organization makes as it pre-
pares to target and appeal to
a distinct market ofprospec-
tive customers," Boespflug
said. "Our experts worked
hard to understand the mind
of the target in the disci-
plined process of branding."
All of the legal entities car-
rying the name WestRock
and related to the resort —
as well as all the promotional
literature for the resort —
will be updated with the
Tamarack name, Boespflug
said.
The new Web site,
www.tamarackidaho.com, is
under construction.
Jean - Pierre
Boespflug
CEO of
parent firm
Trail map courtesy Tamarack Resort
This map shows the full network of groomed Nordic trails planned for the Tamarack Resort site west of
Donnelly. A limited number of the trails were open this week, but more are expected to open as new snow falls.
Tamarack Resort opens Nordic trail system
Trails will span
20 kilometers at
resort's base site
west of Donnelly
Tamarack Resort near Donnelly
has opened a 20- kilometer network
of cross - country ski trails, com-
plete with Nordic ski rentals, a
deluxe heated yurt and freshly
groomed trails.
A limited number of trails were
openlast weekend, with more trails
expected to be opened as more snow
falls.
Cross - country skiers of all abili-
ties are invited to sample 15 named
trails at the Nordic Center, includ-
ing seven kilometers of
dog - friendly trails, said Gregg
Lawley, Nordic director for Tama-
rack Resort.
Tamarack will sponsor, num-
ber of Nordic skiing eVeift this
winter as well, Lawley saidobli
"I'm absolutely blown away by
the quality and variety of the ter-
rain in this area," he said in a news
release. "I'm confident that we can
have one ofthe premier cross -coun-
try ski areas in North America."
A large, heated yurt will pro-
vide a place for Nordic skiers to
warm up, and purchase hot drinks
and fresh food at the Nordic
trailhead. Nordic ski trails will be
Star -News Photo by Ben Salmon
Tamarack Resort CEO Jean - Pierre Boespflug points out some of the
proposed four - season resort's amenities to Rick Fereday of McCall during
Saturday's open house at the yurt on the resort site near Donnelly.
professionally machine - groomed,
14 -foot skating lanes with a set
track on one side.
Hours of operation will be Fri-
day through Monday from 9a.m. to
5 p.m. Trail fees this season will be
$6 for adults, and $4 for juniors age
12 and younger. Rental fees are $12
for waxless touring skis and $16 for
cross- country skating equipment.
One person who is impressed
with Tamarack's trail design is
Jonathan Wiesel, a travel writer
and trails consultant who has vis-
ited every major Nordic area in
North America and was instru-
mental in the development of the
widely known Royal Gorge Nordic
System in California.
"Tamarack can create the most
charismatic cross - country area in
North America," said Wiesel, of
Ward, Colo., who is co- owner of
Nordic Group International, a con-
sulting company. "Most operators
would give their right arms and an
option on their firstborn child for
the site."
Nordic trails at Tamarack pro-
vide a wintertime tour of open
meadows, aspen groves, pine for-
ests and scenic viewpoints on
rolling and moderate terrain near
the resort's base area.
Skiers will enjoy views of Lake
Cascade, home to bald eagles and a
rich variety of waterfowl, and
steep- rising, tree - cloaked West
Mountain, where alpine skiing
operations will occur.
"The base area at the Nordic
Center creates an indelible first
impression," Wiesel said in the
release. "Tamarack is magnificent
in terms of views, terrain, magni-
tude and proximity to services."
HE VALLEY
FAIRMONT TAMARACK
SELLS OUT $140M WORTH OF REAL ESTATE —FAST
amarack Resort sold out its
initial offering of Fairmont
Tamarack almost as fast as
the Rolling Stones concert sold out
in Boise last November. A joint
venture development between Andre
Agassi and Steffi Graf's Agassi
Graf Development and Bayview
Financial, L.P.'s Real Estate Investment
Group. The first 125 condominiums and
hotel- condominiums made available
were bought in less than seven hours,
generating $140 million.
"Tamarack Resort has become
synonymous with 'luxury mountain
lifestyle'. The overwhelming success
of the first Fairmont Tamarack
offering validates that designation,
adding a whole new dimension
to our resort as the pinnacle hotel
offering and the first luxury hotel
flagship in the state," said Jean- Pierre
Boespflug, Tamarack CEO. "Tamarack
will join the esteemed ranks of
America's other mountain destination
resorts which have luxury flagship
properties, including, Aspen (St.
Regis), Beaver Creek (Ritz Carlton),
Jackson Hole (Four Seasons), and
Telluride (Fairmont). The addition of
the Fairmont Tamarack is a significant
step in the development of our young
32 • McCall Magazine Summer /Fall 2007
t`
Fairmont Tamarack
resort, and is an additional jewel
to complement all that nature has
provided."
The Fairmont Tamarack is the third
phase of Tamarack's Village. The
second phase, a six - building Village
Plaza, will feature 26 boutiques,
shops, restaurants and 129 hotel -
condominiums. Village Plaza is fast
taking shape with framing and trusses
defining the new heart of the resort. It
is scheduled to open in the summer of
2008. The Fairmont Tamarack will sit
adjacent to Village Plaza and will be
connected by a pedestrian bridge.
To date, Tamarack Resort has held
seven real estate releases since January
of 2004 - selling 656 properties for $499
million. Tamarack Resort Realty, the
exclusive broker for luxury property
at the resort, handled sales for the
Fairmont Tamarack project and this first
phase sell -out.
Interestingly, a number of
international buyers purchased
property in Fairmont Tamarack,
changing the profile of Tamarack Resort
on a global level. Many of these buyers
come from Mexico, a country which the
Idaho Department of Commerce has
identified as a key trade and tourism
market for the state. The majority
of buyers of Fairmont Tamarack
come from Florida, California, Idaho,
Nevada, Washington, and Texas.
OSPREY MEADOWS
GOLF COURSE GETS KUDOS
BEST NEW PUBLIC COURSE $75
AND OVER FOR 2006 GOLF
DIGEST (JAN. 2007)
#2 COURSE IN IDAHO ( #1 PUBLIC
COURSE) GOLF DIGEST
( MAY 2007)
TOP 10 NEW COURSES YOU CAN
PLAY GOLF MAGAZINE
( JAN. 2007)
AMERICA'S TOP GOLF COURSES
ZAGAT SURVEY2007 /2008
(MARCH 2007)
REGION'S BEST NEW COURSES
SEATTLE METROPOLITAN
(APRIL 2007)
0 sprey Meadows at Tamarack
Resort, is racking up national
accolades as it enters its
second season. Golf Digest has named
Osprey Meadows Idaho's top public
course and number two in the state
overall in its annual ranking of
'America's Greatest Courses State by
State.' Osprey Meadows ranked higher
than perennial Idaho golf course
favorites at Coeur d'Alene, Circling
Raven, Sun Valley and Whitetail.
In January, Golf Digest singled out
Osprey Meadows as America's Best
New Public Course $75 and Over for
2006. It was the first such honor for an
Idaho golf course.
"For the esteemed Golf Digest to
recognize the spectacular design and
poetic beauty of Osprey Meadows
not just once, but twice, during our
inaugural season is truly an honor,"
said Alfredo Miguel, Tamarack
Chairman. "As this course matures, the
richness of its ever - changing character
will continue to entice all levels of
golfers to come and enjoy a truly
unique golf experience."
www.mccalimag.com
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T m a r a c k l e a s e
S e n . N o h w a n t s
t o k n o w m o r e
a b o u t v i a b i l i t y
B y M i c h a e l J o u r n e e
T h e I d a h o S t a t e s m a n
G o v . D i r k K e m p t h o m e i s
d e f e n d i n g s t a t e a g e n c i e s '
w o r k o n a s t a t e l a n d l e a s e
f o r a f o u r - s e a s o n V a l -
l e y C o u n t y r e s o r t ,
b u t m e m b e r s o f a k e y
S e n a t e c o m m i t t e e
p r o b a b l y w i l l p r e s s
f o r m o r e i n f o r m a t i o n
b e f o r e e n d o r s i n g a
l o n g - t e r m v e r s i o n o f
t h e l e a s e .
R e p u b l i c a n S e n .
L a i r d N o h , c h a i r m a n
o f t h e S e n a t e R e -
s o u r c e s a n d E n v i -
r o n m e n t C o m m i t t e e , s a i d
T h u r s d a y t h a t h e s t i l l h a s
r e s e r v a t i o n s a b o u t T a m a -
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y e a r l e a s e o f s t a t e l a n d s o n
t h e s h o r e s o f L a k e C a s c a d e .
" T h e r e d e f i n i t e l y w i l l b e
s o m e o t h e r a r e a s w e w i l l
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N o h s a i d .
A f t e r t h e H o u s e p a s s e d a
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v o l v e m e n t w i t h t h e r e s o r t
i m p l i e d a n e n d o r s e m e n t o f
i t ' s v i a b i l i t y .
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T h u r s d a y t h a t h e
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L a i r d N o h
C h a i r m a n n o t
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t o t h e l e a s e t h a t
w o u l d r e q u i r e T a m a -
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f r o m r e a l e s t a t e s a l e s
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c o u n t d e d i c a t e a t o
d e v e l o p m e n t o f t h e
s k i h i l l .
T h r e e w e e k s a g o ,
N o h ' s c o m m i t t e e
p r e s s e d t h e L a n d B o a r d f o r
m o r e d e t a i l s a b o u t t h e
s t a t e ' s w o r k l a s t y e a r i n
d r a f t i n g a l e a s e t h a t w i l l a l -
l o w T a m a r a c k , f o r m e r l y
k n o w n a s W e s t R o c k , t o
b u i l d a s k i h i l l o n 2 , 1 2 4 a c r e s
o f s t a t e l a n d .
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w a n t s m o r e i n f o r m a t i o n a b o u t
t h e I d a h o D e p a r t m e n t o f C o m -
m e r c e ' s i n v e s t i g a t i o n o f T a m a -
r a c k i n v e s t o r s .
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p u b l i c - c o m m e n t h e a r i n g o n t h e
m a t t e r a t 3 p . m . W e d n e s d a y .
T h e h e a r i n g , w h i c h w i l l b e a n
i n f o r m a t i o n a l h e a r i n g f o r t h e
c o m m i t t e e , w i l l b e i n t h e S t a t e -
h o u s e ' s f o u r t h - f l o o r G o l d R o o m .
" I d o n ' t e x p e c t t o v o t e a t t h a t
p o i n t , " N o h s a i d .
A b i l l t o c o n v e r t T a m a r a c k ' s
1 0 - y e a r l e a s e i n t o a l o n g - t e r m
l e a s e p a s s e d t h e H o u s e i n J a n u -
a r y a n d i s u n d e r c o n s i d e r a t i o n
b y N o h ' s c o m m i t t e e . r o l e
K e m p t h o m e , w r i t i n g i n h i s
a s h e a d o f t h e L a n d B o a r d , r e -
s p o n d e d t o N o h ' s r e q u e s t f o r
m o r e i n f o r m a t i o n i n a l e t t e r e a r -
l i e r t h i s w e e k o u t l i n i n g t h e
p r o c e s s o f t h e l e a s e ' s d r a f t i n g .
T h e L a n d B o a r d i s a p a n e l
m a d e u p o f t h e g o v e r n o r , t h e a t -
t o r n e y g e n e r a l , t h e s e c r e t a r y o f
s t a t e , t h e c o n t r o l l e r a n d t h e s u -
p e r i n t e n d e n t o f p u b l i c i n s t r u c -
t i o n . I t a d m i n i s t e r s I d a h o ' s v a s t
s t a t e e n d o w m e n t l a n d s a n d i s r e -
s p o n s i b l e f o r d e c i d i n g o n s t a t e
l a n d l e a s e s .
A n a t t a c h m e n t t o K e m p -
t h o r n e ' s l e t t e r , w r i t t e n l a r g e l y b y
t h e s t a f f o f L a n d B o a r d m e m b e r s
a n d s t a f f m e m b e r s o f t h e D e -
p a r t m e n t o f L a n d s , r e s p o n d e d t o
d i r e c t q u e s t i o n s f r o m N o h a n d
h i s c o m m i t t e e .
T h e r e s p o n s e s a y s t h e s t a t e i s
w e l l - p r o t e c t e d f r o m a n y l i a b i l i -
t y i n t h e e v e n t t h e r e s o r t o r i t s
s u p p o r t e r s g o b a n k r u p t o r f a i l t o
f u l f i l l i t s o b l i g a t i o n s u n d e r t h e
l e a s e .
Tamarack's
lease may get
action soon
Legislator still
questions deal
for new resort
By Michael Journee
The Idaho Statesman
Tamarack's quest for a
49 -year state land lease
could move forward in the
Legislature next week, de-
spite misgivings of a key
Senate committee chairman.
Sen. Laird Noh, R -Kim-
berly, Senate Resources and
Environment Committee
chairman, said Wednesday
it may be beyond the scope
of his committee to come
up with answers to ques-
tions about the resort's po-
tential and its investors.
Noh probably will give
his committee an opportu
nity next week to debate
and vote on a bill that would
give the State Lands De -.
partment authority to issue
a 49 -year lease to Tamarack,
the $1.2 billion resort for-
merly known as WestRock
However, scheduling a
committee debate on the bill
amid the Legislature's ef-
forts to pass a new state
budget could be difficult,
Noh said.
Noh has held up progress
Tamarack
of the bill in the Senate for
From page 1
a month as he sought an-
swers about the background
of some of the resort's ma-
ho Department of Commerce's in-
jorinvestors and the state's
vestigation of Tamarack investors
and ways to ensure that Tamarack
liability if the resort goes
will make payments to the state as
bankrupt.
The House approved the
outlined in the lease.
bill unanimously in January.
"One
But Sen. Dean Cameron, R-
Rupert, challenged Noh's charac-
of the primary con-
cerns of this committee is
terization of the inquiry as "ques-
that approval of this lease
tions from the entire committee."
He said only a few members sub -
will be seen as an endorse-
ment that the project is like-
miffed questions to the Land Board
ly to succeed," Noh said
along with Noh.
Noh said he may have "jumped
Wednesday during a public
hearing for the bill.
the gun" in attributing questions
Noh pressed the state
to the entire committee. However,
he said, copies of his inquiry to the
Land Board — which grant-
ed a 10 -year land lease to
Land Board were made available
Tamarack just over a year
to all committee members before
they were formally submitted. Nei -
ago — for more details
about the state's work last
ther Cameron nor any other mem-
year in drafting the lease
that would allow the resort
to build a ski hill on 2,124
acres of state land.
Noh also asked for more
information about the Ida-
See Tamarack on page 5
o/�ao3
ber "expressed concern about be-
ing associated with the questions,"
Noh said.
In a written response to Noh's
inquiry, Gov. Dirk Kempthorne,
who heads the Land Board, and
State Lands Department staff
members defended state agencies'
work on the lease for the four -sea-
son mountain resort under con-
struction in Valley County.
They said the lease protects the
state from any liability if the re-
sort fails financially.
Despite their defense of the
lease, Noh said Wednesday that
he has no more information about
the lease or the resort's principals
than he did a month ago.
"Our committee's resources are
limited, and we're running out of
time," Noh said. So he'll allow the
bill to move forward without the
answers he wants, he said.
Tamarack resort
clears hurdle in
obtaining lease
Lawmakers say
lease must be
carefully written
By Michael Journee
The Idaho Statesman
Tamarack resort's push
for a long -term state land
lease survived it's toughest
challenge Friday, putting the
lease in good shape for fi-
nal legislative approval
some time next week.
Despite pointed questions
from some of its members,
the Senate Resources and
Environment Committee
unanimously endorsed mak-
ing 2,124 acres of
state land available
to the planned
mountain resort for
development of a ski
hill and a portion of
a golf course.
The bill, which
could come up for a
vote in front of the
entire Senate as ear-
ly as Wednesday,
gives the state Lands
Department author-
ity to issue a 49 -year lease
to Tamarack, the $12 billion
resort formerly known as
WestRock.
During Friday's hearing
on the bill, Sen. Laird Noh,
the committee's Republican
chairman, Sen. Clint Sten-
nett, D- Ketchum, and Sen.
Fred Kennedy, D- Mountain
Home, pressed Lands De-
partment staff members and
lawyers about the state's li-
abilities if it signs a long-
term lease with Tamarack
Specifically, they ques-
tioned whether the lease
amounts to an endorsement
of the resort's potential for
success and whether escrow
accounts — or other safe-
guards ensuring the state
would receive its lease pay-
ments from Tamarack —
could be required in the
lease.
As they have throughout
the bill's progress through
the Legislature, Lands De-
partment staff members as-
sured the committee that the
lease protects the state in
nearly any potential scenario.
As further assurance,
Jean- Pierre Boespflug, Tam-
arack's CEO and majority
shareholder, volunteered to
include a disclaimer in all
of the resort's real estate
sales documents saying the
lease does not constitute a
state endorsement of the
project. Boespflug also
agreed to place all
proceeds from the
resort's real estate
sales in an escrow ac-
count dedicated to
the resort's develop-
ment.
Tamarack began
development of the
resort last summer
based on a 10 -year
land lease granted by
the Land Board just
over a year ago.
However, developers have
said the commercial success
of the resort is dependent
upon a long -term lease.
The House approved the
long -term lease in January.
If the Senate approves the
measure, Gov. Dirk Kemp -
thome is certain to sign the
bill into law. His office and
staff members have de-
fended the lease numerous
times during the bill's pro-
gression through the Legis-
lature.
P
Jean - Pierre
Boespflug
Tamarack
CEO
S�Jz&")mo- C)
/� %ov 3
Senators question viability of Tamarack resort
Promoters want
state to grant
49 -year lease
By Wayne Hoffman
The Idaho Statesman
Members of a key Senate
committee said Wednesday
they want more answers be-
fore they approve a long -term
lease for the developers of the
billion - dollar Tamarack re-
sort on Lake Cascade.
Tamarack developers
sought to reassure the Sen-
ate Resources and Environ-
ment Committee that the pro-
ject is sound and the devel-
opment is worthy of a 49 -year
lease.
"We believe that Tamarack
is not asking the state to take
risk," said Dave Scott, the de-
velopment's vice president of
commercial operations.
But freshman Sen. Fred
Kennedy, a Democrat from
Mountain Home, pressed for
specific answers on the par-
ticulars of the lease for 2,124
Tamarack lease signed
The state made good on its
promise to provide a long -term
lease for a proposed billion -dol-
lar four - season resort on
Lake Cascade.
Gov. Dirk Kempthorne
signed the legislation ex-
tending the lease on 2,100
acres of state land from
10 to 49 years, calling the
Tamarack resort an eco-
nomic boost for de-
pressed Valley County.
And resort officials
turned over a check for
$600,000, the second part
of the $1 million lease payment
the developers agreed to for the
first five years. The state got
$400,000 in summer after the
lease was signed.
If the project, previously
known as WestRock, is still un-
der way in four years, the state
will begin collecting more than
$1 million.
Resort developers said they
need the extended lease to attract
financing. The first phase will in-
clude three lifts rather than two
and an 18 -hole golf course rather
than a 9 -hole course. There also
will be a lodge to serve skiers and
golfers.
The resort opened its Nordic
skiing course in winter and plans
to start construction on the
alpine ski hill and other ameni-
ties in summer.
acres of state land, including
a plan to have investors pay
$300,000 to $500,000 for
reservations on the develop-
ment's single- family lots.
Kennedy said he's most
concerned about the people
who invest in the project, not
just the state's liability for it.
"Are we encouraging peo-
ple to come out and put their
assets at risk, more so than if
the state had not been in-
volved with it ?" Kennedy
asked.
"I'm hard- pressed to find
anyone involved in this who
is optimistic of success," said
committee Chairman Laird
Noh of Kimberly. Democrat
Clint Stennett of Ketchum
said there hasn't been a ma-
jor ski resort built in the West
in the last 25 years. And he
noted that the state used to
own the Sun Valley land that
the Elkhorn Resort was built
on, and now it's being town
down.
Scott said Tamarack, for-
merly called WestRock, has
a well thought -out business
plan. It's more than a ski hill,
he said, touting plans that
calls for a full- service resort
community and an 18 -hole
golf course. Noh will send a
list of questions about the
project to the Land Board and
will wait to hear back before
scheduling a hearing on
House Bill 83, which would
grant the extended lease.
The measure passed the
House last month 66-0.
CLIMBING WALL AT TAMARACK RESORT IS NOW OPEN
ey all you wall - climbing
crazies: Tamarack has
just installed a free
standing rock climbing wall.
It's 28 -feet high and about 10
feet wide.
The wall has four routes for
different ranges of difficulty;
two beginner routes, an inter-
mediate route and an ad-
vanced route.
Participants are given a
climbing harness, which is at-
tached to an automatic belay
system.
There is no age restriction
on who can climb, but kids
need to be at least 40 pounds.
Maximum weight is 250
pounds.
Tamarack charges $5 per
person for four climbs.
The wall is open to the pub-
lic from 9 a.m. to 5 p.m. daily
and is located right outside the
door of the Tamarack Recre-
ation Center and next to the
Trailhead Cafe, so it provides a
lot of entertainment for folks
who may be eating outside and
watching people on the climb-
ing wall.
Photos courtesy of Tamarack Resort
Bush bikes, boats and says,
`I should have come
here sooner'
President Bush leads a group of mountain bikers along a path
near Lake Cascade State Park on Tuesday.
Bush says withdrawing from
Iraq would weaken U.S.
DONNELLY—President Bush took on
the Cal ifornia mother who has been defi
antly protesting outside his Texas Home,
saying Tuesday that Cindy Sheehan does-
n't represent the views of most military
families and that fulfilling demands like
hers for withdrawal from Iraq wou Id weak-
en the United States.
Bush will meet today w1w ..
with military families atthe
Idaho Center in Nampa.
Bush said he under-
stood the anguish of the
woman whose son was
killed in Iraq lastyear. But
he said he disagreed with Cindy
her assertion that U.S. Sheehan
troops should be brought
home before more die in a
"senseless war."
"a think those who advocate immediate
withdrawal from not only Iraq but the Mid-
dle East are advocating a policy that would
weaken the United States," Bush said.
The president said U.S. troops in Iraq
are keeping Americans safe. He urged pa-
tience as officials in Baghdad struggle to
complete a constitution.
President will
leave Donnelly
this morning for
Nampa event
By Brad Hem
The Idaho Statesman
DONNELLY — President
George W. Bush spent his first
full day in Idaho mountain bik-
ing at Tamarack, boating on
Lake Cascade, having a private
dinner with Idaho's congres-
sional delegation and spend-
ing time with Gov. Dirk Kemp -
thorne.
Kempthorne spoke to Ida-
ho reporters just before din-
ner with the Bushes. He said
he enjoyed the president's ca-
sual conversation, colorful
turns of phrase and self -dep-
recating humor, though he de-
clined to give examples of that
humor.
The last two days in Don-
nelly have given President
Bush and his wife, Laura, a
chance to "recharge their bat-
teries," Kempthorne said.
"He is an outdoorsman, and
she is someone who loves the
outdoors," he said. "For Idaho,
this is a tremendous opportu-
nity."
The Bushes arrived at
Tamarack Resort Monday af-
ternoon on Marine One. Bush
will leave Tamarack this morn-
ing to address more than 6,000
people, including military fam-
ilies, at the Idaho Center in
Nampa.
"I should have come here
sooner," Bush said of his first
visit to Idaho as president.
Kempthorne said most of his
conversations with Bush have
been .casual, but they often
turned to forest policy, access
to public lands, education, wa-
Bush
From page I
ter quality, fisheries, soldiers in
Iraq and transportation and ener-
gy policies.
"Time and time again, it came
through to me that he is a former
governor," Kempthorne said.
Idaho's congressional delega-
tion was set to dine with the Bush-
es on an Idaho - inspired meal of
fish, beef, potatoes and other state
specialties. The guest list includ-
ed Sens. Mike Crapo and Larry
Craig and Reps. Mike Simpson and
C.L. "Butch" Otter and their spous-
es or companions, and former Sen.
Jim McClure and his wife, Louise.
Spokespeople for the delegation
said they would let Bush decide
the dinner conversation.
"That is up to the president,"
said Mark Warbis, spokesman for
Otter. "He's going to be taking his
lead from the president. We want
to be good hosts. It is (Otter's) dis-
trict after all."
But the spokespeople also said
if the opportunity came up, the del-
egation would talk about Idaho is-
sues including public land, trans-
portation and energy, the Owyhee
initiative and the Endangered
Species Act.
Bush was planning to put the
finishing touches on today's Ida-
ho Center speech after Tuesday's
dinner, Kempthorne said.
the president gave him a little cy-
cling advice, recommending the
governor ride with clips for the
pedals of his bike.
"He is an outstanding athlete.
He outdistanced me," Kempthome
said. "His pace is just very fast."
There were four other cyclists
keeping pace with the president,
followed by five forest -green golf
carts, each carrying three men in
military fatigues down the trail.
Driving along a gravel road run-
ning parallel to the trail were four
sport utility vehicles, three of them
black Chevrolet Suburbans with
electronic communications equip-
ment and turrets sprouting from
the roofs.
About 45 minutes later, Peloton
One sped by the resort golf course
again, with Bush — dressed in
black shorts, a gray shirt and a red -
and -black helmet — maintaining
the same jackhammer -knee pace.
"The president must be in awe-
some shape," said Idaho State Po-
lice Capt. Wayne Longo of Coeur
d'Alene, who was stationed at a
roadblock near the cycling area.
"Look at him go."
Shortly before 4 p.m., the pres-
ident and first lady left the resort
and drove in a motorcade a short
distance to the Poison Creek Boat
Launch at Lake Cascade. The first
couple were joined by the gover-
nor and Idaho first lady Patricia
Kempthorne on a small, eight -pas-
senger pontoon boat that had been
TWU1 MI. dV11 I — l-- wa...+.......
PRESIDENT BUSH TOSSES THE LINE after an afternoon of fishing with Gov. Dirk Kempthorne and his wife,
Patricia, and first lady Laura Bush.
"It is very apparent that the
troops are on his mind," Kemp-
thorne said.
The president took a short break
around 9 am. Tuesday to talk with
reporters in a setting that show-
cased Idaho's forested scenery. He
was wearing blue jeans, sneakers
and a North Face fleece jacket with
an American flag and "GWB" on
the front. Bush walked with Kemp-
thorne down a wooded trail lined
with pine trees to take about four
stocked with fishing gear, though
they came back empty- handed.
The two first ladies didn't cast
lines in the water, said fishing
guide Tom Doerr. He did say a
hununingbird twice landed on Lau-
ra Bush's hand.
"They were absolutely delight-
ful," Doerr said. "They were warm,
real people."
It was a sentiment echoed by
Patricia Kempthome, who said she
has had to remind herself that the
friendly couple vacationing with
them are the president and first
lady.
"It was such friendly conversa-
tion," she said.
Wearing a bright -red shirt, Bush
waved twice to a group of specta-
tors at a nearby campground as he
left the dock, his watercraft sur-
rounded by five boats carrying se-
curity officers.
He's expected to leave Tama-
rack by helicopter late this morn-
ing and travel to Nampa where he
is scheduled to deliver a speech
on the war on terror to military
personnel.
Following the speech, Bush will
speak privately to 25 families of
those killed in Iraq or Afghanistan.
He will meet with each family,
some from Idaho, separately dur-
ing at least two hours, White
House press officials said.
TheAssociated Press contributed to
thisstory.
questions from reporters, mostly
about the war in Iraq.
"I'm going to tell the people in
Boise that I made a mistake not
coming here earlier. It's a beauti-
ful state," Bush said.
The president spent part of the
day with Kempthorne, though the
state's top elected official wasn't
always able to keep up with the
brisk pace Bush set on his morn-
ing laps around the pine- studded
grounds.
"Did they come by this way ?"
Kempthorne asked a uniformed
officer as he rode past a checkpoint
Tuesday morning about two nun -
utes behind the presidential cy-
cling pack, known as "Peloton
One" in the jargon of White House
security.
In cycling, a peloton is a close-
ly packed group of riders who find
reduced wind resistance by draft-
ing each other.
After the ride, Kempthorne said,
Accompanied by Idaho Gov. Dirk Kempthorne, President George W. Bush ma es
of vacation at Tamarack Resort near Donnelly.
Tamarack Resort signs first
business tenants for Village Plaza
The heart of Tamarack Resort
is fast taking shape with the
development of Village Plaza,
marked by the signing of the first
seven commercial leases for the
pedestrian village.
The six - building, multi- tiered
Village Plaza, which will open in
the summer of 2008, features 129
hotel condominiums, a movie
theatre, and 23 boutiques, shops,
and restaurants, a news release
said.
"Tamarack seeks hands -on
owners and operators who under-
stand guest experience, the value
of servicing a distinctly high -end
clientele, and who are willing to
embrace our active year -round
lifestyle," said Michael Feren-
sowicz, vice president of village
development.
Ferensowicz is a 20 -year
veteran of commercial and re-
sort development, having most
recently led development at The
Village at Squaw Valley USA.
Already confirmed for Tam-
arack's Village Plaza are the
following businesses:
• Accent Flowers Plus:
Floral, gift and card studio. Cur-
rently in Bosie and Eagle.
• Blue Ribbon Artisans:
Handcrafted ice creams, pas-
tries and desserts. Currently in
Meridian.
• The Lift: Integrated by a
staircase to the Village Fitness
and Pool area, this health drink
stop will feature smoothies, pow-
er drinks and wheatgrass shots.
A new business by a Tamarack
employee.
• Mai Thai: Boise -based res-
taurant featuring Asian fusion
and sushi.
• Mountain Essentials:
Sports Apparel. Owned and oper-
ated by Tamarack Resort.
• Mountain Life Photogra-
phy: Action and studio photos,
frames and gifts. Currently es-
tablished at Tamarack.
• Tait's Boardshop: A sport-
ing goods shop now operating
in Squaw Valley and Pacifica,
Calif., by former pro surfer Tait
Cowan.
"We were seekingthe opportu-
nity to get in on the ground floor
at the next great destination, and
TamarackResort was the obvious
choice, Cowen said.
"I'm not old enough to have
had that opportunity at the
other great villages in North
America —like Vail Village in
the 60s or Whistler Village in the
80s," he said. "Tamarack's family -
friendly atmosphere, attention to
high -touch customer service, and
broad array of outdoor activities
from mountain to lake perfectly
matches the lifestyle that my
family cherishes."
Carlos Tijerina, co -owner of
Mai Thai, agreed with Cowen.
"As we've been expanding our
culinary offerings intheTreasure
Valley we've been keeping an eye
on what has been happening just
up the road in the Payette River
Mountains," Tijerna said.
"The vibe that Tamarack is
cultivating with their village will
be spectacular," he said. "We are
thrilled to have our restaurant
showcased in a development of
this caliber."
Tamarack is still welcoming
interest from qualified culinary
and retail businesses, ranging
from ladies apparel to a pub with
a dance club on the parking level
below. The resort anticipates the
full leasing of Village Plaza com-
mercial space by the end of this
summer.
Village Plaza at Tamarack Resort takes shape in this recent photo.
The Fairmont Tamarack, a
joint venture development be-
tween Andre Agassi and Stefanie
Graf's Agassi Graf Development
and Bayview Financial, L.R's
Real Estate Investment Group,
will sit adjacent to Village Plaza
and be commected by a pedes-
trian bridge.
Photo by Patrick Revallier
LOCAL'S CUP RACE SERIES - Tamarack Resort and the Tamarack
Sports and Education Foundation have completed the first season
of their Local's Cup Race Series. Winning team for the series was
Team Redwood. Pictured from left are George, Dorris, Chris Henery,
Chris Bodily and Rick Brey. Not pictured is Mike Dorris. More than
$2,500 in local gift certificates and prizes were donated and awarded
to participants. The series was designed to encourage local ski racing
at Tamarack and raise some funds for the athletes and students of
TSEF. Sponsors included Tamarack Resort, Pro Peak Sports, Boot's
Pizza, Buffalo Gal, Flight of Fancy Bakery, West Mountain Gear &
Grind, Sante Spa, Tamarack Guided Services and Mountain Life
Photography.
PAGE A -3 - THE STAR -NEWS - THURSDAY, JULY 19, 2007
Tamarack resumes
major purchases
by its
contractors
BY TOM GROTE
The Star -News
Major construction at Tama-
rack Resort is back in full swing
withthereauthorizationof major
purchases, a resort spokesman
said this week.
Tamarack has told its gen-
eral contractor, Banner Sabey
of Seattle, that it was lifting
a ban placed in June of large
purchases of materials such as
wallboard androof shingles, said
Scott Turlington, the resort's vice
president of external affairs and
communications.
Last month, Turlington said
the action was a routine halt
to purchases while the resort
stepped back and examined its
expenses.
The action spurred rumors
the resort was in financial
trouble and that massive layoffs
of construction workers was im-
minent. Those rumors werefalse,
Turlington said.
Work continued on the $91
million Village Plaza at the heart
of the resort during the budget
review, he said.
"Tamarack and Banner Sabey
have achieved our objective of
matching expenses and receipts
and now have a revised plan in
place that will allow us to com-
plete Village Plaza," Turlington
said this week.
MO&K
"This agreement allows sub-
contractors to resume purchases
for materials and to have a de-
fined scope of labor," he said.
"As a part of this revised plan,
the spending is controlled more
tightly but will continue to be
very substantial."
About 500 construction work-
ers are at the resort along with
the 375 employees of Tamarack,
he said.
Village Plaza, which will con-
tain condominiums and spaces
for restaurants and shopping,
will be completed next year as
scheduled, Turlington said.
The pause in spending was
needed to ensure the resort did
not end up spending more than
the $91 million budgeted for Vil-
lage Plaza, he said.
Resort officials worked closely
with Credit Suisse, which has
issued Tamarack a $250 million
line of credit, to keep the project
in line, he said.
Tamarack sells out
units in lodge wing
Tamarack Resort announced
the weekend sellout of the first
condominium residences offered
in the Lodge at Osprey Meadows
Lake Wing.
In four hours, Tamarack com-
pleted its eighth sell -out since
2004 when buyers snatched up the
original 12 Lake Wing residences
available, plus an additional five
released due to demand.
The 17 residences sold at the
release raised $16.5 million for
the development of the ski, golf
and lake resort.
The residences sold ranged in
size from studios to penthouses
and in price from $495,000 to $3.1
million.
Including this most recent
release, Tamarack has sold 673
properties generating $515.8
million.
"In a slower real estate mar-
ket, this sale truly speaks to the
unique investment and lifestyle
opportunity here at Tamarack,"
resort CEO Jean- Pierre Boesp-
flug said.
"We sold more than we had
anticipated in our first release
of property in the Lodge at
Osprey Meadows Lake Wing,"
Boespflug said.
The Lake Wing is at the en-
trance to the Osprey Meadows
Golf Course and is framed by the
Lodge at Osprey Meadows Main
Wing and the under- construction
Village Plaza.
In addition to the amenities
of the nearby Lodge at Osprey
Meadows Main Wing, Lake Wing
residents also will have their
own indoor /outdooryoga studio,
game room, resident lounge, and
heated, underground residential
and golf-cart parking.
The Lake Wing is being built
to comply with the LEED Green
Building Rating System, the
nationally accepted benchmark
for the design, construction and
operation of high performance
"green" buildings. .
Currently under construc-
tion, the Lake Wing is scheduled
to open in early 2009.
I
ainarack expected to bounce back
TO M*S",
Unkwsity of WaW
95
Experts: Bankruptcy will be'minor footnote'in resort's history
BANKRUPTCY AT A GLANCE
How will this affect skiers and residents?
Company off icials say the bankruptcy will have no effect on
day-to-day operations, though the resort has had to slow con-
struction of its village at the resort. Other projects like Andre
Agassi's luxury hotel are still on track.
t;
V7
How common are Tamarack's financial problems?
SS
Ski resorts are prone to financial problems because of
OW11
Ji! ;;�
the capital costs required to get them running. Often it
takes too long for revenues to coverthe capital costs.
DONNELLY
How will this affect the resort's future?
,!CIL
A "footnote" in the resort's history — that's
TAMARACK
h,vv me industry expert puts it. Experts say
RESORT the resort is well established and continues to
I
grow in popularity. But the resort may get
lake
r"Code
new or additional owners in the future.
:CASCADE
55
ma
0 SESHOE
END
BOISE
Idaho Statesman
–L:--
.- r
BY KEN DEY
kdey(o)idahostatesman.com
Tamarack Resort won't fail,
even though the two investors
who own 75 percent of the resort
filed bankruptcy last week.
Experts say the Chapter U fil-
ings by Tamarack CEO Jean-
Pierre Boespflug and resort co-
founder Alfredo Miguel Afif
could keep creditors from taking
over and let the two men finish
the expensive creation of the re-
sort.
Tamarack is already too well
known and established to be
closed, said Michael Berry, presi-
dent of the National Ski Areas As-
sociation. Even if Boespflug and
Afif fail, plenty of investors would
be interested in picking up where
they left off.
"We need to keep in mind that
the resort isn't going to go away,"
said Berry. "There'll be new fi-
nancing and possibly new part-
ners, and a decade down the road,
it will be a minor footnote in
Tamarack's history. ... There is
still money out there looking for
an opportunity."
See TAMARACK, MAIN 6
HISTORY OF TAMARACK
RESORT MAIN 6
Plus, new developments in the French
bank scandal. MAIN 14
_%atom, MW_
Provided by Tamarack Resort
This is the architect's sketch of the Village Plaza complex at the Tamarack Resort. Construction slowed at the
plaza last summer for an evaluation of spending on the project.
, I
TAMARACK
CONTINUED FROM MAIN 1
Berry said the troubles Tama-
rack's investors are facing are
the same issues many ski resorts
* faced during the economic
downturn of the 1970s.
New resorts require large
capital investments before any
significant revenue is generated.
In fact, Tamarack is the only
new ski resort built in the past
20 years.
When the economy sours,
such projects become vulnera-
ble.
"One could argue that if there
hadn't been a credit crunch, this
wouldn't have been an issue," he
Both Boespflug and Afif
pledged their stake in the resort
as collateral for the loan, so
Credit Suisse could have ended
up owning Tamarack.
The payment to Credit Suisse
was to have been covered by a
new $118 million loan from the
French bank Societe Generale,
but in late January that bank
withdrew its commitment after
it suffered $7 billion in unautho-
rized trading losses.
Boise attorney T. J. Angstman,
who is representing Boespflug's
company, said Boespflug and
Afif had no choice but to file for
protection or risk losing owner-
ship of the resort.
"They could not stand by and
let the banking situation derail
the company," he said. "Because
of the pledge agreement they
had with Credit Suisse, it would
have essentially allowed some-
one else to take over the compa-
ny.,,
said.
Berry points to the Big Sky
Resort, the exclusive ski resort
in the mountains of southwest
Montana envisioned by NBC
News broadcaster Chet Huntley.
Huntley started developing
the resort in the early 1970s and
died four months after the re-
sort's December 1973 opening.
Three years later, the resort was
in financial trouble and was pur-
chased by Boyne USA Resorts.
"New ownership bought it,
and the place hasn't looked back
since," Berry said.
Boespflug says if the recent
bank scandal in France hadn't
happened, things would still be
moving forward.
Boespflug said he and Afif
Angstman said filing a Chap-
ter 11 bankruptcy shields busi-
nesses from creditors as they re-
organize. For Boespflug and
Afif, it gives them time to find
more financing.
Boespflug says he has spoken
with banks that are interested in
providing the financing.
But finalizing a loan may not
be easy.
John Mitchell, a regional
economist with U.S. Bank, said
banks are becoming less likely to
invest in anything that has a risk.
"There is clearly a lot of un-
certainty in the credit markets
and banks are doing a lot of soul
searching and looking hard at
deals," Mitchell said.
But Angstman believes
leaders will see the value of
Tamarack.
"It's a valuable company," he
said.
"Its last eight releases of real
estate have sold out, its village is
filed for Chapter 11 bankruptcy
protection under the names of
their two companies Feb. 15 to
avoid foreclosure by Credit
Suisse bank, which is owed $262
million.
The online news site
NewWest.net broke the news
late Tuesday about the bank-
ruptcy filing.
Boespflug's company, Cross
Atlantic Real Estate, owns near-
ly 50 percent of the resort and
VPG,Investments owns 27 per-
cent.
Boespflug said Tuesday that
Tamarack was unable to meet
the debt payments due on a loan
from Credit Suisse, so he had to
file bankruptcy or risk foreclo-
sure by the bank.
90 percent sold out and I don't
think the prospects (for fmanc-
ing) will be that difficult with
that kind of track record:'
Nowhere is the fate of Tama-
rack more important than in
Valley County, where Tamarack
has become the county's largest
employer and added millions to
the local economy.
Ron Lundquist, general man-
ager of the Ashley Inn in Cas-
cade, said he believes many of
the financing problems were be-
yond Tamarack's control.
"I believe and I think my
peers in the community believe
the company is getting its arms
around it and moving ahead," he
said.
"Jean- Pierre has always done
what he said he would in the
past, and I believe the same is
going to hold true here."
Ken Dey 672 -6757
TAMARACK RESORT TIMELINE
1980s to 1995: The idea of building a four -
season resort on the western shore of Lake
Cascade starts circulating in the 1980s.
The project was called Valbois, and it even-
tually declared bankruptcy in 1995.
1998: A group of new investors revive the
Valbois plan with some modifications and
call it WestRock.
August 2000: Jean Pierre- Boespflug be-
comes the new managing partner of West-
Rock.
Fall 2001: Valley County approves West -
Rock's master plan.
June 2002: The Idaho State Land Board
leases 2,100 acres of state endowment
land to WestRock for 10 years.
December 2002: WestRock changes its
name to Tamarack Resort and opens 20
kilometers of groomed Nordic ski trails.
April 2003: Gov. Dirk Kempthorne signs
House Bill 83, which extends the lease on
the 2,100 acres of state endowment land
from 10 to 49 years. The resort will pay
nearly $2.5 million overthe first 10 years of
the lease, including $1 million up front, and
between 2.5 and 4 percent of the profits af-
terthat.
January 2005: Tamarack sells out 133
homesites for $91.5 million.
July 2005: The Robert Trent Jones II cham-
pionship golf course opens.
August 2005 President Bush stays at
Tamarack.
August 2005 Tennis stars Andre Agassi
and Stefanie Graf plan to build a 300,000 -
square -foot, 175 -room hotel at Tamarack.
October 2005: Tamarack sells out 129 con-
dominiums valued at $120 million
January 2006: Tamarack Members' Lodge
and Spa opens for guests and club mem-
bers.
Summer 2003: Work begins on the infra-
structure, including roads, power lines, ski
runs, sewer and water.
December 2003: Tamarack begins offering
snowcat skiing.
January 2004: Tamarack sells out its initial
offering of 104 vacation homes and lots.
The sales generate $46 million in sales for
the resort.
June 2004: Tamarack sells out its second
real estate offering of 64 vacation homes
and lots.
Dec 2004: Grand opening of the alpine ski-
ing operations.
April 2007: Fairmount Tamarack sold out
125 condominiums and hotel-condomini-
ums, raising $140 million.
June 2007: Tamarack slows construction
of the Village Plaza — the commercial cen-
ter at the base of the resort's ski hill — to
evaluate spending on the project. Workers
are laid off.
February 2008: The majority owners of the
resort file for bankruptcy to avoid foreclo-
sure by Credit Suisse, which is owed more
than $262 million from loans the resort
took out for construction.
Tamarack developer:
I'll find the money
Layoffs and a construction
slowdown have caused
'a period of hardship;
CEO Boespflug says.
BY KEN DEY
kdey @idahostatesman.com
DONNELLY — The loss of a $118 mil-
lion loan has investors at Tamarack Re-
sort scrambling to find new money to
meet construction deadlines for the vil-
lage at the ski and golf resort near Donnel-
ly.
The resort has presold 90 percent of
the condominiums in the village, but
terms of the buyers' contracts say the
homes must be finished by Dec. 31 or buy-
ers can cancel their purchases.
Tamarack CEO Jean- Pierre Boespflug
said he doesn't expect that to happen.
TAMARACK
CONTINUED FROM BUSINESS 1
bank should have been avail-
able in the fall, but a series of
delays pushed it back to Janu-
ary, he said.
Boespflug said the resort had
already cut back construction
spending in the summer to
$3 million a month from $4 mil-
lion. Tamarack also negotiated
a delay in interest payments to
Credit Suisse.
But that money is now gone,
and construction at the resort
has slowed to a crawl. "It could
"I think our buyers will work with us;"
Boespflug told the Idaho Statesman on
Thursday.
Boespflug said he believes the compa-
ny should be able to find additional fi-
nancing in the next 60 to 90 days. If it
does, Tamarack can still meet the Dec. 31
deadline, he said.
Tamarack had been counting on the
$118 million loan from French bank Soci-
ete Generale to keep the resort's con-
struction plan on track. The bank with-
drew the loan suddenly late last month af-
ter a rogue trader cost the bank $7 billion
in unauthorized trading losses.
That loss coupled with the threat of
foreclosure on a $262 million loan from
Credit Suisse bank prompted Boespflug
and'ramarack co- founder Alfredo Miguel
Afif to seek protection in federal bank-
ruptcy court under their company names
to avoid losing their stakes in the resort.
The two had pledged their ownership in
the resort as collateral for the loan.
"We were caught by surprise," Boe-
spflug said.
The bankruptcy filing was the culmina-
tion of a series of financial setbacks that
started last summer.
Boespflug said resort officials knew
that 2006 loan from Credit Suisse
wouldn't pay for all the building Tama-
rack planned. The resort was counting on
money from the sale of land for the Fair-
mont Tamarack Resort, a luxury resort
and vacation -home development. That
sale should have closed in the summer,
but Fairmont asked for an extension of the
option to buy, Boespflug said.
He said Tamarack granted the exten-
sion thinking it would be easy to find an-
other loan. The loan from the French
See TAMARACK, BUSINESS 3
"There are fewer people in construction, and we
hope everyone will get rehired," he said. "There
is a period of hardship here that we recognize."
Tamarack CEO Jean - Pierre Boespflug
be busier here," Boespflug said.
Because of the slowdown,
the resort has temporarily laid
off 20 employees, he said. Boe-
spflug said the employees were
asked to take eight weeks of un-
paid leave. The company is still
paying benefits, he said.
The slowdown has also
meant that some contractors
have had to lay off employees.
Boespflug said the contractors
have understood and have
worked with the resort.
"There are fewer people in
construction, and we hope
everyone will get rehired," he
said. "There is a period of hard-
ship here that we recognize."
The bankruptcy filings
KATHERINEJONES/ kjones @idahostatesman.com
Tamarack Resort CEO Jean - Pierre Boespflug says he hopes to get new fi-
nancing in 60 to 90 days. "We have to get it done;' he says.
should protect the resort for six
to 18 months, but Boespflug
said he doesn't anticipate that
much time will be needed. He
also said Tamarack intends to
repay all the resort's creditors,
and once financing is arranged,
he and Af f will withdraw the
bankruptcy petitions.
Despite the tight credit mar-
kets, Boespflug said the com-
pletion of much of the con-
struction and the strong pre -
sale of the village condomini-
ums should make the resort an
attractive investment.
Ken Dey: 672 -6757
Tamarack 4�
owners
declare
bankruptcy
Boespflug, Afif take action to prevent
creditor takeover, say resort unaffected
BY TOM GROTE
The Star -News
The majority owners of Tama-
rack Resort west of Donnelly filed
for bankruptcy protection in the
U.S. Bankruptcy Court in Boise on
Friday. The filings say that more
than $300 million is owed to lenders
and international banks.
Tamarack Resort CEO Jean -
Pierre Boespflug said Wednesday
thatthe filings will have no effect on
the resort's day -to -day operations
and were made as a precaution to
prevent creditors from seizing the
project.
Boespflug said in a statement
released on Wednesday the resort is
currently seeking alternate financ-
ing to finish the resort's Tamarack
Village now under construction.
He is confident financing can be
found, noting that 90 percent of the
properties in the village complex
have been pre -sold.
The two companies named in the
bankruptcy filings are VPG Invest-
ments, Inc. and Cross Atlantic Real
Estate, LLC, which own 27 percent
and 48 percent of Tamarack Resort
shares respectively. Boespflug owns
Cross Atlantic Real Estate, and VPG
is owned by Mexican businessman
and resort co- founder Alfredo
Miguel Afif.
Afif
J
"The
Filing does not affect resort
filling we
Tamarack Resort itself has not
are doing
filed for bankruptcy and has no
here is so
plans to do so, Boespflug said in a
statement released Wednesday.
that Credit
Boespflug said the resort had
Suisse
been counting on a $118 million
dollar loan from the French bank
has no
Societe Generale to complete the
resort village, but the financing fell
temptation
through. Societe Generale is reeling
from the loss of some $7 billion in
to exercise
a trading scandal
on the
Because Tamarack did not
receive the money by Friday - the
pledge
day the bankruptcies were filed -
'their
the companies sought bankruptcy
of
protection to avoid foreclosure by
shares in
creditor Credit Suisse Cayman Is-
lands, which is owed $262 million.
Tamarack
Credit. Suisse could have ended
up with 75 percent ownership of
Resort.'
the resort, and been "able to sell
—Jean-Pierre
— J
the company to whoever it wants,"
Boespflug told the business Web
Boespflug,
site New West in a story posted on
Tamarack
Tuesday.
See TAMARACK, Page A -9
CEO
Tamarack
(Continued from Page A -1)
"The filing we are doing here
is so that Credit Suisse has no
temptation to exercise on the
pledge of their shares in Tama-
rack Resort," he said in the New
West report.
Credit Suisse Cayman Islands
has a lien on 24 percent of Tama-
rack Resort LLC. In addition, $4.1
million is owed to a company
called Rotorwing of Houston,
Texas; $3.2 million to Hopkins
Loan Services of Meridian; and
$2 million to a Mexican lender,
the filing documents said.
When it opened in 2004 Tama-
rack Resort billed itself as the
first new ski resort to be built in
the United States in more than
two decades. In 2006 Tamarack
announced it had secured a $250
million line of credit from Credit
Suisse.
The resort has held eight
releases of properties since 2004
that have raised more than $500
million.
"While construction is suffer-
ing until a replacement loan is
found, resort operations is experi-
encing its most successful season
to date," Boespflug said.
"The resort's fourth winter
season has seen a record number
of skiers and guests, coupled with
extraordinary snowfall and high
guest satisfaction ratings, leading
to revenues exceeding projec-
tions," he said.
House panel OKs Tamarack liquor bill
BY NATHANIEL HOFFMAN
For The Star -News
BOISE — Despite some op-
position from anti - alcohol
lawmakers, a bill to grant
Tamaracknine additional liquor
licenses passed the House State
Affairs Committee last week and
could be debated on the House
floor this week.
Tamarack lobbyist Scott Tur-
lington told the committee that
two years ago, when he asked for
a few initial liquor licenses, law-
makers gave him three and told
him to come back for more.
"Twelve is all we're going to
allocate," Turlington said last
week. "I would like to put this
issue to rest... to the extent that
we get the additional nine ... I'm
going for the quick kill here."
Lawmakers had no questions
for Turlington about recent
bankruptcy declarations by
Tamarack's two largest in-
vestors or layoffs and stalled
construction at the resort.
However, there was a lively
debate about liquor and the
state's stingy licensing system.
Boise Republican Rep. Mark
Snodgrass said that retooling
the state's quota system is one
of the most difficult things he
has had to do.
"This is an example, in my
opinion, of the ridiculousness of
the quota system that we already
have," Snodgrass said.
Idaho allocates a limited
numberof liquor licenses based
on local population counts.
. Changes made to Ashley Inn bill
A bill that would allow The
Ashley Inn in Cascade to acquire
a liquor license has been amend-
ed to include similar conference
facilities in larger towns.
Senate Bill 1413, brought by
Sen. Lee Heinrich, R- Cascade,
would allow conference and
lodging centers in small towns
to get a non - transferable liquor
license.
Liquor licenses for small
conference centers were written
into Idaho law several years ago
for a hotel in Ketchum that was
Tamarack and several other
special interests have approached
the legislature this year seeking
exceptions to the quota system
while an interim task force ap-
pointed by the governor debates
a long term solution to the dearth
of new licenses.
Alarge concert center in Boise
failed to get a bill through the
Senate designating it as an events
center eligible for a new liquor
license category.
The Tamarack bill, Senate
Bill 1382, has already passed
the Senate. It would expand the
number of licenses that "year -
round resorts" — a category that
specifically applies to Tamarack
— are eligible for.
Turlington said he knows of
one other "year -round resort"
that is in the planning stages.
But at least one member of
never built.
Heinrich intended to amend
the law to apply to smaller fa-
cilities in smaller towns, but Sen.
Clint Stennett, D- Ketchum, asked
that it continue to apply to towns
of 5,000 or fewer residents.
The Ashley Inn is trying to
attract a restaurant with the pos-
sibility of serving liquor, but the
town's liquor license quota has
been filled for many years.
The Senate amended the bill
Tuesday and a full Senate debate
is expected later this week.
the committee opposed the bill
because it targeted just one entity.
"I'm just troubled by addressing
legislation to one business," said
Rep. Raul Labrador, R- Boise.
Other committee members felt
12 liquor licenses for one resort
was too many.
" We're hearing more and more
and more about preventing health
problems and here we're con-
sidering legislation that would
encourage just the opposite,' said
Rep. Ken Andrus, a Republican
from Lava Hot Springs. "We're
considering consumption of
liquor."
Rep. Anne Pasley- Stuart,
D- Boise, countered that people
visiting an upscale resort are
accustomed to having a drink
with dinner.
Rep. Eric Anderson, R- Priest
Lake, made the point that whether
there is one bar or 12 at Tamarack,
the same number of captive
guests will be seeking the same
amount of alcohol after a day of
skiing.
Turlington said that six of the
additional nine licenses are spo-
ken for and that the extra three
will be quickly gobbled up. He
has said that as the resort inks
deals with hotel and restaurant
vendors, liquor licenses are an
essential component of negotia-
tions.
Turlington told the commit-
tee that Tamarack would have
several ice cream andpizzaplaces
that would not serve alcohol.
The 12 licenses that Tamarack
seeks would only be valid on re-
sort grounds and would not have
any value on the open market.
Regular liquor licenses have be-
come hot commodities in Idaho,
fetching hundreds of thousands
of dollars in some cities.
If thebill passesthe House this
week it would need to be signed
by Gov. C. L. "Butch" Otter.
(Nathaniel Hoffman is an
independent journalist in
Boise. He produces PaleoMe-
dia.org.)
TamarackAt
A Crossroads
Boespflug hopeful resort will get new financing
Star -News Photo by Michael Wells
Tamarack Resort CEO Jean - Pierre Boespflug points out features of the six - building
Village Plaza, the centerpiece of the resort if financing can be found to finish it.
But CEO admits a sale would be
inevitable without new money
BY MICHAEL WELLS
The majority owners of Tamarack Resort
will be forced to sell if they do not secure a $118
million construction loan within six months,
Tamarack Chief Executive Officer Jean - Pierre
Boespflug said.
However, Boespflug is confident the resort
will find financing to get construction at the
project back on track within the next 90 days.
"If we can't find that replacement (loan), we
will have to organize the sale of the project,"
Boespflug said in an interview. "That point
would be more like six months out, if we can't
find the financing."
If a sale happens, Boespflug
would hope the buyer is "some-
body who understands what we
are doing here. We would sell to
somebody who would be good for
the community."
Tamarack Resort sought a $118
million construction loan to finish
constructing its Village Plaza last
September.
The development had overspent its budget
to place roofs and windows on the six - building
development in order to keep snowfrom damag-
ing the buildings this winter. The money was
to be used to pay interest on a $262 million loan
from Credit Suisse of the Cayman Islands.
The new loan would finish the Village Plaza
and a new wing to the resort's lodge.
The loan paperwork, originally slated for
a late November decision, was delayed until
January.
French Trading Scandal
The construction loan from French Bank So-
ciete Generale would have kept the construction
of the Village Plaza on track. But that loan fell
through after a $7 billion trading scandal caused
the bank to pull out of a syndication loan it had
been working on with Tamarack in January.
The loan included five other banks. Since
the deal fell through, all but two of those banks
also dropped out. Sterling Savings Bank and
First Independent Bank of Oregon, the only
American banks in the deal, have told Boespflug
if he can find alternative financing then they
would still be interested in the deal.
"The good thing for us and the region is
the regional banks are staying in," he said.
"They have history with Tamarack and have
been paid back. That is why, quite frankly, I
am hopeful."
See FINANCING, Page A-10
♦ Governor signs bill giving Tamarack
more liclour licenses
Page A -2
i
l
(Continued from Page A -1)
Village Plaza is billed as the
heart of the resort with 129 hotel
condominiums, a nightclub, pub,
movie theater, and 23 boutiques,
shops, and restaurants.
Ninety percent of the con-
dominiums were presold at a
price -range of $350,000 to $2.8
million.
Buyers paid a down payment,
which is being held in an escrow
account. The down payment and
the balance of the purchase price
are to be paid when the condos
are finished.
There is a Dec. 31 opt -out
provisionfor buyers of thecondo-
miniums. Boespflug is confident
that if alternate financing can be
found by April 1 he can complete
construction of the Village Plaza
by the deadline.
"There's somerisk on a couple
of village buildings, after April
we will have topay a construction
Premium to finish those build -
ings," Boespflug said.
' With the economic slowdown
on construction in Valley - County,
i Boespflug said there would be
enough available construction
i workers to complete the proj-
ect.
Sixty percent of the commer-
cial leases have commitments,
' while another 20 percent of the
commercial leases have contin-
gent leases signed.
Tamarack Resort had previ-
ously sought to buy more time,
until Feb. 15, on interest pay -
ments for the Credit Suisse loan
until the construction loan could
be awarded.
After the construction loan
fell through, the resort asked
for another time extension from i
Credit Suisse.
As time ran out, Tamarack's
Principal owners, Boespflug
and Alfredo Miguel Afif, filed
for bankruptcy protection last
month.
The move was to protect
their stakes in the resort, which
combined total 75 percent, from
foreclosure on the Credit Suisse
loan. The resort itself did not file
for bankruptcy.
"The important thing is that
we have the time we need to be
able to organize things locally
and find that replacement loan,"
he said. "We are looking at an
array of options. We are very con-
fident that we can do something.
I have never had a banker come
here and tell me no."
Various Options
Considered
The development staff at
the resort is looking at banks,
pension funds and insurance
companies to obtain the financ-
ing to continue the project.
They are also looking at long-
term financing to take Credit
Suisse out of the equation, Boesp-
flug said.
Twenty employees were laid
off Jan. 31 for what they were
told was an eight -week hiatus.
The employees will keep their
benefits package from the resort
during the layoff.
Tamarack has spent $536
million on the resort project to
date.
"Our mountain is the biggest
thing up here since Mr. Brown
opened up Brundage," Boespflug
said. "We are all in the same boat;
I hope people understand that. It
s more important than ever to be
'packing each other up."
3/:;1a%f SEWER DISTRICT PULLS BACK
LOAN REQUEST TO EXPAND
TAMARACK SYSTEM
BY MICHAEL WELLS
The Star -News
North Lake Recreational
Sewer and Water District has
withdrawn a $42.5 million
water and sewer loan applica-
tion with the Idaho Municipal
Bond Bank due to financial
woes at Tamarack Resort
and a shaky economy, district
manager Bill Eddy said.
The district is considering
a smaller $18.6 million loan
application with the bank if
Loan
(Continued from Page A -1)
Tamarack's principal owners,
J.P. Boespflug and Alfredo Miguel
Afif, both filed for bankruptcy last
month to stave off losing control of
the resort southwest of Donnelly
to Credit Suisse, a Cayman Islands
bank that holds the note on a $260
million loan to the resort.
The $42.5 million water and
sewer loan originally proposed
would have expanded the district's
water and sewer infrastructure to
take in residents south of Poison
the economy picks up, Eddy
said.
The smaller loan would
pay for the first phase of the
project, known as the North
Pod, which would include wa-
ter and sewer improvements
north and south of Tamarack
Resort along West Mountain
Road.
"We are re- evaluating the
market," he said. "With the
current Tamarack issues, we
are just holding off."
See LOAN, Page A -7
Creek on the Tamarack property.
"We want to move as quickly as
possible because of costs," Eddy
said. "I decided to pull the $42 mil-
lion (loan). We wouldn't have time
to complete the project before the
interest would start building."
The expansion would have
allowed about 2,000 lots not associ-
ated with Tamarack Resort on the
west side of Lake Cascade to hook
into the system.
The project would have been
completed by November 2010, un-
der the original application.
"At this time, we aren't doing
any of it," he said. "It will depend
on the economy."
1
j�%jLS b
Bank
3%'°� °g Bank seeks foreclosure of Tamarack for
nonpayment of $250 million loan
BY MICHAEL WELLS
The Star -News
A Swiss bank last week asked a state judge to allow
foreclosure on Tamarack Resort due to nonpayment
of a $250 million loan.
Credit Suisse, a Switzerland bank with opera-
tions in New York City and the Cayman Islands, says
Tamarack has defaulted on the loan it approved for
the resort west of Donnelly in May 2006.
See BANK, Page A -10
time to make payments.'
The court documents said
that the resort's debt level was
too high compared to the value
(Continued from Page A -1) ' of the resort property, which
The bank wants to sell the means the resort has been in
resort to reclaim more than $260 default since June.
million it is owed in principal An extension was granted to
and interest by Tamarack Re- the resort by the bank until Feb.
sort owners J.P. Boespflug and 15, but a new loan the resort was
Alfredo Miguel Afif. counting on from a French bank
"This legal move was antici- fell throughk,
patedby resort management as a Boespflug's and Afif'sholding
normal exercise of remedies," companies Cross Atlantic Real
Boespflugsaidinastatement. `As Estate and VPG Investments
announced previously, Tama- filedforbankruptcypr t'
rack is focused on raising new
financing and is hopeful that
process is following a positive
course."
Boespflug said the resort
would have to be sold if replace-
ment financing is not found
soon. The resort is seeking a
$118 million construction loan
to complete the resort's focal
point Village Plaza that is 90
percent sold.
Construction has slowed to a
standstill at the resort since it
failedto acquire the construction
loan in January from French
bank Societe Generale.
Credit Suisse says the resort
has been in default of the loan it
acquired in May 2006 since last
summer.
The bank also pointed to sev-
eral times since last summer the
bank has given the resort more
federal court last month to stave
off foreclosure efforts by Credit
Suisse. The two companies own
75 percent of the project.
Tamarack faile d to make a $4.8
million principal and interest
payment in December to Credit
Suisse, court documents said.
"(Tamarack Resort) is in
default," the court documents
said. "(Tamarack Resort) had
established that it cannot and
never will cure such defaults."
The suit asks that the resort be
soldby the Valley County Sheriff
otec ion m and that proceeds from the sale
/ A" iu-
be given to Credit Suisse to re-
coup its outstanding losses.
"Judicial foreclosure takes
time, which is exactly what
Tamarack 'needs," Boespflu€
said.
This time will allow Tama
rack to either refinance, add
partner with additional finan
ing, or sell the resort to a suitab_
buyer capable of managing the
asset with the continued interes
of the community in mind, hE
said. "The resort will be oper
during this period, and visitor:
are welcome as usual."
Sketch courtesy Tamarack Resort
Sketch shows how Tamarack Village is planned to look upon completion.
Village is Tamarack's centerpiece
BY MICHAEL WELLS
The Star -News
Construction of Tamarack Resort's
Village Plaza is on hold until the resort
can find a lending institution to grant a
$118 million construction loan.
The $91 million village is the focal
point of the resort that has already
spent more than half a billion dollars
on other development at the site south-
west of Donnelly. The loan would pay
to complete the village and a lake wing
to the resort's lodge.
Tamarack's principal owners filed
for bankruptcy protection for their
holding companies in federal court last
month to stop Credit Suisse from taking
controlof the resort. The resort was not
a part of the bankruptcy filing.
The six - building village develop-
ment could be completed by the end of
the year if financing is found by April
1 to restart construction on the village,
which presold 90 percent of the 129
condominiums in 2005.
Those range in price from $350,000
for studio condos to $2.8 million for
three - bedroom loft penthouses.
Hook up your #1 -7/ °r
dogs at MCPAWS
Skijoring Sunday
at Tamarack
Tamarack Resort and MCPAWS
Regional Animal Shelter will team up
to host the second annual MCPAWS
Iditarod Skijoring event on Sunday
starting at 11 a.m.
The 2 kilometer and 5km races will be
held at the Tamarack Resort Nordic and
Snowshoe Center, located in the lower
level of the Lodge at Osprey Meadows.
Skijoring is a winter sport in which a
person wearing skis is drawn over snow
by one or more dogs..
Originating in Scandinavia and
literally meaning "ski- driving" in
Norwegian, skijoring allows a dog and
owner to exercise together while enjoy-
ing the outdoors.
Participants can register in advance
online at tamarackresort.com or be-
ginning at 10:30 a.m. at Tamarack on
Sunday.
The entry fee is $20 with $15 going to
support MCPAWS. Those participating
in the race will need to provide their
own equipment.
Skijoring equipment can be pur-
chased at McCall Pet Outfitters and
Supply. For more information, contact
Tamarack Resort at 315 -1002 or e-mail
nordic@tamarackidaho.com.
Star -News file photo
Dogs and their humans can both get
a healthy workout at the McPAWS
skijoring event.
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R i d e r . , " T h e c o m p a n y w i l l h a v e n o
f u r t h e r c o m m e n t o n t h e i s s u e a s h e
d e a l s w i t h t h e c h a r g e s . "
B o e s p f l u g d i d n o t r e s p o n d t o a
r e q u e s t f r o m T h e S t a r - N e w s f o r
c o m m e n t .
40 liens against
Tamarack Resort
total $17 million
Companies say resort owes them
for goods and services
BY MICHAEL WELLS
The Star -News
More than 40 liens totaling more than $17 mil-
lion have been filed against companies related to
Tamarack Resort since Feb. 7, according to docu-
ments on file at the Valley County Clerk's Office.
The largest lien, about $7.3 million, was filed by
Tamarack Resort's former general-eontractor Ban -
ner/Sabey II of Seattle.
The smallest lien was ' a
$1,600 filed by Materials
Testing & Inspection
of Boise for $1,600.
A lien is a legal filing
that says the creditor
must be paid from the
proceeds t the sale of
-
the property l the prop at S
can b ever rmove once a Crossroads
can be removed once a
creditor has been paid
the amount owed.
The liens are in addition to a lawsuit by Credit
Suisse that says Tamarack's major partners, J.P.
Boespflug and Alfredo Miguel Afif, failed to make
a $4.8 million loan payment due in December.
The payment was due on a $250 million line
of credit issued in 2006 by Credit Suisse to allow
Tamarack to work on the still- unfinished six- build-
ing Village Plaza at the heart of the resort west of
Donnelly.
Here is the list of liens filed as of last Thursday:
• Banner /Sabey II, of Seattle, $930,000, for professional
$7.3 million, for construction engineering services.
costs at Village Plaza. • Kesler Construction, of
• YMC Inc., of Meridian, $1.5 Boise, $851,000, $82,000,
million and $24,000, for and $18,000, for labor, mate -
plumbing, piping, heating rials and equipment.
and air conditioning. • Petra, of Meridian, $752,000,
• Tri -State Electric, of Boise, for labor, materials and
$1.15 million, for electri- equipment.
cal work at Village Plaza, • Eza, PC Oz Architecture of
$171,000 for electrical work Boulder, Colo., $720,000,
at Tamarack Resort and for professional architectural
$47,000 for electrical work services.
at the Lodge at Osprey • Teufel Nursery, of McCall,
Meadows. $565,000, for materials, sup-
• MHTN Architects, of Salt plies, labor, snow removal
Lake City, $1.15 million and and construction.
$470,000, for engineering • American Stair Corp., of
and architectural services. Romeoville, III., $401,000 for
• CH2M Hill, of Boise, construction materials.
See LIENS, Page A-10
Liens
(Continued from Page A -1)
• Inland Crane Co., of Boise, $385,000
and $39,000 for labor and materials.
• Secesh Engineering, of McCall,
$291,000, for engineering, drafting,
planning and surveying.
• JH Masonry, of Dallas, $257,000, for
labor and materials.
• Marc A. Anderson Independent Metal
Fabrication, no location given, $236,000
for materials and labor.
• Heartland Construction, of Eagle,
$220,000, for labor, services, materials
and equipment.
• Quality Tile Roofing, of Boise,
$206,000, for materials and labor.
• Western States Crane Co., of Salt Lake
City, $199,000 for labor and materials
Village Phase II, and $2,700 for labor
and materials at Tamarack Resort.
• Interior Systems, of Boise, $132,000,
for labor, materials and equipment,
metal stud framing and drywall.
• Insulform, of Daytona Beach, Fla.,
$106,000 for labor and materials.
• Timber Tech Construction, of Coeur
d'Alene, $74,000, for labor and materi-
als.
• PCF Inc., Pella Windows & Doors, of
Orem, Utah, $72,000, for labor and
materials.
• Western States Equipment Co. CAT
Rental Store, of Lewiston, $46,000
and $13,000 for equipment, tools and
materials.
• Rossman Law Group, of Boise,
$25,000, for labor and materials.
• Ruscitto /Atham /Blanton, of Sun Valley,
$19,000, for labor, materials and equip-
ment.
• Construction Alternative, no location
given, $17,000, for materials and labor.
• Lost River Log Specialists, of Rigby,
$16,000, for labor and materials.
• Epikos Land Planning & Architecture,
of McCall, $15,000, for labor and
materials.
• United Subcontractors, G &G Insula-
tion, of Boise, $9,300, for materials and
labor.
• Snow Hog, of New Meadows, $8,600,
for materials, supplies and labor.
• Materials Testing & Inspection, of
Boise, $6,200, $6,000 and $1,600, for
labor, materials and supplies.
• Rigby Steel & Fabrication, of Rigby,
$4,000, for materials.
• Stacy D. Ross, of Garden Valley,
$3,000, for building materials.
4t/810,�C
CREDIT
SUISSE SUES
TAMARACK
PARTNERS
OVER LOAN
Lawsuit claims
Boespflug, Afif broke
agreement on $250
million payback
BY MICHAEL WELLS
The Star -News
Credit Suisse Bank has sued
Tamarack Resort principal inves-
tors Jean - Pierre Boespflug and
Alfredo Miguel Afif inU.S: District
Court for btft6 ing AnAgmment
with the bank that was a part of
the $250 million loan the resort
obtained in 2006.
The lawsuit claims Tamarack
CEO Boespflug and board chair-
man Afif agreed to pay the bank
for damages if they did not meet all
the requirements of the loan.
In case of default, the bank has
no recourse to the assets of the
partnership beyond those held by
the limited partners who borrowed
the money, the lawsuit said.
No hearing date has been set
on the lawsuit.
Boespflug and Afif own 75 per-
cent of Tamarack Resort.
The lawsuit claims the two
failed to deposit weekly revenue
from the resort into a Credit Suisse
account.
The bank says it has evidence
the money was "funneled into
separate bank accounts" that
are not subject to Credit Suisse
control.
The lawsuit also says the agree-
ment was broken due to $13 million
in liens that have been filed against
the resort in the last month.
It also claims Boespflug and
Afif have not paid $7,000 in prop-
erty taxes.
The suit asks the court to order
Boespflug and Afif to pay damages
arising out of the nonpayment of
the loan.
The suit does not specify the
amount of damages Credit Suisse
is seeking, only that the amount
would be proven during the trial.
Last month, the bank filed a
lawsuit in state court to foreclose
on the resort.
See SUIT, Page A -10
Suit
(Continued from Page A -1)
That action claims the resort
failed to make a $4.8 million
principal and interest payment
in December on the $250 million
loan.
Boespflug and Afif filed for
bankruptcy protection in Febru-
ary for their holding companies
Cross Atlantic Real Estate LLC
and VPG Investments Inc., in
an attempt to protect the resort
from being taken over by Credit
Suisse.
Boespflug is seeking a $118
million construction loan to
complete construction on the
Village Plaza by the end of this
year. If financing is not found,
Boespflug said the resort would
have to be sold.
/o c
Tamarack to lay off year -round
employees after ski hill closes
Seasonal and year -round employees at Tamarack
"Management is optimistic that it will be able
Resort will be laid off after the resort's final day of
to recall these employees as the resort emerges
skiing on Sunday, April 13.
from the shoulder season," he said.
As Tamarack enters into shoulder season and '
From April 14 through May 23, lodging,
inlightof economic circumstances, several staff- `
conference facilities, spa services, and Mo-
ing changes are occurring to ensure the resort's '
rels Restaurant and Lounge will be open,
continued operation," said Ken Rider, director of
Rider said.
resort sales and marketing.
Tamarack plans to kick off the start
As in the past, seasonal employees who of its summer season on Memorial Day
worked at Tamarack for the winter will be
Weekend.
ending their employment when the resort
� % This winter was the resort's best snow
reduces winter mountain operations, Rider
at a season since the area opened for skiing
said. in 2004.
Crossroads "We to thank all of the skiers, rid -
In addition, a number of year -round
want
employees will be temporarily laid -off,
ers, season pass holders, lodging
he said.
guests andhomeowners who experiencedTamarack during
No specifics on the number of employees affected
this great winter of Idaho powder," Rider said.
were released.
` ArecordnumberhavevisitedTamarack since Opening
Laid -off year -round employees will remain on
Day, and the epic amount of snow we received made condi-
Tamarack's benefits program, Rider said.
tions spectacular all season long," he said.
Tamarack owes $400,000 to M -D for resort students
BY LUCIA V. KNUDSON
The Star -News
Tamarack Resort owes the Mc-
Call- Donnelly School District about
$400,000, but resort officials say they
will pay, M -D Superintendent Terry
Donicht said Tuesday.
Tamarack Resort has an agree-
ment with M -D to pay the district
for educating students whose par-
ents work in some capacity for the
resort. Payments are made for new
students or students in their second
year with M -D.
Tamarack has outstanding bills
from the 2006 -07 and 2007 -08 school
years, Donicht said.
Tamarack was billed $405,062 in
June 2007 to cover $33,750 in charges
remaining from 2005 -06 and $371,312
for 2006 -07.
Tamarack sent M -D a check for
$202,531 in September, which covered
half the outstanding debt.
School district has
received no money since
September
M -D had expected the other half
within a couple months, but the pay-
ment did not arrive, Donicht said.
In October, M -D billed Tamarack
$221,000 for Tamarack students en-
rolled in the 2007 -08 school year.
The figure will be adjusted up or
down, depending uponthe number of
students who enter or leave the school
system during the year, Donicht said.
The resort still owes about $400,000.
According to the contract, Tama-
rack pays M -D $6,500 per first -year
student and $3,200 per second -year
student. M -D does not bill for Tama-
rack students enrolled more than two
years in a row at its schools.
The agreement said M -D would bill
Tamarack at the end of the quarter, but
the agreement did not specify when
payment was due, Donicht said.
"Our assumption was that the pay-
ment would be made when invoiced,"
he said. "Since we haven't been get-
ting paid until the year is over, we
only bill twice; once in the fall and
once at the end of the year."
Tamarack wants to keep its fi-
nancial commitments, Tamarack's
director of sales and marketing Ken
Rider said last week.
"We're going to work to get this
thing figured out and straightened
out," said Rider, who did not know
why payments were late.
The M -D Board of Trustees has
not pressured Tamarack much to pay,
but they do expect Tamarack to fulfill
its obligation and remit the promised
funds, Donicht said.
PAGE A -8 - THE STAR -NEWS - THURSDAY, APRIL 3, 2008
Tamarack skiers take top medals at USASA Nationals
Ian Williams of Tamarack
Sports and Education Founda-
tion earned a gold medal in
Open Skier Men's Slopestyle
at the USASA National Cham-
pionships at Copper Mountain
Monday on Monday. Teammate
Ben Moxham, earned a silver
medal in the same event.
Other Tamarack skiers who
placed in the top 15 in slopestyle
included:
• Summer Church: fourth
in the 10 and under girls age
group
• Zachary Moxham: fifth in
the boys 11 -15 age group.
• Conner Hall: 12th in the
boys 11 -15 age group.
• Zachary Sturtevant:llth in
the 10 & under boys age group.
Tamarack's halfpipe skiers
also did well. Williams was fifth
for Open Men's, and Church
finished fourth for girls 10 and
under.
Ben Greenland finished s ixth
for boys 11 -15, Carson St. Pierre
finished 12th for boys 10 and
under, and Zachary Moxham
finished 15th for boys 11 -15.
Tamarack's Cameron St.
Pierre finished 10thfor Breaker
Boys for age 12 -13 in the Boarder
Cross event.
Team Tamarack's Hoene
heads to JIB Academy
Team Tama-
rack skier Arlie
Hoene has won
an all- expense
paid trip to
Mammoth Moun-
tain Ski Area in
California for a
week of skiing
with the Salo-
mon pros at the
JIB Academy.
Hoene, a
15- year -old Boise
selected by the 4(
Arlie Hoene
ticipants to win the trip after
performing in the finals of Salo -
mon's slopestyle event Saturday
at Mt. Hood Meadows.
He will be joined by winners
from other JIB Academy loca-
tions in the U.S., Canada and
Europe.
"I had lots of fun skiing with
great pros, coaches and kids to-
day," Hoene said after the award
ceremony. "I'm so excited to ski
with Salomon pros and kids
from all over the world."
JIB Academy began in Swe-
resident, was den and now is held in six
academy par- countries. Forty skiers aged 16
and younger competed on rails
and jumps at Mt. Hood Mead-
ows, and participants voted 10
athletes into the finals.
Hoene's 12- year -old team-
mate, Trevor Hattabaugh, was
the youngest finalist at Satur-
day's JIB Academy, and finished
fifth overall.
"The JIB Academy is one of
the only ski events where the
kids get to vote," Hattabaugh
said. "It was so cool because
Arlie really deserved to win."
Hoene flew straight from
Oregon to Copper Mountain,
Colo., to compete in the USASA
Nationals with his other team-
mates from Team Tamarack.
Former
Tamarack PR
manager forms
private firm
Idaho public relations pro-
fessionals Stephanie Worrell,
Jessica Flynn and Alicia Ritter
have teamed up to launch Red
Sky, a full service public relations
agency located in Boise.
Worrellwillmerge herexisting
business, Worrell Communica-
tions. Ritter leaves Boise State
University, where she served as
Director of Fundraising Initia-
tives.
Flynn leaves her position as
the first communications man -
agerof Tamarack Resort, and will
continue to work with Tamarack
as a client.
Other clients include Su-
perValu/Albertsons, the Idaho
Community Foundation, College
of Western Idaho, Idaho State His-
torical Society, Advantage Sales
& Marketing, the Idaho State
Treasurers Office, Upromise
Investments Inc., and Harris
Ranch.
"There is a significant need
for strategic communications
counsel for individuals, busi-
nesses, and agencies involved
in promoting and raising the
profile of Idaho and those who
live, work and play in this great
state," Flynn said.
"It takes a marketing mix,
with a significant role played by
public relations, to achieve those
goals," she siad.
"Red Sky offers a new option
for strategic public relations,
bringing decades of experience
to the table." Flynn said.
Red Sky Public Relations will
be located on the top floor of the
Banner Bank building in down-
town Boise.
Whitetail hires new executive
chef &manager for Narrows
Whitetail Club & Resort in
McCall has named Ian Fulton
its new executive chef and
Stephen Tuten as manager of
the resort's fine dining venue,
Narrows.
As executive chef, Fulton takes
charge of all culinary operations
for Manchester Grand Resort's
luxury lakefront property in
McCall, including four restau-
rants:
• Narrows.
• The all -day Emma's Cafe.
• The members -only Fish &
Swim Club.
• The more casual Golf Club-
house, offering lunch and light
refreshments.
He will also direct catering
operations forthe property, which
has nearly 13,000 square feet of
meeting facilities.
Tuten will run day -to -day op-
erations at Narrows, known for
its ambiance and Continental/
Northwestern -style cuisine.
Both Fulton and Tuten will be
key members of the resort's food
and beverage team, Whitetail
President John Sabala said.
"Ian will oversee all of our
culinary venues, including the
rustic -style member's -only venue
at the Fish & Swim Club, while
Stephen will work to ensure
that we continue to provide our
Narrows' guests with an ex-
traordinary experience," Sabala
said.
"We are thrilled to have both
on board, and are confident
they will help further build and
enhance our food and beverage
operations," he said.
A native of Scotland, Fulton
has a 30 -year background in the
culinary industry, and previously
ran a consulting business, work-
ing as a caterer and personal chef
for stars such as Jack Nicholson,
George Hamilton and Tommy
Lasorda.
Prior to that,,. .
he was execu-
tive chef of the
luxurious Lake
Las Vegas Re-
sort in Nevada,
overseeing all
kitchen and
staffing opera-
tions.
Fulton was
also the execu-
tive chef Ian Fulton
for Del Friscos, a high -end steak-
house in Las Vegas, and owned
and operated his own restaurant
in Bend, Ore., a 200 -seat restau-
rant and bar.
He honed his skills as an
apprentice for various British
Transport Hotels properties,
including Caledonian Hotel Ed-
inburgh and Glen Eagles Hotel,
both in Scotland.
Tuten has more than 10 years
of hospitality industry experi-
ence in resorts throughout the
west.
He was previously director of
food and beverage at the Greer
Lodge Resort, a luxury destina-
tion in Greer, Ariz.
He was also director of fine
dining, wine and banquets at
Schweitzer Mountain Resort in
Sandpoint director of dining
and wine at Smith Fork Ranch in
Crawford, Colo., an upscale guest
ranch and dining facility.
-2
Tamarack Resort
closes Boise, office,
lays off 20 employees
Tamarack Resort closed its Boise office
last week in order to reduce expenses, resort
officials announced.
TheBoiseoffice,lo-
cated at 960 Broadway
Ave., had been scaled
down significantly
over the past year as
most operations and 1�
administrative posi-
tions were relocated at a
to the resort, a news Crossroads
release said.
The closing will affect 20 employees, and an
additional seven employees will work off -site
for the resort.
Operations at the resort remain open for
lodging, conference facilities, spa services,
and Morels Restaurant and Lounge will still
be open and available to serve guests.
Tamarack plans to kick off the start of its
summer season Memorial Day Weekend.
The closure was the latest setback at the
four - season resort west of Donnelly.
More than 40 liens totaling more than $17
million have been filed against companies
related to Tamarack Resort.
See TAMARACK, Page A -1 a
Tamarack
(Continued from Page A -1)
A lawsuit by Credit Suisse that
says Tamarack's major partners,
J.P. Boespflug and Alfredo Miguel
Afif, failed to make a $4.8- million
loan payment due in December.
The payment was due on a
$250- million line of credit issued
in 2006 by Credit Suisse to allow
Tamarack to work on the still -
unfinished six - building Village
Plaza.
And Rory Veal, a former vice -
president of sales at Tamarack
Resort, is suing his former em-
ployer for more than $1 million
in unpaid commission payments,
six months' severance and health
insurance costs.
S�q
Boespflug
BY MICHAEL WELLS
The Star -News
Tamarack Resort CEO Jean.
Pierre Boespflug will let a Boise
jury decide if he hit a parked car
and left the scene of the accident
in Boise last September.
Boespflug
was charged
with a misde-
meanor for
leaving the
scene of an
accident when
he hit a parked
vehicle in Boise
last September.
He faces up
to six months
in jail and a
$1,000 fine if Jean- Pierre
convicted. Boespflug
A pre -trial conference was
held in Boise Monday and a jury
trial is set to begin Aug. 1 in the
Ada County Courthouse.
Boespflug's attorney, Greg
Pittenger of McCall, declined to
comment on the case.
Boespflug was arrested by Val-
ley County Sheriff's detectives in
March. He was later released on
a $300 cash bond.
According to Boise police,
Boespflug was attemptingto park
a car on 13th Street near Eastman
Street on Sept. 1, 2007, when he hit
to stand trial Aug, l for hit-and-
a parked car on the road.
The driver got out of the ve-
hicle, checked the damage, got
back into his car, and drove away,
according to police reports.
Boise Prosecuting Attorney
Sarah Millar did not respond
to an interview request by The
Star -News.
The misdemeanor charge is
just one of many problems facing
Boespflug and Tamarack Resort.
Boespflug and Alfredo Miguel
Afif, who are the two majority
owners of the resort southwest
of Donnelly, filed for bankruptcy
protection this winter.
The resort, Boespflug, and Afif
are being sued by Credit Suisse, a
Swiss bank, for $262 million that
was loaned to the resort to build
the Village Plaza.
Boespflug said in March
that he would be forced to sell
the resort if he could not fir,
alternative financing to restart
construction on the Village Plaza
within six months.
Tamarack's woes have led
to employee layoffs. The resort
run
was fined $180,000 by the Envi•
ronmental Protection Agency
for violating the clean water act
this winter.
Tamarack is also being sued
by a former employee over sales
commission payments, sever-
ance pay and health insurance
costs.
- A California - iple who says
,he resort coo, ieir earnest
moneyrather than return it when
they decided not to buy a home
at the resort also filed a lawsuit
this winter.
amarack hope's bonds will
payoff debts
and Marketing Ken Rider said.
Tamarack officials approached the
Idaho Housing and Finance Association
board in Lewiston Friday with a plan
to resurrect the resort, whose principal
owners filed for bankruptcy protection
this winter to avert Credit Suisse, a Swiss
bank, from foreclosing on the property.
Tamarack owes Credit Suisse about
$262 million. The bank asked a state judge
to begin foreclosure proceedings on the
resort this winter.
The IHFA has no liability in agreeing
to begin the process to issue the bonds,
IHFA President and Executive Director
Gerald Hunter said.
A public hearing by IHFA on the bond
sale will begin at 5 p.m. Wednesday, Aug.
LU, at Tne Ashley lnn in Cascade.
Resort property would be held as col-
lateral for the bonds that would be sold
by the resort.
The bonds would be paid back by
revenues generated at the resort either
through real estate sales orthrough resort
revenues, Rider said,.
The deal allows Tamarack officials an
entry into a new market of investors.
`An investor has not been formally
identified," Hunter said. "Tamarack
needs to find investors. We are only the
facilitator. We have no liability in the
transaction:"
IHFA is not extending credit to the
resort, but by agreeing to proceed with
the bonding process has allowed Tama-
rack to "connect with large institutional
pensionfunds and insurance companies,"
Hunter said.
Tamarack approached IHFA about
three weeks ago with the proposal.
See TAMARACK, Page A -5
BY MICHAEL WELLS
The Star -News
Tamarack Resort will attempt to sell
$670 million in bonds to get the resort
southwest of Donnelly out of debt and
back on track, Director of Resort Sales
and Marketing Ken Rider said.
Tamarack officials approached the
Idaho Housing and Finance Association
board in Lewiston Friday with a plan
to resurrect the resort, whose principal
owners filed for bankruptcy protection
this winter to avert Credit Suisse, a Swiss
bank, from foreclosing on the property.
Tamarack owes Credit Suisse about
$262 million. The bank asked a state judge
to begin foreclosure proceedings on the
resort this winter.
The IHFA has no liability in agreeing
to begin the process to issue the bonds,
IHFA President and Executive Director
Gerald Hunter said.
A public hearing by IHFA on the bond
sale will begin at 5 p.m. Wednesday, Aug.
LU, at Tne Ashley lnn in Cascade.
Resort property would be held as col-
lateral for the bonds that would be sold
by the resort.
The bonds would be paid back by
revenues generated at the resort either
through real estate sales orthrough resort
revenues, Rider said,.
The deal allows Tamarack officials an
entry into a new market of investors.
`An investor has not been formally
identified," Hunter said. "Tamarack
needs to find investors. We are only the
facilitator. We have no liability in the
transaction:"
IHFA is not extending credit to the
resort, but by agreeing to proceed with
the bonding process has allowed Tama-
rack to "connect with large institutional
pensionfunds and insurance companies,"
Hunter said.
Tamarack approached IHFA about
three weeks ago with the proposal.
See TAMARACK, Page A -5
Tamarack
(Continued from Page A -1)
Tamarack attorney Steve
Millemann reviewed the resort's
economic benefit to Valley Coun-
ty and the state using economic
data authored by John Church of
Idaho Economics, Rider said.
1J.S. Department of Commerce
Representative David Pales also
expressed support of the bond
deal on behalf of the federal
government, Rider said.
"We are very pleased to see
this inducement resolution,"
Tamarack Resort CEO Jean.
Pierre Boespflug said. "This adds
another conduit by which Tama-
rack is likely to become again
adequately capitalized."
"It does not mean money is in
the bank just yet, but it is a step
in the right direction," Boespflug
said. "Our creditors needto know
that we are not leaving a stone
unturned until this recapitaliza-
tion gets done."
No Government
the right momentum," Boespflug
said.
Hunter expects Tamarack
officials will be at the Aug. 20
public hearing to make presenta-
tions about the bond sale and the
resort project.
"There was a feeling of the
board that the first phase of this
should move forward," Hunter
said. "When the terms and condi-
tions and negotiations between
an investor and Tamarack are
known, we will make sure it is
acceptable to our format."
If the bonds are sold and the
resort were to be unable to repay
the bonds, the resort properties
would become the property of the
bondholders.
The resort is involved in afore -
closure action by Credit Suisse
since March when the resort was
unable to pay regular quarterly
interest payments on a $262 mil-
lion loan. A French bank, Societe
Generale, withdrew a construc-
tion loan offer to the resort in
January that could have kept the
resort construction on track.
Tamarack would use revenue
generated by the bond sale to
pay back several liens held by
unpaid contractors and vendors
at the resort, as well as pay off
the Credit Suisse loan. If all the
bonds are sold; it would be enough
money to resume construction of
the Village Plaza that was put on
hold due to financial difficulties
at the resort.
Guarantees
The state and the federal
government are not providing a
guarantee for the bonds.
"The turmoil of the financial
markets has slowed us down but
the positive buzz around Idaho
and now the endorsement of our
officials are certainly providing
Partners pull plug
on Tamarack. hotel
BY TOM GROTE
The Star -News
A luxury hotel and residences planned
for Tamarack Resort and championed by
former tennis greats Andre Agassi and
Stefanie Graf has been cancelled after a key
partner pulled out of the project, according
to spokesmen for the companies involved.
The proposed 305 luxury hotel -con-
dominiums and residences operated by
the Fairmont hotel chain will not move
forward as planned, but a spokesman said
the news does not rule our a future projec
sort.
The project fell through when BAG Propery Holdings
decided not to purchase the land for the Fairmont when
a deadline loomed in mid -June.
BAG Property Holdings is owned by Echo Partners,
an affiliate of Bayview Financial, and Agassi Graf
Development.
In 2007, 125 properties in the project
garnered $140 million in sales in just seven
hours. Celebrities such as Eric Dane of
"Grey's Anatomy," Jason Lewis of "Sex and
the City," and Arizona Cardinal Quarterback
Matt Leinart were cited on Tamarack's Web
site as buyers.
With the cancellation of the project,
earnest money paid by those buyers will be
refunded, officials said.
Lawsuits between Credit Suisse and the
two principal Tamarack Resort partners was
a major reason for not following through with
the project, said Joel Goldman, chief operating officer
of Echo Partners.
"We were named as a defendant in the foreclosure and
we are in litigation," Goldman said, referring to lawsuits
See HOTEL, Page A -9
Hotel
(Continued from Page A -1)
filed in state and federal courts
by Credit Suisse seeking fore-
closure of resort properties,
including the nearly complete
Village Plaza in the resort's
core.
Credit Suisse filed the
lawsuits after the companies
controlled by Tamarack CEO
Jean - Pierre Boespflug and
board Chair Miguel Alfredo de-
clared bankruptcy in February.
Together, the companies own 75
percent of the resort.
Credit Suisse is seeking
foreclosure because the resort
developers defaulted on a $250
construction loan to build Vil-
lage Plaza.
Echo Partners had an ini-
tial deadline of June 2007 to
purchase the land from Tama-
rack, but requested a one -year
extension. ,
Goldman, who joined Echo
Partners, located in Coral
Gables, Flas., in 2007, said the
project would have been the
largest in the firm's portfolio.
Until this week, the Web site
for Echo Partners displayed the
Fairmont Tamarack project
prominently on its title page.
That site was taken down this
week.
Although Echo Partners no
longer is a player in the project,
Agassi Graf Development and
Fairmont still have an interest
in Tamarack Resort, Tamarack
spokesman Ken Rider said.
Agassi and Graf, who have
30 Grand Slam singles titles
between them, own a home at
Tamarack and "are friends of
the resort," Rider said.
"Obviously it is a setback,
but we hope we can get it figured
out for the future," Rider said.
The resort is contacting those
who purchased properties in
the Fairmont project to see if
they wouldlike to invest in other
resort properties, he said.
A luxury hotel site is still
in the resort's master plan and
the developers will work to
complete it, he said.
Agassi Graf Development
President Gun Ruder said the
company couldbe interested in a
new deal, but he de clined f anther
comment, citingthe "complexity
of the legal scenario" involving
the resort.
FairmontHotels and Resorts
is still hoping to build a hotel
at Tamarack, spokesman Mike
Taylor said from the compa-
ny's headquarters in Toronto,
Canada.
"The fact it is a ski resort
and a potential ski destina-
tion still would make it an
attractive market for us,"
Taylor said. "We continue to
seek out new opportunities
and are looking to open new
markets."
,I2`�I6 g
Hearings in Cascade, Boise to air
bonding p
Project owners hope
to raise $670 million
lan for Tamarack Resort
to pay off debts, get
project back on track
BY MICHAEL WELLS
The Star -News
Two public hearings are
set in Cascade and Boise
next week to hear the public's
comments about Tamarack
Resort's plan to sell $670 mil-
lion in Idaho Housing and
Finance Association bonds
to resurrect the resort from
financial difficulty.
The first hearing will be
held Wednesday at the Ashley
Inn in Cascade at 5 p.m. The
hearing is scheduled for one
hour.
The second hearing will
be held at the IHFA office in
Boise at 565 West Myrtle St.
in the first floor conference
room on Aug. 21 from 5 p.m.
to 6 p.m.
Those who wish to com-
ment at either meeting are
required to contact IHFA
Senior Vice President John
Sager at least 24 hours in ad-
vance of the hearing. Sager
contacted at (208) 331 -4728 or
johns @ihfa.org.
Representatives from IHFA
and Tamarack Resort will
be on hand at the meeting to
give a presentation about the
plan where Tamarack Resort
would sell $670 million in
bonds issued by IHFA to get
the resort construction back
on track and out of foreclo-
sure proceedings filed this
winter by Credit Suisse in
state court.
Resort and IHFA repr8sen-
tatives will also be available
to answer any questions at
the meeting.
The bonds would only be
issued by IHFA. The IHFA
has no liability in agreeing to
begin the process to issue the
bonds. IHFA is not extending
credit to the resort.
Resort property would
be held as collateral for the
bonds that would be sold by
the resort.
Tamarack officials ap-
proached the Idaho Housing
and Finance Association
board in Lewiston last month
with a plan to resurrect
the resort whose principle
owners filed for bankruptcy
protection this winter to
avert Credit Suisse, a Swiss
bank, from foreclosing on the
property.
The bonds would be paid
back by revenues generated
at the resort through either
real estate sales or resort
revenues.
The deal allows Tamarack
officials an entry into a new
market of investors that it
could not otherwise reach.
If the bonds are sold and
the resort was unable to
repay the bonds, the resort
properties would become the
property of the bondholders.
The resort is involved in a
foreclosure action by Credit
Suisse since March when
the resort was unable to pay
regular quarterly interest
payments on a $262 million
loan. A French bank, Societe
Generale, withdrew a con-
struction loan offer to the
resort in January that could
have kept the resort construc-
tion on track.
Tamarack would use reve-
nue generatedbythe bond sale
to pay back several liens held
by unpaid contractors and
vendors at the resort, as well
as pay off the Credit Suisse
loan. If all the bonds are sold,
it would be enough money to
resume construction of the
Village Plaza that was put on
hold due to financial difficul-
ties at the resort.
Written comments may be
submitted to IHFA at P.O. Box
7899, Boise, Idaho 83707 or at
565 West Myrtle Street, Boise,
ID, 83702.
Tamarack bond
proceeds would go
first to finish village
BY MICHAEL WELLS
The Star -News
before the nd of the year would be a top
Priority of Tamarack Resort if the resort
can sell $670 million in bonds, a public
hearing last week was told.
Tamarack Resort could finish construc-
tion of Village Plaza, payoff its creditors,
and complete several other developments if
the Idaho Housing and Finance Association
Board agrees to act as a conduit for $670 mil-
lion in bonds the resort would sell, attorney
Steve Millemann of McCall said.
The resortmust nowfind a suitable inves-
tor to purchase the bonds before the IHFA
Board will meet to decide to approve the deal,
IHFA spokesperson Lisa Davis said.
The deal opens up a new market of
institutional investors for Tamarack to
find a solution to its financial woes that
have led the resort to cut back its employee
base from about 1,200 people in construc-
tion and resort operations to about 140
emplovees today
S;�hjM\A
Tamarack's
troubles
mount
Banks close in on meeting center, employee
housing, CEO hints at deal
BY MICHAEL WELLS
The Star -News
Tamarack Resort officials hope to
have an agreement in place by next
month to save the troubled resort
before the Arling Center complex of
buildings are sold at auction.
A deal was
hinted at in
a letter dated
Friday to Tama-
rack Resort
homeowners C written by JWA K
Tamarack CEO at a
Jean - Pierre Crossroads
Boespflug.
"By mid- October I will make a
decision to accept the offer that best
meets our common goal of finding an
adequate buyer capable of strength-
ening the resort and providing more
value," Boespflug said.
"Efforts continue to produce real
results, reflected by a number of
interested parties willing, capable
and ready to commit," he wrote to
the homeowners. "We are now at a
real negotiation stage."
Boespflug did not respond to mes-
sages left by The Star -News.
The latest round of troubles at
the resort center around a U.S. Bank
auction to sell off the Arling Center,
which is a complex of three build-
ings in the middle of the resort that
opened in 2006.
The buildings arehistoricalrepli-
casdesignedtoremindvisitorsof the
former towns of Arling and Center
that were dismantled before the wa-
ters of Lake Cascade inundated the
town locations in the 1940s.
See TAMARACK, Page A -8
`If I feel I can no longer lead the company to
our common goal of finding an adequate buyer
then I will relinquish my control to the lender.'
- Jean - Pierre Boespflug
Tamarack: Banks close in on
meeting center, employee housing
(Continued from Page A -1)
The complex includes:
• The Grange: A ballroom
that seats 200 people in a ban-
quet style set -up with two lower
level breakout rooms that each
seat up to 55 people.
•The Chapel: Suited for a
wedding or as a general ses-
sion hall or breakout center
for 140 people.
• The Schoolhouse: Con-
tains two designed breakout
rooms to accommodate up to
45 attendees for board meet-
ings, breakout session or
banquet dinner.
Tamarack owes $5 million
in principal and $129,000 in
interest on the center, which
is used for meetings, accord-
ing to public records.
Employee housing
targeted
Another Tamarack prop-
erty used for employee
housing in the Meadows at
West Mountain development
off West Roseberry Road is
up for auction.
The resort owned eight
homes in the project, of
which three house resort
employees.
A total of $995,000 is owed
to Sterling Savings Bank,
which has scheduled an auc-
tion in December.
The resorts troubles began
last winter when Boespflug
and board president Alfredo
Miguel Afif's company's filed
for bankruptcy protections
to stave off foreclosure pro-
ceedings by the Swiss Bank
Credit Suisse.
Tamarack owes Credit
Suisse $262 million in a con-
struction loan.
Most recently, the resort
was able to save its Buttercup
Photo courtesy Tamarack Resort
The Grange is one of three buildings in Tamarack Resort's
Arling Center faced with foreclosure.
and Wildwood ski lifts that were
about to be repossessed by U.S.
Bank after the resort got behind
on monthly lease payments.
"We got current on the pay -
ments," Director of Resort Sales
& Marketing Ken Rider said.
"The board is making sure the
payments are up to date and on
time in the future."
Boespflug breached the
subject of giving up control
of the project in his letter to
homeowners.
If I feel I can no longer lead
the company to our common
goal of finding an adequate
buyer then I will relinquish my
control to the lender," he said.
"We have not reached
that time and I ask for your
support," he said. "This is
necessary to give a fair chance
to the concrete negotiations
underway."
Operations atthe resort are
down slightly from last year,
Rider said.
"We are not discouraged,"
he said.
The zip lines are still run -
ningeachweekfrom Wednesday
through Sunday at the resort.
The lifts will run for sight seeing
on Saturday and Sunday until
Oct. 12, he said.
The Osprey Meadows Golf
Course will be open until Oct.
19 except for a planned two -day
closure on Sept. 30 and Oct. l for
an aeration project, he said.
The resort plans to open for
a fifth winter of .operations,
Boespflug said in his e-mail.
"You have my commitment
that lifts will run, restaurants
will serve and lodging will
welcome owners and guests
for a variety of winter experi-
ences," he said.
Tamarack recently got the
approval from the Idaho Hous-
ing and Finance As sociation to
seek investors to buy up to $670
million in economic develop-
ment bonds. So far, no investor
has been announced.
If the resort can sell $670
million in bonds, it can pay off
its creditors, restart construc-
tion at Village Plaza and other
projects. The bonds would be
paid back through revenues
gained through resort opera-
tions and real estate sales.
If Tamarack were unable
to repay the bonds, the resort
ownership would revert to the
gl�4�a�
/11_�
Letter
(C l
All ski e and equipment
leases are current.
Winterization efforts are
underway to protect construc-
tion in Village Plaza. A crew
of 15 people is at work as you
read this.
Plans are underway to open
for our fifth year of winter
operation. You have my com-
mitment that lifts will run,
restaurants will serve and
lodging will welcome owners
and guests for a variety of win-
ter experiences. Tamarack's
leadership team is on track
with the necessary mainte-
Following is a letter sent on
Friday by Tamarack CEO Jean -
Pierre Boespf lug to homeowners
within the resort:
Dear Homeowners:
As a fellow homeowner and
major investor inTarnarack Resort,
I respectfully request the privilege
of your time and attention to hear
my thoughts about current events
affecting each and every one of us
today. I personally understand the
risk each of you has taken, as I
have taken the same risks myself
and am feeling the impact of our
hardship.
As evidenced at the Annual
TMA (Tamarack Municipal As-
sociation meeting) last Saturday
(Sept. 6), 1 openly and hon-
estly shared my effortsto resolve
Tamarack's financial challenges.
By mid-October I will make a
decision to accept the offer that
best meets our common goal
of finding an adequate buyer
capable of strengthening the
resort and providing more value.
Efforts continue to produce real
results, reflected by a number of
interested parties willing, capable
and ready to commit. We are now
at a real negotiation stage.
A new buyer will allow
Tamarack the ability to cure
pending foreclosure actions
against the Arling Center and
employee housing, thus keeping
these valuable assets under our
ownership.
See LETTER, Page A -8
nance needed to protect our
valuable assets.
A collaborative, cohesive
unified front with homeown-
ers is vital in reaching our
common goal. As committed
investors with everything to
gain, it is imperative each
homeowner act as an inspi-
rational ambassador within
yourcircleof influencetosend
a strong message of belief
and loyalty to new investor
prospects. A strong buyer's
resale market coupled with
an excellent resale inventory
creates great value for savvy
investors.
Your positive endorsement
of the resort, its development
plans and current leadership
is critical at this juncture.
Contrary efforts will only
damage our efforts to close
this chapter in our history
and begin anew. As I said in
the meeting, if I feel I can no
longer lead the company to
our common goal of finding
an adequate buyer then I will
relinquish my control to the
lender. We have not reached
that time and I ask for your
support during the period out-
lined above. This is necessary
to give a fair chance to the con-
crete negotiations underway.
We will stay in contact with
updates as they occur.
Most Sincerely,
Jean - Pierre Boespflug
Chief Executive officer
I
BY TOM GROTE
The Star -News
TamarackResort Chief Executive Officer
Jean - Pierre Boespflug said Tuesday he has
committed $21 million of his own money in
the last year to keep the resort operating
and to secure new financing.
In a telephone interview, Boespflug said
he has loaned the resort $11 million from his
own pocket to keep Tamarack open while
the current operators seek a buyer.
Without theloans, the resortlikely would
have closed by now, which would have been
harmful to all and especially to the search
for a buyer, he said.
"Clearly I need an open resort to make it
marketable; it is hard to market this thing
closed," he said.
Prospective buyers need to personally
experience the golfing, skiing and other
amenities of the resort west of Donnelly
in order to convince them to invest in the
project, he said.
However, Boespflug said he was unsure
how much longer he could subsidize the
resort. "My finances are not infinite," he
said.
In a letter to resort homeowners this
week, Boespflug said he will step down when
new investors are found for the project west
of Donnelly. 011 See TAMARACK, Page A -8 Tamarack CEO closed,
♦ Boespflug hit - and -run trial
delayed to Jan. 22 — Page A -8
Tamarack: Boespflug says
he's spent $21 million more
(Continued from Page A -1)
"A change of management
will happen with the new
buyer," Boespflug said in the
letter sent on Sunday to own-
ers of homes and properties
within the resort.
"In the meantime, please
support the management you
know who has stabilized the
resort and organized an excel-
lent marketing effort to find
buyers in this most challeng-
ing market," he said. `Allow
the time for these efforts to
come to completion."
Boespflug said Tuesday he
has veto power over any deal
because of additional invest-
ment in the resort that made
him the majority owner.
Previously, Boespflug's
company, Cross Atlantic Real
Estate, owned 48 percent of the
project, with the next largest
share, 27 percent, controlled
by Mexican businessman
and resort co- founder Alfredo
Miguel Afif.
Last winter, the resort and
the French bank Societe Gen-
eral were in negotiation for a
$118 million loan to complete
the Village Plaza that is the
heart of the resort.
The French bankers want-
ed more investment into the
project by the partners, so
the current owners spent
another $20 million, of which
$10 million was contributed
by Boespflug, he said. That
pushed his share of the own-
ership from 48 percent to 50.6
percent, or a majority.
However, Societe General
then became engulfed in a
trading scandal that cost the
bank $7 billion, and the loan
Boespflug said negotiations
were moving forward with
a potential buyer, which he
would not name, and he was
confident an announcement
of a deal could be made by
Nov 1.
"I am still hopeful we are
still on track, but you are never
sure until you get there," he
said.
In his letter to homeowners,
Boespflug gave assurances that
preparations are being made to
open Tamarack's ski area for
its fifth year of operation on
Dec. 12. Maintenance is being
done on lifts and snowcats, and
"key seasonal professionals"
have been hired.
Workers are also two - thirds
finished on winterization of
the uncompleted Village Plaza
condominium and retail com-
plex that is the centerpiece of
the resort.
Boespflug noted recent
court filings by Credit Suisse
that say the bank would not
shut down the ski area this
season if the courts granted it
control. Credit Suisse is seek-
ing to take over the resort due
to the default on a $250 million
construction loan.
"The net -net here is that
we will be open this winter
one way or the other and it is
safe for you and your friends
to book lodging, buy season
passes for the winter, and plan
your vacations at Tamarack,"
he said in his letter.
Jean - Pierre — Jean - Pierre
Boespflug Boespflug
Boespflug hit - and -run
trial delayed to Jan. 22
A trial on hit - and -run
charges against Tamarack
CEO Jean Pierre Boespflug
that had been set for Friday
was postponed.
A busy court calendar in
Fourth District Court in Boise
led to postponement until Jan.
22, 2009.
Boespflug was arrested
in March on a misdemeanor
charge of leaving the scene
of an accident when he hit a
Parked vehicle in Boise last
September.
Boespflug faces up to six
months in jail and a $1,000
fine.
According to Boise Police,
Boespflug was attempting to
park a car on 13th Street near
Eastman Street on Sept. 1, 2007,
when he hit a parked car on
the road.
The driver got out of the
vehicle, checked the damage,
got back into his car, and drove
away.
Boespflug declined to com-
ment on the case on Tuesday.
f
The unfinished Village Plaza at the heart of Tamarack Resort is testament to the financial troubles faced
by the resort's owners. A court - appointed receiver will take over management of the resort next month.
state judge on Friday ap-
pointed a San Diego company
to take over the operations of
Tamarack Resort.
Douglas Wilson Co., which
speci alizes in problemsolvingfor troubled
companies, was appointed as receiver of
the financially strapped resort located
southwest of Donnelly.
"A court appointed receiver works
for the court and reports to the court on
how to best manage the asset," Tamarack
spokesperson Ken Rider said. "They are
here to help guide us back on track."
Also on Friday, the resort laid off 100
of its 150 employees and said it hoped to
rehire the work force by Nov 3.
"Tamarack was not opposing receiv-
ership since Credit Suisse had offered
to fund the receiver with $10 million,
something which was not on the table
in the past," Tamarack CEO Jean - Pierre
Boespflug said in a letter to Tamarack
homeowners Sunday.
"Receiver funding will not be avail-
able immediately, but, if all goes well this
week, we anticipate that the funding will
be available to the receiver on Nov 3,"
Boespflug said.
Boespflug
out as
Tamarack
CEO
&AC
ata `"` I C
Crossroads
SIf-,- _
J�1�,316�
m
judge throws out ara cx ciai
^
Ruling said developers were using
bankruptcy as a delay tactic to
buy time to locate new investors
Credit Suisse moved a step closer to taking
controlof Tamarack Resort afterafederaljudge
on Tuesday dismissed bankruptcy cases that
had been protecting majority owners of the
ailing Idaho vacation destination, according
to an Associated Press report.
Chief U.S. Bankruptcy Judge Terry My-
ers ruled that resort Chief Executive Officer
Jean - Pierre Boespflug and Chairman Al-
fredo Miguel improperly sought Chapter 11
bankruptcy protection in February for their
real- estate companies, which hold about 58
percent of the resort's equity, the Associated
Press report said.
Myers said the maneuver wasn't designed
to reorganize their companies, but rather to
buy Boespflug and Miguel enough time to find
new investors.
Tamarack owes some $270 million, includ-
ing interest, after defaulting last year on a $250
million syndicated loan from Credit Suisse.
Boespflug and Miguel had pledged shares as
collateral, in the event the resort couldn't
repay the debt.
The right to seek control of these interests
was a bargained -for contractual right," Myers
told lawyers for the two sides.
He added that Boespflug and Miguel sought
bankruptcy protection without legs ima
purpose," in part because their companies'
main assets were the Tamarack stakes, not
operating businesses in need of actual reor-
ganization.
Neither Boespflug nor Miguel has filed a
reorganization plan in the eight months since
they sought court protection.
Boespflug owns 50.6 percent of Tamarack,
including a 32 percent stake through his
company, Cross Atlantic Real Estate LLC.
Meanwhile, Miguel owns 26 percent through
his holding company, VPG Investments.
"The creation of this destination skiing
resort has had a long and difficult history,"
the judge said.
See TAMARACK, Page A -8
`= at a -�
Crossroad%
Tamarack: g
judge rules a ainst bankruptcy claim Glance
Continued from Page A -1
FollowingMyers'ruling, it is
unclear if Credit Suisse, which
is acting as representative for
banks andhedgefunds thatnow
own portions of the syndicated
loan, will immediately claim
the Tamarack shares, the As-
sociated Press report said.
That's because if it did,
bankers could be held liable for
more than $30 million owed to
Tamarack creditors, including
construction companies, sup-
pliers and even Boespflug, who
has loaned the resort $11 million
since April to stay afloat.
An Associated Press phone
call to Credit Suisse in New
York City wasn't immediately
returned. The bank's lawyers
also declined public comment.
Credit Suisse is also trying
to persuade a judge in Fourth
District Court in Boise to ap-
point a receiver to take over
Tamarack management. The
hearing was held Wednesday,
but results were not known by
press time.
ThatCreditSuissemaintains
new oversight is imperative be-
cause Tamarack's unfinished
six - building Village Plaza
- $75 million shy of completion
- couldbe irreparably damaged
by snow under the existing
winterization plan favored by
Boespflug.
If a receiver steps in, Credit
Suisse has said it would extend
a $10 million loan to fund a
90 -day budget to pay for more
extensive winterization and
the cost of starting the ski hill
in December.
With federal bankruptcy
protections lifted, Boespflug
told the Associated Press that
he and Miguel plan to pursue
efforts to persuade a federal
judge to dismiss a separate
civil case in U.S. District Court
in which Credit Suisse seeks
to hold the two men person-
ally accountable for some of
Tamarack's debts.
The bank alleges, among
other things, that Boespflug
and Miguel shifted money
into separate bank accounts
that weren't subject to Credit
Suisse's control.
Boespflug counters he acted
appropriately to keep the re-
sort running and still hopes to
secure new investors despite
previous failed efforts.
Boespflug told The Star -
News last week that a deal with
a new owner could be in place
by Nov 1. Whatever happens,
it is unlikely he would stay on
board as CEO, he said.
ail
The unfinished Village Plaza at the heart of Tamarack Resort is testamer t to the financial troubles faced
by the resort's owners. A court - appointed receiver will take over management of the resort next month.
state judge on Friday ap-
pointed a San Diego company
to take over the operations of
Tamarack Resort.
Douglas Wilson Co., which
speci alizes inproblem- solvingfortroubled
companies, was appointed as receiver of
the financially strapped resort located
southwest of Donnelly.
"A court appointed receiver works
for the court and reports to the court on
how to best manage the asset," Tamarack
spokesperson Ken Rider said. "They are
here to help guide us back on track."
Also on Friday, the resort laid off 100
of its 150 employees and said it hoped to
rehire the work force by Nov 3.
"Tamarack was not opposing receiv-
ership since Credit Suisse had offered
to fund the receiver with $10 million,
something which was not on the table
in the past," Tamarack CEO Jean - Pierre
Boespflug said in a letter to Tamarack
homeowners Sunday.
"Receiver funding will not be avail-
able immediately, but, if all goes well this
week, we anticipate that the funding will
be available to the receiver on Nov 3,"
Boespflug said.
Boespflug
out as
Tamarack
CEO
Maintenance To Go On
Ski lift maintenance, snow cat mainte-
nance, golf course winterization, lodging
and reservations will continue to operate
at the resort during the layoff, Boespflug
said.
Restaurants, at the resort have been
closed, but Crane Creek Market and Sante
Spa will remain open, he said.
See TAMARACK, Page A-2
Tamarack
(Continued from Page A -1)
A proposed budget by Doug-
las Wilson Co., including its
plans to utilize a $10 million
loan from Credit Suisse, was
scheduled for a hearing today
in Boise.
Few details of the plans for
the$10 million were announced
beyond winterization efforts to
secure Village Plaza and other
stalled construction projects.
The money would also be
used to operate the resort,
which plans to open this winter
for the ski season, Rider said.
An announcement on future
resort operations will come
soon, he said. That includes
the completion of the Village
Plaza condo and commercial
complex, Whitewater town
homes and cottages, and the
Lake Wing expansion of The
Lodge at Osprey Meadows.
Tamarack's financial strug-
gles began late last year when
the company asked Credit Su-
isse, a Swiss bank, to allow late
payment on interest payments
on a $250 million construction
loan. Tamarack now owes the
bank $273 million.
Theresortsoughtaconstruc-
tion loan to restart construction
of Village Plaza from Societe
Generale, a French bank, but
the deal fell through in Janu-
ary due to a $7 billion financial
scandal involving the bank.
Credit Suisse asked the
court for a receiver to take
over the resort to protect the
development from a $250,000
Tamarack plan to winterize
the development for this winter
which the bank thought was
insufficient.
Village Plaza was estimated
to cost $91 million to build and
was to be the focal point of the
resort that spent more than
half a billion dollars on other
developments at the site.
The village development
presold 90 percent of the 129
condominiums in 2005.
Buyers have a Dec. 31 opt -out
provision if the buildings are
not ready for occupancy.
The developmentalso mixes -
in 56,000 square feet of com-
mercial space which has lease
commitments on 60 percent of
the space. Another 20 percent
has contingency leases for the
space.
SC.� �
6-(
San Diego company .
specializes In taking
Homeowners
rou
g p
over distressed
says resort owners
Properties
The company appointed
to take over operations at
owe $600,000
Tamarack Resort specializes
in coming to the rescue of
troubled firms.
Homeowners inside Tamarack
Douglas Wilson Co. of San
Diego was appointed Friday by
Resort say the resort's current own -
ers owe their association $600,000,
'
Fourth District Judge Patrick
Owen to take over day to day
according to court documents.+
Twenty -four homeowners inside
operations at the financially
Tamarack Resort wrote letters in
support of a judge ordering the
` '°
strapped resort located south-
west of Donnelly.
takeover of the financially troubled
"Our problem resolution
specialists solve the most
resort.
The homeowners, all members of
the Tamarack Municipal Associa-
f '.
complicated problems," the
company's Web site said. "Our
tion, wrote letters to Fourth District
Judge Patrick Owen in support of
professionals can quickly
implement clear business so-
Credit Suisse's request to appoint a
lutions to any problem."
receiver to take over the operations
at Tamarack.
See RESCUE, Page A -2
See DEBT, Page A -2
3 � � �._
star -News Photo by Michael Wells
yy@
Rescue
(Continued from Page A -1)
The company's task at
Tamarack will be to protect,
maintain, and operate all the
businesses at the resort.
It has provided services in
more than 475 cases involving
assets of more than $5 billion
over the past 20 years, the Web
site said.
Douglas P. Wilson is the
company's founder, chair and
chief operating officer.
John Waters, who works
for the company, was picked
to replace Tamarack CEO
Jean - Pierre Boespflug while
the resort is in receivership.
Waters met with Tamarack
officials Monday.
Requests for an interview to
Waters and officials at Douglas
Wilson by The Star -News were
not answered.
The company's projects
include a Ritz Carlton Hotel
in Rancho Mirage, Calif.,
Lincoln Plaza Hotel in Los
Angeles, Shanty Creek ski
and golf resorts in northern
Michigan and Ocean Trails
Golf Course in Rancho Palos
Verdes, Calif.
Debt
(Continued from Page A -1)
Without the resort's pay-
ments, the association faces
staff reductions and a lower
level of services in such areas
as security and snow removal
this winter, the letter said.
Owen ordered the resort
into receivership on Friday at
the request of Credit Suisse, a
Swiss bank that loaned the re-
sort $250 million and on which
resort owners defaulted.
"It is our claim that the
financial condition of the de.
fendant Tamarack Resort LLC
has materially damaged both
the values of our properties and
by proximity theirs as well," the
letters said.
The form letters, all signed
and dated Oct. 7, said Tama
rack Resort "has jeopardizec
the viability and sustainabili
tyof the (Tamarack Municipa:
Association's) operations."
In addition to owing Credit
Suisse the construction loan
Tamarack Resort also owe:
$600,000 in dues to the associa
tion, the letters said.
Each quarter the resort i,,
assessed an additional $250,00(
in dues to the association t(
pay for maintaining roads ant:
Public areas at the develop
ment southwest of Donnelly.
"The (owners') inability t(
pay its dues to the municipa
association is a glaring in
dication of its compromise(
financial condition, as wel
as its inability to fund item;
which are so basic to maintain
ing the value of the underlying
assets," the letter said.
E0
Boespflug, partner Miguel
can still look for a buyer
Last week's order by a state judge
effectively replaced the management
team at Tamarack Resort headed by
CEO Jean - Pierre Boespflug.
"He's not responsible for the day
to day operations of the resort,"
Tamarack spokesman Ken Rider said
of Boespflug. "His official role will be
putting ateam togetherto court buyers
for the resort."
Boespflug and
his partner, Mexi-
can businessman
Alfredo Miguel, still
have majority inter-
est in the resort
and were granted
�. the exclusive right
to sell the resort
until the middle of
December.
Boespflug will be
allowed to keep an
Alfredo Miguel office at the resort
under the order
by Fourth District Judge Patrick
Owen.
Boespflug will also be allowed
to consult the new managers of the
resort and review the budgets, Rider
said.
On Friday, Owen appointed the
Douglas Wilson Co. of San Diego as a
receiver for the financially strapped
resort located southwest of Donnelly.
See BOESPFLUG, Page A -2
Boespflug
(Continued from Page A -1)
Boespflug informed Tama-
rack homeowners that he
would no longer be in control
of resort operations in a letter
on Sunday.
As of Monday, my tenure
as manager of Tamarack op-
erations will stop and revert
to a gentleman by the name
of John Waters and the staff
of Douglas Wilson, receiver,"
Boespflug said.
"I will continue efforts to sell
Tamarack on an exclusive basis
for some time and be present on
site in a consultative role for
other matters," he said.
60 Days to Sell
Boespflug and Miguel were
given 60 days to sell the resort
exclusively.
Boespflug owns 50.6 percent
of Tamarack, including a 32
percent stake through his com-
pany Cross Atlantic Real Estate
LLC. Miguel owns 26 percent of
the resort through his holding
company, VPG Investments.
If the resort is not sold by
Boespflug and Miguel by mid -
December, then Credit Suisse
also will be allowed to market
the resort, Rider said.
Credit Suisse Bank suc-
cessfully fought attempts by
Boespflug and Miguel to protect
the resort through bankruptcy.
Tamarack owes the bank $273
million on a construction
loan.
The Wilson firm will report
to the court and not be an agent
of either Tamarack or Credit
Suisse, the court order said.
The main job of the Wilson
6,L n
firm is to "do all things neces-
sary to protect, maintain and
operate all businesses and
enterprises conducted upon the
property," the order said.
hi order to do that, Wilson
company has received ap-
proval of a $10 million loan
from Credit Suisse to winterize
the construction of Village
Plaza and to open the resort
for the winter ski season in
December.
The receiver will operate
and manage the property and
take possession of all accounts
and receivables at the resort,
court documents said.
• . The Wilson company was
also ordered to pay off current
liens on the property that were
filed before Credit Suisse's
lawsuit in March.
Tamarack has more than
70 liens filed against it by
construction contractors that
are valued at more than $22
million.
New Tamarack ope
confident ski area
BY MICHAEL WELLS
The Star-News
Tamarack Resort opera-
tions will be open for skiing
this winter, and visitors should
not notice the financial turmoil
surrounding it, the resort's
new court - appointed boss said
Monday
Plans are to open the resort
for skiing on Dec. 12, but that
will depend upon the weather
and a $10 million loan from
Credit Suisse Bank, Wilson
said.
"We are here to preserve
the collateral and enhance
the value," Wilson said in an
"We intend to have the ser- Crossroads interview at the resort's opera -
vice level be adequate so you tions office
have the same snow experience
as last year" said Douglas Wilson, whose
Douglas Wilson Co. of San Diego was
named Oct. 17 to take over the financially
strapped resort southwest of Donnelly.
Tamarack
(Continued from Page A -1)
Tamarack owes Credit Su-
isse $273 million in principal
and interest from a construc-
The loan would fund a
three -month operations budget that was
submitted last week to Fourth District
Judge Patrick Owen in Boise.
See TAMARACK, Page A -2
Village Plaza, where construc-
tion stalled last year, and to
open the resort for skiing this
winter, Wilson said.
Winterization A Priority
Between 20. to. 40 percent
of the loan would be spent
tion loan. on winterization projects to
The $10 million would be preserve the Village Plaza
used to winterize the resort's construction, Wilson said.
Schedule of salaries to be
paid to Tamarack operator
Douglas Wilson Co., the interim opera-
tor of Tamarack Resort, will employ a new
management team on a fee schedule ap-
proved by the court.
The hourly fees are the only fees Doug-
las Wilson Co. receives for taking over the
resort operations.
The court approved salaries are:
$415 per hour for the chief executive
officer.
$385 per hour. for the president.
$375 per hour for the chief operating
officer.
$350 per hour for the managing director.
$300 per hour for the controller.
$250 per hour for the associate director.
$200 per hour for the project coordinator.
$175 per hour for an accountant.
$105 per hour for clerical work while the
resort is in receivership.
open
Golf course winterization
work would also be paid for
through the loan funds.
Other moneyfrom the loan
would be used to pay for resort
operations and hire enough
employees to open and operate
the ski hill by mid - December,
Wilson said.
The balance of the money
would be used to make future
payments to the Tamarack
Municipal Association, the
association of homeowners
that provides snowplowing,
security and other services.
Tamarack Resort owes the
association, $600,000 that will
not be paid by the $10 million
loan, but the money will be
used to pay future billings
which amount to $250,000
every three months.
Owen will determine when
Wilson will step down as the
interim resort manager.
Wilson will operate the
resort until Tamarack own-
ers Jean - Pierre Boespflug
and Alfredo Miguel or Credit
Suisse Bank sells the resort,
or the bank forecloses on the
property, Wilson said.
A transition period for
the operation of the resort to
new owners from the Douglas
Wilson Co. would happen after
a sale, he said.
"We could be here a month
or it could be a year," Wilson
said. "We are not here to rein-
vent the wheel."
The Douglas Wilson team
has been at the resort since
last week. Since taking over
the operations 30 laid -off
Tamarack employees have
been put back to work.
As many as 250 resort em-
ployees could be back on the
job when the resort opens for
the ski season, but the number
of returning employees was
not known on Monday.
Met with Boespflug
Wilson has met with Boesp-
flug on several occasions
to discuss the resort opera-
tions.
"It's been fine, he under-
stands the reality of what
our involvement is," Wilson
said. "They still own this; they
are just not in operational
control.
It is always a difficult situa-
tion when discussing projects
ordered into receivership with
the owners, Wilson said.
"They have had, a lot of
time, money, vision and vested
interest in these projects and
that's painful," Wilson said.
"I'm empathetic about
that," he said. "We don't go
in and act cavalier or mean
spirited; we don't have that
agenda. We don't need to; it's
not our issue."
The Wilson company is not
a party to the dispute between
Tamarack and Credit Suisse.
"I don't have a dog in this
fight," Wilson said. "I'm not a
party to the dispute."
_1V
/a '
—Fourth District Judge Patrick Owen
Tamarack o perator threatens to quit
Douglas Wilson Cos. says
Credit Suisse is not providing
enough money
BY MICHAEL WELLS
The Star -News
Tamarack's court appointedreceiver is
considering withdrawing from the resort
if funding problems are not worked out
with Credit Suisse Bank.
Representatives from the resort, re-
ceiver Douglas Wilson Cos., and Credit
Suisse were in Fourth District Judge Pat-
rick Owen's courtroom inBoiseMondayto
have a budget for the resort in foreclosure
approved for May.
Credit Suisse approved an additional
$462,000 loan to run the closed resort
through May, but an attorney for the
Wilson firm said the money will only last
to May 15.
After May 15 are options are ... to not
pay the lift lease or withdraw," attorney
Douglas Pahl said in court Monday.
"We have alender group (Credit Suisse)
that is not willing to fund the receiver go-
ing forward," Pahl said.
If the Douglas Wilson Cos. pays the
outstanding $314,000 for a ski lift lease
with Bank of America, the $462,000 will
not last at the resort through the middle
of the month, Pahl said.
If the leases are not paid, Bank of
America couldbegintheprocessto remove
the lifts from the mountain, which would
place the resort in default of its state land
lease that requires it operate a ski hill.
If the lease is not paid, then the loan
would be sufficient to operate the closed
resort that still has 15 employees on e
payroll.
Credit Suisse contends that the receiver
is paying too much for attorney fees.
"The money is there, we believe, to get
through to the end of the month," Credit
Suisse Attorney Liz Walker said. "The
receiver is just over budget on receiver
fees."
The possibility of Douglas Wilson
withdrawing as the resort operator was
news to Owen.
"This is an entirely unacceptable
state of affairs," Owen said. "I don't have
enough information to come to some rul-
ing on these budget matters today."
The parties were orderedback in court
today to see if a budget could be approved
for May by the court.
See TAMARACK, Page A -8
Tamarack operator
threatens to quit
(Continued from Page A -1)
The budget allocated about
$956,000 in cash for May with
about $80,000 for payroll ex-
penses to 15 employees still
working at the resort. The
largest expenditure would be
to bring the Bank of America
ski lift lease up to date.
The budget would also
maintain the Osprey Mead-
ows Golf Course in exchange
for not bringing that lease up
to date.
Credit Suisse and Tama-
rack officials have come to a
tentative agreement on court -
ordered mediation.
The two parties could meet
as early as May 11 to see if they
can resolve their differences
through Charles Bakaley, a
Los Angeles based mediator.
Owen also wanted a bank
approved budget for June
through the end of the year
to be ironed out by a May 14
hearing.
Last week, Douglas Wilson
and Tamarack filed a budget of
$20.2 million that would oper
ate the resort through April
14, 2010. Credit Suisse has not
taken a position on thebudget,
which would reopen the resort
as early as July.
Tamarack Resort says it needs
$20.2 million to re -open,
operate for next 12 months.
BY MICHAEL WELLS
The Star-News
Tamarack Resort's court- appointed receiver has
proposed a $20.2 million budget that would operate the
resort from May 15 through April 14, 2010.
The budget, if approved by Credit Suisse or another
lending group, would reopen the resort mired in fore-
closure proceedings in state court.
The resort closed on March 4 due to lack of funding
from Credit Suisse, which seeks to foreclose on the
resort for failure to make payments on a $250 million
construction loan.
See FINANCES, Page A -8
Tamarack chairman
tells employees: 3
I love you guys.
(Note: Following are excerpts from remarks
given to Tamarack Resort employees on Sun-
day night by resort chairman Alfredo Miguel.
The comments were made at the Seven Devils
Pub to a room filled with employees, spouses,
children and resort homeowners.)
"I've invited you all here this evening on short
notice frankly due to the unexpected timing of
the situation regarding the closing of the resort,
and because for a very simple reason I think it's
extremely important during these difficult days
for us to all gather, and for me to let you know
how greatly I appreciate and value each and every
one of you.
"I knew from the moment of arriving I'd found
the place to realize my dream. So I went ahead,
restructured what existed at the time, and slowly
but surely the Tamarack of today that we all know
and love began to take shape.
"Even though I was captivated by the area, the
fact is, what really got my attention was the people.
And when I say people, as I look around this room
tonight I'm speaking of many of you who are here
now, those of you who were here from the very
beginning, and also to those of you who came
aboard over time because you too recognized the
magic and potential of what could be.
"So many great things have been achieved on
this journey we've all shared, and this has been
possible with your help, your support, with your
commitment, and your efforts, and this has hap-
pened in spite of certain decisions that were made
along the way that may have sent this wonderful
resort off track.
See REMARKS, Page A -10
SINS.
Remarks: Tamarack CEO
bids employees farewell
(Continued from Page A -1)
getaway, and hundreds of
"The reality is, this is par
million dollars have been
for the course with the build-
invested in the process.
ing of anything from the
"Yet over and above the
ground up, and certainly has
obvious, more than anything,
been the case here.
what we have created is the
"Now we find ourselves in
intangible, the most difficult
a different place, one where
thing of all to achieve, and
the end of a certain difficult
that is a true sense of com-
chapter in the colorful life of
munity and camaraderie.
Tamarack has been written.
"This is more than a credit
But honestly I must share
to all of you. You should feel
with you, and many of you
already know this. I have
enormously proud, and I'm
serious when I say you should
been making every possible
also feel a true sense of ac-
effort to steer the resort back
complishment.
on course, and unfortunately
"You need to know that
these recent events that have
every visitor, guest, hom-
happened have been out of
eowner, in fact, anyone who
my control.
"I
has come here has always,
will say this to you
without exaggeration, been so
though. I want you to know I
incredibly impressed by your
will continue to look for asolu-
attitude. I mean it when I say
tion. A solution that is in the
your praises have been sung
best interests of Tamarack,
and the community, because
far and wide. You have enor-
that consideration supersedes
mous gifts, and you must take
them and use them wherever
all others, and all individuals,
you are, and whatever you do
and if that solution doesn't
going forward.
come directly from me I will
"Whenthenext,moreposi-
do everything in my power
tive chapter of Tamarack is
to support who and whatever
ready to be written, and we
would be the right answer, the
can bring the best of the past
rightresolutionforTamarack
forward, and leave the rest
moving forward.
"This
behind, I truly hope many of
brings me to some-
you will be able to be here to be
thing else I must say to you.
part of it, and in the meantime
Look what's here. Look what's
from the bottom of my heart I
been created. With this as our
want to thank you, and wish
foundation a community
you and yourfamilies the very,
of homeowners has grown
very best in every sense. I love
over time with people being
you guys.
inspired to build their dream
"Let me now raise a toast
home, a place for the ultimate
in your honor."
Tamarack Resort shuts down
200 employees laid off
BY MICHAEL WELLS
The Star -News
Tamarack Resort shut down on
Wednesday, and more than 200 em-
ployees lost their j obs after the resort
could not keep financially afloat.
Shut down were the ski area,
the Lodge at Osprey Meadows
and all the restaurants, Tamarack
Director of Marketing, Sales and
Lodging Ken Rider said.
Functions that will continue to
operate include facilities mainte-
nance, human resources, finance
and accounting, and information
technologies, said Rider, who also
was laid off.
Losses from operating the ski
area were higher than expected
by the court - appointed receiver
that has been running the resort
since October.
The Douglas Wilson Companies
of San Diego has been running the
resort using money from Credit
Suisse Bank, which is owed more
than $275 million from a construc-
tion loan to Tamarack's owners.
Douglas Wilson, chairman and
CEO of the receiver company, told
The Associated Press this week
that losses had mounted to more
than $2.8 million since October.
The losses were due to the
poorly performing vacation home
market, tight credit, 38
percent fewer skiers
than last year and a
67 percent decline in
hotel room revenue,
Wilson said.
Credit Suisse gave
Wilson $10 million to
winterize the uncom-
pleted Village Plaza
and to operate the ski
hill this winter.
Losses were higher -
than expected in the interim, and
Credit Suisse only offered to lend
an additional $1.7 million to keep
the ski operations open, according
to reports.
"The receiver has been talking
to the parties and other outside
sources to obtain addit ional financ-
ingto continue resort operations,"
Rider said.
Essentialoperations
at the resort will con-
tinue, including paying
taxes and insurance,
plus environmental,
safety and mainte-
nance, Rider said.
The resort has paid
its annual lease fee of
$250,000 for the state
land on which the ski
area is located, the AP
reported this week.
The resort's next payment on
the state lease is due in January
2010.
The closure is the most severe
development since Tamarack's
principal owners, Jean - Pierre
BoespflugandAlfredoMiguel, filed
for bankruptcy in February 2008.
The filings came after a con -
struction loan deal with the
French bank Societe Generale fell
through.
Credit Suisse Bank successfully
fought attempts by Boespflug
and Miguel to protect the resort
through bankruptcy in federal
court.
Boespflug and Miguel were
given 60 days to sell the resort ex-
clusively in October. That deadline
passed in mid - December without
a buyer for the resort.
Since then Credit Suisse also
has been seeking abuyer, butthere
have been no takers during the in-
ternational economic recession.
Boespflug owns 50.6 percent of
Tamarack, and Miguel owns 26
percent of the resort.
Resort homeowners
saddened by closure,
stay optimistic.
BY MICHAEL WELLS
The Star -News
Sadness, anger and
-hope represent the feel-
ings of homeowners at
Tamarack Resort, which
closed last week amidst
financial difficulties.
"First, there is sad-
ness for the other people
who made this a com-
munity, the 220 people
who worked here, who
left something else to
come here on a vision,"
Tamarack Municipal
Association Treasurer
Doug Dvorak said.
"There is sadness for
the resort closing and
anger for some home-
owners because it didn't
work out," Dvorak said.
The Tamarack
Municipal Association
provides snow plow-
ing for the roads in the
resort, security, main -
tenance, housekeeping
and building engineer-
ing for about 240 private
properties at the resort.
See OWNERS, Page
A -12
Doug Dvorak
Joe McCann
3/:�, o,�
s Aaw-j
Owners: saddened by closure, homeowners stay optimistic
(Continued from Page A -1)
The atimber includes 164
chalets, 35 estate homes, 27
privately owned units at The
Lodge at Osprey Meadows and
15 condos in the lodge owned
by the resort.
Hope for the future also
resonates with Dvorak and
Joe McCann, a member of
the TMA board who stays at
his Tamarack home about 70
percent of the year.
"We are here for the long
haul," McCann said. "This
was a lifestyle choice," he said.
"There is nothing like going
down to Vigilantes and having
a beer or going down to Don-
nelly and having a muffin. You
can't put a price on that."
McCann came to Tamarack
from Portland where he owns
commercial buildings. He
spends most of his time skiing
or fishing while at Tamarack.
He bought a cottage initially,
but then decided to build a
home.
"I have no regrets," Mc-
Cann said. "We love it up
here."
Hope for •Dvorak rests
in Tamarack Resort being
"unique, beautiful and well
done."
"Wealthy people are wait-
ing to pick this place up,"
said Dvorak, who works as
a motivational speaker in
Chicago.
"We have a group of hom-
eowners who have a desire to
commit several millions of
dollars to keep the resort open
and to keep people employed,"
he said.
Homeowners are hoping to
strike deals to keep open some
of the amenities at Tamarack,
Dvorak said.
He would like to see the
golf course, Nordic center,
gym and restaurant opened
through deals he believes the
homeowners can work out
with the .companies that are
operating the resort under
court supervision. -
In the meantime; the asso-
ciation will continue to plow
the roads in the resort.
Security,, housekeeping,
maintenance and building
engineering are still pro-
vided by the TMA and -its 16
employees.
Members still have access
to the health club in the Lodge
at Osprey Meadows, Dvorak
said.
• An 11- member board of
directors oversees the opera-
tions of the association.
The resort closed March
4, after which a winter snow-
storm poured salt into the
wound of Tamarack skiers.
"We're looking at primo
skiing, and it's the first day
they've shutdown," McCann
said.
There is some anger to-
wards citizens in McCall and
Donnelly who "bashed" Tama-
rack, Dvorak said.
"Did we make some mis-
takes, absolutely," Dvorak
said. "But we have a nice
product up here."
While the resort is shut
down, Dvorak And McCann
will lookfor other ways to have
fun. Snowshoeing and skiing
at other venues in the area will
help them pass the time.
"(Closing down is) a huge project, Whenever a buyer is found, they should be able to
take our closing plans and reverse them to get everything running again."
-KEN RIDER, TAMARACK SPOKESMAN
Tamarack.* After the Fall
Above, Tamarack Resort employees, many of them noting their last day at work, pose for a group photo on the resort's last day of opera-
tion last week. Below top, resort CEO Jean- Pierre Boespflug greets Milissa Altmann of McCall and son Myles. At bottom, a sign of hope.
Final employees put
resort into mothballs
BY MICHAEL WELLS
The Star -News
As Tamarack Resort shut down its op-
erations last week, a new massive job was
placed on the backs of the 50 remaining
resort employees.
For every property Tamarack Resort
LLC owns, a final cleaning and wrapping
has to be done, Director of Resort Sales
and Marketing Ken Rider said.
All lodging properties, including The
Lodge at Osprey Meadows, cottages and all
base mountain facilities have to be put in
"hibernation mode," Rider said.
The employees,that remain are inven-
torying, labeling, and storing everything
at the resort in the proper location for the
next owner, he said.
Some buildings will be winterized,
while others will house the caretaking
staff that will still be around to do house-
keeping for homeowners.
Electricity, water and gas will be left
on at the resort, Rider said.
All perishable food items from the
restaurants will either be given back
to vendors, used in the last few days, or
given to staff.
It's ahuge project," Rider said. "When-
ever a buyer is found, they should be able
to take our closing plans and reverse them
to get everything running again."
On April 1, the staff will be cut from 50
to 20, he said. The remaining 20 employees
will remain indefinitely, Rider said.
Tamarack Resort's court - appointed
receiver Douglas Wilson Co., of San Diego,
decided to close the resort last week due to
poor financial results from this ski season.
See TAMARACK, Page A -12
Tamarack
(Continued fromm Page
A -1)
Tamarack Resort was
placed under the manage-
ment of the receiver by
Fourth District Judge Pat-
rick Owen in October.
The resort's financial
woes began in December
2007. when the resort failed
to make a $5 million interest
payment on a $250 million
loan from the Swiss bank
Credit Suisse.
While seeking another
loan from a French bank
Societe Generale, a $7 billion
trading scandal thwarted a
deal that could have gotten
the resort back on track in
January 2008.
In February 2008, prin-
cipal owners Jean- Pierre
Boespflug and Alfredo
Miguel Afif filed for bank-
ruptcy protection in federal
court in Boise.
Credit Suisse successfully
fought the bankruptcy case
and succeeded in having a
state court appoint a receiver
to manage the day -to -day op-
erations at the resort.
5/7/09
Star-News
Credit Suisse
loses place
in lien line
Judge rules Tamarack contractor will
get any payback money before bank
BY MICHAEL WELLS
The Star -News
The general contractor
hired to build Village Plaza at
Tamarack Resort will receive
the $7.2 million it is owed by
the resort before Credit Su-
isse can begin collecting on
$262 million it is owed if the
resort is sold, a state judge
has ruled.
The May ruling by Fourth
District Judge Patrick Owen
means Banner /Sabey of Se-
attle is first in line to receive
its money if the resort is
sold or has a sudden influx
of ah
Owen agreed with Ban-
ner /Sabey that it deserved to
be paid before Credit Suisse
because it signed its contract
with Tamarack 21 days before
Credit Suisse signed its loan
agreement with the resort.
Banner /Sabey was hired
by Tamarack Resort on April
28, 2006 in a contract to con-
struct Village Plaza for $91
million.
Tamarack Resort received
a $250millionloanfrom Credit
Suisse Bank on May 19, 2006
Banner /Sabey filed a lien
against the resort for $7.2 mil -
lion in the winter of 2008 when
Tamarack failed to pay the
contractor for work. Credit
Suisse began its court actions against Tamarack about
a month later.
Credit Suisse attorney Jed Manwaring of Boise
argued that a lien waiver in the credit contract was
exercised by Banner /Sabey. That
argument fell short
in Owen's opinion.
See TAMARACK, Page A -8
Credit Suisse loses place
(Continued from Page A -1)
"Banner /Sabey did not
waive, alter or subordinate
the priority date of Banner/
Sabey's lien for subsequent
work on the Village Plaza
Condominium project," Owen
said.
"The provisions quoted
by Credit Suisse support its
argument that Tamarack, its
subsidiaries and Credit Suisse
intended Credit Suisse to have
a priority senior to other lien
claimants," the ruling said.
"However, there is no ev-
idence that either Credit
Suisse, Tamarack, or Village
Plaza Construction secured
any agreement from Banner/
Sabeyto subordinate theprion
ity of Banner / Sabey's lien to
the Credit Suisse mortgage,"
Owen said.
The rulingsaidcreditagree-
ment was not a construction
loan between the contractor
and the bank.
in lien line
"It is an agreement between
Credit Suisse and Tamarack,"
Owen said.
The ruling could mean
more contractors who filed
liens against the resort may
be placedbefore Credit Suisse,
and possibly Banner /Sabey,
based on when they began
work atthe resort, said Nampa
attorney Bill Nichols, who
represents Banner /Sabey.
"The court has to sort out
the priorities of all the lien
claimants," said Nichols, who
is also the contract attorney
for the city of McCall.
"Who will get the first
chunk has not been deter-
mined."
Several subcontractors
holding liens against the
resort are covered under the
Banner /Sabey lien, Nichols
said.
Credit Suisse attorneys did
not respond to a request for an
interview.
�>
,,M//J ,
judge OKs Tamarac
maintenance budget
Receiver Douglas Wilson files budget
to reopen resort by July; hearings loom
BY MICHAEL WELLS
The Star -News
A budget to operate Tamarack Resort through the
end of the month was approved by a state judge last
week in Boise after the resort's receiver and bank
signed off on it.
Attorneys for Tamarack's court - appointed re-
ceiver, Douglas Wilson Cos. of San Diego, earlier in
the week said the budget, approved by Credit Suisse
Bank, would not last beyond May 15.
Both parties were back in Fourth District Court in
Boise last Thursday morning asking Judge Patrick
Owen to approve the budget.
Douglas Wilson had maintained a $314,000 Bank
of America ski lift lease payment would have to be
missed if the $462,000 Credit Suisse loan was to get
the resort through May.
However, Douglas Wilson now believes the resort,
which closed on March 4, can skip a $400,000 insurance
premium ratherthan miss a payment on a ski lift lease,
said Wilson attorney Douglas Pahl of Portland.
See BUDGET, Page A -8
Budget
(Continued from Page A -1)
An insurance adjuster will
visit the closed resort this week
to determine if the resort needs
to make the paymentto keepthe
insurance, Pahl said.
The budget allocated about
$956,000 in cash for May with
about $80,000 for payroll ex-
penses to 15 employees still
working at the resort. The bud-
get would also pay employees to
maintain the Osprey Meadows
Golf Course in exchange fornot
bringing the lease on the golf
course up to date.
At the previous hearing
before Owen on April 27, a
spokesman for Douglas Wilson
suggested the company would
ask to be relieved of its duties
due to insufficient funding.
By last Thursday's hearing,
however, the Wilson companies
renewed their commitment to
the project.
"The receiver is absolutely
committed to fulfilling his
responsibilities to this court
and to this project and will
continue to do so," attorney
Eric Bjorkman of Boise said
in court Thursday.
Court - ordered mediation
between Tamarack Resort's
principal owners Jean - Pierre
Boespflug and Alfredo Miguel
Afif and Credit Suisse Bank be-
gins Monday with Los Angeles
IqI6 g
mediator Charles Bakaley.
The two were ordered into
mediation by Owen to lessen the
amount of problems the court
will have to sort through during
the foreclosure process. A long
list of liens will be taken up by
the court after the mediation.
Up next for Tamarack will
be a May 14 hearing for Owen
to hear budgets for the resort
starting June 1.
Owen has askedfor alonger-
term budget for the resort that
at least preserves the resort's
buildings and infrastructure
and keeps lease payments up
to date through the end of the
year.
On April 23, Douglas Wilson
attorneys filed a budget that
would not only preserve the
resort's assets through next
April, but would also reopen the
resort beginning July 1.
Potential buyers visited the
resort on April 29, said Tama-
rack co -owner J.P. Boespflug,
who would not reveal the names
of the firms.
An operational specialist for
an unnamed large real estate
investment house visited with
laid off Tamarack employees
and Boespflug to take an in-
depth look at the resort to report
to potential investors, he said.
The budget that could reopen
the resort was also investigated,
Boespflug said.
"It was a validation of the
budget we worked on with the
receiver," he said.
sir
It was like putting candy V
in front of a 4- year -old. It
looked like a dream:' ry,.
— Tamarack Resort CEO J.P.
Boespflug
Credit Suisse offered
Tamarack easy money
(Note: Thefollowingoriginal -
ly appeared on the Bloomberg
business wire service on March
5, 2009. What follows are ex-
cerpts)
BY ANTHONY EFFINGER
and DANIEL TAUB
Boombergxom
ToJean- PierreBoespflug, French-
born developer of a ski resort in the
Idaho outback, the $250 million loan
from Credit Suisse Group AG was
too good to pass up
Dealmakers from the Swiss
bank's Los Angeles office arrived
to pitch Boespflug on the un-
orthodox loan in 2006, just when
his Tamarack Resort was lining
up financing for its base village
beneath newly cut ski trails.
Unlike regular construction
loans, which dole out enough
money to complete one project
at a time, this one would let him
build several clusters of homes
and condominiums at the resort
simultaneously.
The loan would cover just a
portion of the development cost.
The idea was that proceeds from
selling units in one building would
be used to finish the next, and so on.
As long as the homes and condos
sold, Boespflug would be fine.
"It was like putting candy in
front of a 4- year -old," Boespflug,
54, says. "It looked like a dream."
Boespflug signed the docu-
ments in May 2006. Credit Suisse
collected its fee and sold the loan
to a syndicate of investors it had
lined up.
Then the real estate market
went south, and sales at Tamarack
slowed. In December 2007, just 19
months after taking the Credit
Suisse loan, Boespflug missed a
$5 million payment.
Tamarack is one of at least
eight high -end projects in the U.S.
West, Florida and the Caribbean
financed by Zurich -based Credit
Suisse that are either in default
or in bankruptcy.
Failures reverberated
Those failures reverberate
in the financial system because
Credit Suisse sold loans to inves-
tors who, in turn, put them into
mutual funds or packaged them
into securities called collateral-
ized -loan obligations.
See BANK, Page A-6
Bank: Credit Suisse offered Tamarack easy money
C
Coll
tion
out
mor
ties that are divided into
tranches, each of which has
a different credit rating and
interest rate.
Both CDOs and CLOs paid
interest that often exceeded
that of conventional bonds.
Both were popular when real
estate was hot, and both are
hurting now as the loans
inside them go bad.
Many banks matched bor-
rowers with eager investors
during the real estate boom.
Credit Suisse, Switzerland's
second- largest bank, was
unusual in that it made big
loans - $250 million to $675
million each - and because
it almost cornered the mar-
ket on syndicated loans to
posh developments such
as Tamarack, says Joseph
Snider, senior credit officer
at Moody's Investors Service,
which rated the projects for
a fee so that Credit Suisse
could sell the debt.
Many of the loans, which
earned the bank millions of
dollars in fees, were made
out of Credit Suisse's Los
Angeles office and were then
sold to investors by a group
of Credit Suisse bankers in
New York.
The Swiss bank has had
extensive operations in the
U.S. ever since it acquired a
majority stake in New York -
based investment bank First
Boston in 1990. It thenbought
investment bank Donaldson
Lufkin & Jenrette Inc. for
$13.4 billion in 2000.
In February, Credit Suisse
reported a record loss for 2008
of 8.2 billion Swiss francs ($7
billion), in part because of
its exposure to toxic U.S. real
estate - related debt.
In its quest to loan money
to the ski- and golf - resort
operators, the bank was un-
usually aggressive.
"Usually, bankers don't
come to you; you go to them,"
says Boespflug, a former
executive at computer net-
working company Cisco
(Continued from Page Systems Inc. who taught
A -1) skiing at Lake Tahoe on
LOs are similar to the weekends when he worked
ateralized -debt obliga- at technology companies in
s that banks crafted the San Francisco Bay Area.
A subprime residential "They came to us with a very
tgages: bundled securi- fancy PowerPoint presenta-
tion."
Luxury loans
The list of Credit Suisse
loan clients is synonymous
with luxury: $375 million
went to the Yellowstone Club,
a private ski and golf resort
in Montana; $540 million
to Lake Las Vegas resort,
a 3,592 -acre (1,454- hectare)
golf community in Nevada;
$275 million to Promontory, a
high -end ski enclave in Utah;
$400 million to Turtle Bay
Resort, a beach development
in Hawaii; and $675 million to
Ginn Resorts in Celebration,
Florida.
Some of the developments
were in remote locations and
thus were likely to attract
only the most adventurous
condo buyers. Tamarack is
100 miles north of Boise, up
a two -lane road, and has no
commercial air service.
Even so, Credit Suisse had
no trouble finding buyers
for the loans. The Tamarack
loans were fully subscribed,
meaning that Credit Suisse
found investors for all of
the debt.
Boespflug says the lead
banker when he took his
Tamarack loan was Arik
Prawer, who is now a Credit
Suisse managing director.
"These were young techno-
crats," Boespflug says. "The
bosses were not there. They
were not at the table."
Prawer didn't return
phone calls and a -mails seek-
ing comment. Credit Suisse
spokesman Duncan King
says Prawer and others who
worked on the loans decline
to comment.
Boespflug says Prawer
and his colleagues solved a
persistent problem in the
development business: hav-
ing to start the borrowing
process all over each time
you want to erect another
building.
The hitch in the Credit
Suisse loan was that it didn't
include enough money to
finish the entire project,
forcing the borrower to pay
for much of the develop-
ment with proceeds from
unit sales, Boespflug says. If
sales slowed, which seemed
a remote possibility in 2006,
Tamarack wouldn't have the
money it needed to finish the
buildings.
Created a Monster
The other hitch was that
because of the revolving
feature of the loans, they
required a huge pile of
difficult -to- comprehend
spreadsheets and terms.
"They had the best of
intentions, but they created
a monster," Boespflug says.
"Nobody could see the con -
sequences of atwo- foot -thick
pile of documents."
Today, the consequences
are clear: Tamarack closed
for business. A receiver
took over after Boespflug
and his co- owner, a Mexican
industrialist named Alfredo
Miguel Afif, defaulted. Six
buildings in the base village
remain incomplete, as are a
cluster of townhomes. They
now stand sealed from the
wind and snow
Nothing Sinister
One buyer of the Yellow-
stone Club debt who spoke
on condition that he not be
named says there's nothing
sinister about the Credit
Suisse deals. The whole real
estate market is in trouble, he
says, and fledgling develop-
ments like Tamarack need
constant real estate sales
because they don't gener-
ate enough cash to survive
without them.
"It has nothing to do
with there being something
flawed about Tamarack or
something wrong with the
Yellowstone Club," the buyer
says. "Everything was over-
heated. There was too much
debt on everything."
Boespflug says all he
wanted to do was build his
resort, quickly. Credit Suisse
obliged.
Boespflug blames himself
for the fiasco. "I could have
said no to the loan," he says.
"It looked so good, though."
Boespflug: Deal
maybe near on
Tamarack buyer
Land board presses for details
on the potential new owner
BY TERESA SHIPLEY
For The Star -News
Tamarack Resort may have a buyer, principal owner
Jean - Pierre Boespflug told the Idaho Land Board in
Boise on Tuesday.
Boespflug notified the board that it could be contacted
by the interested party within the next 60 days, though
he declined to name the potential buyer, citing a confi-
dentiality agreement.
He urged the board to be ready to expedite the buyer's
requests for data or other information that would aid
in the sale.
"Me and my partner, we are wiped out," Boespflug
said. "We want to seethe community survive, to see some
kind of legacy for Idaho."
The resort leases a large chunk of state land for
$250,000 a year and the next payment is due in January
2010. Boespflug said he hopes the resort will be enjoying
a revival by then.
"This process is still reversible," he told the board.
"Dismantlement has not occurred. We are essentially in
the last 45 to 60 days where something can be done. The
solution is to find a buyer with the expertise and the cash
to be able to deal with a property like this."
Tamarack Resort opened in 2004 and drastically raised
Valley County's employment between 2003 and 2007.
However, the resort began sliding towards financial
ruin in 2007 when the owners failed to make loan pay-
ments to Credit Suisse, which is now owed about $275
million. The resort closed March 4 during the middle
of the ski season.
See DEAL, Page A -7
"Me and my partner, we
are wiped out We want to
see the community survive,
to see some kind of
legacy for Idaho."
—.7.P Roesnflue
Deal
(Continued from Page A -1)
Boespflug and his partner,
Alfredo Miguel -Afif, have
been trying to secure a buyer
for the resort even before a
court ordered a receiver to
take over management last
October.
Hopes In Mediation
Boespflug hinted that this
latest promise of a buyer
could be successful thanks
to a court - ordered mediation
that took place last week
between six Credit Suisse
representatives and three
members of the Tamarack
board of directors.
"The ray of hope is that
the landowners and the own-
ers are finally cooperating
with a set of terms," he said.
"The buyers, who have been
hesitating before they com-
mit to a final offer, are finally
showing some interest."
There was a dark side to
Boespflug's sunny outlook,
however.
"The issue is that this of-
fer is going to be pennies on
the dollar," he said, though
he declined to quantify how
few those pennies might be
when pressed by Gov. C. L.
"Butch" Otter.
Boespflug also admitted
that filing for Chapter 11
bankruptcy was not yet out
of the picture.
Otter said he was worried
about the mystery buyer and
about how much money the
state could lose in a renegotia-
tion.
"I think to be fair to the
board and allow us to fulfill
our constitutional responsi-
bility, we need to have some
sense about how much pain
you're talking about," Otter
told Boespflug. "We're go-
ing to have to decide credit
worthiness of this white
knight. ".
Sympathy Expressed
Secretary of State Ben
Ysursaexpressedcondolences
to Boespflug and wished him
luck in the negotiations.
"I know this is a diffi-
cult time for you," he told
Boespflug. "Yourpassionand
dedication on this proj ect have
always been there. Things ob-
viously went sour."
Ysursa noted that although
everyone wanted the project
to succeed, the land board
still has to "protect its in-
terests."
The land board, made up
of the state's five constitu-
tional officers, is obligated
to maximize returns on state
endowment lands for the ben -
efitof Idaho's public learning
institutions and other benefi-
ciaries.
In the end, Boespflug of-
fered hope without specifics.
"I want you to know that
it is coming," he said. "This
is a very high stakes claim.
It's time to work hard, and
it's time to settle things in a
positive direction in the next
45 days."
Credit Suisse h,
cuts off
funding to
Tamarack
Judge considers giving "We are
control back to owners having no
BY MICHAEL WELLS success
The Star -News in finding
Representatives of Credit
Suisse bank told a state judge other
in Boise last Thursday the bank
could not 'continue to fund op- funding
erations at the closed Tamarack
Resort beyond May 31. Sources."
Credit Suisse, which is seek -
ing to foreclose on the financially — Douglas
strapped resort southwest of Wilson
Donnelly, admitted it did not have Attorney
the money to continue loaning Douglas Pahl.
money to the Douglas Wilson
Cos., to operate Tamarack after
this month.
The news made Fourth District Judge Patrick Owen
contemplate dissolving the receivership and placing the'
resort back into the operational control of the resort's
owners.
"In light of no funding, you have to question what
purpose the receiver can accomplish for this service,"
Owen said. "It may be where we are rapidly approaching
dissolving the receivership and the estate going back to
its owner - Tamarack."
Douglas Wilson, of San Diego, is working on a way to
operate the resort without funding beyond June 1, but
Owen did not seem to like the plan.
See TAMARACK, Page A -7
group." Owen said. `And to
fund it $10 million for the
first 90 days."
The initial loan lasted
more than 90 days, and
Credit Suisse added another
$1 million after the initial
$10 million ran out. An ad-
ditional $462,000 was added
to fund operations during
May.
Buyer is Solution
The solution for Tama-
rack Resort remains in the
attraction of a buyer, former
Tamarack CEO Jean - Pierre
Boespflug said.
The main problem in sell-
ing the resort is there is not a
set price to take the troubled
resort out of foreclosure and
into the hands of new inves-
tors, Boespflug said.
"The solution is having a
buyer; all of our thoughts are
with these buyers," Boesp-
flug said. "We need clear
terms from the lender; it's
really hard selling an asset
without a price."
Boespflug reiterated that
formerTamarack employees
should hold on until the end
Tamarack
(Continued from Page A -1)
"Obviously a complex as-
setlike this requires funding,"
Douglas Wilson Attorney
Douglas Pahl said. "We are
having no success in finding
other funding sources."
Another hearing was set
by Owen for May 28 in Boise
to discuss further the funding
of the resort.
Credit Suisse Attorney
Liz Walker said it was not
unwillingness by the bank,
but rather an inability to
continue fundingthe receiver
to operate the resort.
When the receivership
was ordered, Credit Suisse
loaned $10 million to operate
the resort for 90 days.
"The driving force for
the receiver was the lending
of May or the middle of June
to see if Tamarack can "solve
this problem."
Court - ordered mediation
was held all last week between
Credit Suisse and Tamarack
owners in Los Angeles with
mediator Charles Bakaley.
Neither side divulged any
information about the media-
tion other than they felt it had
been productive.
"We are hopefulthey result
in a situation that makes it
easier to close with a buyer,"
Boespflug said.
Cf4''.l Y Li.�T�J
/7" // J
Thifiaracksa s it as serious
Funds sought to maintain
resort during sale talks
BY MICHAEL WELLS
The Star -News
Credit Suisse Bank was given a signed
offer to buy Tamarack Resort from an
undisclosed group of investors on Friday,
Tamarack Resort Attorney Steve Millemann
said in court in Boise.
There are six groups looking at Tama-
rack, and of the six potential buyers, four
were considered serious about the finan-
cially strappedfour- season resort southwest
of Donnelly, Millemann said.
The resort has only had a price available
to investors since last week. Credit Suisse
Bank and Tamarack Resort agreed to a
price during court - ordered mediation in
Los Angeles two weeks ago.
The price or the offer on the table has not
been disclosed.
At a separate hearing on Wednesday,
Credit Suisse agreed to provide funding
to keep the resort's infrastructure in good
repair through June 15.
Without the new commitment, the court -
ordered receiver could have run out of
money by Friday and the property couldhave
begun to deteriorate, Tamarack principal
owner Jean- Pierre Boespflug said.
"We hope we can
create that smooth
transition. if not,
the resort will
deteriorate." -
-J.P. Boespflug
The receiver, Douglas Wilson Cos. of San
Diego, will be allowed to continue to oper-
ate Tamarack Resort under a court- ordered
receivership at least until June 15.
Tamarack
(Coniinued from Page A -1)
Credit,Suisse approved
$11.7 million for the receiver
through April 30 and an-
other $462,000 for May. About ,
$900,000 from the budgets ;
through April and all of the
May budget have not been
spent because the bank has
not released the funds to the
Feceiver, Pahl said.
Credit Suisse has been
releasing funds weekly while
approving more than $12 mil-
lion for the receiver to operate
the resort since October,
That practice has led to
about $1.3 million that has not
been released for the resort.
"We hope that the lender'
Credit Suisse Bank agreed to add another
$75,000 to the $104,000 previously available to
operate the resort for two more weeks.
A new hearing has been set for next
Thursday in Boise for an update on po-
tential buyers of the resort southwest of
Donnelly.
Fourth District Judge Patrick Owen had
been pondering dissolving the receivership
for lack of funding and turning the property
back over to Boespflug and minority owner
Alfredo Miguel Afif.
More funds are available to the receiver,
Douglas Wilson attorney Douglas Pahl ar-
gued at the hearing Friday.
See TAMARACK, Page A -7
Boespflug: Bank is not responding to offers from buyers
BY MICHAEL WELLS
The Star -News
Two offers to buy Tama-
rack Resort are now more
than two weeks old with no
answer from Credit Suisse
Bank, the resort's principal
owner said.
"In the case of two buyers
we've been waiting for more
than two weeks for an answer
from Credit Suisse," principal
owner Jean - Pierre Boespflug
said. "We want an answer, this
is a very frustrating time."
The resort still has three
unnamed buying groups
that are considering buying
the financially troubled re-
sort southwest of Donnelly,
Boespflug said.
Two of those groups have
made an offer, but have also
asked questions that need to
be answered by the bank who
is needed to sign off any sale
of the resort.
"We understand the money
from the lender is not unlim-
ited,"Boespflugsaid. "Weneed
their assistance so negotia-
tions can continue."
Wilson
Boespflug says his focus in
on the buyers as the possibility
of the ski lifts and other leased
equipment being removed
from the resort this summer
by Banc of America.
The operations at the re-
sort may be handed back to
its owners, which troubles
Boespflug.
The property will deterio-
rate if Douglas Wilson Cos.,
the San Diego court- appointed
temporary operator, is re-
leased from its duty to operate
the resort, Boespflug said.
Tamarack's owners do not
have the money to keep the
resort's equipment leases up to
date, nor does it have money to
keep the remaining 15 employ-
ees at the resort, he said.
Currently, the resort's golf
course is being maintained in
playing condition, although
the resort is closed.
The temporary winteriza-
tion of the resort's buildings
was completed by Douglas
Wilson, but long -term winter-
ization is on hold.
The equipment to maintain
the golf course and other op-
erations at the resort is leased.
Without money to pay the
leases, the equipment would
be repossessed.
"The buildings take a bit of
wear and tear each month,"
Boespflug said.
The resort wants about $1.3
million in already approved
temporary operations funds
from Credit Suisse, of which
about $570,000 is in Douglas
Wilson's control, released to
operate the resort further into
the summer to get the best
price for the resort.
If Douglas Wilson leaves
and the money runs out, the
property will fetch a lower
price as time goes on.
"Weneednegotiationtime,"
Boespflug said. `A third buyer
is still on the table and we have
requests by two buyers."
Operator decides to stay a little longer
BY MICHAEL WELLS
The Star -News
Tamarack's court- appoint-
ed temporary operator has
agreed to continue operating
the resort through Monday
without any additional fund-
ing.
Credit Suisse has stopped
funding Tamarack Resort's
Continued form Page A -5
son, Tamarack Attorney
Steve Millemarin said in a
Boise courtroom Tuesday.
There is also $170,000 in
unexpended contingency
funding that resort owners
Jean - Pierre Boespflug and
Alfredo Miguel Afif would like
Fourth District Court Judge
Patrick Owen to make avail-
able while sales negotiations
continue with three potential
buyers.
temporary operator Douglas
Wilson Cos., of San Diego,
due to higher than expected
attorneys' fees.
About $425,000 in addition-
al fees have racked up over the
course of the nine months that
are more than what the bank
approved in several budgets
for the resort, Credit Suisse
"We ask the court to in-
struct the receiver to create a
budget to continue the essen-
tial collateral preservation,"
Millemann said. "Do not end
this over what appears to be
an argument.over attorneys'
fees."
During Tuesday's hear-
ing, Owen awarded $106,000
in attorneys' fees in addi-
tion to $36,000 that was paid
earlier this year, but rejected
$48,000 more in fees that were
requested by Wilson attorney
Douglas Pahl. Norulingonfur-
ther, attorneys' fees was made
at Tuesday's hearing.
Attorney Liz Walker said.
Douglas Wilson Cos., still
has about $470,000 it has not
spent from Credit Suisse loans
and an additional $700,000 in
approved funds from the bank
have not been released by the
bank to extend the operation
of the resort by Douglas Wil
See WILSON, Page A -7
"I can only hope that the
parties can bridge the gap in
the last remaining days of this
receivership," Owen said. "If
that doesn't happen I'll take it
up July 16."
The court has to dissolve
the temporary operator before
the property can be turned
over to Tamarack's owners,
which could happen at a new
hearing set for Tuesday in
Boise.
"We just can't do this any-
more," Pahl said. "We have
been running on the same tank
of gas for some time now"
Star -News Photo by Michael Wells
A golf course maintenance worker mows the grass at Osprey
Meadows Golf Course as the Lodge at Osprey Meadows looms
in the background
Douglas Wilson Cos., wants
to end the temporary opera-
tion of the resort so it can pay
the remaining bills. During
the hearing, Pahl told Owen
that Douglas Wilson wanted
the operation to end today,
but Wilson sent Pahl an e -mail
during the hearing approving
operation through Monday.
Credit Suisse approved
about $12.2 millionfor the tem-
porary operation of the resort
and released more than $11
million to Douglas Wilson.
"Winterization money was
(incurred) on receiverfees and
attorneys' fees," Walker said.
Judge returns
Tamarack to
resort owners
Credit Suisse pulls the plug
on more temporary funding
BY MICHAEL WELLS
The Star -News
A state judge pulled the plug on Tamarack
Resort's temporary operator in court in Boise
on Tuesday.
The operation at the resort reverted to Tam-
arack's principal owners, Jean- Pierre Boespflug
and Alfredo Miguel Afif on Wednesday.
The move led to the layoffs of eight of the 15
remaining employees at the resort.
Tamarack's temporary operator, Douglas
Wilson Cos., of San Diego, was discharged from
its duty by Fourth District Judge Patrick Owen
Tuesday due to a lack of funding from Credit.
Suisse Bank.
The bank promised to loan about $12.2 mil-
lion for the operation of the resort from October
through Monday, but about $700,000 of the prom-
ised loan was not released to the temporary
operator.
See TAMARACK, Page A -7
Tamarack
(Continued from Page A -1)
Douglas Wilson had about
$570,000 remaining in unspent
funds when Owen asked the
company to continue operat-
ingtheresortthroughMonday
at a hearing two weeks ago.
Eight employees were
released at the end of the
day, three employees were
transferred to the Tamarack
Municipal Association, and
four other employees will
workforpouglas Wilson as the
company wraps up its nine-
month operation at the resort,
Boespflug said Tuesday.
Without funding for main-
tenance, the property would
begin to deteriorate and pos-
sibly ensure a lower price if
the resort is purchased, he
said.
The 15 employees had
been maintaining the Osprey
Meadows Golf Course and
the resort's other properties
while Douglas Wilson was i n
control.
Tamarack Resort canno t
spend funds directly to keep
the employees working o
maintenance at the resort
Boespflug said.
"Our money has to go t
Credit Suisse," Boespflug sai
Tuesday. "I am optimistic the
will realize the implication o
Maintaining the resort and a m
hopeful they would provid
some funding."
He hopes Credit Suisse will
release additional funding to
keep the resort maintained
while he negotiates with po-
tential buyers at the resort to
"complete the transaction on
positive terms."
Currently, the resort has
three offers from unnamed
buyers. The pricehas notbeen
disclosed.
Credit Suisse officials have
answered questions posed by
buyers that had concerned
Boespflug last week. Two of-
fers had sat unanswered for
more than two weeks, before
the bank replied.
The bank's reply has re-
started negotiations with
buyers at "full speed," he
said.
"One seems to be a deal
verbally," Boespflug said. "We
are trying to confirm a deal
with that party."
An official announcement
could be made within weeks,
he said.
"Within two weeks time,
I am hopeful of a public
announcement," Boespflug
said.
In' another Boise court-
room, Fourth District Judge
Michael McLaughlin last
week gave the resort more
o time to make a sale by deny -
d ing Banc of America Leasing
y and Capital the right to begin
f dismantling and removing
two leased ski lifts and other
e equipment.
Turlington's experience
cited to operate Tamarack
4
Scott Turlington
A former
Tamarack Senior
Vice President,
Turlington is
being considered
to operate
Tamarack Resort
through August
2010
BY MICHAEL WELLS
The Star -News
A former Tamarack Resort spokesman
and lobbyist has been picked to run the resort
through August if a judge agrees.
A group of Tamarack Resort homeowners,
calling itself the West Mountain Preserva-
tion Management Association wants former
Tamarack Senior Vice President Scott Turl-
ington to operate the resort through August
2010, court documents said. .
Turlington's firm, Principle Strategic
Advisors, is a business and government rela-
tions consulting firm in Boise.
The firm specializes in business develop-
ment, public policy, government contracts,
infrastructure financing, real estate con-
sulting and public relations for local and
national clients.
Turlington declined to comment on his
firm's role until after an Oct. 19 hearing on
the matter in Fourth District Judge Patrick
Owen's courtroom in Boise.
See Turlington, Page A -10
Turlington
(Continued from Page A -1)
Turlington's history with
the project makes him well-
suited to run the resort, the
group's court filing with
Owen said.
Clientsof Turlington'sfirm
include Tamarack Resort,
former Tamarack court -ap-
pointed operator Douglas
Wilson Cos., of San Diego,
local real estate developers
Blackhawk Partners, con-
struction contractor Petra,
Inc., Western Whitewater As-
sociation, AAA Oregon /Idaho
and Fortune 500 company Af-
filiated Computer Services.
Before his work with Tama-
rack Resort and Principle
Strategic Advisors, Turling-
tonwas a seniorpolicy advisor
to Idaho Gov. Dirk Kemp -
thorne and U.S. Sen. Larry
Craig.
He received his under-
graduate degree and master's
degree in public policy and
administration from Idaho
State University.
Turlington's partner in
Principle Strategic Advisors
is David Lehman, a former
senior advisor to former U.S.
Interior Secretary 'Kemp-
TamaracK
homeowners
to
as judge
reopen resort
pledges led es
Mexican b g IWO)
$7.9 million to open
chairlifts for skiing CK'
BY MICHAEL WELLS - - RP*
The Star -News Crossroads
Nine Tamarack homeowners
want to open the chair lifts at the
shuttered Tamarack Resort in time Terms of Mexican
for a ski season.
The group wants a state judge to bank's loan offer
install a former Tamarack spokes- A Mexico -based real
man as the operator at the resort estate investment company
before the snow flies. has put strict conditions on
Ahearing onthe group's petition its proposed $7.9 million loan
that was filed Friday is set for Oct. to reopen Tamarack Resort,
19 in the Ada County Courthouse court documents said.
in Boise. Inmobiliaria Las Fuentes
The group, calledthe WestMoun- S.A. de C.V. set the terms of
tain Preservation Management the loan to the West Mountain
Association, hopes the plan will Preservation Management
be accepted and the ski hill can be Association.
opened by Christmas. The association, com-
The homeowners want Fourth posed of nine homeowners in
District Judge Patrick Owen to in- the resort, wants to convince
stall former Tamarack spokesman a state judge to let them
Scott Turlington as the resort's reopen the resort in time for
operator. ski season this winter.
If a new operator were to be A hearing on their plan is
appointed by Owen, the group has set for Oct. 19.
$7.9 million in funding lined up Terms of the loan in-
with the Mexico -based real estate clude:
investment firm Inmobiliaria Las * Principal and interest the lender on
Fuentes, S.A. de C.V. pug. 31, 2010.
Strings Attached • 17 percent interest plus
The loan offer comes with the current rate that
strings attached, including In- banks charge each other
for loans.
mobiliaria Las Fuentes, S.A. de . A loan initiation fee of 2
C.V. having senior priority over percent.
all other creditors. That includes, . No prepayment fees.
Credit Suisse, which is owed more & Approval of a receiver to
than $300 million in principal and operate the resort.
interest on a 2006 loan to the resort's . A guarantee to place
current owners. Inmobiliaria Las Fuentes
"While at first blush this may S.A. ahead of all existing
seem unfair or inequitable, the lien holders including
homeowners who are intervening Credit Suisse.
in this matter simply point out to . Deed to about 80 acres
the court that there are no lenders of the resort consisting
who would loan money in a resort of platted subdivision
project as risky as this one unless phases.
they were assured of having the . A mortgage covering the
primary collateral position," court remaining land owned by
documents said. Tamarack Resort.
The group's spokesperson is Bill . A lien placing all Tama -
Ciraco, a Tamarack homeowner rack Resort personal
and New York City investment property as collateral to
manager. the loan.
See TAMARACK, Page A -10 . Strict compliance with
approved operating
budget with approval of
any changes.
Tamarack: homeowners
(Continued from Page A -1)
The intent of the action by
the homeowners is to stabilize
the value of their properties at
the resort,'which have declined
by more than 33 percent in the
past year, Ciraco said.
"We've got to get this moving
in the right direction;" Ciraco
said. "It will take a lot of work to
get it open by Christmas."
Homeowners forming the
group include Ciraco, Jan
Lochtenberg, Hans Albert,
Jim Shanahan, Wayne Lewis,
Ron Merriman, Burton Webb,
Leonard de los Prados and
Newton Lesh IL
"In the absence of an operat-
ing resort, my property value
has declined significantly, "Lesh
said in court documents.
"The residential properties
are now considered to be merely
expensive homes in the Idaho
countryside, as opposed to
homes in a functioning resort,"
Lesh's statement said.
Village Plaza A Concern
The preservation of the
resort's unfinished center-
piece, Village Plaza, was also
a concern of the homeowners
and the Tamarack Municipal
Association, which maintains
the roads and other common
areas in the resort.
Idaho Power has threatened
to shut off power meters billed
to Tamarack Resort later this
month, the court filing said.
Shutting down power would
cut off heat to the unfinished
Village Plaza buildings making
them vulnerable tofreezing, th,
group's filing said.
The homeowners also wan
to use their resort member
ships, for which they pai d
$20,000 to $45,000 up front an d
$425 per month.
The membership include d
unlimited golf at the Ospre y
Meadows Golf Course, two an-
nual ski passes, 20 one -day lif t
ticketpasses, and unlimited use
of the exercise room, outdoor
hot tub and swimming pool at
the Lodge at Osprey Meadows.
It also included discounts
ranging from 10 to 50 percent
on the marina, food, clothing,
river trips and ski instruction,
Ciraco said.
Owen appointed San Diego
operator Douglas Wilson Cos.,
at the behest of Credit Suisse
to run Tamarack Resort in Oc-
tober last year. Wilson shut the
resort down on March 4 citing
unexpected operational losses.
Miguel Not Involved
Wilson's operation of the
resort was dissolved by Owen in
July due to an unwillingness by
Credit Suisse to continue fund-
ing the operator beyond June.
The operations of the resort
reverted to principal owners
Jean Pierre Boespflug and Al-
fredo Miguel. Neither could be
reached for a comment on the
homeowners' plan.
Miguel is not affiliated with
Inmobiliaria Las Fuentes, S.A.
de C.V., Ciraco said.
De los Prados is an accoun-
tant for Miguel, but Miguel has
/Qoi
C
ask judge to reopen resort
A recent history of Tamarack
Here is a time line of majo r
events in the recent history o f
Tamarack Resort:
May 2006: Credit Suiss e
loans Tamarack Resort $25
million.
December 2007: Tamarack
Resort fails to make a $5 mil-
lion interest payment to Credit
Suisse.
January 2008: Tamarack
Resort fails to secure a loan from
French bank Societe Generale
due to an unrelated trading
scandal where the bank lost $7
billion.
February 2008: Principal
owners Jean - Pierre Boespflug
and Alfredo Miguel file for
bankruptcy protection for their
holding companies in federal
court.
March 2008: Credit Suisse
begins foreclosure proceedings
claiming the resort owes the
Swiss bank more than $270 mil-
lion in principal and interest.
July 2008: Tennis stars
Andre Agassi and Steffi Graf
terminate a contract to buy
property at Tamarack Resort
for a proposed luxuryhotel with
Fairmont Hotels and Resorts.
October 2008: Fourth
no involvement in the hom-
eowner initiative, he said.
An unnamed Mexican hom-
eowner at the resort approached
the homeowner group to intro-
duce them to the lender, Ciraco
said.
"(The resort) was shopped
District Judge Patrick Owen
appoints Douglas Wilson Cos. of
San Diego to operate the resort
during the 2008 -09 ski season.
0 Credit Suisse also promises
a loan to Douglas Wilson for $10
million to winterize the Village
Plaza and operate the ski hill.
December 2008: Tamarack
Resort opens for its fifth con-
secutive ski season.
March2009: Douglas Wilson
closes the resort due to higher
than anticipated costs and alack
of continued funding.
July 2009: Owen dissolves
the receivership of Douglas
Wilson, sending control of the
resort back to Boespflug and
Miguel.
September 2009: West
Mountain Preservation Man-
agement Association, a group
of nine Tamarack homeown-
ers, asks to operate the resort
through August 2010. The re-
quest comes with the promise
of $7.9million in fundingfrom a
Mexico -based real estate invest-
ment firm.
March 2010: Credit Suisse
foreclosure trial scheduled to
begin in Boise.
to the ends of the earth for 18
months by J.P. (Boespflug) with
no success," Ciraco said.
"We were approached by a
Mexican -based institution that
was willing to make a receiver
loan pending acceptance by the
court," he said.
Tamarack lifts
won't open,
but other
facilities might
Work underway to get snowmobiling,
cat skiing, Nordic skiing operations
BY MICHAEL WELLS
For The Star -News
Ski lifts at Tamarack Resort will not operate this
winter, but there are plans
to offer other winter
sports at the resort, a spokesman for a homeown-
ers group said.
Agreements have been
signed with companies to
offer cat skiing and snow-
mobiling, resort majority
owner Jean - Pierre Boesp-
flug said.
"Two contractors are
y
exploring the logistics to be
jC
able to operate cat skiing
and snowmobiling before
- — - at a
Crossroads
Christmas," Boespflug
said.
"The
Discussions with a com-
pany to offer Nordic skiing
lawyers for
at the resort are also under-
way but have notprogressed
Credit Suisse
as far, he said.
I hope that these activi-
indicated that
ties canhappen, "Boespflug
they WOUId
said. "The logistical issues
need to be handled before
launch a
they can open."
Homeowners at the
massive effort
resort are also seeking ad-
ditional activities at the
to delay.and
Lodge at Osprey Meadows,
including a reopening of
prevent our
the exercise rooms and lim-
ited nightlife at the lodge,
hearing from
Tamarack Municipal As-
sociation Treasurer Doug
occurring
Dvorak Said.
before the end
A homeowners group
thattriedto openthe skilifts
Qf ZUl)9 s,
said in a letter last week it
would take up to six weeks
— Letter
to open the mountain after
from Tamarack
it received a favorable court
homeowners
ruling.
See TAMARACK, group
Page A -2
Tamarack lifts won't open, but some facilities might
(Continued from Page A -Z)
The letter was from the West
Mountain Preservation Man-
agement Association whichhad
been hoping to convince Fourth
District Judge Patrick Owen to
hire an operator.
January Opening Eyed
"Even if the hearing started
sometime in the first or second
week of December, and the
court's decision were to take
one week to 10 days, presuming
a favorable decision, opening
was unlikely before mid -to -late
January," the letter said.
The letter was signed by
association members Hans Al-
bert, Jan Lochtenberg, Leonard
De Los Prados, Jim Shanahan
and Newton Lesh.
"As a consequence, the op-
portunity for funding, based
on a winter reopening, simply
became non - viable," the letter
said.
Immobiliaria, a Mexican
real estate investment company,
had said it would fund a new
operator at the resort with $7.9
million.
But the company has told
the homeowners group funding
is no longer available without
cooperation from Credit Suisse
Bank.
TamarackResort owes Cred-
it Suisse more than $300 million
in principal and interest on a
2006 loan to build the unfinished
Village Plaza at the center of
the resort.
Credit Suisse filed a foreclo-
sure action in state court in 2008;
a trial on the foreclosure is set
for March before Owen.
Delay Tactics Cited
Delay tactics by attorneys
for Credit Suisse caused can-
cellation of a Nov 23 hearing
date for the appointment of a
new operator at the resort, the
letter said.
"We were faced with the
daunting task of persuading a
court that had become skepti-
cal about receivers due to ...
a tremendous level of conflict
and controversy," the letter
said. "The lawyers for Credit
Suisse indicated that they
would launch a massive effort
to delay and prevent our hear-
ing from occurring before the
end of 2009."
The tactics included a Credit
Suisse request for depositions
from 15 witnesses in a five -day
span before Thanksgiving.
"Our lender was worried
about whether we would be able
to accomplish this compressed,
intense, deposition schedule
in the time allowed," the let-
ter said.
The homeowners group will
also continue its efforts at the
resort, the letter said.
"We remain uncertain as to
when, or whether, a new owner
will come on the premises as a
successor to Tamarack Resort,"
the letter said.
Federal judge sends Tamarack case back to state court
Bankruptcy judge
wants Owen to sort
out creditor claims
BY MICHAEL WELLS
The Star -News
Afederalbankruptcyjudge
in Boise on Friday ordered the
Tamarack Resort case back to
state court so that the many
liens against the closed resort
can be sorted out.
Banc of America Leasing
& Capital, Petra, Hobson Fab-
ricating and TMG DPMiller
were nursuine a bankruptcy
claim against the financially
troubled resort near Donnelly
in federal court.
Credit Suisse, which is
owed more than $300 million
by the resort from a 2006 loan,
asked the federal court to re-
lease a stay placed on the state
foreclosure case it has against
the resort.
"The rights of parties
can be timely adjudicated in
state court to an extent that
serves judicial economy,"
U.S. Bankruptcy Judge Terry
Myers said. "The order allows
the state court to adjudicate
where the parties stand, it is
important to have a starting
point."
The order did not stop Banc
of America's claim against the
resort, which would be heard
after Fourth District Judge
Patrick Owen sorts out what
is owed to the creditors at the
resort.
A foreclosure trial had
been set for March in Owen's
courtroom.
The state courtproceedings
were put on hold after the
bankruptcy case was filed in
December. As of Tuesday af-
ternoon, no new hearings have
been scheduled for Owen's
court, court clerk Angela
Hunt said.
"For (Banc of America)
to make this case is simply
disingenuous," Credit Suisse
Attorney Randall Peterman
said. "(Banc of America)
should at least get its facts
rightbefore comingbefore this
court to mislead it."
The leasing arm of Bank
of America has only an inter-
est in the Wildwood Express
and Buttercup Chair ski lifts,
Peterman said as he dismissed
the objections to Credit Su-
isse's request to have the case
sent back to state court.
Tamarack Resort also
asked the court to reject the
involuntary bankruptcy claim
through its attorney Randal
French of Bauer & French
of Boise.
Tamarack Resort asked
that an unspecified amount
of punitive damages and at-
torneys' fees also be assessed
against Banc of America,
Petra, Hobson Fabricating
and TMG DPMiller for filing
the claim in bad faith.
Bancof America Attorney
Brad Goergen argued the
state court was not in the
interest of judicial economy
and that the case should be de-
cided in federal bankruptcy
court.
"That line doesn't have to
be drawn by the state court,"
Goergen said.
Tamarack
misses lease
payment
Lands department considers options on
2,100 acres leased to resort for ski runs
BY MICHAEL WELLS
The Star -News
Tamarack Resort did not make its annual lease pay-
ment to the Idaho Department of Lands for 2,100 acres of
state -owned property the closed resort had used as skiing
terrain, Idaho Department of Lands Director George
Bacon said.
The $250,000 payment,
which was due Jan. 4, was the
first missed payment from
the resort that has been in
financial trouble since the
end of 2007.
The state land is located
on the west side of Lake Cas-
cade southwest of Donnelly
and rises above the private at a
land on which Tamarack Re-
sort built its base facilities,
lodge, golf course and
subdivisions. The resort closed in March 2009 after five
years of operation.
"Our attorneys are looking at it," Bacon said. "We will
wait and see what happens in bankruptcy court."
Tamarack Resort is fighting a bankruptcy case brought
by Banc of America Leasing & Capital, Petra, Hobson
Fabricating and TMG /DPMiller in federal bankruptcy
court in Boise. The resort has hearings scheduled for Feb.
24 -26 in federal court.
The resort is also in the midst of a two -year state court
foreclosure action filed by Credit Suisse Bank that is owed
more than $300 million in principal and interest on a 2006
syndicate loan.
Tamarack misses
lease payment
(Continued from Page A -1)
Hearings to restart the fore-
closure case after it was placed
on hold by bankruptcy court
have yet to be scheduled.
Atrial was originally setfor
March to sort out payments to
creditors of the resort south-
west of Donnelly.
Tamarackoriginally signed,
a 10 -year lease on the lands'
from the state in 2002, which
was upgraded to a 25 -year
lease with an option for an ad-
ditiona124 years. All payments
on the lease through 2009 were
paid in advance, Bacon said.
Depending on what the
Idaho Department of Lands
Board decides, the state has
options to consider with the
land, Bacon said.
"We have option;, we have
bonding of $800,000 to restore
the hill to its former use, to
finding someone else to lease
the area for a ski hill," Bacon
said.
Tamarack Resort officials
indicated they would not be
making the payment to the
Department of Lands -in De-
cember, he said.
Attempts to reach Tama-
rack Resort principal owner
Jean - Pierre Boespflug were
unsuccessful.
Tamarack foreclosure
trial delayed until fall
Judge to spread proceedings
over a three -month period
BY MICHAEL WELLS
The Star -News
The Credit Suisse foreclosure trial
against Tamarack Resort, originally
set for this month, has been pushed
to the fall by Fourth District Judge
Patrick Owen.
The trial will also move from Ada
County to the Valley County Court-
house in Cascade, Owen said.
The original trial date for this
month was cancelled by a bankruptcy
filing by Banc of America Leasing &
Capital in December in federal court
in Boise. That case stopped the state
foreclosure proceedings until the stay
was lifted in January.
Owen set new trial dates to be split
over three months, Sept. 13 -16, Oct. 4 -7
and Nov 1, 3 -4.
However, U.S. Bankruptcy Judge
Terry Meyers could make the fore-
closure case moot if he rules the case
should be adjudicated in his court,
Tamarack principal owner Jean
Pierre Boespflug said last week.
No ruling had been issued this
week by Meyers on bankruptcy hear-
ings held in late February.
. In the meantime, further hearings
to determine the validity of lienhold-
ers and creditors, the amounts owed
byTamarack Resort, andto establish a
pecking order in the Tamarack Resort
case will go on in state court.
Tamarack Resort owes Credit
Suisse more than $300 million in
principal and interest from a 2006
syndicated loan in the amount of $250
million. The resort missed an interest
payment in December 2007.
The four - season resort west of
Donnelly opened for skiing in 2004
and shut down in March 2009.
Another loan through the French
Bank Societe Generale did not come
through for the resort southwest of
Donnelly in January 2008.
Boespflug and co -owner Alfredo
Miguel Afif filed for bankruptcy pro-
tection with their real estate holding
companies in February 2008, but that
case was dismissed by Meyers later
that year.
Credit Suisse filed its foreclosure
action against the resort in state court
in March 2008.
In October 2008, Owen appointed
The Douglas Wilson Cos., of San Di-
ego, as the operator of the resort, an
arrangement that lasted until July
2009, when Credit Suisse withdrew
operating funds.
judge clears
the way for
Tamarack
liquidation
BY MICHAEL WELLS
The Star -News
A federal bankruptcy judge in Boise has cleared
the way for Tamarack Resort to be sold off in order
to pay those owed money by the resort's owners.
U.S. Bankruptcy Judge Terry Myers last week
declared Tamarack Resort bankrupt in an action
brought by Petra Inc., Hobson Manufacturing and
the Tamarack Municipal Association.
Myers appointed Boise trustee Jeremy Gugino to
begin the sale of assets.
Gugino said in an interview
Wednesday that he was just begin-
ning to compile the list of assets
in the resort and which ones can
be sold to pay off creditors.
The resort, which closed in
March 2009 after more than four
years of operation, includes a ski
area with lifts and base opera-
tions, a lodge, temporary
buildings containing
restaurants and support
facilities, and the unfin- "Prospective
ished Village Plaza condo p
and commercial complex. buyers who
Tamarack majority were On the
owner Jean - Pierre Boesp
flug was hopeful after the sidelines are
bankruptcy ruling, even
though he opposed it. - calling now
Buyers `On the that we are in
&Mines' a court with
Prospective buyers of more power."
the resort were "on the —Jean-
sidelines" waiting while Pierre
the case was in state
court, Boespflug said. Boespflug
"Prospective buyers
who were on the sidelines
are now calling now that we are in a court with more
power," Boespflug said. "We are very confident about
the new process; it appears the judge has the tools
useful for resolution."
s, l/0
The treasurer of the Tamarack Municipal Asso-
ciation, which represents property owners within
the resort, was also hopeful following the decision
by Myers.
"I view it positively that the resort can now get
through what was judicial gridlock and hopefully
find a new buyer so the resort can open again, Doug
Dvorak said Tuesday.
Bill Ciraco, anotherTamarackhomeowner, agreed.
"While the path is still not totally clear, I believe the
bankruptcy process will get us to a resolution of this
process much more quickly than the state foreclosure
would," Ciraco said.
"Also, the bankruptcy process is much better
equipped to clean up all of the issues in a more com-
prehensive and speedier fashion," he said.
Dvorak hopes the resort is sold in a single piece
and not in parts.
"Hopefully the court appointed trustee is smart
enough to keep most of the assets bundled together
and not sell piecemeal," he said.
Ciraco hopes a resolution can be found in the next
six to nine months.
See TAMARACK, Page A -2
Tamarack: Judge clears
the way for liquidation
(Continued from Page A -1)
"As unpleasant as it is, it
is often a reality in the early
stagesof these developments,"
he said. "I take comfort in the
fact that two years later we are
closer to a solution than ever
before."
State Case Moves On
Meanwhile, the foreclosure
case filed by Credit Suisse
against resort owners will
continue to move forward
in Fourth District Court in
Boise.
Credit Suisse is owed more
than $300 million in principal
and interest from a 2006 loan
to Tamarack Resort to build
Village Plaza. A trial is sched-
uled to begin in Cascade in
September.
Banner - Sabey, the former
Tamarack general contractor
from Seattle, won an early vic-
tory in that case to be placed
ahead of Credit Suisse. Most
other lien holders and credi-
tors have been placed behind
Credit Suisse in the state court
proceedings.
Also, the attorney for Tam-
arack minority owner Alfredo
Miguel Afif's attorney has
asked to withdraw from the
case.
T.J. Angstman of Angst -
man Johnson in Boise, asked
Fourth District Judge Patrick
Owen last Thursday to with-
draw due to Miguel's "failure
to comply with its terms of
engagement of my firm." No
details were provided.
Tamarack liquidator starts his
Jeremy Gugino
begins the task of
setting values
BY MICHAEL WELLS
The Star -News
Jeremy Gugino's job is to
collect as much money as he
can for unsecured creditors
at the failed Tamarack Resort
southwest of Donnelly.
Gugino, 37, has worked as
an independent contractor as a
Chapter 7 Panel Trustee for the
District of Idaho since August
2007. The panel is overseen by
the U.S. Trustee Program, but
is not an agency within the
government.
He was appointed as trustee
in the Tamarack Resort bank-
ruptcy case two weeks ago by
U.S. Bankruptcy Judge Terry
Myers.
During Gugino's time as
a bankruptcy trustee, he has
handled more than 2,000 bank-
ruptcy cases. The majority of
the cases are individual bank-
ruptcies, but he has worked
bankruptciesof smallandme-
dium sized companies, Gugino
said in an interview.
A graduate of the Univer-
sity of Missouri Journalism
School and the Gonzaga
University School of Law,
Gugino worked as clerk for
Myers before working as a
trustee.
"My primary duty is to
collect assets that can be
liquidated and distributed to
creditors in the case, primar-
ily for unsecured creditors,"
Gugino said.
As Gugino pours over
Tamarack's assets and books,
the Credit Suisse state foreclo-
sure case continues in Fourth
District Court.
While that case awaits tri-
als set for this fall, Gugino is
learning everything he can
about the resort's assets.
A trustee also has "avoid-
ing powers," which means he
can "unwind certain transac-
tions prior to the bankruptcy
depending on facts and cir-
cumstances."
This includes the ability to
set aside preferential transfers
made to creditors 90 days be-
fore the bankruptcy petition
was filed. In Tamarack's case,
the petition was filed on Dec.
11, 2009.
He can also undo security
interests and other trans-
fers of property that were
not properly handled before
Dec. 11.
Gugino can also operate the
resort, if the operation would
benefit creditors and enhance
liquidation.
And, he has the power to
make a secured creditor an
unsecured creditor in the
case.
Right now, Gugino is find-
ing out what property is
secured and what is not. When
he is finished with that pro-
cess, he can begin selling the
unsecured property to get the
highest return for unsecured
creditors in the case.
The bankruptcy case was
originally filed by Banc of
America Leasing & Capital,
Petra Construction, Hobson
work
Fabricating and TMG /DP
Miller in December 2009.
.Myers' order spoke only to
Petra, Hobson and the Tama-
rack Municipal Association,
which represents homeown-
ers inside the resort.
Tamarack owes Credit
Suisse more than $300 million
from a syndicated loan in 2006
to build the resort's center-
piece Village Plaza, which
remains unfinished.
This week, Banc of Amer-
ica has asked Myers to allow
it to foreclose on two shuttle
buses, a snow plow and dump
truck.
The request placed the
equipment's value at about
$375,000. The filing also added
about $156,000 in legal fees to
bring the total damages to
about $527,000 incurred in the
case due to Tamarack Resort's
failure to pay its bills.
The filing this week did not
mention two ski lifts at the
resort that Tamarack leased
from Banc of America and
which the bank at one time
sought to dismantle.
Tamarack
court order
draws buyers'
interest
Bankruptcy shift could lead
to sale of the closed resort
BY MICHAEL WELLS
The Star -News
Tamarack Resort is back under the control of Jean -
Pierre Boespflug after an order was granted on Friday
by U.S. Bankruptcy Judge Terry Myers.
The move to take the closed resort southwest of Don-
nelly out of Chapter 7 bankruptcy and into Chapter 11
bankruptcy could clear the way for a potential buyer
for the property, Boespflug said.
Under Chapter 7 bank-
ruptcy, companies must sell
off assets to pay creditors,
while Chapter 11 bankruptcy
allows a company the oppor-
tunity to reorganize its debt
and to try to re- emerge as a
healthy organization.
Tamarack Resort owes
Credit Suisse Bank more than
$300 million in principal and
interest from a 2006 loan.
Several contractors and
other businesses hold liens
against the resort, which
started to have financial I am
troubles in December 2007
when it failed to make a $5 the guy
million interest payment on in charge
the Credit Suisse loan.
The bankruptcy move again."
could make the resort easier
to sell, Boespflug said. — Jean -
"We are at a point where Pierre
we can fairly present ourself
and get to a resolution," Boespflug
Boespflug said. "I am the guy
in charge again."
The move could stop the resort from being sold
piecemeal through its former Chapter 7 Trustee Jer-
emy Gugino.
The change also means that Myers will decide if
any deal Boespflug can come up with in the next four
months is fair to creditors.
That means prospective buyers and creditors would
not have to wait for a state foreclosure case filed by
Credit Suisse Bank to go to trial in September in .
Cascade.
See TAMARACK, Page A-2
Tamarack: court order
draws buyers' interest
(Continued from Page A -I)
"This is a much more
flexible setting," Boespflug
said of the ruling on Friday
by Myers.
Banc of America Leas-
ing and Capital, along with
Petra, Hobson Fabricating
and TMG /DPMiller filed
a bankruptcy case against
the resort in December, and
the resort was ordered into
Chapter 7 bankruptcy last
month.
Buyers Increase
Interest
Boespflug is spending
more time with potential
buyers now, though he did
not identify any of them.
He is also spending time
meeting with creditors and
Will continue to do so in the
coming weeks.
"We have reasons for opti-
mism based on interest from
buyers," Boespflug said.
The resort will ask for a
"super priority loan" to al-
low the marketing process
and maintenance at the re-
sort to resume in the coming
months, he said.
Tamarack's bankruptcy,
attorney Randall French,
of Boise, will file a plan of
reorganization for the resort
later this spring.
CB Richard Ellis, a firm
based in Los Angeles, was
named the exclusive broker
for the resort in September.
"They have advised Tama-
rack that the market is more
willing to commit to quality
opportunities, like the Pay-
ette River Mountains Resort
than seen in the previous 24
months," Boespflug said.
A Tamarack marketing
package will be mailed to
about 400 "qualified pros-
pects" soon, he said. Mogul
Advisory Group of Boise was
hired by Ellis to help with the
marketing process.
Salt Lake company buys Tamarack meeting center
The Pelorus Group hopes to
reopen Arling Center soon
BY TOM GROTE
The Star -News
A Salt Lake City investment com-
pany has purchased The Arling Center,
the convention and meeting facilities at
Tamarack Resort, for $975,000.
The Pelorus Group purchased
the foreclosed property from Bank
of America last week, owner Aaron
Werli said.
In an interview, Werli said he hopes
to get the center open as soon as pos-
sible so it can host weddings, business
meetings and family reunions.
"The Arling Center is the heart of
Center
(Continued from Page A -1)
The company frequently
purchases foreclosed or dis-
tressed properties such as The
Arling Center, which can be
obtained for discounted prices,
Werli said.
The meeting center is the
latest amenity at the resort
to reopen after the wholesale
shutdown of the resort in March
2009 during the middle of the
skiseason.
Tamarack and we'd like to get some life
back up in there," he said.
A total of 14,641 square feet of space
were involved in the transaction. That
includes The Grange, with seating for
up to 200 people for a banquet; The
Schoolhouse, with seating up to 45
people per room; and The Chapel, which
can hold up to 140 people for religious
services.
The complex is named after two
former Valley County communities of
Arling and Center which disappeared
when Lake Cascade was flooded in
1948.
The Pelorus Group owns a variety
of commercial and residential prop-
erties in Idaho, Nevada and Utah as
well as the southeast United States,
Werli said.
See CENTER, Page A-5
The Osprey Meadows Golf
Course, owned by Hopkins Fi-
nancial Services of Meridian,
has reopened using contracted
management.
The Zip Line, in which us-
ers slide between treetops on a
series of cables, also has been
reopened by its operator.
The Lodge at Osprey Mead-
ows has remained open, with
guest reservations taken for
the 44 privately owned suites
in the lodge, said Cyndi Bonetti
of Valet Vacation Rentals in
Donnelly.
The lodge's restaurant, Mo-
Photo courtesy Tamarack Resort
The Grange is one of three buildings of The
Arling Center at Tamarack Resort that has
been purchased by a Salt Lake City investment
company.
rels, is closed, but the pool
and fitness center have stayed
opened, Bonetti said.
Meanwhile, the owners of
Tamarack Resort continue to
seek a buyer for the bulk of the
resort while wading through
state foreclosure proceedings
and federal bankruptcy court.
A trial on the foreclosure
claims, including a $300 million
claim from Credit Suisse, is
scheduled to start in Cascade
on Sept. 13.
s4_11n�
- "The Pelorus Group interest in
Tamarack is a long -term interest."
Spokesman Scott Peyron
Salt Lake
firm wants
to buy
Tamarack
Offer made, but details not disclosed
BY MICHAEL WELLS
The Star -News
A Salt Lake City real estate invest-
ment company has made a bid to
buy Tamarack Resort, but will not
disclose the amount of the offer.
The bid was made by The Pelo-
rus Group, the same company that
announced earlier this month it
had purchased The Arling Center,
the conference and event center at
Tamarack, for $975,000.
"The Pelorus Group interest in
Tamarack is a long -term interest,"
said company spokesman Scott
Peyron of Boise, who also is the
spokesman for the Tamarack Mu-
nicipal Association, which is trying
to reopen the resort's ski area.
The Pelorus Group is a partner-
ship investment company whose
three principal partners are J.T.
Bramlette, Aaron Wernli and David
Merrell.
Bramlette, 32, lost his $5 million
private jet and $450,000 Mercedes
sports car to bankruptcy in 2008,
emerged from that bankruptcy to
form The Pelorus Group in April
2009, accordingto a recent Associated
Press story.
Merrell is the managing partner
of DCM Finance, a Salt Lake City
finance company thatmakes and bro-
kers real estate loans, Peyron said.
Peyron, who was hired this
week by The Pelorus Group, did not
have biographical information for
Wernli.
Other investors who are a part of
the possible purchase of Tamarack
Resort were not named by Peyron,
but will be asked if they wish to be
identified, he said.
See TAMARACK, Page A -8
State
encourages
reopening of
Tamarack ski
area
BY MICHAEL
WELLS
The Star -News
How much money
the state will want from
Tamarack Resort hom-
eowners to reopen the
resort's ski area this
winter is not known, but
the possibility is looked
upon favorably by the
Idaho Department of
Lands.
Deputy Idaho At-
torney General Robert
Follett said the ski hill re-
opening would be "good
for everybody."
There are manysteps
the Tamarack Municipal
Association would have
to meet in order for
the state to sign off on
any deal.
Tamarack Resortstill
holds the lease, said Fol-
lettwho is assignedto the
lands department.
In order for the TMA
to reopen the ski hill,
which has been closed
since March 2009, the
homeowners would
have to gain approval
See STATE,
Ph, —up A-9
Tamarack: Salt Lake
firm makes offer
(Continued from Page A -1)
It was not known if the
bid has the interest of resort
owners Jean- Pierre Boespflug
and Alfredo Miguel -Afif, or
Credit Suisse, which is trying
to foreclose on the resort due
to unpaid loans. Boespflug did
not return messages left by
The Star -News
Finish Village Plaza
The bid to buy Tamarack
would include Village Plaza, a
condo and commercial project
that was about half finished
when construction was halted
due to the resort's financial
problems that emerged in the
winter of 2008.
The current bid to buy
Tamarack .Resort does not
include the Golf Course at
Osprey Meadows and some
parts of the Lodge at Osprey
Meadows, Peyron said.
The golf course is ownedby
Hopkins Financial Services of
Meridian and the 44 suites in
the lodge are privately owned
and available for overnight
rentals.
Bramlette is also named
in a federal lawsuit involving
Teton Springs Golf & Casting
Club, a development in Victor,
according to the Associated
Press story.
In light 'of Bramlette's
recent financial problems
Tamarack Municipal As-
sociation spokesperson and
treasurer Doug Dvorak said
Tuesday that he remained
"cautiously optimistic."
"I'd hope that past challeng-
es are not an issue," Dvorak
said. "I hope these are good
guys who have integrity and
the expertise, but having not
met them it is hard and unfair
for me to make a judgment."
The Pelorus Group has
already demonstrated its fi-
nancial strength to Tamarack
Resort ownership, Peyron
said.
In making its bid, the com-
pany had to prove it had the
funds to make the purchase.
The demonstration to Tama-
rack Resort owners showed
the investment group had the
funds sufficient to meet its of-
fer for the resort, he said.
The TMA wants to re-
open about 60 percent of the
Tamarack Resort ski hill
this winter and The Pelorus
Group wants to meet with the
TMA to discuss the proposal,
Peyron said.
As of Tuesday, no official
communication between The
Pelorus Group and TMA
board members had occurred,
Dvorak said.
A group of investors from
The Pelorus Group visited
Tamarack Resort Monday,
but were unable to meet with
TMA board members, Dvorak
said.
If the group is allowed to
purchase the resort, it would
want to "hit the ground run-
ning," Peyron said. The group
has a resort management
team, that was not identified,
waiting in the wings for a deal
to go through, he said.
However, the ski hill op-
eration proposal by the TMA
could go off with the possible
new owners taking over the
following winter, he said.
Whether Credit Suisse
would approve of the deal
is a question of Tamarack
Resort's relationship with its
lender, Peyron said.
In the meantime, the un-
named management group
and investors at The Pelorus
Group are working on aspects
of the deal for Tamarack Re-
sort and how to get the resort
up and runningagain should a
deal be approved, he said.
Winterization work at the
resort performed by both the
resort and Credit Suisse Bank
has preserved the unfinished
Village Plaza, TMA director
Tim Flaherty said. Any buyer
of the resort could resume
construction immediately
without having to deal with
any deterioration, Flaherty
said.
"It hasn't degraded to a
point where it would be an
issue," he said.
'tamarack tr'i'al
starts Monday
for creditors
Contractor leads long list of
companies claiming millions
BY MICHAEL WELLS
The Star -News
Attorneys for the former Tamarack Resort general
contractor will try to prove it is owed $6.5 million at the
resort's foreclosure trial that begins Monday in the Valley
County Courthouse in Cascade.
While Banner Sabey of Seattle attempts to prove its
case for the money, attorneys for the Swiss bank Credit
Suisse will challenge that claim and those of other sub-
contractors.
Credit Suisse is trying to
secure as much money from "The
any future sale of the resort
for the bank, which is owed fundamental
more than $300 million by
Tamarack's owner. purpose of
Tamarack Resort defaulted
on a $250 million syndicated Idaho lien
loan from Credit Suisse in
December 2007, and the bank laws is to
2008. pursued foreclosure in March protect Idaho
Monday's trial begins the contractors."
culmination of the bank's
30 -month old case against the
resort. —From court
Tamarack Resort is also filing by Banner
in federal bankruptcy court, Sabey
which will ultimately preside
over how the resort is sold.
Theforeclosure case willdecide howthe moneyfrom any
sale is split between creditors that include Credit Suisse,
contractors such as Banner Sabey and public entities such
as the North Lake Recreational Water & Sewer District.
The court determined earlier that Banner Sabey was
ahead of Credit Suisse in the lien line in the case.
The court also determined earlier this summer that the
North Lake district was ahead of all lien holders.
See TRIAL, Page A -18
6it-Al A1411W
9 /R /,e
Trial: Monday
court date set for
Tamarack creditors
(Continued from Page A -1)
Arguing Their Case
Banner Sabey will try
to convince Fourth District
Judge Patrick Owen Monday
that it is owed $6.5 million
rather than $5 million already
determined by the court ear-
lier in the case.
The construction company
says it is owed about $1.1
million in costs attributed to
leaving the Tamarack Resort
job site in the winter of 2008.
Of that total, the company
says it billed the resort about
$659,000 before the company
filed its lien against the resort
on Feb. 7, 2008.
Banner Sabey attorneys
will also argue that its lien
should not be devalued
because several of its sub-
contractors have also filed
liens seeking the same money
for work at the resort.
"Nowhere in that stat-
ute does it say the general
contractor's recovery against
the owner's real property is
reduced by the amount of the
subcontractor's liens," court
documents filed by Banner
Sabey said.
"The fundamental purpose
of Idaho mechanics lien laws
is to protect Idaho contrac-
tors, laborers and suppliers
who perform work in the State
of Idaho to improve real prop-
erty," the court filings said.
The construction company
will argue Credit Suisse's in-
terpretation of the law would
punish contractors in the
state if their subcontractors
also file a lien.
Seven subcontractors have
liens against Village Plaza at
the resort and are included in
Banner Sabey's lien.
They include:
• YMC - $1.5 million
• Tri -State Electric
$991,000.
• TMG - $262,000.
• Interior Systems
$132,000
• Quality Tile - $75,000
• Inland Crane - $37,000
• Kesler Construction
$18,500.
Judge in Tamarack case says
Cascade location important
Owen says local residents
should be able to attend
BY MICHAEL WELLS
The Star -News
Fourth District Judge Patrick Owen believes it is im-
portant to hold the Tamarack Resort foreclosure trial in
Valley County.
Owen made the decision in March to move the trial,
which opens on Monday, to the Valley County Courthouse
in Cascade.
He also ruled against a Credit Suisse Bank motion
Aug. 11 to have the trial held in a Boise courtroom for the
convenience to out -of -town attorneys.
Inhis March ruling, Owen stated his belief thatthetrial
was important to the people of Valley County. He restated
that belief last month.
Seattle construction contractor Banner Sabey will be
the first to argue in the foreclosure case that will attempt
to settle the payment order should the resort be sold.
Credit Suisse Bank pursued foreclosure of the resort
in March 2008 when Tamarack Resort defaulted on a $250
million syndicated loan from the Swiss bank.
See LOCATION, Page A -18
s�„n...
glql��
Location
(Continued from Page A -1)
Tamarack's financial trou-
bles began in December 2007
when it failed to make a $5
million interest payment on
the loan that was to build the
centerpiece of the resort, Vil-
lage Plaza.
Village Plaza remains half
built at the resort, which shut
down the ski area and associ-
ated facilities in March 2009.
In addition to owing the
bank, Tamarack Resort also
owes millions to construction
contractors, public agen-
cies and local businesses in
unpaid bills either related to
construction activities, taxes
and fees and bills for services
provided.
In holding the trial in
Valley County, Owen hopes
to make it convenient for the
failed resort's most affected
people to attend the trial.
Monday's session is scheduled
to begin at 9 a.m.
While the location is not as
convenient to attorneys and
witnesses in the case because
most are from out -of -state or
the Boise area, Owen believes
the trial should be in Cascade
in front of the people most af-
fected by Tamarack Resort's
demise.
After a week of trial next
week, the Tamarack foreclo-
sure trial will take a break
and resume Oct. 4, Nov 1
and Nov 15. All trial dates are
scheduled for Cascade.
6;44V A44.4
9231, a
Tamarack, Credit S uisse set stage for sale
Tamarack Resort is one step closer to
resolving the issues that surround the
bankrupt resort after officials reached an
agreement with creditor Credit Suisse, the
Idaho Press - Tribune in Nampa reported
Wednesday.
Court documents filed Saturday show
Tamarack Resort, Credit Suisse and other
creditors have reached an agreement on
the appointment of a chief restructuring
officer.
Also Saturday, Alfredo Miguel, the
chairman of the board of directors for
the resort, announced his resignation to
Tamarack homeowners in
a brief message sent on
Saturday.
Miguel did not specify
a reason for his resigna-
tion.
The agreement be-
tween Tamarack' and
Credit Suisse is outlined
in documents submitted
to the bankruptcy court
for approval. If the court
Alfredo Miguel approves the agreement
in an Oct. 12 hearing,
then the sale of the resort can move
ahead.
"Like all homeowners at Tamarack, I
can't wait for new ownership to take over
and kick start the operation again," Rory
Veal, a home owner at Tamarack, told the
Press - Tribue.
"The appointment of a CRO should clear
the pathfor the developers who've been sitting
on the sidelines, waiting for the right time to
jump in," Veal said. "Now is that time."
The court documents name Michael
Fleischer of Links Realty Advisors of Bev-
erly Hills, Calif., as the chief restructuring
officer.
If Fleischer is approved on Oct. 12, he
will make decisions regarding the sale of the
resort and act on behalf of Tamarack.
Organization of the sale will be more ef-
ficient with oneperson managingpotentially
competingoffers and having the pthorityto
negotiate between offers, Veal said.
The Tamarack Municipal Association
plans to reopen the resort to skiers and
boarders this winter with a planned opening
date of Dec. 20. The area closed suddenly in
March 2009 as the resort's financial troubles
deepened.
Boespflug
to give up
Tamarack
CEO post
Resort leader hopeful
sale will happen soon
BY TOM GROTE
The Star -News
Jean - Pierre Boespflug said Monday he will resign as
chief executive officer of Tamarack Resort if a judge on
Monday approves hiring an agent to sell the resort.
Boespflug, 57, has held the CEO
job since 2000. He
shepherded the resortthrough its initialfast
-track growth
that saw $500 million in real estate sales in three years
between 2004 and 2007.
But he also was at the helm
when the world and national
economy collapsed, forcing
the resort to halt construction
and setting the stage for the
shut -down of the ski area in
March 2009.
Zurich -based Credit Suisse
Group has agreed to loan the
resort $2 million to pursue a
sale if Boespflug and resort
chair Alfredo Miguel Afif
stepped aside. Boespflug is the
majority owner with just over
,,lam
50 percent while Miguel has 26
percent ownership.
/j(illlq solace
a telephone interview
from the resort, located south-
ShICe this
west of Donnelly, Boespflug
said Monday the pledge of $2
would Serve
million was "good news."
"While
to stabilize
it is not a happy
moment for me, I am finding
the resort,
solace since this would serve
to stabilize the resort, keep it
keep it
maintained and organized and
maintained
keep some life in the valley,"
he said.
and organized
On Monday, U.S. Bank-
ruptcy Court Judge Terry
and keep
Myers will decide whether
some life /n
to appoint Michael Fleischer
of Links Realty Advisors of
the Valley-"
Beverly Hills, Calif., as chief
restructuring officer.
Jean- Pierre
Fleischer would have full
Boespflug
control over sale of the resort
to what Boespflug said were a
number of interested buyers.
Boespflug, Miguel and other partners in Tamarack
Resort would be advised of the progress of sale negotia-
tions, but Fleischer will have final say over the buyer
and the price.
See TAMARACK, Page A -2
Tamarack: Boespflug to resign as CEO
(Continued from Page A -1)
Boespflug said he will not
be making any more public
statements until after a sale
is completed to avoid com-
plicating negotiations with
Fleischer.
Boespflug lost day -to -day
operating control of theresort
in October 2008 when a state
judge appointed the Douglas
Wilson Companies of San
Diego, Calif., to run the ameni-
ties, including the ski area.
He reassumed control in
July 2009 when the Wilson
Companies withdrew after
shutting down the ski area.
"We kept the lights on and
facilitated the revival of key
activities such as the golf
course, zip line and residential
rentals" Boespflug said.
Boespflug estimates he
will, have personally lost $45
million by the time the resort
is sold and millions of dollars
in debts are settled.
He said he had no regrets
in the way the resort was
operated under his guidance
except for the timing of mov-
ing forward with the 305 -unit
Fairmont luxury hotel and
residential project planned to
be built next door to the Lodge
at Osprey Meadows.
The Fairmont was backed
by retired tennis stars Andre
Agassi and Stefanie Graf,
who were in attendance at the
Arling Center in March 2007
when 125 condominiums and
hotel condos were pre -sold in
seven hours for $140 million.
Selling the Fairmont con-
dos diverted the efforts of
Tamarack's sales team, which
lost up to $20 million in sales
for the main resort, Boespflug
said.
Unexpected Expenses
Also, Tamarack's agree-
ment with Bayview Financial
required the building of a
mid - mountain restaurant
and sewer improvements that
were not planned until later,
he said. The restaurant was
halted after being two - thirds
completed.
Tamarack's troubles began
when Bayview did not send in
a $57 million payment to pur-
chase the land for the project
by June 2007 as expected, he
said. That forced a stop in
construction on Village Plaza,
which remains uncompleted.
The -Bayview partnership
announced in June 2008 that
it was pulling out of the
project.
Boespflug said the resort
still has "tremendous poten-
tial."
"It is still the right idea
in the right place," he said.
"For as long as the project
continues, our efforts were
not in vain."
C,
A
J
0
Dian who would sell
Tamarack specializes
in troubled companies
BY MICHAEL WELLS X6.7 -A
The Star -News
The man who would sell Tamarack Resort will not
comment on how he would go about the task until after
U.S. Bankruptcy Judge Terry Myers decides if he is right
for the job Monday.
All Michael Fleischer, president of Links Realty Advisors
of Beverly Hills, Calif., would say in an interview is that he
works to reposition distressed real estate for sale.
Fleischer has been involved in numerous restructur-
ing assignments that require comprehensive analysis of
property, asset values, loan attributes, creditors' rights
and litigation strategy, according to his Web site.
Tamarack Re sort be gan having serious financial troubles
in the fall of 2007. The resort southwest of Donnelly failed to
make a $5 million interest payment in December 2007 on a $250
million syndicate loan from Swiss banker Credit Suisse.
An attempt in the winter of 2008 to receive another loan
from French Bank Societe Generale, which was handcuffed
by a $7 billion dollar trading scandal, fell through.
That left Tamarack's major owners, Jean - Pierre Boesp-
flug and Alfredo Miguel Afif, without the ability to right
the resort's financial ship.
In March 2008, Credit Suisse filed to foreclose on the
resort in state court. In December 2009, Bank of America
successfullyforced the case into federalbankruptcy court,
where Fleischer could be installed as the person who
brokers a deal with a new owner for the resort.
See FLEISCHER, Page A -2
Fleischer
(Continued from Page A -1)
Fleischer's clients have
included banks, pension funds,
discretionary fund managers,
developers, borrowers and
passive investors, his Web site
said.
Fleischer has worked with
debt restructuring, valuation
of real estate assets, acquisition
research, strategic business
planning, market analysis,
redevelopment planning and
transaction structuring..
" Fleischer's past engage-
ments have included leading
several finance and recapital-
ization teams in the context
of bankrupt hotels and master
planned community projects,"
the Web site said.
Fleischer has a master's de-
gree inbusiness administration
and a law degree from Columb is
University's business and law
schools.
Tamarack foreclosure trial
plods on with questions
over invoices, schedules
BY MICHAEL WELLS
The Star -News
The second round of the
Tamarack Resort foreclosure
trial started up again this
week, with Fourth District
Judge Patrick Owen tasked
with deciding which claims
filed against the financially
troubled resort are valid.
Testimony on Monday
came from witnesses from
Kesler Construction and
Secesh Engineering both of
McCall.
Kesler Construction own-
ers Rodney James Kesler and
Christina Michelle, Kesler
were both on the stand Monday
morning justifying amounts
in liens filed against the resort
as Credit Suisse Bank attorney
Bruce Badger looked for ways
to minimize other creditors'
claims against the resort.
Badger and Credit Suisse
are trying to minimize the
amount of money owed to
other creditors by the resort
in an attempt to recoup as
much money as possible from
a defaulted $250 million loan
from 2006.
The resort owes the bank
more than $300 million as
interest has piled up since
the resort failed to make a $5
million interest payment in
December 2007.
Christina Kesler was asked
to add up small amounts of
money from invoices sent to
the resortfrom mid - December
2007 through January 2008.
About $14,000 were calcu-
lated on the stand Monday
in past due payments to the
construction firm that worked
on the project before general
contractor Banner Sabey of
Seattle had signed a contract
with then Tamarack CEO
Jean- Pierre Boespflug.
Kesler Construction was on
the j ob at the resort a couple of
weeks prior to Banner Sabey
inking a deal to be the resort's
general contractor,, Rodney
Kesler said.
Owen took the matter un-
der advisement and proceeded
to the next creditor, Secesh
Engineeringof McCall, which
had worked at the resort since
2002.
Ralph Miller, a Secesh
Engineering land surveyor
since 2002, told the court the
engineering firm worked on
the entire resort and work it
had done prior to financial
troubles at the resort that were
realized in 2007 was still being
used by various contractors
after the bills stopped being
paid.
Tpe company worked on
designs, plans, plats, maps,
drawings, surveys and su-
pervised construction of the
resort, Miller said.
"Everything we did out
there provided a benefit to
the whole project," Miller said
justifying his employer's lien
claim against the resort.
Tamarack stopped paying
Secesh Engineering for its
work in August 2007, but the
company kept working for
the resort through February
2008. Credit Suisse filed the
foreclosure case against the
resort in March 2008.
In his cross- examina-
tion, Badger asked if Secesh
Engineering had contracts
with Tamarack subsidiaries
Whitewater Construction
and Trillium Valley. Miller
said he did not know if the
company had contracts with
the subsidiaries, but it did
have a contract w ith Tamarack
Resort.
The trial continues today in
Cascade. This week testimony
was heard from Teufel Nurs-
ery in McCall, as well.
The trial will continue
Nov 1, 3 and 4 with creditors
MHTN Architects of Salt Lake
City, Inland Crane of Boise, Oz
Architecture of Boulder, Colo.,
Scott Hedrick Construction
of McCall and any other lien
holder requiring trial.
The final days of the trial
are set for Nov 15 -18 with
Banc of America Leasing and
Capital and BAG Property
Holdings, which is half-owned
byAgassi -Graf Developments,
a company owned by former
tennis stars Andre Agassi and
Stefanie Graf.
Owen heard testimony
from Banner Sabey, Tri -State
Electric, YMC, Interior Sys-
tems at earlier trial dates in
September.
-:5L P"
"
16 IV/ 6
Judge rejects
$2 million
loan for
Tamarack
Ruling poses obstacle to sale
of resort, ski hill opening
BY MICHAEL WELLS
The Star -News
Tamarack homeowners were
scrambling for other
ways to open the resort's ski hill
this winter after a
federal judge on Tuesday ruled
against a $2 million
loan to help open the hill.
U.S. Bankruptcy Judge
"No one
Terry Myers denied a plan by
the resort's owners to borrow
has (said)
an additional $2 million from
Credit Suisse.
Cease an
The money would have
been used to pay the state
desist With
lease due on the ski runs and
also finance the mechanics of
the judge 's
a sale.
It is unclear how the ruling
ruling, so We
may affect plans to reopen the
are exploring
ski hill, which closed in 2009.
Also unclear was how the
Our options."
ruling may affect a possible
sale of the resort that last
— Doug
week was said to be valued
between $58 million and $68
Dvorak
million.
"This is not about the desirability of a ski season
at Tamarack in 2010," Myers said in his ruling, issued
after two days of testimony last week in his Boise
courtroom.
Nor is it about what ultimate result (reorganiza-
tion, sale or other) would best serve the area or its
residents," he said.
"At bottom, it is a question of whether this specific
financial and management proposal, made byTamarack
and supported by Credit Suisse, meets the standards
that federal law imposes as a condition of its granting.
It does not," Myers said.
See LOAN, Page A -2
Loan: Judge rejects
Tamarack financing
(Continued from Page A -1)
The Tamarack Municiapal
Association, whichrepresents
homeowners, plans to meet
with the Idaho Land Board
and Credit Suisse to discuss
alternatives that could allow
the homeowners to revive
the ski hill and create 65 jobs
this winter, TMA Treasurer
Doug Dvorak said Tuesday.
No dates for the meetings had
been set.
The TMA wants to know
how much the land board
would require it to pay for the
land lease for it to open up 65
percent of the mountain for
skiing, Dvorak said.
Tamarack's owners owe
the state $250,000 for its lease
on the land for 2010 and anoth-
er lease payment of $250,000
would be due on Jan. 1.
"We're still in it," Dvorak
said. "No one has contacted
the TMA to say cease and
desist with the judge's rul-
ing, so we are exploring our
options."
Dec. 20 was the planned
opening day for the season
this year and the TMA is still
selling season passes that are
fully refundable if the moun-
tain does not openforbusiness
this winter, Dvorak said.
Resort Majority Owner
J.P. Boespflug said Tuesday
the ruling was not the end of
a ski season this winter, nor
did it put attempts to sell the
resort "off track."
"The process for the sale is
still on track," Boespflug said
Tuesday. "The opening of the
ski hill is still possible."
Boespflug and Tamarack's
attorneys planned to resubmit
an altered plan for a loan to
finance the resort during a
sale process that has yet to
be defined by the bankruptcy
court, or Credit Suisse.
The modified plan could
be heard within three weeks,
Boespflug said.
Boespflug did not mention
any specifics as to how he and
attorneys would make the
proposal pass Myers' muster.
judge cites long list of
errors in loan request
iolyl
Deadlines set by Tamarack,
Credit Suisse `on short fuses'
BY MICHAEL WELLS
The Star -News
U.S. Bankruptcy Judge Terry Myers cited a variety of
reasons for rejecting a plan by the owners of Tamarack
Resort to borrow $2 million.
The money would have been used to pay the state lease
due on the ski runs and also finance the mechanics of a
sale.
The court filings were given piecemeal and missed dead-
lines imposed by court rules, Myers said, calling the last
minute disclosures "unreasonable and objectionable."
Tamarack's filings also did not adequately identify
the five investors who were backing the $2 million loan
administered by Credit Suisse, the judge said.
Also, Tamarack and Credit Suisse failed to provide
a final credit agreement, instead they submitted a draft
agreement.
"Debtors often need access to credit in order to advance
a reorganization, and often on emergent bases," Myers
said. "But creditors are entitled to know precisely what is
being proposed and provided an opportunity to evaluate
the facts, and legal sufficiency, of the request."
Tamarack's proposal was opposed by several lien
holders owed millions by the resort including North Lake
Recreational Water and Sewer District and its bonding
bank Wells Fargo.
See ERRORS, Page A -2
Errors
(Continued from Page A -1)
Opposition to Plan
Tamarack general contrac-
tor Banner Sabey and several
subcontractors also opposed
the plan because itwouldleave
them with less. money on a
future sale should the resort
default on the loan.
"There is also no descrip-
tion of adequate protection
proposed to be provided any
creditor other than Credit
Suisse," Myers said.
Tamarack failed to provide
a fair market value of the
resort's collateral should it
also default on the $2 million
loan that had 15 percent inter-
est and a six -month payoff.
Majority owner J.P. Boesp-
flug placed the value at $58
million, while real estate
marketer Russell Johnson
said the resort was worth $68
million.
"The suggestion made
by Tamarack as to `adequate
protection' was not premised
on the existence of an equity
cushion (value over secured
5��AW4
la /t�4 // a
debt) as to any one or all credi-
tors," Myers said. "Rather,
Tamarack essentially con-
cedes that the value of the
Resort will be grossly insuf-
ficient to secure the Credit
Suisse pre - petition debts."
Buyers Make Offers
Potential buyers have made
offers of $30 million and $42
million for the resort that
owes more than $300 million
to Credit Suisse Bank.
Debts also include $12
million in court - appointed
operator costs incurred while
Douglas Wilson Cos. man-
aged the resort and at least
$22 million more in liens by
contractors, court records
show.
Myers also did not like the
proposal because it seemed
more likely the resort would
defaultbecause itrequired the
sale of the resort within 30
days of closing the loan.
"The `milestones' are all
weighty and on short fuses,"
Myers said. "The financial and
legal situation at the Resort
was complex, and that this
complicated the creation of a
sales structure. That makes
the short time frames even
Credit Suisse wants
Tamarack Resort
sold in pieces
New filing says current effort
to sell entire resort won't work
BY MICHAEL WELLS
The Star -News
There is "no hope" for Tamarack Resort to reor-
ganize and sell as a whole, so the resort should be
sold off in pieces, a filing by Credit Suisse Bank's
attorneys said Tuesday.
Credit Suisse attorneys "(Tamarack)
filed a motion in U.S.
Bankruptcy court in Boise has squandered
Tuesday to switch the case cash
away from its current path ' !
of trying to finda buyer for mismanaged
the entire resort.
Instead, Credit Suisse its estate and
wants the resort sold off operated at a
in pieces to pay off some
of the $300 million in substantial and
loans owed to it by the continuing resort's owners. g I ®$S."
A hearing on the pos- — Credit Suisse
sible change is setfor Dec. court filing
6 in Boise.
Tamarack Resort had gotten approval in April
to convert from liquidation to reorganization by
U.S. Bankruptcy Judge Terry Myers when Bank
of America forced the resort into bankruptcy last
December.
"Since converting its case (Tamarack Resort)
has squandered cash, mismanaged its estate and
operated at a substantial and continuing loss," the
Credit Suisse filing said.
See TAMARACK, Page A -2
♦ Judge in Tamarack foreclosure trial
tours resort —Page A -2
Tamarack
(Continued from Page A -1)
"(Tamarack Resort) freely
admits that it does not have
the liquidity to operate, let
alone maintain its assets long
enough to complete a sale pro-
cess," the filing said.
Tamarack Resort has failed
to maintain the appropriate
amount of insurance and has
"grossly mismanaged this
estate," the court documents
said.
Insurance Allowed to
Lapse
Tamarack Resort allowed
two - thirds of its liability
insurance to lapse on Aug. 1,
leaving the resort with only $1
million in liability coverage,
the court documents said.
The resort has also allowed
its $3 million environmental
liabilities insurance to lapse
entirely, the documents said.
Four other insurance poli-
cies the resort holds are set
to expire in December and
January "with no funding
for renewal," the documents
said.
"(Tamarack Resort) has
failed in every attempt to sell
or reorganize its business, in-
cluding its most recent failure
to obtain financing by failing
to satisfy the procedural and
substantive requirements of
the Bankruptcy Code," court
documents said.
"(Tamarack Resort) has
not provided evidence of any
viable business or realistic
sale and has succeeded only
in depleting the limited assets
available to satisfy creditors,"
the filing said.
The document also said
Tamarack Resort has "en-
gaged in unauthorized use
of cash collateral" of about
$102,000 through June.
"Rehabilitation is not likely
where a debtor pins its hopes
on speculations about po-
tential sales of assets or
hypothetical projections of
future deals," the court docu-
ments said.
The filing comes on the
heals of Tamarack Resort's
ON/6
failed bid to gain approval by
Myers for a $2 million loan
administered by Credit Suisse
Bank.
The loan would have al-
lowed the resort operating
funds to get it through a
sales process that has yet to
be defined, but Myers said
the application was severely
flawed.
The new filing claims that
Tamarack Resort continues
to lose money, noting about
$112,000 lost since April.
Tamarack Resort also owes
Valley County about $269,000
in unpaid real estate taxes
and about $79,000 in unpaid
personal property taxes, the
documents said.
In a statement Wednesday,
Tamarack CEO Jean - Pierre
Boespflug said he does not
understand the motivation
behind the Credit Suisse
motion.
"We will strongly oppose
the motion, which is necessary
for the operation of the ski
hill and for negotiating with
a buyer," Boespflug said.
Credit Suisse blames Boespflug
for `erosion' of resort's value
Court filing says Tamarack CEO
is ineffective, poor bookkeeper
BY MICHAEL WELLS
The Star -News
The value of Tamarack Resort has "eroded ".
under the management of CEO Jean- Pierre
Boespflug, a court filing said.
The claims were made by Credit Suisse in an
attempt to convince a federal bankruptcy judge
to allow the resort to be sold off in pieces to help
repay defaulted loans.
"(Tamarack Resort's) `management team,'
consisting entirely of Jean - Pierre Boespflug, has
been entirely ineffective," the filing said.
Boespflug has not successfully built consensus
among Tamarack Resort's creditors to support a
sale without new managemrent, the filing said.
"Mr. Boespflug has been unsuccessful in
his haphazard attempts at rehabilitation of
(Tamarack Resort), in part, because there is no
confidence among creditors that he is acting in
their best interest," the court document said.
The documents also said that Boespflug has
filed his monthly operating reports late, and "at
best" those reports have been "deficient, and at
worst, fraudulent or misleading."
Attorneys for Credit Suisse detailed the pos-
sibly deficient or fraudulent reports by pointing
out that the monthly reports did not match up
with profit and loss statements.
See FILING, Page A-2
'5 1 w�
ii /06
Filing
(Continued from Page A -1)
Those statements showed
Boespflug paid a group called
Friends of Tamarack $21,000
in May, while the monthly
report for May showed only
$10,000 in expenses.
Friends of Tamarack is de-
scribed as "an entity made up
of the debtors' insiders" with
no other explanation.
Boespflug also paid about
$39,000 to West Mountain Golf
for maintenance on the Osprey
Meadows golf course. West
Mountain Golf is not a credi-
tor of Tamarack Resort.
Boespflug reported the
resort spent about $92,000
in operating expenses in his
June monthly report, but the
resort's checkregister showed
most of the expenses were ac-
tually incurred in April.
Boespflug's April monthly
report showed no expenses
paid that month, the Credit
Suisse filing said.
I
s r
Star -News Photo by Michael Wells
Tamarack Resort Controller and Asset Manager David Papiez
points out various properties to Fourth District Judge Patrick
Owen on Monday in the unfinished Village Plaza. Owen toured
the resort property late in the afternoon after hearing testimony
most of Monday in the foreclosure trial of the bankrupt resort
southwest of Donnelly.
Judge in Tamarack foreclosure
trial gets tour of shuttered resort
BY MICHAEL WELLS
The Star -News
Fourth District Judge Pat-
rick Owen led a processional
of attorneys on a tour of Tama-
rack Resort Monday afternoon
after spending most of the day
listening to testimony from
contractors in the foreclosure
trial that continues in Cascade
this week.
Tamarack Resort Control-
ler and Asset Manager David
Papiez drove Owen around
the sprawling resort property
Monday as attorneys for Credit
Suisse, the resort's owner, and
contractors followed in separate
vehicles.
Owen also took a walking
tour of the unfinished Village
Plaza, which was about 60 per-
cent complete when financial
problems in the winter of 2008
forced construction work to
cease.
Part of the tour took Owen
and attorneys underneath
the plaza where unused con-
struction materials had been
inventoried.
Owen said little while on the
walking tour, but after the tour
was over he joked, "We need to
get out more," to the attorneys
as the group left for the day.
For most of the tour, Owen
was in a vehicle as Papiez drove
him around the resort to look at
The Lodge at Osprey Meadows
and the Whitewater subdivision
properties.
Toward the end of the tour,
the five -car entouraee drove to
the southern end of the resort
to look at houses on the Osprey
Meadows Golf Course.
Following Owen and Papiez
in the lead vehicle, were Terry
Copple, attorney for Tri -State
Electric of Boise, followed
by Bruce Badger and Eliza-
beth Walker for Credit Suisse
Bank.
Also in attendance were
Banner - Sabey attorney Kevin
Bay with YMC attorneys Rick
Stacey and Jeff McConnell.
T.J. Angstman, attorney for
Tamarack CEO Jean - Pierre
Boespflug, was in the last car.
Testimony was heard
Monday morning and early af-
ternoon from contractors owed
money for work at the resort,
including YMC of Meridian.
YMC worked on heating and
air - conditioning, mechanical
Piping and plumbing at Village
Plaza.
Testimony was largely estab-
lishing when contracts for the
project were signed and when
the company began working at
the resort.
The trial took Tuesday off
for Election Day and resumed
Wednesday.
The schedule for testimony
this week includes: MHTN
Architects of Salt Lake City, Oz
Architecture of Boulder, Colo.,
Scott Hedrick Construction
of Boise, and Inland Crane of
Boise.
The trial will recess at the
end of the week and pick up
aaain Nnv 15 -18.
Idaho company offers $40 million for Tamarack
Green Valley
Holdings has not
discussed bid with
Credit Suisse,
Boespflug
BY MICHAEL WELLS
The Star -News
A new Idaho company
threw its hat in the ring to
buy the bankrupt. Tamarack
Resort at a press conference
in Boise on Monday.
Green Valley Holdings,
of Eagle, handed over a $40
million bid for the resort that
owes more than $420 million
to creditors, Co- President
Rod Givens said. The com-
pany hopes to close the sale
by March 15.
The founders of the com-
pany have not discussed the
bid in detail to Credit Suisse
Bank, who is owed more than
$300 million on a 2006 syndi-
cated loan.
Nor have they discussed
the bid in detail with resort
CEO Jean - Pierre Boespflug,
the Idaho Land Board, or the
Tamarack Municipal Asso-
ciation, co- founder Matthew
Hutcheson said.
"Green ValleyHoldings was
established by other Idahoans
and me for the purpose of pur-
chasing the resort, completing
unfinished construction
projects, and shepherding
Tamarack back to financial
health," Hutcheson said at
Monday's press conference.
"With our purchase of
Tamarack, we will restore
much - needed jobs in Valley
County and long -term viabil-
ity to the resort," Hutcheson
said.
The company would offer
$40 million in cash at closing
from "committed" sources
that Hutcheson would not
release this week. The com-
pany would reveal its financial
source for the transaction
later, he said.
Green Valley Holdings also
does not know at this time
what unfinished projects atthe
resort it would complete.
"We are respectful of the
visionof the Tamarack found-
ers and plan on using that
vision as a touchstone as we
Proceed," Hutcheson said.
If the company is success.
ful in its bid to buy the resort,
it would speak with former
Tamarack employees, but no
Process to rehire employees
laid off by the resort has been
determined, he said.
"We intend Tamarack to
be a generational project, one
that will remain a part of the
face of this state," Hutcheson
said. "We want Idaho's chil-
dren, grandchildren, and
great grandchildren to enjoy
and play a part in the resort's
long -term success."
Green Valley Holdings,
which organized in Idaho in
August, is comprised of Mat-
thew and Annette Hutcheson
of Eagle, Larry Givens, Scott
Givens and Rod Givens of Giv-
ens Construction of Boise and
McCall, and Vice Presidents
Alison Hawes and Michelle
Spurgeon, both real estate
agents at Prudential Idaho
Realty in Star.
Matthew Hutcheson man-
ages retirement accounts and
trust funds.
Tamarack Resort
group to open
ski runs Dec. 20
Bankruptcy judge approves
plan by homeowners assoc.
BY MICHAEL WELLS
The Star -News
Skiing at Tamarack Resort will start on Dec. 20 following
permission granted on Monday by a judge in Boise.
The Tamarack Municipal Association plans to open up 33
ski runs at the resort. The Wildwood ski lift will not be in op-
eration, although skiers will be allowed to use the ungroomed
runs normally served by the lift.
The ski area will be open every day from Dec. 20 through
Jan. 2, after which the lifts will be operated Thursdays through
Sundays.
Adult season and family passes cost $199 per person. Daily
lift tickets for full mountain access will be $46 for adults and
$22 for youths.
U.S. Bankruptcy Judge Terry Myers agreed with everyone
in the federal courtroom in Boise on Monday that a ski season
at Tamarack was a good idea for all parties involved.
The announcement of the decision caused a surge in season -
pass buying, TMA Director Tim Flaherty said.
Through last week, the TMA had sold 260 season passes
with the promise of if the season was cancelled they would
be refunded.
After Monday's announcement, 60 passes were gold almost
immediately. Through Tuesday the homeowner's group was''
looking forward to surpassing 400 passes for the season, Fla-
herty said.
See OPENING, Page A-2
FYI 9'ie
Opening:Tarnarack
Resort group to open
ski runs Dec. 20
(Continued from Page A -1)
There was no opposition
to the homeowners' plan to
operate a ski hill this winter.
But Tamarack Resort's larg-
est creditor, Credit Suisse,
kept Myers from making his
decision until the end of the
day Monday until it received
assurances the TMA was ad-
equately insured.
"We are focused on offering
than 70 employees working at
the resort, he said.
"We stayed focused on our
goal," Flaherty said. "It's not
the answer to everybody's
problem but it certainly
helps generating jobs in the
valley."
The Seven Devils Pub and
The Canoe Grill will reopen
in the base area's temporary
buildings, and Fibonacci's
xvill ranlnce Morels as the res-
Credit Suisse asks Boespflug:
`Where's the money ?'
Bank wants judge to allow
resort to be sold in pieces
BY MICHAEL WELLS
The Star -News
Attorneys for Credit Suisse pressed its case in federal court
in Boise on Monday that Tamarack Resort should be sold in
pieces rather than be offered for sale in one piece.
Tamarack CEO and principal owner Jean - Pierre Boespflug
was grilled on the witness stand at a bankruptcy hearing before
U.S. Bankruptcy Judge Terry Myers.
Myers did not rule on Credit Suisse's request when the hear-
ing ended Tuesday, but will issue a written decision later.
Credit Suisse Attorney Randall Peterman tried to show
Tamarack cannot pay its bills without an influx of outside
money.
Peterman claimed time is running out on the resort's
depleted cash reserves and obligations will soon come due
that Boespflug and his one employee, Dave Papiez, will not
be able to pay.
"The buyers who are in the
room tonight would not be
here if the golf course went
brown."
J.P. Boespflug
Boespflug Blames Bank
Boespflug fought back from the stand pointing out that
many of the predicaments thatthe resortfound itself in today
were a result of actions by Credit Suisse.
The bank seeks $240 million from a 2006 loan of $250 mil-
lion to the resort to begin the unfinished Village Plaza condo
and retail complex.
Peterman asked Boespflug why Tamarack used $38,000
in cash in the spring to pay West Mountain Golf, which is
owned by Meridian financier Randy Hopkins and Tamarack
Resort. West Mountain Golf operates the Osprey Meadows
golf course at the resort.
"The buyers who are in the room tonight would not be
here if the golf course went brown," Boespflug said.
He noted that the resort was a minority owner in the golf
course and the payment was obligated by contact. Keeping
the golf course maintained would help gain the highest price
for the resort should it sell.
The request by Credit Suisse to sell the resort in pieces
rather than as a whole caused "a panic" among potential buy-
ers, Boespflug said. "That froze the market entirely."
The Tamarack Municipal Association made the bulk of a
$90,000 premium payment to keep insurance current, leaving
about $30,000forthe resort to pickup whenthe premiums come
due later. Peterman claimed the resort did not have enough
cash to make the premium payments and would require a
loan from Boespflug.
IY/�4110
Above, Brian
Amundson
drives a snow
trail groomer
packing down
the ski runs
at Tamarack
Resort Satur-
day in advance
of Monday's
opening. At
right, Tama-
rack Municipal
Association ski
hill employees
Braden Bell,
left, and Dave
Bell fasten chair
cushions to the
Tamarack Ex-
press ski lift.
Star -News Photos by
Michael Wells
Ex- Tamarack Resort employees
rejoin to open ski area
Tamarack Municipal Association Tim Flaherty has put
together a small team of leaders he believes will enable the
homeowner's group to have a break -even ski season at the
Tamarack Resort ski area.
The team Flaherty put together include former Tama-
rack Resort ski hill employees. Flaherty will serve as
general manager.
• Mike Salyer: Ski lifts maintenance and operations
manager. Salyer held the same job the last time the resort
was open.
• Brian Amundson: Snow making, slopes and trails
manager.
See EMPLOYEES, Page A -10
Tamarack homeowners scramble to get
ski area ready for Monday opening
BY MICHAEL WELLS
The Star -News
Opening the closed Tamarack Resort ski hill was a
three - dimensional chess game that did not present a
clear path, Tamarack Municipal Association Director
Tim Flaherty said.
The homeowners group plans to open 33 ski runs
at the bankrupt resort Monday, a process that began
in March and was more difficult than it had to be,
Flaherty said.
The marketingplan had to "Somebody
tell everyone their intention
to reopen the ski hill, but also decided to take
had to be open -ended if they all the pieces of
failed to convince the state
land board, Credit Suisse the puzzle, put
Bank and U.S. Bankruptcy them in a box
Judge Terry Myers.
"There are always going and shake them
to be some hidden alligators "
lurking under the water," Up.
Flaherty said. So the TMA
built in $72,000 in contingen- —Tim Flaherty
cy funds from its $250,000
reserve funds dedicated to reopening the mountain,
he said.
The lurking alligators were many. Paying $80,000
toward the state land lease was one unexpected cost,
and insurance premiums cost the homeowner's group
about $83,000.
"Nobody has a crystal clear vision of how this was
going to work out," he said.
The state of the ski area following its closing in
March 2009 was not pristine, but neither was it left to
rot, Flaherty said.
"Somebody decided to take all the pieces of the puzzle,
put them in a box and shake them up," Flaherty said.
Poor Job By Operator
The Douglas Wilson Cos., which operated the ski
area at the time of its closing, did a poor job putting
the facility into mothballs, Flaherty said.
See TAMARACK, Page A-10
Tamarack: homeowners scramble to
get ski area ready for Monday opening
(Continued from Page A -1)
"Everything needed to be
cleaned and repaired before it
was moved back to its primary
location," he said.
Snow grooming machines
were left on the mountain and
some became infested with field
mice, Flaherty said. Ski lift
brakes had rust build -up that had
to be scrubbed clean.
"It could cost $1 million to
fix the chair lifts if something
wasn't done now," Flaherty said.
The TMA spent $10,000 and Credit
Suisse, Tamarack Resort's larg-
est creditor inboth itsforeclosure
and bankruptcy case, paid $15,000
to fix the chairlifts that were
deteriorating, he said.
Commercial restaurant ovens
were removed from Morels res-
taurant in the lodge uncleaned
and placed in the temporary
domes near the base area, Fla-
herty said.
Tables and seat cushions from
booths at Morels were removed
and stored when they should
have been preserved in place, he
said. A three- person crew spent
a month cleaning the restaurant
and bar areas in the domes and
lodge, he said.
Snow removal at the domes
was delayed and large chunks of
ice ripped the lining on one dome,
Flaherty said. There was also
a water line break that flooded
the domes.
Snow making machines,
which cost about $65,000 each,
were left out in the sun.
At times, workers for the
TMA would corner pack rats
while working to get the ski hill
ready to reopen. The rats would
hiss, not wanting to give up their
new -found homes, he said.
Everything has been cleaned,
repaired, recertified and ready
for opening, Flaherty said.
In all, the TMA spent $250,000
from its reserve funds to prepare
the ski hill for its planned open-
Employees
(Continued from Page A -1)
His co- workers call him
"Smoothie" for his trail groom-
ing and snow making ability. He
is a former Tamarack Resort
employee.
• Mike Lancaster: Skipatrol
director and safety technician, a
job he held with the resort.
Lancaster is also a volunteer
paramedic with McCall Fire &
EMS. He worked five years on
the Tamarack Resort ski hill
before he went to another ski
area for a year.
Flaherty said he would not
have attempted to reopen the
ski hill without these three
managers.
• Mike Drury: Controllerfor
ing Monday.
Flaherty's budget for this
year's operation is about $1.5
million and he hopes to break
even. The TMA surpassed 500
season pass sales this week. The
passes will sell for $199 until
Christmas Eve, when they will
go up to $299.
What took Tamarack Resort
365 employees to do, Flaherty
hopes to accomplish with about
65 employees this winter. The
payroll budget is set at about
$516,000.
The original plan for Tama-
rack Resort was that the TMA
would take over the resort op-
eration once the developers had
built 90 percent of the resort.
"We're just operating it
sooner than normal," Flaherty
said.
s54&,�
Amundson Lancaster
the ski operation, Drury was
the former resort controller
and controller during Douglas
Wilson's tenure operating the
resort.
Flaherty hired him as soon
as Douglas Wilson departed
after closing the ski area in
March 2009.
With Drury, the TMA can eas-
ily access all the skier history at
the resort, Flaherty said.
Salyer Flaherty
• Wolfe Ashcraft: Former
owner of Pro Peak Sports, will
manage the rental, retail and in-
structors in the sports dome.
Restaurants open this win-
ter include: The Canoe Grill,
Hot Shots Bistro and Seven
Devils Pub, located in the
domes near the base area, and
Fibonacci's, which replaces
Morels as the restaurant in
the resort's lodge.
Photo for The Star -News by Matt Moehr
`THERE HE IS!" - Regan Curtin, 2, and her mother Sarah
Curtin from McCall spot Santa Claus on Saturday morning at
Ponderosa State Park during the "Trek to the North Pole." The
event was sponsored by the McCall Outdoor Science School,
Ponderosa Park and St. Luke McCall's Center for Health
Promotion.
`(AW
A
Star -News Photo by Michael Wells Vi
A chair lift takes skiers to the top of the ski runs.
221 MILI IL
EM11 1 ' r ,
Tamarack Resort reopens for skiing after taking a season off
BY MICHAEL WELLS
The Star-News
Tim Flaherty looked around the base of
Tamarack Resort's ski runs on Monday with
a look of relief.
"Wow, we're here, we've done it," said
Flaherty, the head of the homeowners group
that opened the ski area for the first time in
nearly two years.
"Having two weeks to open a resort isn't
much time, but it worked like a fine oiled
machine," he said. "It went unbelievably
smooth."
About 900 skiers hit the slopes at Tama-
rack Monday while falling snow ensured
fresh powder on the 33 ski runs the hom-
eowners reopened.
"It was a really fun day," Flaherty said.
"It was a great day to see life come back to
the resort."
Others at the resort for the openingagreed
with Flaherty's sentiments.
"I've been waiting two years for this day,"
said Tamarack homeowner Nelson Betty of
Seattle. "We missed it last winter a whole
bunch."
"We got giddy in the car coming here,"
said Dorene Maccoy of Boise who also owns
a cabin in Cascade. "This is amazing, this
is so cool."
Both Betty and Maccoy were regular
skiers at Tamarack when it was open from
the 2004 -05 ski season through the 2008 -09
season.
Chris Fisher of Boise owns a cabin in Cas-
cade and had skied at Tamarack once before
the resort's financial troubles. He could not
pass up the low season pass rates.
"I liked the deal this year," Fisher said
noting he bought a family pass. "I think it
will really help the economy a lot and I love
it because I really like to come here."
Boost to the Economy
The boost to the local economy was on the
minds of two local mayors and Valley County
Commissioner Chair Jerry Winkle who also
attended the reopening Monday.
"We have gone through judges, we have
gone through trials, and it took the people of
Tamarack to get it going," Winkle said.
Star -News Photo by Michael Welfs
The resort's base area was bustling again after nearly two
years of quiet.
Star -News Photo by Michael Wells
Scott Sherrow, Nelson Betty, Kris Betty and Elliot Sherrow, all of Boise, celebrate
Monday's reopening.
Bank wants to
blockTamarack
Resort sale
Credit Suisse says Green Valley
Holdings offer `too little, too late'
BY MICHAEL WELLS
The Star -News
Tamarack Resort's largest creditor does not like the bid
made by preferred buyer Green Valley Holdings of Eagle,
court documents said.
Credit Suisse is opposing Green Valley Holdings bid of $40
million for the cash - strapped resort that owes more than $426
million to creditors.
Credit Suisse is owed "...a sale process outside
more than $300 million
from a 2006 syndicated of (reorganization) would
loan that was to build be insulated from the
Village Plaza in the
center of the resort. The influence of (Jean - Pierre
development is about 60 fl
BoeS U
percent complete, but Boespflug) on whom the
no construction has oc- agent and other creditors
curred there in almost
three years. have no confidence."
Attorneys for the — Credit Suisse court filing
Swiss bank said the bid
by Green Valley Holdings is "not in the best interest of the
debtor's estate and creditors."
Credit Suisse made the statement in court documents filed to
fight a Tamarack request to use about $101,000 in cash to continue
running the resort so it can be sold as a whole.
That request will be argued in U.S. Bankruptcy Judge Terry
Myers Boise courtroom Friday.
Credit Suisse wants Myers to place the resort into liquidation
or dismiss the bankruptcy case so the resort can be sold off in
pieces.
Myers has not issued a ruling on Credit Suisse's request to liq-
uidate the resort, but heard the arguments in early December.
"A sale of (Tamarack Resort's) assets can be achieved either in
(liquidation) or pursuant to the pending state court foreclosure
action," court documents filed by Credit Suisse said.
"In either case, a sale process outside of (reorganization)
would be insulated from the influence of (Jean- Pierre Boespflug)
in whom the agent and other creditors have no confidence," the
filing said.
Tamarack
(Continued from Page A -1)
The bank called the recent
letter of intent to buy the
resortfrom Green Valley Hold-
ings to Boespflug "the latest
in (Boespflug's) long line of
actions that are too little and
too late."
The court filing also called
Tamarack's request for
$101,000 "another emergency
of its own creation."
The resort is asking to
use $34,500 it has on hand
and another $17,100 from op-
erator agreements, $7,500from
merchandise sales, $28,600 in
refunds and deposits from the
Idaho Department of Lands
and $13,675 in refunds and
deposits from Idaho Power.
The money would be used to
pay bills at the resort until a
sale can be finalized..
"Hopefully this decision will be reconsidered before it dooms Valley County from many jobs."
— Jean - Pierre Boespflug
Federal judge throws Tamarack sale into doubt
Future of resort now in the hands of state judge
BY MICHAEL WELLS
The Star -News
A federal judge on Tuesday threw
out the Tamarack Resort bankruptcy
case, placing a possible sale of the
resort as a whole in jeopardy.
U.S. Bankruptcy Judge Terry My-
ers issued an order verbally in a Boise
courtroom agreeing with Credit Suisse
Bank, which wanted the resort to be
soldoff piecemeal or the entire matter
dismissed.
The case now reverts to the foreclo-
sure action in state court with Fourth
District Judge Patrick Owen.
The foreclosure case began almost
three years ago, in March 2008, by
Credit Suisse Bank seeking to fore-
close on the property when the resort
defaulted on a $250 million syndicated
loan from 2006.
Tamarack Resort will ask Myers to
reconsider his decision.
"Tamarack management, in co-
operation with preferred purchaser
Green Valley Holdings LLC is explor-
ing a variety of options for moving
forward with the sale of the Resort,
including a request for reconsid-
eration by Judge Myers," Tamarack
principal owner Jean - Pierre Boespflug
said Tuesday.
"Unless we obtain reconsideration
by Judge Myers, the chance of selling
Tamarack will diminish substantially
since in state court the sale has to be
parcel by parcel without the possibil-
ity to keep the master development
whole," Boespflug said.
Ruling A Surprise
The ruling came as a surprise to
Boespflug, who said the ruling would
further hurt the local economy.
"Tamarack is very surprised by
this ruling, one which is neither to
the benefit of the creditors, the estate
or local jobs," said Boespflug. "Hope-
fully this decision will be reconsidered
before it dooms Valley County from
many jobs."
The ruling stops Green Valley Hold-
ings' attempt to purchase the resort for
$40 million through the bankruptcy
process though the Eagle company
still wants to buy the resort.
Ft.
More than 1,600 skiers and snowboarders have purchased
season passes for skiing at Tamarack Resort, far exceeding the
resort's goal of 1,000 passes.
The resort continues to attract sizeable crowds for its Thurs-
day through Sunday and holiday operations that began Dec. 20,
said Tim Flaherty, executive director of the Tamarack Municipal
Association.
The TMA is the association of resort homeowners that is
running the ski lifts this winter. Specific numbers on skiers visits
were not available.
The most passes were purchased by Patrick Barnett of
Nezperce, who bought 20 season passes for his friends and
family members.
"Despite the robust ticket sales, Tamarack still offers virtu-
ally no lift lines, largely in part to available capacity, with three
high -speed quad lifts accessing 33 trails and 900 acres of skiable
terrain," Flaherty said.
A total of 65 people have been hired for ski operations with
an additional 35 people involved in contract operations such as
food service, he said.
Tamarack Resort ski area breaks even
Homeowner -run operation
draws 30,000 skiers
BY MICHAEL WELLS
The Star -News
The Tamarack Municipal Association broke even
operating the Tamarack Resort ski hill this season,
association director Tim Flaherty said.
The resort drew 30,000 skiers between Dec. 20
and April 3, which was enough to break even on the
association's $1.4 million budget, Flaherty said.
"We didn't make money and we didn't lose money,"
he said.
The homeowners spent $424,000 on payrollfor about
100 employees working at the resort this season.
"We couldn't have asked for anything better," Fla-
herty said. "The snow conditions were spectacular."
The resort received about 30 feet of snow on the
summit, 25 feet at mid - mountain and 16 feet at the
base during the season, Flaherty said. The resort also
made snow near the base of the hill.
The only time the weather did not cooperate was
during the Martin Luther King Jr. holiday weekend
in January when unseasonably warm temperatures
made for less than ideal skiing conditions, he said.
Future of Tamarack
Resort still uncertain
BY MICHAEL WELLS
The Star -News
The fate of Tamarack Re
sort southwest of Donnelly
is still up in the air as pro-
spective buyers try to wor k
through a legal foreclosure
maze that still awaits a state
judge's final solution.
Fourth District Court
Judge Patrick Owen is still
working on determining
which lien holders have
valid claims and where they
should be placed in line when
or if the resort is sold.
Final arguments for the
three - year -old foreclosure
case brought by the Swiss
bank Credit Suisse were de-
livered to Owen in March.
There is no timetable for
a judgment in the case by
Owen, Owen'scourtclerkAn-
gela Hunt, said this week.
Tamarack Resort opened
in December 2004 as a four
season resort.
The area began having
serious financial trouble in
December2007 when itfailed
to make an interest payment
on a $250 million loan from
Credit Suisse.
A financing deal through
Societe Generale, a French
bank, fell through in Janu-
ary 2008 due to a $7 billion
trading scandal.
That led principal owners
Jean - Pierre Boespflug and
Alfredo Miguel Afif to at-
tempt to seek the protection
of bankruptcy court. Credit
Suisse successfully fought
those efforts and filed a fore-
closure suit in March 2008.
The resort's fate was
Played out in Owen's court -
room until December 2009,
when Banc of America Leas-
ing and Capital forced the
case into federal bankruptcy
court, where it remained for
about a year.
That case was dismissed
in December2010, which sent
the decision for the resort's
fate back to Owen in the
foreclosure case.
It is not known if the
resort can be sold as one
Piece or in numerous pieces
when the foreclosure case
concludes, likely sometime
this year.
"Tamarack Resort man-
agement continues to work
with prospective buyers on
the acquisition of the resort
and are optimistic about the
progress toward this end,"
Boespflug said Tuesday
through a statement issued
by resort controller and asset
manager David Papiez.
The resort is working to
open the Osprey Meadows
Golf Course and the Tama-
rack Zipline Canopy Tour
this summer, although the
plans are not finalized, he
said.
The resort is also work-
ing on lift- served downhill
mountain biking, he said.
Green Valley Holdings,
of Eagle, which had plans
to buy the resort by March,
did not respond to requests
for an interview by The
Star -News.
"We had
quite a few
new people
here
checking
the place
out"
Owen says some owed
money will never be paid
BY MICHAEL WELLS
The Star -News
A state judge has said it is likely
many contractors who were left
unpaid by Tamarack Resort near
Donnelly will never see a dime of
what they are owed.
"As apractical matter, because the
property value is almost certainly
much less than the total of claims,
it is unlikely that any lien claimant
whose interest is ...subordinate to
Credit Suisse will receive any part
of the foreclosure proceeds," Fourth
District Patrick Owen said in a 99-
page ruling.
"By the same
token, it is more
likely that those
claimants whose
interests are .. .
superior to the
Credit Suisse
mortgages will
have their claims
paid from the fore- Judge Patrick
closure proceeds," Owen
Owen said.
Credit Suisse Attorney Eliza-
beth Walker said she is still
reviewing the ruling, issued last
week, and had no comment at this
time. Credit Suisse is owed more
than $300 million by Tamarack Re-
sort in principal and interest from
a May 2006 loan for $250 million.
If a sale of Tamarack Resort
Plaza and another $465,000 for Owen will schedule an-
pays off all the lien claimants
ahead of Credit Suisse in the case,
the Swiss bank will likely take
whatever remains.
That leaves companies with
claims behind the bank without
payment if the resort is sold.
work done on the Lake wing project at the resort.
A lien claim by Tri -State
Electric, of Boise, was also
declared to be in front of
Credit Suisse. Tri -State is
owed about $1.2 million by
Tamarack Resort
other hearing to discuss
costs, interest and fees and
other matters pertaining to
the resort foreclosure case,
but no date had been set this
week.
Bannner -Sabe Gets About $73,000 in claims
y filed by Oz Architecture of
$5.5 Million Boulder, Colo., an architec-
Tamarack Resort general con ture sub t t h' d
tractor Banner -Sabey of Seattle
would receive about $5.5 million if
the resort is sold, under the ruling
by Owens.
con rac or ire
by MHTN, were also deter-
mined to be ahead of Credit
Suisse.
Other companies that
filed liens against the resort
See TAMARACK, Page 2
Tamarack
billion non - related trading
ruled behind Credit Suisse,
including Teufel Nursery of
lawsuit against Tamarack
scandal that affected the
Resort owners —Page 2
(Continued from Page 1)
French bank.
Boespflug and Miguel
Teufel's original claim of
Thejudgedeterminedthe
then filedforbankruptcypro-
/
resort's general contractor's
liens were ahead of Credit
tection in February 2008. The
ered the amount to about
Suisse mortgages, which
federal bankruptcy case was
challenged by Credit Suisse,
means any money from a
sale of the resort would go to
who also filed a foreclosure
Suisse mortgages.
Banner -Sabey before Credit
case against the resort in
March 2008.
Suisse.
Owen alsofound liens filed
Boespflug and Miguel lost
_
by resort architect MHTN of
their bankruptcy case in the
Salt Lake City to be ahead of
fall of 2008. In December
• •
Judge outlines winners losers
Credit Suisse.
The firm designed the
2009, Banc of America Leas -
for & Capital successfully
forced the resort back into
�
Lodge at Osprey Meadows,
December 2007.
the Arling Center, Village
bankruptcy court where the
among Tamarack Resort creditors
Plaza and the Lake Wing.
The firm is due about $1
case remained for about a
year until it was dismissed
Miguel sought a new loan
million for work on Village
in January.
Owen says some owed
money will never be paid
BY MICHAEL WELLS
The Star -News
A state judge has said it is likely
many contractors who were left
unpaid by Tamarack Resort near
Donnelly will never see a dime of
what they are owed.
"As apractical matter, because the
property value is almost certainly
much less than the total of claims,
it is unlikely that any lien claimant
whose interest is ...subordinate to
Credit Suisse will receive any part
of the foreclosure proceeds," Fourth
District Patrick Owen said in a 99-
page ruling.
"By the same
token, it is more
likely that those
claimants whose
interests are .. .
superior to the
Credit Suisse
mortgages will
have their claims
paid from the fore- Judge Patrick
closure proceeds," Owen
Owen said.
Credit Suisse Attorney Eliza-
beth Walker said she is still
reviewing the ruling, issued last
week, and had no comment at this
time. Credit Suisse is owed more
than $300 million by Tamarack Re-
sort in principal and interest from
a May 2006 loan for $250 million.
If a sale of Tamarack Resort
Plaza and another $465,000 for Owen will schedule an-
pays off all the lien claimants
ahead of Credit Suisse in the case,
the Swiss bank will likely take
whatever remains.
That leaves companies with
claims behind the bank without
payment if the resort is sold.
work done on the Lake wing project at the resort.
A lien claim by Tri -State
Electric, of Boise, was also
declared to be in front of
Credit Suisse. Tri -State is
owed about $1.2 million by
Tamarack Resort
other hearing to discuss
costs, interest and fees and
other matters pertaining to
the resort foreclosure case,
but no date had been set this
week.
Bannner -Sabe Gets About $73,000 in claims
y filed by Oz Architecture of
$5.5 Million Boulder, Colo., an architec-
Tamarack Resort general con ture sub t t h' d
tractor Banner -Sabey of Seattle
would receive about $5.5 million if
the resort is sold, under the ruling
by Owens.
con rac or ire
by MHTN, were also deter-
mined to be ahead of Credit
Suisse.
Other companies that
filed liens against the resort
See TAMARACK, Page 2
for nonpayment that were
♦ Credit Suisse drops federal
ruled behind Credit Suisse,
including Teufel Nursery of
lawsuit against Tamarack
Beaverton, Ore., and YMC of
Resort owners —Page 2
Meridian.
Teufel's original claim of
about $565,000 was disputed
by Credit Suisse. Owen low -
ered the amount to about
$122,000, but also ruled the
liens were behind the Credit
Suisse mortgages.
YMC is owed about $1.5
million in work at the re-
sort.
Tamarack Resort began
having financial trouble
when it failed to make a $4.9
million interest payment
on the Credit Suisse loan in
December 2007.
Principal owners Jean -
Pierre Boespflug and Alfredo
Miguel sought a new loan
from a French bank, Societe
6 4A, r4A.A
Another suitor for Tamarack Resort
Boise - Denver partnership offers
$60 million for bankrupt resort
BY MICHAEL WELLS
The Star -News
A company from Boise and a company from Denver
have made ajoint offer of $60 million to purchase Tama-
rack Resort near Donnelly from Credit Suisse Bank.
G.C. Richards, 33, of Richards Organization, of
Boise, and CRF Construction and Remodeling of Den-
ver are the latest group to announce their intentions
of buying the financially troubled resort southwest
Tamarack
(Continued from Page A -1)
The company's Web site
said the company is a real
estate investment company
specializing in commercial
and residential construc-
tion, but that it does not hold
a real estate broker or mort-
gage broker licenses.
"We have an offer," Rich-
ards said. "We want to be
legitimate and show as much
as we can."
If the offer is accepted, the
$60 million would be financed
by unidentified investors.
Richards said he cannot
release the names of the
investors for the venture due
to a non - disclosure contract
he signed.
However, the bulk of the
funding would come through
investors his partner has
lined up, he said. CRF Con-
struction and Remodeling
would represent about 60
percent of the deal's funding
and Richards would finance
the other 40 percent, Rich-
ards said.
If the group's offer is
accepted, Richards said
the group would also have
another $100 million from
investors to finance the
restart of construction at
the resort.
Construction at the resort
stopped in the winter of 2008
with the resort's centerpiece
Village Plaza about 60 per-
cent completed.
"It is a real offer and our
lenders are reviewing the
offer," said Credit Suisse
spokesperson Steven Vames
of Donnelly.
The offer was given May 9 to Credit Suisse Bank,
who is owed more than $300 million by the resort from
a 2006 loan, Richards said in an interview.
The $60 million offer is $20 million more than a
previous offer by the Eagle company Green Valley
Holdings headed by Matthew Hutcheson.
"Our assessment (of Tamarack Resort) was around
$60 million," Richards said. "We want the project. We
want to own Tamarack and we want to bring back the
jobs and the fun to the resort."
Attempts to contact Donna Allison, Richards'
partner at CRF Construction and Remodeling, were
not successful.
See TAMARACK, Page A-12
in New York City, who had no
other comment on the offer.
Company Formed
in 2009
Richards Organization
formed in May 2009, accord-
ing to the Idaho Secretary
of State office records. The
organization was formed
to do financial consulting
work and work with groups
on real estate investment,
Richards said.
Richards, who is mar-
ried with one daughter, has
worked in commercial real
estate and securities and as
a financial advisor, he said.
The only other project his
company is working on is a
50- million gallon oil refinery
near Las Vegas.
"Our priority is Tama-
rack," Richards said noting
that he is working through
Credit Suisse and not
through Tamarack Resort
principal owner Jean - Pierre
Boespflug.
Boespflug could not be
reached for comment.
This is the third and larg-
est offer to be made public in
the three years since Credit
Suisse pursued foreclosure
of the resort in March 2008.
The other offers include
the Green Valley Holdings
offer and an offer in the
summer of 2010 from the
Pelorus Group of Salt Lake
City, which did not announce
the amount of its offer.
The Pelorus Group
bought The Arling Center,
Tamarack Resort's conven-
tion and meeting facilities,
in July 2010.
�/x
Tamarack partner
joins lawsuit against
Credit Suisse bank
Alfredo Miguel claims bank used
deception to loan $250 million
BY TOM GROTE
The Star -News
One of the founders of the financially troubled
Tamarack Resort hopes to join a lawsuit accus-
ing Credit Suisse bank with racketeering, fraud,
conspiracy and more.
Alfredo Miguel, who owns 27 percent of the
resort near Donnelly, has filed a motion to join a
federal court suit filed in January 2010 by a group
of property owners from four failedluxury resorts
that received large loans by Credit Suisse.
The earlier lawsuit was
brought by Tamarack property
owner L.J. Gibson and owners x,a
of the Yellowstone Club in Mon-
tana, Lake Las Vegas in Nevada,
and Ginn Sur Mer resort in the
Bahamas.
The lawsuit accuses Credit n.
Suisse of a "predatory" lending
scheme designed to force all four
resorts into foreclosure, and
acquire the pricey properties for Alfredo Miguel
pennies on the dollar.
Credit Suisse loaned Tamarack Resort $250
million in 2006 and resort developers defaulted
on the loan soon after.
Miguel claims he lost potential income of
$500 million as a result of the bad loan deal and
subsequent bankruptcy of Tamarack. He seeks
an unspecified amount of damages.
'Loan to Own' Program
In his filing against Credit Suisse, Miguel said
the bank's lending practices were in reality a "loan
to own" program.
"Once originated, the Credit Suisse loans
doomed the resorts to failure but in a manner that
was designed for Credit Suisse to ultimately own
the resorts or otherwise profit from their failure,"
the court filing said.
In January 2006, deal- makers approached Tam-
arack with "a slick promotional presentation, 'the
lawsuit said. "The overture was unusual because
(Credit Suisse) had pursued Tamarack; not the
other way around."
Soon after the $250 million loan was made,
Credit Suisse implemented what the lawsuit said
was "its plan to dominate and control Tamarack
as Credit Suisse soon made it clear to Tamarack's
management team that there was a new sheriff in
town and that core decisions would not be made
by management, but by Credit Suisse."
In late 2006andthrough2007 ,Tamarack's senior
management team complained to Credit Suisse
that the pace of phased development at the resort
could not proceed as the bank had demanded in
view of economic conditions.
"(Credit Suisse) rejected Tamarack's request
and instructed Tamarack to proceed with acceler-
ated development," Miguel's filing said.
When the resort's cash reserves ran low, the
bank went through what Miguel's filing called
"a sham receivership proceeding ... and later
bankruptcy, to shut down the resort, wipe out the
investment of Miguel and the property owners
and take complete ownership of the resort and its
assets - which it did, as planned."
Thenewfilings include an allegation that Credit
Suisse and Highland Capital called Miguel to a
meeting in Dallas in March of 2010 and told him
not to bring his lawyers.
Earlier, Miguel was told that he could pay
$200,000 to release him from a personal guarantee
that he had signed on the $250 million loan.
See LAWSUIT, Page 2
Lawsuit
(Continued from Page 1)
At the Dallas meeting,
he was pressed to instead
pay $1.2 million for the re-
lease, and was told Highland
Capital had a party who was
"close to the FBI and was
prepared to use `unorthodox
methods' to collect on the
guaranty," the filing said.
Miguel Target of
Lawsuit
Miguel, a resident of
Mexico, is the defendant in a
separate lawsuit filed in 2010
by two Seattle businessmen,
Jerry Barnett and Richard
Getty
Barnett and Getty sued
Miguel and his two sons for
$28.5 million for what they
say were false claims to lure
them into investing in three
Mexican companies.
They charged Miguel and
-his sons, Pepe Miguel and
Alfredo Miguel Jr. withrack-
eteering, fraud and breach
of contract in connection
with the investments, which
totaled $9.5 million.
However, Barnett and
Getty have riot been able to
find Miguel to personally
serve him with notice of
the suit.
Miguel resigned as chair -
manof TamarackResort last
September without giving a
reason.
Margo Flaherty, Miguel's
personal assistant at Tama-
rack, declined Monday to
answer questions about
Miguel's whereabouts.
\/alley Sets —17,11-1-7 nr 1—; -
"' ""l IIIIIIt1 OT I anlarack Resort —Ch alrITts
lank of merica #Iust provide 10 days notice before taking down two ifs
13Y MICHAEL WELLS
The Star -News
Banc of America Leasing & Capital will have ip provide a comprehensive work plan and 10 d
before they can begin removing two ski lifts they own at Tamarack Resort, Valle
Commissioners decided Tuesday. days nonce
Valley County
Cor?mmissioners heard an appeal from attorneys for Banc of
Planning &Zoning Commission's earlier conditions for a demolition�permi# ajthou the Malley County
language of the conditions gh they modified the
The county wants details on staging areas, timing of helicopter flights, access routes equipment i d
use tc woul get to the Buttercup and Nidwood ski lifts and 10 days notice -
A sign would be posted at the entrance to the resort and the Tamarack Municipal Association w ould
be notified 10 days in advance of any work being done on removing the lifts.
Commissioners also will require Banc of America to have $3 million in insurance instead of the P &Z's
original $1 million requirement.
Banc of America has a court order allowing it to retrieve the Buttercup; and Wldwood ski lifts fr om the
Tamarack Resort property due to the resort not making payments on the lifts for two years.
CondW6ns� Ca` 11,64 4 Vague
Banc of America appealed the approval of its own demolition permit because they fen the language in
the conditions set by the P &Z was vague, did not apply to what Banc of America planned to coo or gave
the Tamarack Municipal Association too much authority.
Zach Hiatt, Banc of America's attorney of the Seattle law firm Graham & Dunne, said that the TMA
was requiring a $4,000 application fee through the Tamarack Resort design review process, a 25-day
review process and architectural plans.
The homeowners' group waived 130 of the 175 conditions normally in place on any construction within
the resort, TMA attorney Stephen Lord said.
%-�`n,cvza��erC are ,.^..r�^:?ar!IV concerned aL?Ct?t `llfl•:en the 1*"o:'k z+5! +I -r Ur v
damage, where equipment would be staged and for maps detailing what roads would be used 3r1� r
. oad
removal. during
Chris Kirk, a TMA board member and design review coordinator, said Banc of America oniy needed to
show detailed maps showing where they would access the lift areas, timing for flights, and staging areas
for equipment_
CoM!?'?issioners decided Valley County i✓� Administrator Lynda Herrick would make the final
decision h disputes between the TMA and Banc of America. If either side disagreed with Herri '
decision they can appeal them back to the commission_ ck s
As of Tuesday, Banc of America has not entered into any sates agreement to sell the two lifts they
Wish to remove from the resort.
Tamarack Resort would still have five working ski lifts, the same five the TMA i,�A�+ 1 �+...:..� ._
the ski season. yy Pill
Tamarack suitor says the resort is
doomed unless jobs are created
Matthew Hutcheson says county needs to add 1, 500 jobs first
"Without an increase in 1,500 well - paying jobs first, the resort is doomed to continued
failure and destruction of the local economy. "— Matthew Hutcheson
BY MICHAEL WELLS
The Star -News
A man once interested in acquiring Tamarack Resort now says Valley County needs to create 1,500
sustainable jobs before any new owner of the resort could make it a success.
Matthew Hutcheson of Green Valley Holdings essentially bowed out on his bid
to acquire the financially - strapped resort southwest of Donnelly in a letter he
wrote to Gov. C.L. "Butch" Otter Sept. 19.
"Our economic analysis of Valley County informs us that if we or someone else
were
to acquire Tamarack before first creating approximately 1,500 permanent jobs
in Valley County, Tamarack will fail again," Hutcheson said in the letter to Otter.
Photo cou tc.y oCAP
Matthew Hutcheson
"We cannot in good faith pursue the acquisition of the resort believing (knowing) that without an
increase in 1,500 well - paying jobs first, the resort is doomed to continued failure and destruction of the
local economy," the letter said.
The county currently has about 730 unemployed workers and a 16.6 percent unemployment rate,
according to the Idaho Department of Labor's August report.
There are 3,680 people employed in Valley County, meaning Hutcheson's claim would require a 41
percent increase in employment.
In his letter, Hutcheson goes on to mention several possible economic development ideas he has for
-K.- c v -,cv-,il ,
n,2,
They include expanding the Cascade Airport, using the train tracks between Cascade and Horseshoe
Bend, developing geothermal energy and Cascade becoming a medical technology and scientific
research "hot- spot."
Hutcheson also said banks are unwilling to loan money for the resort until President Barack Obama is
no longer in office.
"As a nation we are on the precipice of a currency crisis, and many banks simply do not want to take
any action until there is a change in presidential administration; and hence, a change in monetary
policy," Hutcheson said in the letter.
Homeowners Disagree
The Tamarack Municipal Association did not agree with Hutcheson's assessment.
"Matthew Hutcheson and Green Valley Holdings is simply one more in a list of people that say it can't
be done," Tamarack Municipal Association Executive Director Tim Flaherty said Tuesday_
"The TMA has proven that Tamarack can be run successfully and without financial loss," Flaherty said.
The resort is not doomed, Flaherty said. The resort had more than 30,000 visitors last winter and 100
homes in the resort were purchased within the past 18 months, he said.
"We will start by providing the first 100 jobs by opening this winter," Flaherty said. "We strongly
disagree that the resort will fail and fail again until there are 1,500 jobs in the valley."
TMA management has also met with several parties interested in acquiring the resort and "is confident
that there will be a new owner," he said.
The TMA plans to operate the ski hill again this winter opening Dec. 15 and has sold more than 1,000
season passes so far, Flaherty said.
The resort will again operate four days out of the week, Thursday through Sunday, and on holidays
and bonus Mondays for Presidents Day and Martin Luther King, Jr. Day as it did last winter, Flaherty
said.
"We are currently ahead of projections and looking forward to providing a superior winter experience at
an affordable price," he said.
Calls and a -mailer to Hirtrhnenn frnm -rk— Cs.... w1....._
Aj
Tamarack Resort announces details of ski season
Tamarack Resort near McCall will begin operating four lifts, five days a week starting Thursday, Dec.
15.
The lifts will operate Thursdays through Sundays. The
resort will also be open during the Christmas and spring
breaks, and will have special Monday hours during the
Martin Luther King Jr. and Presidents Day holiday
weekends.
Tamarack will be operating all of the terrain and chairlifts,
including the Tamarack and Summit Express high -speed
quads.
The resort has also put additional fan guns into operation
to improve the snow surface.
Tamarack will also be doubling the size of its terrain park,
with numerous hips and rails to be built using portions of the
former Hells Canyon super pipe.
Several events and competitions are planned, and a
special park for younger or more inexperienced riders will be
available in the Discovery learning area.
Tamarack also plans to expand its Nordic trail system,
offering about 10 kilometers of groomed trails that will be
open seven days a week.
Star -News News Page—Lead Story Page l of 1
Tamarack opens for skiing today thanks to snow - making
Half -price lift tickets offered due to limited skiing
BY TOM GROTE
The Star-News
Not one to trust Mother Nature, Tamarack Resort near Donnelly has made enough of its own snow to
open a limited number of ski runs today.
The Tamarack Express high speed quad will be open and
offer the three -mile Waltz beginner run for skiing and
snowboarding.
If temperatures allow for additional snowmaking between
6,000 and 6,500 feet, the resort hopes to have the Showtime
run ready by Saturday as well as the Serenity run soon after
that.
The resort's beginner terrain will be open today from the
Discovery chair as well as the Mutton Buster magic carpet.
Because of the reduced terrain available, Tamarack has
cut daily lift tickets in half until full operations are open.
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Tarwarack Resort Sum Makuig ;utd slolw
t�r oouuug f f urager Bnarr.umnrdwu nuilce some
a jtratramts to one the snort- gtuvs near the base of
the uwmrtam last FntLn'
That means adult single -day passes will cost $25, down from the $49 full - priced ticket.
The ski area will be open Thursdays through Sunday each week plus every day from Christmas to
New Year's Day.
Community Day
Today is also Community Day, where every skier or boarder who brings a complete, non - perishable
meal for four or lightly -used coat or snow pants will receive a free lift ticket.
"There is no better way to celebrate Tamarack Resort's constructive role in the Idaho economy than by
offering our guests the ability to do something meaningful for those struggling in the tough economy,"
said Wolfe Ashcraft, marketing manager for the resort.
Snow - making started four weeks ago and 10 snow guns have been running around the clock as
temperatures permit, said Tim Flaherty, executive director of the Tamarack Municipal Association.
Temperatures must be 27 degrees or colder to make snow, Flaherty said.
Besides the ski runs, the Canoe Grill, Hot Shots Espresso and Pastry Bar, Seven Devils Pub and The
Morels Bar at the Lodge at Osprey Meadows will be open.
The resort's Nordic Center will remain closed until the area receives more snow.
Second Season
This will be the second season the homeowners association has operated the ski area since the
resort's owners went into bankruptcy. Last year's operations netted a profit of $1,119, Flaherty said.
The association received permission to operate the ski resort, located on 2,100 acres of state -owned
land, from the Idaho Department of Lands.
The association paid $100,000 of the $250,000 state lease payment, while Credit Suisse paid the
remaining $150,000.
The agreement was reached after the homeowners submitted a business plan that calls for spending
$1.6 million on operations. About 130 people are expected to be working at the resort this winter.
The Tamarack Municipal Association represents the owners of 389 privately owned residential
properties and multiple commercial properties in the resort.
http: / /www.mccallstamews.com/pages /lead _page.php 12/15/2011
Star -News News Page_Lead Story Page 1 of 1
Valley P &Z gives Tamarack extra five years to finish project
Original plan had called for completion by 2018
BY MICHAEL WELLS
The Star-News
Valley County Planning & Zoning Commissioners last week gave the owners of Tamarack Resort five
more years to complete the financially troubled project.
The project west of Donnelly will now have a 2023 deadline for completion instead of the 2018
completion originally envisioned.
Resort Controller David Papiez said it would be up to any future owners to come back to the P&Z with
changes to the plans.
The first two construction phases at the resort are mostly complete. Village Plaza, the centerpiece of
the resort, was a part of the second phase and it is about 50 percent completed, Papiez said.
A portion of the third phase of the plan was also started in 2008, ahead of schedule, when major
construction ceased, he said.
The 3,600 -acre resort leases about 2,100 acres from the state of Idaho at its location southwest of
Donnelly on West Mountain overlooking Lake Cascade.
Jean Pierre Boespflug and Alfredo Miguel Aff promised Valley County officials in 2003 that the five -
phase plan could be completed in 15 years.
The resort opened in 2004, but soon fell into financial trouble by the end of 2007 after the resort
defaults on a 2006 Credit Suisse loan for $250 million.
Construction at the resort was ahead of schedule when construction stopped due to serious financial
woes that twice placed the resort or its owners in bankruptcy court. Credit Suisse sued to foreclose on
the resort in state court, where the resort's fate ultimately will be decided.
Second Village Planned
The resort plans include two unique villages called Discovery and Heritage, each with their own unique
theme.
Discovery Village would includes Village Plaza, The Lodge at Osprey Meadow and the Arling
Conference Center. Construction on Heritage Village has not begun.
The resort owners also promised the region 813 full -time jobs and 660 part-time jobs. Prior to the
resort's closure in March 2009, there were 120 full -time employees and 230 part-time employees.
Resort construction also created 400 jobs.
Today 157 people work at the resort of which 110 are part-time, 27 full -time and 20 contract
employees, according to information submitted to the P &Z for the extension.
Originally, planners proposed 2,043 homes that included cabins, condominiums and custom homes.
To date, 412 homes have been built or sold.
The resort also planned 292,000 square -feet of commercial space. Currently, the resort has about
118,000 square -feet of commercial space of which, 68,000 is used for the ski operation, 3,300 square -
feet for real estate sales, about 18,000 square -feet for golf and about 15,000 square -feet in the Arling
Conference Center.
Other tasks left undone by the current Tamarack owners' financial woes include:
• Shuttle service betwen Boise and Valley County.
• About 1,800 garage parking spaces and 400 additional surface parking spaces.
200 units of employee housing. 36 units already completed were recently foreclosed and resold by a
bank.
additional ski runs. The resort currently has 42 ski runs.
• Seven additional ski lifts. Currently the resort has seven ski lifts, two of which are proposed to be
removed by Banc of America Leasing & Capital.
• Additional snow - making capacity. Currently the resort can make snow on 35 percent of its trails, but
plans were for 50 percent coverage.
A sledding park.
• A 6 -hole practice golf course.
• A tennis center.
http: / /www.mccallstarnews.com /pages /lead _page.php 12/15/2011
This week's front page stories Page 1 of 1
Tamarack homeowners raise $400,000 to buy Buttercup
chair lift
Lift was one of two slated to be dismantled by Rank of America
BY DAN GALLAGHER
for The Star -News
A group of homeowners at Tamarack Resort has purchased one of two chair lifts that had been slated
for dismantling by Bank of America.
The homeowners banded together to buy the Buttercup lift for $400,000, said Chris Kirk, president of
the homeowners group.
The lift provides ski -in, ski -out access to about 90 homes and some uncrowded beginner ski terrain.
The group, called Buttercup Lift LLC, paid $300,000 to Bank of America for the lift and collected
another $100,000 for maintenance, attorney's fees, insurance and other costs, said Kirk, the former
vice - president of construction and planning for Tamarack Resort.
The group is separate from the Tamarack Municipal Association, the homeowners group that has
operated the bankrupt resort's ski area for the past two winters.
TMA employees were working this week to move enough snow to allow the Buttercup lift to open for
skiing as soon as possible, Executive Director Tim Flaherty said.
"Buttercup gets people into the system and provides a nice, gentle return run when they want to get
back to their homes," Kirk said.
The chair serves the Whitewater Estates subdivision and provides an easy ski slope. It is about a half -
mile long and rises 331 feet.
The TMA considered buying the lift, but it was decided a separate group of investors would be more
appropriate, Flaherty said.
Wildwood Lift Still In Doubt
The fate of the lift still owned by Bank of America, the Wildwood lift, was still in doubt this week.
The high -speed quad on the north side of the resort climbs 1,650 feet and reaches runs such as the
resort's namesake, Tamarack.
Bank of America had lost more than $4 million on the two lifts when the owners of Tamarack Resort
stopped payments.
The bank received permission from a judge last year to dismantle the two lifts.
Last month, Bank of America was given permission by the Idaho Department of Lands to start
dismantling the Wildwood lift, Kirk said.
However, a demolition crew used a snow cat to pick up some materials and threatened to damage
some of the run while the ground was dry, he said. The operation has been suspended.
The group that bought the Buttercup lift offered Bank of America $2 million for the Wildwood lift, Kirk
said.
Bank of America turned down that offer, saying it wanted $3 million for Wildwood, he said.
Bank of America spokeswoman Shirley Norton in San Francisco said the corporation would have no
comment on the issue.
http: / /www.mccallstarnews .com/pages /flp_stories _page.php 1/19/2012
This week's front page stories
Judge issues warrant for Tamarack owner Miguel
Financial information sought about failed resort near Donnelly
"It's not criminal contempt, it's merely producing his.fnancial records."
-- Judge Michael McLaughlin
BY DAN GALLAGHER
for The Star-News
A judge last Thursday issued a warrant to prompt Mexican industrialist Alfredo Miguel Afif to turn over
financial information about his stake in Tamarack Resort.
Fourth District Judge Michael McLaughlin issued the ruling over a $4.9 million judgment
in favor Banc of America Leasing & Capital LLC.
s The ruling was against Tamarack Resort LLC, CEO Jean - Pierre Boespflug and Afif, the
{ former chairman of the board for the failed project.
McLaughlin issued a warrant last year against Boespflug, who has not been seen in
_ahirao N3,giA Idaho since May 2011.
For Boespflug, the judge set bail at $3.5 million and a fine of $5,000 a day.
For Afif, he set the same bail, but limited the fine to a total of $10,000 and offered to meet with him at
his next court date in Cascade on March 8.
"It's not criminal contempt," McLaughlin said. "It's merely producing his financial records."
Boespflug owns 50.6 percent of the company that built Tamarack Resort while Afif owns 27 percent.
Spoke With Attorneys
The judge met with Boise attorney Bradley Poole, representing Afif, and spoke by telephone to Brad
Goergen, the Seattle lawyer for Bank of America and its leasing arm.
Goergen said he has attempted to secure all of Afif's financial details from Poole and his firm. He
picked up about 40 pages recently, but that did not include all requested information.
Poole said those details come to his firm from Afifs accountant, Leonard De Los Prados of Rotorwing
Financial Services.
"He's the one who has the information or knows where it is," Poole said. "Following that chain of
information has been difficult for me, personally."
Tamarack's Internet site said the Mexican industrialist is head of a group of companies in textiles,
plastics, petrochemicals and advertising.
He also is the sole Mexican representative and distributor of helicopters and parts for them for Bell
Helicopters. His U.S. real estate investment companies own more than $120 million in assets.
Goergen agreed, saying one item of information he has gleaned is one of the U.S. companies Afif is
involved with posted a profit of $1.2 million in 2010-
"It's apparent Mr. Afif is a man of some means with property in the United States, so he's either locally
ignoring the authority of this court and ignoring his obligation under Idaho law, or he's trying to get his
assets beyond the reach of creditors, including my client," Goergen said.
Tougher Penalties Sought
Before McLaughlin's latest ruling, Goergen called for a daily fine of $5,000 for Afif, $3.5 million in bail
and incarceration.
Poole replied he had not heard of such a demand in a civil case.
In Boespflug's case, Goergen last year told McLaughlin that in late 2009, a domestic limited liability
company was formed in Nevada called Cerulean Holdings. Soon after, Boespflug transferred his Boise
home to Cerulean.
Goergen said lt had the hallmarks of a "fraudulent transfer," adding the deed was notarized by
someone from the Cook Islands, "a notorious haven for fraudulent asset - protection trusts."
Bank of America officials declined comment after last Thursday's hearing.
Miguel is the defendant in a separate lawsuit filed in 2010 by two Seattle businessmen, Jerry Barnett
and Richard Getty.
Barnett and Getty sued Miguel and his two sons for $28.5 million for what they say were false claims
to lure them into investing in three Mexican companies.
They charged Miguel and his sons, Pepe Miguel and Alfredo Miguel Jr. with racketeering, fraud and
breach of contract in connection with the investments, which totaled $9.5 million.
However, Barnett and Getty have not been able to find Miguel to personally serve him with notice of
the suit.
http://www.mccallstarnews.com/pages/fp_stories_page.php
Page 1 of 2
2/23/2012
This week's front page stories Page 2 of 2
Miguel resigned as chairman of Tamarack Resort in September 2010 without giving a reason.
http: / /www.mccallstamews .com/pages /fp_stories _page.php 2/23/2012
This week's front page stories
ramarack Resort partner turns over financial records
Miguel, others, owe $4.9 million for chairlift default
"We always intended to comply. We were not trying to hide anything. " - Leonard De Los
Prados
BY TOM GROTE
The Star-News
About 8,000 pages of personal financial information about Tamarack Resort partner Alfredo Miguel Af f
have been sent to Bank of America, which is seeking $4.9 million to pay off a lease on two chair lifts.
The last of the requested information was sent on Monday by Miguel's personal accountant, Leonard
De Los Prados of Beverly Hills, Calif.
The submission should satisfy attorneys for Bank of America and prevent the issuing of a civil warrant
for Miguel, De Los Prados said.
At a Feb. 16 hearing in Cascade, Fourth District Court Judge Michael McLaughlin said he would issue
a civil warrant for up to a $10,000 fine and set bail at $3.5 million for Miguel.
The warrant was requested after B of A attorneys said Miguel was slow to provide financial information
detailing his ability to pay the $4.9 million judgment.
"We always intended to comply with the request and we were late," De Los Prados said, citing
"holidays and the tax season" as reasons for the delay. "We were not Vying to hide anything."
A judgment issued in 2010 said Tamarack Resort owed B of A the money for unpaid leases for the
resort's Wildwood and Buttercup chair lifts.
The Buttercup lift was purchased by a group of Tamarack homeowners for $400,000 and reopened
last month. The Wildwood Ifft remains closed.
Brad Goergen, the Seattle lawyer for Bank of America, and bank spokesperson Shirley Norton
declined comment when asked if the information provided was satisfactory to them.
Joint Responsibility
Four people are jointly responsible for payment of the judgment, De Los Prados said.
They include Miguel, the former board chairman of Tamarack who owns 27 percent of the resort., and
CEO Jean - Pierre Boespflug, who owns 50.6 percent of the resort, but who has not been seen in Idaho
since May 2011.
Also responsible are Tamarack board members and minority owners Jerry Barnett and Richard Getty,
both of Gig Harbor, Wash. Both men filed for bankruptcy in 2010-
De Los Prados said Miguel had a negative net worth of $4.2 million in 2010.
He also said information formerly listed on Tamarack's Web site that said Miguel headed a variety of
companies was no longer valid.
However, De Los Prados declined to say if Miguel, a resident of Mexico, currently has any sources of
income.
Miguel invested $29.2 million of his personal money in Tamarack Resort, including $6 million spent in
1996 to repay all debts to local vendors left by a previous developer of the resort, which was then called
Valbois, De Los Prados said.
Miguel's investment is now "all gone" following the resort's 2008 declaration of bankruptcy and default
of a Credit Suisse Bank loan of $250 million, said De Los Prados, who is also treasurer of Tamarack
Resort.
"Mr. Miguel is a very reputable individual," De Los Prados said. "He has a great appreciation for the
area."
Miguel and his family still own a home at Tamarack and make frequent visits, the most recent being a
ski vacation in February, he said.
CORRECTIONS
A story in The Star -News last week about a lawsuit by Bank of America against Tamarack Resort
incorrectly said a civil warrant had been issued for Tamarack partner Alfredo Miguel Afif to produce
financial records.
Fourth District Judge Michael McLaughlin did not issue the warrant at the Feb. 16 hearing, but told
attorneys for Bank of America to draft the warrant and that he intended to sign it.
The same story incorrectly identified Leonard De Los Prados, Miguel's personal accountant. De Los
Prados is an independent CPA in Beverly Hill, Calif.
Page 1 of 1
http:// www.mccallstarnews.com/pages /fp_ stories _page.php 3/1/2012
Star -News News Page_ Announcements
Arling Center at Tamarack Resort reopens under new owners
The Arling Center, the convention and meeting facilities at Tamarack Resort, has reopened, and
bookings are now being taken for weddings, business meetings and family reunions.
The center reopened after Gateway Capital Partners of Salt Lake City acquired the complex in a
trustee sale on March 6.
The center had previously been owned by The Pelorus Group, also of Salt Lake City, which purchased
the foreclosed property from Bank of America in 2010 for $975,000.
Gateway Capital Partners loaned The Pelorus Group $1.5 million when it purchased the property, but
the owners defaulted on the loan.
"The Arling Center is located in the heart of Tamarack Resort," said Cyndi Bonetti of Valet Vacation
Rentals in Donnelly, which has been hired to manage the center.
"Meetings and wedding guests have the ideal setting to extend their stay with the recreational
amenities afforded by the resort." Bonetti said,
A total of 14,641 square feet of space is contained in The Arling Center, including:
• The Grange, which has banquet seating for 200 on the main level with two additional meeting rooms
located on the lower level to accommodate groups of 55 each.
• The School House, with seating up to 45 people per room.
• The Chapel, which can hold up to 140 people for weddings, memorial and religious services.
The complex is named after two former Valley County communities, Arling and Center, which were
flooded when Lake Cascade was filled in 1948 after the completion of Cascade Dam.
"The close proximity of The Lodge at Osprey Meadows to The Arling Center allow guest luxury lodging
accommodations ranging in size from hotel rooms through three - bedroom condominiums," Bonetti said.
For information, go to www.valetvar-ationrentals.com or call 325 -1009. For event planning, call Margo
Flaherty at 271 -6150.
Page 1 of 1
http: / /www.mccallstarnews.com /pages /announcements _page.php 3/15/2012
The Star News Groups Page
Tamarack to host Powder for Paws Day Saturday
Tamarack Resort will host Powder for Paws on Saturday to rABOUT TOWN
benefit MCPAWS Regional Animal Shelter.
Adoptable dogs will be at the ski area in the morning with
MCPAWS staff and volunteers to meet with skiers and
collect monetary donations for the shelter.
Tamarack Resort will also have locations around the resort
accepting donations. Tamarack will match up to $500 in
donations.
"The Tamarack Municipal Association believes in being an
active part of the community in which we do business," said
Wolfe Ashcraft, marketing manager for Tamarack Resort .
"Based on the success of our opening day food drive
which raised several thousand pounds of food for local
charities, we felt this would be a great opportunity to
showcase all of the hard work MCPAWS does for our
community and raise some funds to help the animals,"
Ashcraft said.
Since 2002, nearly 6,000 homeless, surrendered and lost
animals have found their way to MCPAWS Regional Animal
Shelter. To learn more visit www,mcpaws,org,
The Tamarack Municipal Association is the master
property owners association at Tamarack Resort
representing the owners of 369 private residential properties
and 54 residential and multiple commercial properties owned
by Tamarack Resort, LLC-
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Page 1 of 1
http: / /www.mccallstamews.com/pages /groups _page.php 3/22/2012
This week's front page stories Page 1 of 1
Indicted Tamarack Resort investor may have violated release conditions
Matthew Hutcheson had offered $40 million to buy bankrupt resort
Federal prosecutors on Monday asked a judge to determine whether recently indicted Tamarack
investor Matthew Hutcheson has already violated his release conditions, according to published reports.
A Boise federal grand jury on April 10 handed down a 31 -count indictment charging
Hutcheson of Eagle with wire fraud and theft from two employee pension plans. Hutcheson
made a failed $40 million offer to buy Tamarack in 2010.
- At his April 12 arraignment, U.S. Magistrate Judge Candy Dale released Hutcheson into
the custody of his father -in -law, John Bradley Mason, of Donnelly with the condition Mason
nl;aw", monitor Hutcheson and not allow him to collect funds from investors.
Hub I.— w
According to the indictment, about $3 million in pension funds Hutcheson managed were
used to purchase a loan secured by a majority interest in Tamarack's Osprey Meadows golf course. The
note was put in the name of one of Hutcheson's companies, Green Valley Holdings.
Access Request Denied
One week after Hutcheson was released into his custody, Mason went to Tamarack and asked for
access to the golf course's restaurant and pro shop, according to reports by The Idaho Statesman and
The Associated Press.
He wanted to take a tour with clients, who were interested in the golf course as part of their dealings
with Hutcheson's company, Green Valley.
According to court docurmWitS filed Monday, Tamarack Municipal Association director Tan Flaherty
and Tamarack Resort manager David Papiez told Mason they had some concerns about allowing ham
access because of the conditions of Hutcheson's court- issued release, The Statesman and AP reports
said
Mason responded that he was acting as a representative of Hutcheson's company, Green Valley, and
not on behalf of Hutcheson.
Flaherty and Papiez denied Mason access to Tamarack's facilities, the reports said.
On Monday, federal prosecutors asked the judge to fold a hearing to determine whether Hutcheson
has violated conditions of his release and to determine whether his father - in-law remains an appropriate
third -party custodian for Hutcheson.
Violation Claimed
According to federal prosecutors, any attempt to market or sell the note on Green Valley Holding's
behalf 'is tantamount to the defendant marketing and selling the note, and arguab" violates (the
condition) that the defendant not collect any funds from any investor of any type'
Mason was one of two people who stepped forward to serve as Hutcheson's custodian while he awaits
trial.
The first potential custodian, a friend and neighbor of Hutcheson's, was dismissed because he had
potential business dealings with Hutcheson that might prevent him from being objective and
independent.
Rourke Yeakley told the judge that Hutcheson said he would give him $6 million to start a company for
a medical device Yeakley had invented.
In September, Yeakley sent a letter to the governor's office in support of Hutcheson's plans to buy
Tamarack.
In his letter, Yeakley said he was a doctor and a member of Hutcheson's Green Valley Capital
Holdings. He said his company, Tomorrow Medical, had plans to open a medical technology facility in
Cascade.
http:// www. mccallstamews .com/pages /fp_stories _page.php 4/26/2012
This week's front page stories
Tamarack ski area loses nearly $300,000 for season
Homeowners levied assessment to make up deficit
BY TOM GROTE
The Star-News
The ski area at Tamarack Resort lost $299,300 for the 2011 -2012 ski season, according to operators.
The loss was reported by the Tamarack Municipal Association, the group of homeowners that has
operated the ski area for the past two years. The TMA reported a profit of $1,119 during the 2010 -11
season.
The 389 property owners at the resort on Lake Cascade will be asked to pay a special assessment of
$1,000 per year to make up the deficit and to provide a financial cushion for future losses.
The assessment also will help subsidize the operations at Osprey Meadows Goff Course, which the
association will operate this season for the first time. (See related story on Page X).
Property owners will get new benefits in return for the special assessment, TMA Executive Director
Tim Flaherty said. Details of those benefits were to be released this week.
The season started out on a positive note, Flaherty said.
"We were very fortunate to have a snowmaking system in place that allowed Tamarack to open on
Dec. 15, several weeks before anyone else in the region" he said.
But the area was battered by rain, inconsistent snowfall, inverted temperatures and even some wind
and lightning storms.
Tamarack also faced increased expenses before the season started, including a mandatory cable
splice on Summit Express lift, extensive overhauling of the snowcats and a significant increase in cost of
insurance and lease of state land on which the ski area is located, Flaherty said.
Despite the weather, the ski area saw a 21 percent increase in season pass and day ticket sales over
the previous season, said marketing manager Woffe Ashcraft.
'We have already sold 39 percent more season passes for the 2012 -13 season than we sold in total
for the 2011 -12 season," Ashcraft said.
"We believe this shows the viability of great skiing to continue at Tamarack, its amenities, fantastic
terrain and a common belief that we will weather this storm and forge ahead," he said.
Tamarack and support businesses provided more than 165 local jobs this winter, Ashcraft said.
"The board of directors for the TMA and the homeowners we represent are overwhelmingly in support
of continued TMA management of the recreational amenities at Tamarack," board secretary Doug
Dvorak said.
"The staff of the TMA and their local front -line employees did a great job this season overcoming many
challenging conditions; Dvorak said.
Page 1 of 1
http: / /Www.mccallstamews- com/pages /fp stories_page.php 5/3/2012
Outdoors Page The StarNews
OUTDOORS AND RECREATION— THURSDAY, MAY 3, 2012
Tamarack homeowners take over Osprey Meadows Golf
Course
Association plans to start play on May 25
Homeowners at Tamarack Resort will operate Osprey Meadows Goff Course this season
The move means the association of homeowners at the resort southwest of Donnelly are now
operators of both the ski area and the golf course built by now - bankrupt developers.
The Tamarack Municipal Association will open the course for play on May 25, a news release said
Pricing for rounds of golf will start as low as $45 including cart.
The homeowners decided to take over the golf course after being told by current owner Hopkins
Financial of Meridian that it would not operate the course this year.
Osprey Meadows has been operated the past two summers by Raven Goff of Eagle, but Randy
Hopkins of Hopkins Financial told the association Raven would not be returning this summer. Hopkins
did not reply to a request by The Star -News for comment.
"Operating Osprey Meadows for 2012 adds a great synergy with our winter operations and will
continue to build on the success of the TMA in operating Tamarack Resort until a new buyer for the
resort is found,' homeowners association Executive Director Tim Flaherty said.
'We have had overwhelming support from our homeowners and guests for our winter operations and
we plan to provide a great guest experience on the golf course this summer," Flaherty said.
The association has levied a $1,000 per year special assessment on its 389 property owners to help
subsidize the course as well as the ski area, which lost $300,000 in the season just ended. See related
story on Page 1 of this issue of The Star -News.
"Despite unique conditions this winter, the greens and turf at Osprey Meadows weathered well and we
expect excellent playing conditions this summer,' superintendent Kevin Orr said.
'The warm spring combined with our fall preparations are helping the course come along nicely so
far,' Orr said.
The course will offer professional instruction and programs with former Nicklaus Academy Instructor
and Head Pro Dustin Simons. A full service pro shop will be available and food service will be available.
Goff Digest named Osprey Meadows the "Best New Public Course $75 and Over" for 2006, and
Goltweek named the course No. 1 in Idaho in 2008 among "America's Best Courses You Can Play." For
information, go to www.tamarackidaho.com.
MeadowCreek golf course to begin
Page I of 1
http: / /www.mccallstamews.com/pages /outdoors _page.php 5/3/2012
This week's front page stories
Dismantling begins on Tamarack chair lift
Wildwood Express ordered taken down by Bank of America
Dismantling has begun on the mile -long Wildwood Express at Tamarack Resort, according to a
published report.
The Associated Press reported this week that Bank of America's leasing division is paying for the
dismantling to recover money owed by the resort's owners, who declared bankruptcy in 2008.
Some Tamarack lifts operated on a limited basis in 2011 and 2012, but Wildwood's has not operated
since 2009.
The Wildwood Express's main cable has already been spooled onto big reels, while its four - person
chairs are in boxes, awaiting transport, The Associated Press report said.
Banc of America Leasing Corp. has not said where the components are bound, and an agent in San
Francisco handling the deal declined comment.
The lift is located on the mountain's north side, around the comer from the European - themed Village
Plaza. It ran just three years, before Tamarack was shuttered the first time in March 2009.
Last year, some Tamarack homeowners bought another small ski lift, the Buttercup lift, from Bank of
America for about $400,000, preserving ski -in, ski -out access to their homes. But similar talks over
buying the Wildwood Express failed.
Chris Kirk, the Tamarack homeowner who organized the smaller lift's purchase, told The Associated
Press the terms of a Wildwood deal just never added up.
B of A Wanted Millions
Bank of America wanted millions for a lift that, even once it was running again, would likely continue to
cost operators around $100,000 annually while adding nothing to revenue, Kirk said.
The resort is currently in state court awaiting a judge's final foreclosure orders. its biggest creditor,
Zurich -based Credit Suisse Group, is owed more than $300 million.
Homeowners are hoping that once Tamarack gets to a sheriff's sale, a reputable buyer will offer
pennies on the dollar but with the promise of completing Tamarack's unfinished, buildings and replacing
the Wildwood Express.
'In the long run, having the Wildwood chaklift there would be absolutely a benefit to the image of the
resort,' Rory Veal, a Tamarack homeowner and the resort's former real estate sales vice- president, told
The Associated Press.
'But its removal certainly isn't a fatal proposition,* Veal said. 'The biggest factor in bringing Tamarack
around is going to be the credibility of a new owner.'
Page 1 of 1
http: / /www.mccallstamews .com/pages /fp_stories _page.php 6/7/2012
Outdoors Page The StarNews Page
Boisean shoots ace at Osprey Meadows
Kevin Helmick of Boise made his second career hole in one on Sunday at Osprey Meadows Goff
Course at Tamarack Resort.
Helmick got the hole in one on hob No. 6 using a 9 iron from 146 yards. His father and Uwe Ruttke of
Boise and Tamarack witnessed the shot.
http: / /www.mccallstamews .com/pages /outdoors _page.php 8/2/2012
Star -News News Page—Lead Story Page 1 of 1
Top of Tamarack Open
Tamarack Resort will open on Saturday with a special offer. A non - perishable food donation for a
family of four will get visitors a free lift ticket for that day.
Skiing terrain for now will be limited to areas off the Summit Express, spokesperson Wolfe Ashcraft
said. The Tamarack Express will be used to shuttle skiers to and from the upper area.
The Discovery lit also will be open for beginners. A total of 44 inches were reported at the summit and
26 inches at mid - mountain by the resort's recorded snow report line on Wednesday.
The ski area will be open from 9 a.m. to 4 p.m. Saturday and Sunday and then open every day
between Dec. 20 and Jan. 6.
The resort will operate Thursdays through Sundays plus holidays starting Jan. 10. A full day adult pass
costs $49.
This will be the third winter in a row the ski area will be operated by the Tamarack Municipal
Association, the association of property owners within the resort.
The association stepped up when the now bankrupt owners of the resort shut down the ski area in
March 2009 after five seasons of operation.
The association made a profit of $1,119 during its first winter of operation in 2010 -11, but lost almost
$300,000 during the winter of 2011 -12.
That led to a special assessment of $1,000 each for the 389 property owners to make up the deficit
and create a cushion for future losses.
"The homeowners association feels that there is value in continuing to operate the resort and
maintaining the assets as we await a new buyer," association Executive Director Tim Flaherty said.
http: / /www.mccallstamews .com/pages /leadpage.php 12/13/2012
This week's front page stories Page 1 of 1
Leviston commissioner pleads guilty in Tamarack incident
Michael Grow originally accused of sex crime in April 2011
BY SANDRA L. LEE
The Lewiston Morning Tribune
Nez Perce County Commissioner Michael A. Grow pleaded guilty to three misdemeanor charges on
Monday in connection with a 2011 incident at Tamarack Resort.
Grow, 50, pleaded guilty Monday to three misdemeanor charges in Fourth District Court at Cascade.
By pleading guilty to unlawful entry, stalking and battery, the prosecution and Judge Darla Williamson
agreed to dismissal of a felony charge of forcible sexual penetration with a foreign object.
Grow was sentenced to 88 days in jail on the unlawful entry charge. He will serve the first 30 days in
Valley County Jail after first completing of an alcohol treatment program.
He may request work release for the remaining time on the sentence.
Grow was sentenced to 385 days in jail on the stalking charge and 180 days on the battery charge,
with all of that time suspended.
He will serve a total of four years on supervised probation, according to the agreement.
Grow was chairman of the Nez Perce County Commission when he was arrested in his office by
Valley County sheriff's deputies several days after the incident, which occurred on April 3, 2011.
At a hearing the following day in Cascade, the Valley County prosecutor said alcohol was involved.
Grow was in Valley County for a party for a friend at Tamarack Resort near Donnelly, according to
various court documents and testimony in earlier hearings.
The woman, an acquaintance, left the party early and a few hours later Grow also returned to a
residence, where court records say he entered her bedroom and attempted to have sexual relations.
The woman texted her husband when he left the room, according to earlier statements. Grow
returned, but then fled when someone was heard entering the house.
Grow is finishing his first term as a county commissioner. He was defeated in his bid for a second term
in the May primary and will leave office early next month.
http: / /www.mccallstamews.com/pages /fp_stories_page.php 12/13/2012
The Star News Groups Page Page 1 of 1
Tamarack Resort offers free skiing for donations of food
Skiers and snowboarders can help families in Valley County through a free ski day at Tamarack
Resort on Saturday.
The resort and the Tamarack Municipal Association ask that skiers and boarders bring donations of a
non - perishable meal for a family of four, or warm coats or other winter apparel. In exchange, they
receive a free day of skiing during Saturday's opening day.
Staff members and volunteers from the local food banks and Western Idaho Community Action
Partnership will collect the items.
"This is a very generous offer that benefits our local community two ways - canned food for our
shelves and an affordable day at skiing at Tamarack," said Lori Anderson with the Cascade Food
Pantry. "It will be a huge party on Saturday."
The donations will go to WICAP, the Cascade pantry and Donnelly Food Bank for distribution to Valley
County residents in need.
"Last years donations were tremendous," said Paula Fodrea, WICAP's family programs manager for
Valley County.
"The local food banks sharing the generosity of the community through Tamarack's efforts is a win for
those who are cold and hungry, a win for skiers to enjoy the great skiing and a win for the partnership
between Tamarack and the Valley County food banks and the WICAP center," Fodrea said. For more
information, call 325 -1000.
http: / /www.mccallstamews .com/pages /groups _page.php 12/13/2012
Outdoors Page The StarNews
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Page 1 of 1
http : / /www.mccallstarnews.com/pages /archive 2012/ 12_ 20_12_webedition/Copy %20of%2... q � 46 -4
This week's front page stories
Tamarack Resort stays mired in lawsuits as 2013 hPgin
Legals claims pending against several pieces ofbankrupt project
BY DAN GALLAGHER
for The Star -News
Court claims over the remains of Tamarack Resort begin 2013 much in the same place as they started
in 2012 - stalled in a morass of legal wrangling.
The largest fight is over who will get control of Village Plaza, the half - completed retail and
condominium complex that was originally envisioned as the heart of the resort.
However, separate battles are being waged over other pieces of the resort, whose owners went
bankrupt in 2008.
The lending syndicate led by Credit Suisse Group received a judge's permission in September to
proceed with an auction of Village Plaza, but no movement has been made to schedule an auction.
Credit Suisse has battled for four years to recover more than $300 million it says it is owed from the
resort southwest of Donnelly.
After a surge of construction and the opening of its ski area in 2004, principal investor Jean - Pierre
Boespflug defaulted on a loan from Credit Suisse. Boespflug did not show up for a 2011 court hearing
and has not been heard from since then.
Judge Allows Sale
On Sept. 20, Fourth District Court Judge Patrick Owen denied an appeal from Teufel Nursery in
Oregon to block Credit Suisse from proceeding to foreclosure.
Owen earlier ruled that firms including Banner /Sabey Construction and OZ Architects had liens that
were senior to Credit Suisse's initial mortgage on Village Plaza.
Village Plaza was planned to include six buildings with 56,000 square feet of commercial space for 23
boutiques, shops and restaurants.
It also was planned to hold 129 hotel condominiums, a movie theater and 200 heated parking stalls for
property owners.
After work was halted, millions have been spent to winterize the partially completed buildings to help
prevent damage.
Other claims have been filed for other parts of the resort, including:
The unfinished Lake Wing portion of the Lodge at Osprey Meadows.
Luxury condominiums at the entrance to the Osprey Meadows Golf Course.
The Trillium Town Homes on the northern side of the resort featuring skkn, ski -out access.
Land on which a proposed 300 -room Fairmont Tamarack hotel was to be build by a consortium that
included tennis stars Andre Agassi and Steffi Graf.
Still up in the air is whether the Credit Suisse auction could see a piecemeal sell -off of properties at
Tamarack or whether g would be picked up in a unified block.
Page 1 of 1
http:// www .mccallstarnews.com/pages /fp_ stories _page.php 1/f/2013
This week's front page stories
Court ruling may pave way for sale of disputed Tamarack Resort properties
B1' DAN GALLA(3I1ER
for The Star-Ntw,
A new court decision is moving the Tamarack Resort foreclosure closer to resolution, but it will still be
some time before the failed resort's properties go on the auction block.
Fourth District Judge Patrick Owen on Jan. 2 granted motions by a number of contractors that were
involved in the development of the resort allowing them to submit judgments and decrees of foreclosure.
In dispute are several pieces of the resort, including the unfinished Village Plaza and a wing of the
Lodge at Osprey Meadows as well as the site for what was proposed to be a luxury hotel.
In 2006, the Credit Suisse Group loaned Tamarack owners $250 million. In March 2008, Credit Suisse
filed to foreclose on those loans after the owners missed payments.
Owen ruled that Tri -State Electric, OZ Architects, MHTN Architects and Banner /Sabey had
construction lien interests in the $91 million Village Plaza that were senior to Credit Suisse.
The court also decided:
• OZ Architects had a senior lien in the unfinished Trillium Townhomes.
MHTN Architects had a senior lien in the unfinished Lake Wing section of the Lodge at Osprey
Meadows.
• BAG Holdings had a lien senior to Credit Suisse in the proposed Fairmont Hotel property site.
The ruling by Owen says Credit Suisse can no longer slow down those other lien claimants, said
Stephen Lord, attorney for the Tamarack Municipal Association.
"All it does it give a little bit more momentum for those other creditors ahead of Credit Suisse on
various parts of the property to get that much closer to conduct a sheriff's sale," Lord said.
"They still can't get there yet because they still don't have final decrees and judgments of foreclosure,"
he said.
In another twist, Stewart Title had insured Credit Suisse's $250 million mortgage in 2006, and there is
litigation between the two over whether Stewart is obligated to pay off the senior creditors' claims under
the terms of the title insurance policy, Lord said.
That could be a potential source of money for Credit Suisse to pay off those claims, at which point it
could proceed to the sheriff and would be the only mortgage holder to conduct the sale, he said.
Page 1 of 1
http:// www. mccallstamews .com/pages /fp_stories _page.php 1/10/2013
This week's front page
Wild & Woolly Rescue: Ewe found at Tamarack Resort dies despite efforts by rescuers
"Only its head sticking out, and still alive. " - Chris Simboli
BY TOM GROTE
The Star -News
A ewe found buried in snow near Tamarack Resort 10 days ago and rescued by ski patrollers died last
Saturday, six days after it was brought off the mountain.
The ewe was spotted on the afternoon of Jan. 6 by;Y
.,.
members of a Boise family who were skiing in the trees out
of bounds on the south side of the resort southwest of
Donnelly.
"We were at about 6,000 feet when we came upon a
friggin' sheep buried up to its neck in the snow!" said Chris
Simboli, a Boise attorney.
S
"Only its head sticking out, and still alive, but had probably
Simboli "He
been there for many days," said. ate a granola
bar I gave him, and we partially dug him out and then went
try
down and reported it to the sheriff and ski patrol."
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fb,O Our the nt-e cbscorrtwl btuxd w sit A% item the
Mountain Manager Mike Lancaster called Tim Flaherty,
sh vra Iwtui&u, on Jm u Fedotc tatnvl utrmber
executive director of ski area operator Tamarack Municipal
L�tJoh" nptrµ —de rescue sIM
Association, to get approval for the rescue.
bxlg °` nd
"He suggested we could do the rescue as a training session," Flaherty said. "I approved the mission
and agreed we should move as quickly as possible to see if we could save the sheep but keep safety of
the patrollers first."
Patrollers Spencer LaMarche and Levi Johnson conducted the rescue using a sled normally used to
take out injured skiers and snowboarders.
Simboli praised the actions of the patrollers as an "awesome job by great people with big hearts."
An ear tag on the ewe showed it was seven years old and belonged to Soulen Livestock Co. of
Weiser.
The ewe could no longer give birth to Iambs so it was scheduled to be sold this fall, Phil Soulen of the
livestock company said Monday.
The ewe was among thousands of sheep that graze in the Tamarack area and likely wandered from
the herd last spring, Soulen said.
Once it was brought off the mountain by the ski patrol, the ewe was placed in the care of Lee O'Dell,
who raises sheep and dairy goats near Cascade.
O'Dell placed the starving and dehydrated ewe in a warm bam and fed her by hand. The sheep
responded well during the week but took a turn for the worse and died in her sleep early Saturday
morning, he said.
The pattern of recovery and then death is something he has observed in sheep before.
Over the years, O'Dell has cared for three other ewes rescued from winter snow in the area that were
brought to him. "They all survived and produced Iambs for us," he said.
Page
http: / /www.mccallstamews.com /pages /fp_stories _page.php 1/ 17/2013
Star -News News Page_Lead Story
Auction scheduled for parts of Tamarack Resort
Village Plaza, lodge wing scheduled fur bids July 16
"It's forcing others to make decisions. " —Chris Kirk
BY DAN GALLAGHER
for The Star -News
Two large unfinished chunks of Tamarack Resort will be offered to the highest bidder in a sale
scheduled for July 16.
Papers have been filed with the Valley County Sheriffs Office to hold the pubic auction for the massive
Village Plaza condo and commercial complex and the partially completed wing of the Lodge at Osprey
Meadows.
The sales would be the first significant action at the four - season resort southwest of Donnelly since the
owners shut down construction and filed bankruptcy in 2008.
After the bankruptcy, creditors quickly filed a stack of lawsuits seeking unpaid debts, most notably
Credit Suisse bank, which says it is owed $343 million on an unpaid loan.
It is unclear whether the July 16 sale, scheduled for the steps of the Valley County Courthouse in
Cascade, will occur. One of the creditors, Teufel Nursery of Portland, has filed an appeal to stop the
sale.
"It's forcing everybody's hand," said Chris Kirk, former Tamarack vice president of planning and
current vice president on the board for the Tamarack Municipal Association "It's forcing others to make
decisions.'
All bidders on the Village Plaza must offer cash except for Washington -based general contractor
Banner /Sabey 11, which can bid by credit for the $13 million it is owed on the buildings.
"Anybody can bid but it is likely going to be credit bids that succeed," said Stephen Lord, attorney for
the Tamarack homeowners.
"No other party can credit bid on Banner /Sabey's collateral," Lord said. Banner /Sabey could sell the
village on the open market, or develop it on is own, Lord said.
"I would imagine other lien holders looking at what Banner /Sabey is doing are watching very closely,
and we may read in a few days that they're going to join in the sale" Kirk said.
Just a Foundation
The lodge wing, known as Lake Wing, is not much more than a foundation. Like Banner /Sabey, lead
creditor MHTN Architects, Inc., of Salt Lake City can bid for the property by using credits from the
$654,000 the company is still owed.
Teufel's appeal on a variety of procedural issues could stretch out the grueling legal process, said
Kevin Bay, the Seattle attorney for Banner /Sabey.
"The appeal doesn't affect Village Plaza but mentions it, so we're trying to figure out whether we have
to move blocks of time on t," Bay said.
"It seems like any little wrinkle can throw this thing back into neutral for a much longer period of time
than anybody would have thought," Lord said.
No matter what happens to the sheriff's sale, the Tamarack Municipal Association will continue to
operate Osprey Meadows Golf Course this summer and reopen the resort's ski area next winter, Lord
said.
Page 1 of 1
http:// www. mccallstamews .com/pages/lead _page.php 6/20/2013
Star -News News Page—Lead Story
Village Plaza was the heart of developer's dreams for Tamarack Resort
Condos pre -sold, commercial tenants signed up
BY DAN GALLAGHER
for The Star-News
Tamarack Resort developers deemed the Village Plaza the "heart" of the project which tied in the
residential neighborhoods and ski slopes.
But the unfinished plaza appeared to be the largest obstacle for the resort to get
back on track. A scheduled sheriffs sale on July 16 for the plaza could eventually
bring it to fruition.
"It's not in bad shape; said Chris Kirk, former Tamarack vice president and
current vice president for the resort homeowners' group. "It isn't deteriorated as
much as one might think"
Tamarack Resort in late 2005 reported a sellout release of 129 plaza condos
valued at $120 million. They ranged from studios to three -room penthouses, from
$350,000 to $2.78 million.
A 2007 report said the six - building, mufti- tiered plaza would include hotel
condominiums, a movie theater, 23 boutiques, shops and restaurants. The total
price tag was set at $91 million.
By April of that year, the developers had already signed seven commercial
leases for the pedestrian village, while the opening of the village was scheduled
for 15 months later.
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That included a floral shop, pastry and ice cream vendor, a health drink shop including smoothies and
wheatgrass shots, an "Asian fusion" restaurant, a sports apparel store and photography studio.
But the recession and 2008 bankruptcy filings of principal investors spelled an end to the unfinished
plaza. Earnest money put down on the condos was refunded and the commercial leases were voided.
Some of the condominiums were protected from the elements. A court- ordered receiver used millions
more from Credit Suisse bank to protect them all.
There was almost no heat on in the buildings. While the structures appear to have pitched roofs, they
actually are flat on top to accommodate cooling and heating equipment. Tamarack channeled any
precipitation away from the roofs and into the plaza to keep the units dry, Kirk said.
There are three buildings in the plaza which are nearly completed down to finishing up the drywall,
with another three requiring more work, Kirk said.
One option for a potential buyer would entail finishing the three more - developed buildings to open the
storefronts and complete the condominiums, he said. The residences could be rented out, while offering
the condos for sale.
If there was not momentum to finish the other three buildings, their exteriors could still be completed
like a movie set so they would not distract visitors. Another option is to finish the entire project.
"It's an interesting challenge for somebody," Kirk said. "The opportunity is certainly there."
Page 1 of 1
http:// www. mccallstamews .com/pages/lead,._page.php 6/20/2013
Star -News News Page—Lead Story Page 1 of 1
Future unknown for other unfinished Tamarack Resort properties
BY DAN GALLAGHER
for The Star -News
Two pieces of the unfinished portions of Tamarack Resort are scheduled to be sold at auction next
month, but the fate of three other pieces was not known as of this week.
A July 16 auction is scheduled on the Valley County Courthouse steps for the unfinished Village Plaza
condo and commercial complex as well as the partially finished wing of the Lodge at Osprey Meadows.
But three other properties were also caught up in the blizzard of legal action that started in 2008 when
the resort's developers halted construction and declared bankruptcy.
They are:
Undeveloped land and the area's ski lifts.
Parcels on which tennis stars Andre Agassi and Stefanie Graf had proposed building a Fairmont
Hotel.
• 15 unfinished Trillium Townhomes.
Some residences are finished at Trillium, while others have a way to go, said Chris Kirk, former
Tamarack vice president and current vice president for resort's homeowners group.
Nothing was done to the Fairmont sites, Kirk said. Excavation accomplished there was to maintain
access to the lodge wing property, which was to provide a mix of shops, a restaurant and
condominiums.
The homeowners group stepped in to run the ski area after the bankruptcy and later took over Osprey
Meadows Goff Course.
"If it wasn't for the homeowners, this could have been a whole different story," Kirk said.
The association has kept activity alive at Tamarack, but d would eventually like to step down from
some responsibility.
"It all depends on how it's structured," Kirk said. "We look forward to the day we can turn it over."
Still, the resort has weathered the years, serving property owners while providing skiing and golf.
"You drive in there, it doesn't look like a ghost town," Kirk said. "It's well maintained, the paint isn't
peeling, the siding is in good shape, the drip irrigation is running.'
http:// www. mccallstamews .com/pages/leadpage.php 6/20/2013
This week's front page stories
Credit Suisse to sell off building materials at Tamarack
Resort
July 15 sale comes day before planned auction of Village Plaza
BY DAN GALLAGHFR
for The Star-News
Credit Suisse is moving to sell off building materials at the unfinished Village Plaza at Tamarack
Resort before the buildings themselves are sold.
Uninstalled items such as elevator cabs, heating and cooling equipment, bathtubs, wooden timbers
and other materials will be sold at auction at 10 a.m. on Monday, July 15, at the resort.
Also listed for sale is a pedestrian bridge, structural steel members, sheet metal, electrical conduit,
furniture, a "quantity of vehicle tires" and restaurant equipment.
"They're construction materials that were destined for Village Plaza, but weren't installed," said David
Papiez, controller and asset manager of Tamarack Resort LLC.
"This sale should be viewed as another step in the completion of the larger Tamarack foreclosure,"
Papiez said.
A sheriff's sale is set for Tuesday, July 16 at the Valley County Courthouse in Cascade for the Village
Plaza complex as well as the unfinished wing of the Lodge at Osprey Meadows.
Progress on the envisioned $1.5 billion Tamarack project ground to a haft in 2008 when Credit Suisse
bank filed suit, saying it was owed $343 million from the resort's developers.
Other firms followed suit over properties such as the lodge wing, parcels on which tennis stars Andre
Agessi and Stefanie Graf had proposed building a Fairmont Hotel; and the unfinished Trillium
Townhomes.
The completed plaza would have included 129 residential condos, a movie theater, 23 boutiques,
shops and restaurants. The total price tag was set at $91 million.
While some of the condos have been completed to the drywall stage, some have merely been
enclosed to protect them from the elements.
Since the stopping of construction in 2008, Tamarack Resort LLC has undertaken annual winterization
construction projects to protect the incomplete buildings.
The uninstalled construction materials are controlled by Credit Suisse and are not part of the July 16
building auction, Papiez said.
The material can be sold as a whole or in separate lots and buyers must supply cash or a cashier's
check.
If Credit Suisse is the highest bidder, the materials can be purchased by crediting the purchase price
against the balance of the unpaid loan owed to the Swiss bank.
The purchased items must be removed from the plaza within five days after the sale.
Page 1 of 1
http: / /www.mccallstamews .com/pages /fp_stories _page.php 6/27/2013
Star -News News Page_Lead Story Page 1 of 1
Tamarack auctions postponed
Village Pla =a, furnishings were to be put on the block
BY DAN GALLAGHER
for The Star-News
Auctions that had been scheduled for Monday and Tuesday of buildings and materials at Tamarack
Resort have been delayed until at least September.
On Monday, Credit Suisse was scheduled to sell off materials not yet installed in the unfinished Village
Plaza complex. Those materials included an elevator cab, heating and cooling equipment, a pedestrian
bridge, bathtubs and wooden timbers.
However, Credit Suisse sent out a notice last week that the auction was off, but may be rescheduled,
without giving a date.
On Tuesday, an auction was supposed to take place on the Valley County Courthouse steps in
Cascade for the unfinished Village Plaza and an unfinished wing of the Lodge at Osprey Meadows. But
those auctions also were cancelled.
The Seattle construction company Banner /Sabey is the lead creditor on Village Plaza, claiming it is
owed $13 million by the original Tamarack Resort developers, who declared bankruptcy in 2008.
MHTN Architects of Salt Lake City is the lead creditor on the lodge wing and is owed $654,000.
Credit Suisse attorneys on Tuesday confirmed they would not appeal rulings by Fourth District Judge
Patrick Owen saying Banner Sabey and MHTN were first in line for any money received at any auctions.
"We're going to reschedule the sale for some time in early September," said Kevin Bay, an attorney for
Banner /Sabey.
"We agreed to move the sale when Credit Suisse agreed it was not going to appeal," Bay said. "It
gives a little more finality to the process, makes sure everything is organized."
The postponement hafted preparations for the sale by the office of Valley County Sheriff Patti Bolen's
civil deputies.
"They have to get the proper documents, make sure everything is in order, make lots of copies, do all
the posting of the notices, make sure they get the notice to the newspaper," Bolen said.
http:// www. mccallstamews .com/pages/lead _page.php 7/18/2013
This week's front page stories Page 1 of 1
Auction of unfinished Tamarack village, materials now set for Sept. 5
BY DAN GAI"LAGHER
for The Star -News
The start-stop nature of a potential resolution for Tamarack Resort has started again with a sheriff's
sale on the Village Plaza and an auction on construction materials on Sept. 5.
The sheriffs sales for the Village Plaza and the unfinished wing of the Lodge at Osprey Meadows
were supposed to take place on July 16 at the Valley County Courthouse.
Meanwhile, an auction on collateral materials such as an elevator cab and pedestrian bridge for the
unfinished plaza was set for July 15. Both were postponed Just before their scheduled dates.
The Seattle construction company Banner /Sabey, the one -time general contractor at Tamarack
Resort, is the bad creditor on Village Plaza.
Banner /Sabey claims it is owed $13 million by the original resort developers, who declared bankruptcy
in 2008. Credit Suisse contends it is owed $343 million on an unpaid ban to those original developers.
"At the bank's request, we postponed the date," said Kevin Bay, attorney for Banner /Sabey.
"We expect this one to go through this sale date," Say said. "My guess if there's an interested party, it
mostly likely is a party that wants to buy the whole resort and they'll be dealing with Credit Suisse."
But a definitive buyer could hold off until Credit Suisse was able to compile the main properties at the
resort, property held by Bayview Financial and tennis stars Andre Agassi and Stefanie Graf.
The property was proposed for the Fairmont Tamarack hotel was well as condominiums and
penthouses at mid - mountain.
Prospective buyers for Village Plaza on Sept. 5 must pay in cash, except for Banner /Sabey, which can
bid on credit against the amount it is owed.
Three hours after the Village Plaza sale in Cascade, a private auction on the collateral for that
complex will take place at the unfinished plaza. It includes many items purchased to complete the
complex including an elevator cab, pedestrian bridge, heating and air conditioning equipment, doors and
windows, a "quantity of bathtubs," structural steel and large timbers, and restaurant equipment.
The materials could be sold as a whole or in two or more lots. The buyer must provide cash, a
cashier's check or other "immediately available funds"
http:// www. mccallstamews .com/pages /fp_stories�age.php 8/8/2013
This week's front page stories
Seattle construction firm buys Village Plaza at Tamarack
Banner Sabey bid $13.4 million, which is what was owed
9Y DAN GALLAGHER
for The Star -News
A former general contractor at Tamarack Resort last week took over ownership of the unfinished
Village Plaza complex of shops and condominiums.
Seattle -based Banner /Sabey bid $13.4 million, the same amount the company said was owed to them
by the now- bankrupt developers of the resort west of Donnelly.
Last Thursday's sheriff's sale on the Valley County Courthouse steps in Cascade was the first disposal
of Tamarack Resort assets since the resort's principal investors filed for bankruptcy in 2008.
Also last Thursday, a sale of construction materials inside Village Plaza that was set for after the
sheriff's sale was cancelled without explanation.
Staffers from the Valley County Sheriff's Office first asked the small gathering on the courthouse steps
if there were any cash bidders for Village Plaza, but no one spoke up.
Kevin Bay, attorney for Banner /Sabey, then pledged the $13.4 million as the lead creditor.
"Banner /Sabey now owns it," Bay said of the unfinished complex once imagined as the hub of the
resort.
Process Not Over
Thursday's bid started the clock ticking on a six -month redemption period. Banner /Sabey was the lead
creditor on the plaza, but Credit Suisse still has redemption rights as a junior creditor.
The Swiss bank could still take $13 million in cash to Valley County Sheriff Patti Bolen, who would
transfer the certificate of sale from Banner /Sabey to Credit Suisse.
That holds true with about 90 or so other junior lienholders, such as wage and contract claimants
owed money since the 2008 failure. It even applies to the debtor, Tamarack Resort LLC.
Michael Dunne, the principal officer in Banner /Sabey attending the sale, was relieved after years of
litigation.
"It's been a long haul to get to this point," Dunne said. "We're just trying to get everybody paid, our
subcontractors and others."
Another sheriff's sale for Tamarack is set for Sept. 24 for parcels that would have been used to build a
Fairmont Hotel near the Lodge at Osprey Meadows and 50 residences adjacent to the main ski lift.
Owning first rights for a credit bid is BAG Property Holdings, which includes Bayview Financial of
Miami, Fla., plus former tennis stars Andre Agassi and Stefanie Graf.
A sale on an expansion of the Lodge at Osprey Meadows was called off by Credit Suisse and has not
been rescheduled. MHTN Architects is the senior lienholder in that property.
Local residents attending last Thursday's sale hoped it moved Tamarack to a final solution.
"It's time to get through these foreclosures," said Tim Flaherty, executive director of the Tamarack
Municipal Association, the resort's homeowners' group.
"They have to happen to get a new ownership," Flaherty said. "From a homeowner's perspective, is a
good thing."
Page 1 of 1
http: / /www.mccallstamews .com/pages /fp_stories _page.php 9/12/2013
This week's front page stories Page l of l
Creditors take over more property at Tamarack Resort
Site that would have held luxury hotel taken at auction
BY DAN GALLAGHM
for The Star -News
A development group including a Miami -based company and tennis stars Andre Agassi and Stefanie
Graf on Tuesday acquired land that had been proposed to build a Fairmont Hotel at Tamarack Resort.
BAG Property Holding LLC submitted a credit bid of $2.03 million at a sheriff's sale held on the Valley
County Courthouse steps in Cascade.
That was the amount the group was owed from the original developers of the resort west of Donnelly
who filed for bankruptcy in 2008.
BAG Property Holdings did not pay cash for the properties, but held first right under a court order to
acquire the land rather than try to tolled from the developers.
The land acquired including the Belvedere Ridge property, where the hotel would have been built, and
the Whitewater property, which would have featured homes with ski -in /ski -out access and a semiprivate
restaurant.
No Cash Paid
Seattle -based Banner /Sabey on Sept. 5 used its $13.4 million in credit to take over Village Plaza,
Tamarack's unfinished hub of condominiums, shops and restaurants. Banner /Sabey was the general
contractor for the village.
As in the Banner /Sabey sale, there were no other individuals who offered a cash bid for the BAG lots
on Tuesday.
As with the Village Plaza sale, Tuesday's bid started a six -month redemption period.
BAG Property Holdings is the lead creditor on the land, but Credit Suisse bank still has redemption
rights as a junior creditor and could take $2 million to Sheriff Patti Bolen, who would transfer the sale
certificate from BAG to Credit Suisse and pay off BAG's debts.
Similarly, Credit Suisee could pay off Banner /Sabey's debts in order to take back Village Plaza.
If nothing else occurs over those six months, BAG and Banner /Sabey will receive sheriffs deeds to the
properties.
Credit Suisse made a $250 million loan to the resort's developers but was never paid. Interest on the
loan has swelled the amount owed to $343 million.
Hotel and Condos
Agassi Graf Development, LLC, and Bayview Financial reached agreement in 2006 to develop the
Fairmont Tamarack near the Lodge at Osprey Meadows.
The Belvedere Ridge land was envisioned for about 285 hotel, condo and penthouse residences.
Whdewater entailed another 50 residences higher on the ski hill.
But the developers' bankruptcy and falling real estate sales prompted the Fairmont developers to
terminate their contract with Tamarack in July 2008.
Next up is a sheriff's sale for the undeveloped land and ski facilities at the resort slated for Oct. 24.
A sale on the Lake Wing expansion of the Lodge at Osprey Meadows was called off by Credit Suisse
and has not been rescheduled.
http:// www. mccalistamews .com/pages /f`p_stories_page.php 9/26/2013
This week's front page stories Page 1 of 1
Credit Suisse calls off latest sale of Tamarack Resort property
BY DAN GALLAGHER
for The Star -News
Credit Suisse called off a sheriff's sale scheduled for last week that involved millions of dollars in
undeveloped land, ski infrastructure and some finished cottages at Tamarack Resort.
The Zurich -based consortium dropped last Thursday's sale at the Valley County Courthouse without
explanation.
"It was cancelled; we'll start that process over again," Sheriff Patti Bolen said.
No date has been set for another sale that would entail the largest amount of property among the
recent assorted sheriffs auctions at the resort located on West Mountain.
The Credit Suisse sale would involve the balance of the resort not previously sold to private owners or
the lien claimants in the other sales.
That includes the right to be a tenant on the state -owned land on the resort's ski area.
The parcels also include land to the south of existing development, which developers call the Heritage
Project.
The so- called "snowfront buildings" are also in play, including the Canoe Grill, Seven Devils Pub and
day -care center, administrative buildings, maintenance shop, a handful of rooms in the Lodge at Osprey
Meadows, a half -dozen finished cottages, and a couple bare lots.
Also involved is various equipment including chaidifts, snow groomers, snowmaking equipment and
some vehicles. The Tamarack Municipal Association earlier purchased the Buttercup Lift.
The Osprey Meadows Goff Course and some properties in the lodge are not included in the
foreclosure case but are the subject of a separate foreclosure.
Here is a list of previous sheriff's sales of Tamarack Resort properties.
One Trillium townhome bought by builder Scott Hedrick
• 15 Trillium townhomes bough by Oz Architects/Tamarack Design
• Village Plaza, which former general contractor Banner /Sabey obtained with a $13.4 million credit bid
Property for the proposed Fairmont Hotel and 50 mid- mountain residences which went to BAG
Property Holding LLC, including tennis stars Andre Agassi and Stefanie Graf, from a $2 million credit
bid.
• sale on the expansion of the lodge was called off by Credit Suisse and has not been rescheduled.
• sale of the equipment and materials that was scheduled to go into the Village Plaza was scheduled
earlier, but also was cancelled.
http:// www. mccallstamews .com/pages /fp_stories _page.php 10/31/2013
This week's front page stories Page 1 of 1
Former Tamarack worker housing given extension
Meadows at Hlest ,Wountain has 212 homes so far
BY DAN GALLAGHER
for The Star -News
The Meadows at West Mountain, once buzzing with employees of Tamarack Resort, has been given
another year to show progress toward completing its final phases
The project, located on West Roseberry Road west of
Donnelly, got caught up in the housing bust, Larry Mangum
of Timberline Development told the Valley County Planning
and Zoning Commission earlier this month.
I'
The project completed three phases, including 212
residences, but the current owners need a year to sort out
legal tangles, he told the PBZ, which granted the request.
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The developers unsuccessfully challenged a road
Motatt <wrou West RoseberwRoA the developers
development agreement they struck with Valley County in
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2004 to improve the county roads leading into the
compleawg the hualphases
neighborhood.
"We have gone from an investor group of 12 in 2004 to a group of two which have the means to keep
this project moving forward," Mangum said.
One of the investors declared bankruptcy, which has hampered efforts to gain financing until that is
resolved.
The planned -unit development has three more phases to go, with 104 single- family residential lots,
eight common lots, two commercial lots and 64 mufti- family units still to be built.
"We live in a wonderful little community," said resident Cheryl Teed, who urged the commissioners to
approve the extra time. "How many developments are out there that nobody touched anything, nobody
tried to keep them going ?"
Property owner Kurt Holtan said lt is not the developers' plan to build the last three phases.
"it sounds like they're really concerned about issues that we don't have jurisdiction over, things such
as homeowners associations and homeowner fees," Commissioner Ed Allen said. "We're not a partner
in that battle. Do we allow them an extra year to give us some sort of plan of where you're going
forward ?"
The project was allowed the extension, but owners must return in six months with an update.
Twelve buildings of eight units each were built in Meadows and Tamarack Resort purchased six of
them in 2006 for employee housing.
The buildings enjoyed a high occupancy rate before the resort's 2008 bankruptcy, Mangum said.
E l_Y
http:// www. mccallstarnews .com/pages /fp_stories�age.php 11/21/2013
This week's front page stories Page 1 of 1
Auction of Tamarack Resort ski lifts, buildings postponed again
BY DAN GALLAGHER
for The Star -Nang,
Credit Suisse last week again cancelled the largest sheriff's sale left remaining at Tamarack Resort.
The Zurich -based lending consortium had scheduled the public auction for the Valley County
Courthouse steps for last Thursday but called off the event a second time.
The sale of undeveloped land, ski lifts, unfinished cottages and other property at the resort west of
Donnelly was originally slated for Oct. 25, but was cancelled without explanation.
The auction was rescheduled for last Thursday, but was postponed again without a reason given.
No date has been set for a new sale, said Rorie Snapp, administrative services chief of the Valley
County Sheriffs Office.
Elizabeth Walker, lead attorney for Credit Suisse in the Tamarack foreclosure, was unavailable for
comment.
The sale would take in most of the remaining property at Tamarack that has not been secured in other
auctions held this year.
The courts had determined Credit Suisse Group was owed about $340 million following the 2008
bankruptcies filed by Tamarack's developers.
What is at stake is the right to be a tenant on the state -owned lease land used as ski runs as well as
the area's ski lifts.
Also left to be auctioned are land parcels on the south side of the resort which developers called the
Heritage Project, temporary structures that house base -area services such as the Canoe Grill, a handful
of rooms in the Lodge at Osprey Meadows and a half-dozen unfinished cottages.
Former general contractor Banner /Sabey of Seattle acquired the unfinished Village Plaza in
September.
Property originally intended for the proposed Fairmont Hotel and 50 mid - mountain properties later
went to BAG Property Holding LLC.
One Trillium townhome was picked up by builder Soon Hedrick and It other townhomes were
acquired by Oz Architects/Tamarack Design.
Tamarack's ski area will open as scheduled on Friday even though the rights to the ski runs and
ownerships of the lifts were not sold.
The ski area has been operated for the last four winters by the resort's homeowners association, the
Tamarack Municipal Association.
"Our position is it will be resolved one day," said Tim Flaherty, association executive director.
"Our responsibility is to maintain and keep Tamarack attractive for a new buyer," Flaherty said. "Our
focus is the fun stuff: keeping skiers and golfers happy."
http:// www. mccalistamcws .com/pagcs /fp_storics_pagc.php 12/12/2013
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t h e r e s o r t ' s f i r s t d a y o f o p e r a t i o n f o r t h e s k i s e a s o n . S k i e r s a r e h o p i n g m o r e s n o w w i l l f a l l b y t h e s t a r t o f r i s m a s w e e K .
NIWTO Tor i ne a tat -1 -- .., •••�•• PASS FOR FOR FOOD - Matt Smith and Ryan Sigman get stoked for making turns on Friday
morning at Tamarack Resort after donating food for a free lift pass. More than 8,000 meals
were collected during the resort's Feed the Need food drive and 900 free passes were handed
out. The food will be given to local food banks for distribution.
New rou lq�
g p
aims to protect
environment at
Tamarack, beyond
Thinning for wildfires among top priorities
BY TOM GROTE
The Star -News
A new group has formed with the mission to
protect the environment around Tamarack Resort
in particular and Valley County in general.
The mission of the Tamarack Environmental
Protection Association is to focus on projects that
prevent wildfires around the resort west of Don-
nelly and prevent pollution in Lake Cascade and
surrounding streams.
"We are an advocate
for sensible land -use tt
planning and rural "We are a
landscape protection,"
said Doug Dvorak, a staunch defender
Tamarackresidentand
founder of the group. of the natural and
"We are a staunch scenic resources
defender of the natural
and scenic resources that make
that make our region so our region so
special," said Dvorak,
52, a business con- special."
sultant, speaker and
author who built a —Doug Dvorak
home at Tamarack in
2006. He recently moved full -time to the resort
from Chicago.
Board members of the association include
Cascade Mayor Rob Terry, Donnelly Mayor Brad
Backus, state Rep. Terry Gestrin, R- Donnelly,
Tamarack Municipal Association Executive Di-
rector Tim Flaherty and Tamarack Recreation
Manager Wolfe Ashcraft.
The group hopes to aid state and federal agen-
cies that are already working on fire prevention
and pollution control, Dvorak said.
"There are many projects that need funding
and attention in the valley, and there simply is
not enough manpower or financial resources to
do everything," he said.
Thinning trees and brush is a top priority due
to recent warmer winters with lower snowfall and
hotter summers that have seen more fires in the
area, he said.
See GROUP, Page 2
�11 awe
Group
(Continued from Page 1)
The association also will
work to keep pollution from
cattle and horse grazing out
of Lake Cascade as well as
nearby streams such as Poi-
son Creek and Rock Creek.
So far, the group has
raised $7,000from three foun-
dations to get started, but
will need more money before
it can sponsor substantial
projects, Dvorak said.
Youth Education
The group also want to..,
offer environmental educa-
tion to youths, he said. The
association recently paid a
4 -H club in Cascade and the
Central Idaho Mountain
Bike Association to do trail
maintenance and pick up
litter at Tamarack Resort.
"We plan to work with
the Cascade, Donnelly and
McCall libraries in bring-
ing workshops, lecturers
and in -field environmental
experiences to heighten the
environmental conscious-
ness of Valley County
youth," Dvorak said.
The association also
hopes to be a voice for the
area at the Idaho Legisla-
ture and other government
agencies on environmental
topics.
For information or to
donate, call Dvorak at (208)
957 -6949. The group also
will have a website active
soon at www tepanonprofit.
org.
sue. 1140 _W ,,-�
Tamarack Resort to celebrate 10th anniversary New Year's Eve
Tamarack Resort will
celebrate the 10th anniver-
sary of the resort this New
Year's Eve.
Planned festivities in-
clude a torchlight parade,
fireworks, drink specials
and music. The parade and
fireworks are scheduled to
start at 6:30 p.m. with the
best viewingfrom the patio
of 7 Devils Pub.
Those interested in be-
ing in the torchlight parade
must be advanced ski-
ers. Signup by calling the
Sports Desk at 325 -1030 or
in person.
The celebration will
continue throughout the
season with events and
specials, including Local's
Day on Sunday, Jan. 5. Val-
ley County residents can
show their ID on that day
and get a full day lift ticket
for $25.
For more information,
check the What's Happen-
ing pa ge at Tamarackldaho.
com.
This week's front page stories Page 1 of 1
Auction of Tamarack Resort ski lifts,
other properties postponed again
Sale would be far last assets at bankrupt resort
BY DAN GALLAGHER
for The Star -News
Auctions planned for Tuesday to sell off the largest remaining chunks of Tamarack Resort have been
postponed. it marks the third time the sale has been put off.
No new dates have been set for the auctions, which are
being proposed by Credit Suisse as a result of $372 million
owed by the former owners of the four - season resort near
Donnelly.
The auctions would include Tamarack's ski operations,
hundreds of acres of ground and an unfinished wing of the
Lodge at Osprey Meadows.
A separate sheriff's sale for the Osprey Meadows Golf
Course due to a separate legal action also was scheduled
for Tuesday. That auction also has been postponed.
If Credit Suisse acquires the assets, it would also become
the successor of Tamarack Resort LLC to the state tease of
the 2,000 acres on which the bulk of the ski runs are located.
Ppno 6r ThCSM�NCwr by Dm Gatl.Qha
The Sumnut Express chantift at Taunn ick Resat
uainang the items up fa auruon in a fmrdl ue
sale that lL� been c,ut a led it.- times.
Tamarack Resort LLC declared bankruptcy in 2008 and all construction on the resort was stopped.
Five lifts are up for grabs in the sale - the Tamarack Express and Summit Express detachable quad
lifts, Discovery lift, Rock Creek poma and the Mutton Buster surface lift.
"The Credit Suisse sheriff's sale encompasses all of the ski mountain operations," said David Papiez,
asset manager and sole remaining employee for Tamarack Resort, LLC.
Domes Part of the Sale
Included are domes that were intended to be temporary but have been operating since 2004.
The structures contain the Canoe Grill, Seven Devils Pub, Sports Dome and Wildhorse Children's
Center in addition to the now - closed Crane Creek Market.
Nine cottages and 12 undeveloped lots are also part of the sale, Papiez said.
Also included is the unfinished Mid - Mountain Restaurant, a 13,000 square -foot building.
The exterior to the building was finished and the electrical and heating /cooling systems begun, but the
interior remains to be completed.
The Heritage property is comprised of roughly 830 acres on the southern portion of the project, and
there are entitlements for another 1,660 dwelling units, Papiez said.
The proposed Lake Wing expansion at the Lodge at Osprey Meadows now consists of a concrete
foundation. It was proposed for 50 condominiums and other residences.
Along with all the property, Credit Suisse would acquire the agreements which allowed Tamarack
Resort to develop before it went into bankruptcy in 2008.
Other Sales in 2013
Since lest summer, other creditors have used bids to obtain Tamarack property for the money owed
them when the project faltered.
Seattle -based Banner /Sabey 11 used its $13.46 million in credit to take over the Village Plaza,
Temareok's unfinished hub. Banner -Sabey was the general contractor for the village.
A development group including a Miami -based company and tennis stars Andre Agassi and Stefanie
Graf submitted a credit bid of $2 million to pick up parcels where a Fairmont Hotel would have been
built, as well an exclusive residence club with skHn /ski -out aooess.
The Tamarack Municipal Association of homeowners continues to run the ski operations this winter
and wait for the next chapter, TMA Executive Director Tim Flaherty said.
"This process is extremely complicated,' Flaherty said. "The homeowners, all 400 of them, remain
optimistic we'll work through this process -"
http:// www. mccallstarnews .com/pages /fp_stories _page.php 1/30/2014
This week's front page stories
Incredible Hulk
Massive mid - mountain restaurant at Tamarack Resort sits unfinished
BY DAN GALLAG14ER
fix The Star -News
The Mid- Mountain Lodge at Tamarack Resort contains 13,620 square feet on two levels and features
a rustic wooden exterior, vaulted ceiling and banks of windows overlooking the slopes of West Mountain
and Lake Cascade.
And, it is totally empty.
Skiers using the Tamarack Express chairlift pass by the
hulking structure, on which construction was stopped with
the rest of the resort near Donnelly when the project's
developers went bankrupt in 2008.
Beside the massive Village Plaza at the resort's base, the
empty restaurant is the most impressive relic of interrupted
plans for Tamarack.
Located at a mile in elevation, the rustic restaurant is part
of foreclosure proceedings by Credit Suisse to recover $372
million that is owed to them in unpaid loans. A sheriffs sale
that would have included the building has been scheduled
and cancelled three times. The latest sale is set for March
10.
P .. The N by .m Gd hn
Asher at T.wtarack Resort shdes he the Dhd-
Aiamttvu Restattrattt, which rem . t fuushM
Finishing the building would require covering the wall studs, installing equipment and finishing off the
interior, which is designed to seat 200 to 250 people year- round.
"It's a wonderful amenity," said David Papiez, the only remaining employee of Tamarack Resort LLC.
"We're fortunate to have it so far along. It is an amazing facility that other resorts our size won't have."
Sun Valley Designer
The lodge was designed by architect Jim Ruscitto in Ketchum, who also designed the Warm Springs,
River Run, Seattle Ridge and Carol's Dollar Mountain lodges at Sun Valley.
Ruscitto also designed the ski and golf maintenance buildings, bridges and main entry sign at
Tamarack, said Tim Flaherty, executive director of the Tamarack Municipal Association homeowners'
group.
Mid - Mountain features ceiling beams and a specially engineered roof to withstand weather at that
altitude, said Flaherty, whose group operates the ski area and golf course at the resort.
The lodge plans call for a terraced deck and underground propane piping to serve outside heaters.
"It's definitely designed for the view," Flaherty said of the lodge. "The vast majority of it is done. It just
needs to be finished."
The original estimated cost was about $8 million," Papiez said. "The cost of completion depends on
the level of finishing the developers choose to pursue."
Until then, anyone wanting food or drinks without heading to the resort's base must go to a yurt set up
just west of the lodge.
"We are looking forward to the day we can start planning the ribbon - cutting ceremony and toast its
completion," Flaherty said.
Page I of I
http:// xv-,vw. mccallstamews .com/pa- es /fp_stories_page.php 2/20/2014
Outdoors Page The StarNews Page I of I
games
BY DAN(,ALL.it3HER
for The Star -News
Ski racer Erik Fisher relaxed at Tamarack Resort last weekend after a nagging knee injury sent him
home from the Winter Olympics in Sochi, Russia.
Fisher's leg was well enough to allow him to hit the slopes at the ski area near Donnelly.
The Tamarack Municipal Association presented him with a plaque on Saturday.
The Boise -based athlete, dubbed the "Flying Fish," plans to hit the last of the World Cup
F* races for the season before going in for surgery.
t �T
Fisher, 28, has made strides as a racer despite recurring injuries. He was named to the
E,il F h� U.S. Ski Team for the 2010 Vancouver Winter Olympics, but did not compete because of a
broken wrist.
He had a solid year in the World Cup field this season and was ranked as the fourth best American in
the events headed to Russia.
But he damaged a knee at a World Cup race in Switzerland and then wrenched it on a training run in
Sochi.
Fisher believes he has a shot at the 2018 competition in Pyeongchang, South Korea.
"Downhillers peak in their early 30s," he said. "I still have a little bit of time."
Fisher received financial support for his Olympic experience from Midas Gold and several Tamarack
homeowners.
http: / /www.mccallstarnews.com /pages /outdoors _page.php 2/27/2014
Star -News News Page—Lead Story
Credit Suisse snags Tamarack ski area,
land, unfinished lodge wing
Two owners now control largest chunks of bankrupt resort
BY DAN GALLMMER
fcx The Star-News
Credit Suisse on Monday picked up the largest remaining portions of Tamarack Resort, six years after
foreclosure commenced when the developers missed loan payments to the Zurich -based lending
consortium.
The sale, held on the Valley County Courthouse steps in
M' -,. 11- +
Cascade, were the last court- ordered sell -offs of chunks of
the resort following the 2008 bankruptcy of the original
developers.
— �t
It was unclear what would happen next, as two owners
r'
now control large parts of the four - season resort west of
Donnelly.
ru m, rnsvx.., e� o
Credit Suisse used its leverage as the largest creditor to
«" ®cawn«
Valley Couatc Shentfs Sgt Rone Su pp and Dep
claim ownership of the Tamarack's ski operations, hundreds
N'kla Scott take shelter from Mou&Y.s suoastorm
,sthev.twt.. edlxutotvsof Timvick Res,,itm
of acres of land slated for development, the unfinished Mid -
die Valley emu t` Crtlx me xteps m cascade
Mountain Lodge and other buildings.
As the new owner, it also takes over the lease of 2,000 acres of state land for most of the ski runs.
Credit Suisse attorney Elizabeth Walker applied $65 million of the money owed to clakn the properties
on Monday.
Welker then submitted a bid of $10 million in credits owed for the Whitewater property, which includes
other platted, unsold lots and personal property.
And 30 minutes later, she bid $5 million in credits for the unfinished Lake Wing adjacent to the Lodge
at Osprey Meadows.
Credit Suisse has created a company called New TR Acquisitions Co., LLC, or NEWTRAC, that will
take title to the properties that were up for bid on Monday.
NEWTRAC also becomes a member of the Tamarack Municipal Association of resort owners.
"It's been a long time coming," said Tim Flaherty, executive director of the owners association, which
has maintained the ski and golf operations in recent years.
"We're happy that the day has finally come," Flaherty said. "Now we enter into the next chapter."
$370 Million Loan
Credit Suisse was owed more than $370 million for the loan it made to the original Tamarack
developers before the 2008 bankruptcy. Monday's sale succeeded after being postponed three times.
A separate sheriffs sale for the Osprey Meadows Goff Course was put off last month and has not
been rescheduled.
The golf course is going through a separate foreclosure procedure that is not related to the Credit
Suisse loan.
Welker declined comment on Credit Suisse's plans. But Credit Suisse has obtained 16 unfinished
homes from a previous auction and could acquire more properties.
"Based on Credit Suisse's conduct, it appears that they are aggregating the assets based on a
perception that the whole is worth more than the sum of its parts; said Stephen Lord, the attorney for
the homeowner's group.
Banner /Sabey of Seattle, the former general contractor at Tamarack, used a credit bid of $13.5 million
owed to it to acquire the uncompleted Village Plaza in an auction held last September.
Village Plaza is an uncompleted hub of shops and condominiums that was intended to be the central
focus of the resort and replace a series of temporary domes that have housed restaurants and other
facilities since 2004.
Banner/Sebey officials have declined to comment on their intentions es the new owners of Village
Plaza.
Also, a development group including a Miami -based company and tennis stars Andre Agassi and
Stefanie Graf last year submitted a credit bid of $2 million to pick up parcels where a Fairmont Hotel
would have been built, as well an exclusive residence club with ski -in /ski -out access.
Page 1 of I
http://v A�n Nt. mccallstamews .com/pages/lead _page.php 3/13/2014
Outdoors Page The StarNews Page 1 of 1
Tamarack environmental group gets two grants
The Tamarack Environmental Protection Association has been awarded two grants to assist its
mission of protecting environment at Tamarack Resort in Valley County.
The National Ski Areas Association gave the group a$5,000 Sustainable Slopes Grant to use for
maintenance of existing water bars and ditches.
The money will also be used for reseeding slopes to prevent erosion as well as creation of a Fire Wise
demonstration garden.
The Valley Soil and Water Conservation District gave the group$350 to buy plants for the Fire Wise
garden.
The group also has become a gold sponsor of the Central Idaho Mountain Bike Association.
CIMBA maintains many trails in the area,including those at Tamarack Resort,and has begun a multi-
year project that will create a mixed-use trail around Payette Lake.
The Tamarack Environmental Preservation Association is a non-profit,professional and educational
organization for individuals who work to control environmental hazards and promote healthy,balanced
and sustainable environmental conditions,according to its mission statement.
http://www.mccallstarnews.com/pages/outdoors_page.php 5/16/2014
The Star News Groups Page
TAMARACK
GETS GRANT
ktTRi
PMb by CaNr O.ad
Idaho Rep. Terry
Gestrin, R- Donnelly,
and Doug Dvorak of
Tamarack Resort
display a check for $375
from the Valley County
Soil & Conservation
District to the Tamarack
Fmnronmeotal
Protection Association.
The money will be used
to build a Firewise
Garden at Tamarack
Resort. Gestrin and
Dvorak are association
board members.
Page 1 of 1
http: / /www.mccallstamews .com/pages /groups _page.php 6/5/2014
This week's front page stories
Straight Shooters
400 people take part in archery contest at Tamarack Resort
"Archery isn't just for hunters, it can be a lot like golf where it's just fun to go out. " —Tyler
Crockett
BY KYLA SAWYER
for The Star -News
Roger Cantlon carefully drew back his bow and concentrated on the red circles about 50 yards away
on a large foam target at the base of Tamarack Resort on Saturday.
After watching his arrow land just a few centimeters from
the center circle, the 67 year -old Boise resident declared he
was happy to be back in the high country.
"I've been shooting probably 50 years and I really like
these mountains up here," said Canton. "It's great to be able
to go biking and skiing and now take my bow and shoot
here."
Cantlon was among an estimated 400 participants at this
year's NW Mountain Challenge 3D Archery event.
Nwb fm i Sou -New, by Kyh S.
The three-day event was previously held at Bogus Basin Hank smith, 54 of Hermiston, Ore., takes airn at a
Ski Area for the last two years, co- organizer Tyler Crockett target high above take Cav ade on Saturday while
of Donnelly said. alkker ,4,waittheirturntoshoot. and Hannah
"This seems to be a better event than we've ever had," Crockett said. "Archery isn't just for hunters, it
can be a lot like golf where it's just fun to go out and hike the course, take the family and fling arrows"
Attendance has grown over 25 percent each year, co- organizer Steve Speck of Boise said.
"Really everyone comes, non - hunters, a lot of families and then both men's and women's
competitors," Speck said.
"Since the movie, 'Brave' came out it seems like there's more of an interest in kids shooting bows," he
said. "Archery is a great family sport, it gets people outdoors and they have a good time."
The event featured six archery courses set up on a variety of trails at Tamrack. Archers and their
families rode the ski lift up the hill and then hiked down following a course map and brightly colored
Flagging along the way.
Foam targets of bears, elk, deer and other animals were set up at varying yardage from a wooden
stake where the archer stands. Rings on the target indicate what score the participant writes down on
their scorecard.
Shoot -Offs Decide Winners
Archers competed in different classes based on age, gender and ability, and the top five archers in
each class held a shoot -off.
On Friday, a glow -stick course was held after dark with the trails, targets and archers lighted with
neon - colored glowing sticks.
"This is my second year at this event and I really liked the Friday Night Glowstick Shoot," said Shawn
Kelley, 44, of Nampa. "It's something new, different and definitely was entertaining."
For Emmett Walker and his 14 year -old daughter Hannah, the event was well worth the drive from
Hermiston, Oregon.
"She's been showing quite an interest in archery and so we thought we'd come for fun," said Walker,
56
Page 1 of 1
http: / /www.mccallstamews.com /pages /fp_stories _page.php 7/3/2014
Star -News News Page—Announcements
Osprey Meadows Golf Course cited for environmental
excellence
Osprey Meadows Golf Course at Tamarack Resort has retained its designation as a Certified Audubon
Cooperative Sanctuary through Audubon International.
Assistant golf course superintendent Jory Felder led the effort to maintain sanctuary status on the
course, which has been recognized for 'Environmental Stewardship."
Osprey Meadows Golf Course was designated as a Certified Audubon Cooperative Sanctuary in 2008
and is one of 901 courses in the world to be so designated.
"Osprey Meadows Golf Course has shown a strong commitment to its environmental program," said
Doug Bechtel, executive director at Audubon International.
"They are to be commended for preserving the natural heritage of the area by protecting the local
watershed and providing a sanctuary for wildlife on the golf course property," Bechtel said.
The program, endorsed by the United States Golf Association, provides information and guidance to
help golf courses preserve and enhance wildlife habitat, and protect natural resources.
'We are proud of all of the accolades that Osprey Meadows has received, but this one holds a special
place for us," said Wolfe Ashcraft, recreation and marketing manager for Tamarack Resort.
"The environment has always been held in a high regard at Tamarack Resort and this is another
example of our commitment to be good stewards of the natural habitat," Ashcraft said.
Page 1 of 1
http: / /www.mccallstarnews. com/pages /announcements _page.php 7/17/2014
Star -News News Page—Lead Story
New Tamarack Resort owner to make improvements
Credit Suisse subsidiary plans to shine up facilities
"Vew TRAC is committed to charting a successful path for Tamarack. "
—David Papiez
BY DAN GALLAGnER
for The Star-News
The new owners of most of Tamarack Resort will be spending some money this year to shine up the
resort, a spokesman for the new owners said.
Planned work includes painting the chairlifts, staining buildings, fixing the snowmaking
systems and other chores that could not be done while the resort was caught up in
foreclosure proceedings, said David Papiez of New TR Acquisition Co., known as New
TRAC.
"They are smaller projects that won't necessarily be that obvious individually, but
collectively will improve the guest experience; said Papiez, who was the sole employee of
DaNid Papiez Tamarack Resort LLC during the final years of foreclosure proceedings.
Papiez declined to reveal how much money would be spent on the improvements
New TRAC was formed by Credit Suisse AG, which acquired most of the resort at a foreclosure sale
on March 10.
Nothing has been ruled out by New TRAC, including long -term management and operation of the
resort southwest of Donnelly, Papiez said.
"Evaluation of these options will take some time, but New TRAC is committed to charting a successful
path for Tamarack; he said.
The new company has hired Replay Resorts of Vancouver, B.C., to help run the day - to-day operations
of the resort.
Back Into Real Estate
The new owners are also tip toeing back into the real estate market. This summer, four cottages were
placed on the market for sale, with the release of additional cottages and townhomes to follow, Papiez
said.
Looking ahead, possible projects include completion of the 13,000 square -foot Mid - Mountain Lodge
that sits empty at the top of the Tamarack Express chairift, he said.
"That's one of those next -step items part of strategizing on where to take the resort," Papiez said. "The
Mid - Mountain Lodge is definitely one of those high on the list."
Credit Suisse acquired the resort after Tamarack Resort LLC became insolvent in 2008 and defaulted
on a $250 million loan from Credit Suisse to continue building the resort.
Not included in the acquisition was Village Plaza, the incomplete complex of condo and commercial
space that has become the symbol of the resort's woes.
Village Plaza was acquired last September by UWW, LLC, an entity formed by a group of contractors
with liens on the property that is led by Banner Sabey, the Seattle construction company that was the
general contractor on the project before work was hatted in 2008.
Banner Sabey is watching what New TRAC does before restarting work at Village Plaza, said Michael
Dunne, the principal officer in Banner Sabey.
"Really, the ball is in their court," Dunne said. "That's all I really know."
New TRAC has no immediate plans to change the current arrangement with the Tamarack Municipal
Association of homeowners that has been operating the ski mountain and Osprey Meadows Golf
Course, Papiez said.
Although the steps are small, Papiez sees any movement as positive.
"For the first time in six years, Tamarack is under financially stable ownership. That is one of the big
headlines right now," he said.
After so many years of uncertainty, resolving Tamarack's future is not like flipping a light switch,
Papiez said.
"We want to make sure everything is handled in a very considerate fashion," he said "so that at the
end of the day, Tamarack will continue on as a going concern and as a significant contributor to the
Valley County economy."
Page 1 of 1
http: / /www.mccallstamews .com/pages /lead_page.php 7/24/2014
Star -News News Page—Announcements
Tamarack owner hires Boise public relations firm
The firm Oliver Russell of Boise has been selected to lead the public relations effort for Tamarack
Resort near Donnelly.
The resort is now under the ownership of New TR Acquisitions Co., a subsidiary of Credit Suisse.
NEWTRAC has hired Replay Resorts of Vancouver, B.C., to oversee operations at the resort
"Oliver Russell brings creativity to our story and a long - standing commitment of investing in its
community, which align well with how we intend to market and operate Tamarack Resort," said Mariana
Ishida of Replay Resorts.
Replay Resorts is experienced in the business of planning, designing, building and operating
destinations. Many of Replay's senior executive team were founders and key leaders of Intrawest, the
world's largest planner, designer, builder and operator of destination resorts and resort villages.
"We're going to communicate that Tamarack is a fun and affordable resort, with new ownership and
strong management that are committed to its success, and that's great news," said Russ Stoddard,
Oliver Russell president and founder.
"There's a pioneering spirit of purpose and resolve throughout the Tamarack community, which is a
good fit for our agency," Stoddard said.
Oliver Russell was founded in 1991 and counts Hewlett- Packard, Allegro Coffee/Whole Foods Market,
and Mountain Health Coop among its clients.
Since the company's founding, the company has donated more than $1.7 million in cash and
resources to nonprofit causes and social enterprises.
Page 1 of 1
http: / /www.mccallstamews. com/pages /announcements _page.php 9/18/2014
The Star News Groups Page Page 1 of 1
McCall Farmers' Market donates to Little Ski Hill, TEPA
The McCall Farmers' Market has donated $1,000 to the Payette Lakes Ski Club and $500 to the
Tamarack Environmental Protection Association.
The ski club will use the money to support the after - school program that transports students from
Donnelly, McCall and New Meadows to the Little Ski Hill near McCall through the winter.
The Tamarack Environmental Protection Association will use the grant to install and enhance a
Firewise Garden at Tamarack Resort.
The McCall Farmers' Market is open -air market that benefits local non - profit groups that sell fresh local
produce, flowers, locally grown meats and poultry.
http: / /www.mccallstamews .com/pages /groups _page.php 9/18/2014
Star -News News Page—Announcements
Tamarack owner hires Boise public relations firm
The firm Oliver Russell of Boise has been selected to lead the public relations effort for Tamarack
Resort near Donnelly.
The resort is now under the ownership of New TR Acquisitions Co., a subsidiary of Credit Suisse.
NEWiRAC has hired Replay Resorts of Vancouver, B.C., to oversee operations at the resort.
'Oliver Russell brings creativity to our story and a long- standing commitment of investing in its
community, which align well with how we intend to market and operate Tamarack Resort," said Mariana
Ishida of Replay Resorts.
Replay Resorts is experienced in the business of planning, designing, building and operating
destinations. Many of Replay's senior executive team were founders and key leaders of Intrawest, the
world's largest planner, designer, builder and operator of destination resorts and resort villages.
'We're going to communicate that Tamarack is a fun and affordable resort, with new ownership and
strong management that are committed to its success, and that's great news," said Russ Stoddard,
Oliver Russell president and founder.
- There's a pioneering spirit of purpose and resolve throughout the Tamarack community, which is a
good fit for our agency,- Stoddard said.
Oliver Russell was founded in 1991 and counts Hewlett- Packard, Allegro Coffee/Whole Foods Market,
and Mountain Health Co-op among its clients.
Since the company s founding, the company has donated more than $1.7 million in cash and
resources to nonprofit causes and social enterprises.
Page 1 of 1
http : / /www.mccallstamews.com/pages /announcements page.php 9/25/2014
This week's front page stories
Tamarack to resume skiing 7 days a week this winter
State land board transfers lease to new owners
"It's a new day at Tamarack. " - David Palnez
BY DAVE GOINS
for The Star -News
Tamarack Resort will resume skiing seven days a week this winter following the transfer last week of a
state lease for the ski runs to the resort's new owner.
Last Thursday, the state land board approved transfer of the lease to NEWTRAC, the subsidiary of
Credit Suisse Bank that took over most of the resort's holdings from its original owners through
foreclosures.
"Returning this incredible mountain to full operations with skiing and snowboarding every day of the
week is exciting for everyone in the Tamarack community," said David Papiez, project manager for
NEWTRAC. "Plus, it will be a great economic boost for Valley County."
The ski area operated seven days a week when it opened in 2004 under the original developers and
closed in 2009 when the developers ran into financial troubles.
Starting in 2010, the ski area has been operated Thursdays through Sundays by the Tamarack
Municipal Association, the association of property owners in the resort southwest of Donnelly.
The association will continue to operate the ski area this winter with assistance from NEWTRAC and
Replay Resorts, a management company based in Vancouver, B.C. hired by NEWTRAC
The resort expects to add about 40 additional employees, for a total of about 150 employees, as it
targets its traditional mid- December opening, Papiez said. The ski area has snowmaking equipment,
which allows it to predict an opening date with certainty.
$2.6M Invested
The new owners will have invested nearly $2.6 million by the time the resort fires up its snowmaking
equipment in early November, with $1.2 million of that sum spent directly on mountain operations,
Papiez said.
Improvements include refinements to the snowmaking system, an upgrade of the ski rental fleet, new
snowcats and snowmobiles for grooming and improvements, and expansion of its terrain park to include
rails, boxes and table tops.
Brush and undergrowth will be cut from the ski runs using a grant from the National Ski Area
Association.
Tamarack Resort offers skiing on 39 runs covering 900 acres served by six chairlifts. The ski area has
a vertical drop of 2,800 feet.
"It's a new day at Tamarack, and we're looking forward to expanding operations and elevating the
resort experience," Papiez said.
The expanded ski season was made possible by the land board's action last Thursday to transfer the
lease of 2,124 acres of state -owned land to NEWTRAC.
This year's lease payment for the state land at Tamarack Resort was $277,979.33. The 2015 rental
rate will be determined in November based on an inflation index.
Back Taxes Paid
Under the agreement's terms, NEWTRAC would be required to pay 2011 to 2014 back taxes and
current taxes of approximately $250,000 to Valley and Adams counties by Dec. 31, 2019.
Costs for NEWTRAC would also include bringing all penalties and interest current. Pending terms of
the Tamarack lease agreement also call for NEWTRAC to pay a $32,795 "assignment and assumption
fee" to the state.
The land lease is an extension of the 49 -year lease at the site that originated with the contract signed
by WestRock Associates, LLC and the state in 2002.
NEWTRAC is also readying new cottages and townhomes for sale as part of its real estate offerings at
the resort.
"We think Tamarack is priced very attractively for those who want a fun and affordable four - season
resort experience," said Mariana Ishida of Replay Resorts.
"Tamarack's beauty is that it really works for the active Idaho lifestyle, as well for those who simply
want to unwind in a beautiful and relaxing setting," Ishida said.
NEWTRAC does not own the uncompleted Village Plaza condo and retail complex located in the heart
of the resort.
http://www.mccallstameWS.com/pages/flp _stories�age.php
Page I of 2
10/9/2014
This week's front page stories Page 2 of 2
Village Plaza was acquired in foreclosure by Banner -Sabey of Seattle, the construction company that
was building the complex when the original developers ran out of money.
Banner -Sabey has not disclosed it plans for Village Plaza.
http: / /www.mccallstamews .com/pages /fp_stories _page.php 10/9/2014
Star-News News Outdoors Page Page 1 of 1
Tamarack Resort fires up snowmaking toward Dec.11 ski area opening
Tamarack Resort took advantage recent cold temperatures to fire-up its snowmaking system in
preparation for its scheduled opening day on Dec.11
Tamarack is one of only three Idaho ski resorts with a snowmaking system along with along with
Schweitzer Mountain and Sun Valley.
This summer,the ski area expanded its system with an additional of 1,840 feet of new snowmaking
pipe and five hydrant locations on the Watt ski trail,a major exit route from the top of the Tamarack
Express chairfift.
The resort's snowmaking system pumps 1,150 gallons of water per minute across the resort to 14
mobile snow guns.
Full-time snowmaking activities are scheduled to begin in early November when temperatures are
below 25 degrees.
The resort will use between 25 million and 35 million gallons of water in a season,depending upon
natural snowfall.
http://www.mccallstarnews.corn/pages/outdoors_page.php 10/29/2015
Outdoors Page The StarNews
HELPING MOTHER NATURE
&_,W
flnm mmmxY T.mu.rkanon
Cold temperatures allowed Tamarack Resort to fire
up its snowmaking s}stem Tuesday. Nine snow
guns were turned on spewing qg gallons of water
per minute per gun and 24300 gallons per hour.
Tamarack plans to coyer about too acres of ski
runs with man -made snow as it prepares for its
opening in mid - December.
Page 1 of 1
http: / /www.mccallstamews.com /pages /outdoors _page.php 11/13/2014
Outdoors Page The StarNews Page 1 of 1
Tamarack Resort to open Discovery area Saturday
Tamarack Resort will open seven days per week for the 2014 -15 season on Saturday.
Terrain will be limited to the Discovery beginner area and will include two or three small freestyle
terrain features. Tickets will cost $15, and more terrain will be added as conditions allow.
"Thanks to our snowmaking system, we've been able to make snow despite challenging weather
conditions allowing Tamarack to start new daily lift operations," said David Papiez, project manager for
NEWTRAC, the resort's new ownership group.
When operations are expanded, Tamarack will debut changes to its terrain park with increased
acreage and features, including new rails, boxes, and tabletops ranging from 10 feet to 30 feet.
Other improvements include the addition of new snowcats that enhance grooming and a revitalized
ski - rental fleet with brand -new equipment. Brush and undergrowth were also cleared in the offseason,
improving and expanding the skiing experience
"It's a perfect time for families to start getting their ski legs and do it in a friendly, family oriented
atmosphere with our outstanding ski school," Papiez said-
http://www.mccallstamews.com/pages/outdoors_page.php 12/11/2014
Outdoors Page The StarNews
SANTAS CELEBRATE
'". FY,U -ata
These skiers showed their holiday spirit on
Christmas Dav last week as they prepared to hit the
slopes at Tamarack Resort. It didn't hurt that
Tamarack also allowed all skiers and snowt mrders
dressed in a full Santa Claus outfit to ski for flee.
Page 1 of 1
http: / /www.mccallstamews.com/pages /outdoors _page.php 12/31/2014
Outdoors Page The StarNews
PLAYING AROUND
light on New Year's Eve. This photo shows a time
exposure of fireworks and mole 5o skiers who took
part in a torchlight parade. This week, the resort is
hosting College Week, where college students can
ski for $35. There will also be Game Night tonight
at the Seven Devils Pub, a free energy drink with
the first 500 tickets sold on Friday, and a poker run
and Back to School Night on Friday.
Page I of 1
http: / /www.mccallstamews .com/pages /outdoors _page.php 1/8/2015
This week's front page stories
High winds halt skiing Saturday at Tamarack, Brundage resorts
Windows blown out, sign toppled at Tamarack
BY TOM GROTE
The Star -News
High winds disrupted skiing at Tamarack Resort and Brundage Mountain Resort on Saturday.
The chair lifts at Tamarack Resort west of Donnelly were
closed on Saturday after winds up to 90 miles per hour
ripped through the area, said Tama Lamm, the
resort's events and marketing coordinator.
"The lift were closed due to safety concerns of numerous
toppled trees around the resort as well as a power outage
that lasted until early afternoon," Lamm said. Restaurants
and other resort services opened at 2 p.m., she said.
The high winds blew out several windows at Tamarack's
lift terminal, Lamm said. A 6 foot by 6 foot sign post was
sheared off and shingles from the National Ski Patrol shack
were found scattered as far away as the Tango and Serenity
runs, she said.
"Lift maintenance reported a chair blown completely
sideways and pinned up in the terminal," Lamm said.
--,T� —
This sign near the top of the Tamarack Resort ski
area was toppled by high Hinds that forced the area
to dose on Saturday.
The winds at Brundage, located north of McCall, were less severe, ranging form 46 mph to 53 mpn,
resort spokesperson April Whitney said.
'Those wind gusts forced us to keep the Blue Bird Quad and Centennial lifts on 'wind hold' until winds
died down," Whitney said. The Blue Bird chair was opened at 11:30 a.m. while Easy Street and the Bear
Chair opened on time at 9:30 a.m., she said.
"We decided not to run Centennial or Lakeview because of the late start and because of light crowds,"
Whitney said.
Brundage lost power Saturday morning when a tree fell across a power line on Goose Lake Road, but
the area switched over to backup sources, Whitney said. Electrical service was restored about 11:45
a.m.
Nine reports of downed trees were recorded in the Donnelly area by Donnelly Fire & EMS, Chief Juan
Bonilla said.
Trees fell on two houses on Dawn Drive with other downed trees reported on Spring Valley Road, Gail
Alin Road and Crane Shores Drive, Bonilla said. Dawn Drive was briefly blocked by fallen trees, he said.
No reports of downed trees were reported in the McCall area, according to McCall Fire & EMS Chief
Mark Billmire.
Page 1 of 1
http: / /www.mccallstamews .com/pages /fp_stories _page.php 2/12/2015
Star -News News Page—Announcements
Tamarack Resort notes higher home sales so far in 2015
Tamarack Resort is reporting higher demand for vacation real estate at the resort with improved home
sales to start 2015.
Sales so far this year total $4.4 million from a total of 13 transactions, two closed and 11 pending. This
compares to sales volume of $6.1 million and 22 transactions for all of 2014, a news release said.
The 13 year -to -date transactions contrast with just four at Tamarack for the same period a year ago,
said Trisha Sears of Tamarack Realty,
"There is a lot of pent -up demand from people who have just been waiting for the good news at
Tamarack to start again, and it's definitely here," Sears said.
Sales include residential townhomes, chalets, and vacant lots, with buyers coming primarily from
Boise and the Treasure Valley.
"The real estate market generally is improving, but our sales activity is outpacing the overall economy
or other resort communities in central Idaho," said David Papiez, project manager for New TR
Acquisition Co. LLC, the resort's new owner.
"There's a lot of excitement about the revival of Tamarack and the value of the residential properties
we're offering," Papiez said
This past year, Tamarack's new ownership group invested in extensive capital improvements,
expanded skiing to seven -day operations, and hired industry leader Replay Resorts to oversee
operations.
Tamarack was cited as number 10 on the list of the top 20 hidden ski resorts in North America by the
website Outdoor Obsessions. The Osprey Meadows Golf Course was lauded as the 63rd best resort
golf course by Golf magazine.
The resort is continuing to add to its ski -in, ski -out residential community, completing and readying
new cottages and townhomes for sale that start at $339,900.
"We think Tamarack is priced very attractively for those who want a fun and affordable four - season
resort experience," says Mariana Ishida of Replay Resorts.
"Tamarack's beauty is that it really works for the active Idaho lifestyle, as well for those who simply
want to unwind in a beautiful and relaxing setting," Ishida said.
Page 1 of 1
http : / /www.mccallstamews.com/pages /announcements _page.php 2/19/2015
Star -News News Outdoors Page Page l of 1
Tamarack Resort starts free Saturday shuttle for skiers
Tamarack Resort has begun a free Saturday shuttle for skiers and snowboarders from McCall to the
resort southwest of Donnelly.
Riders can hop on the shuttle at 8:45 a.m. Saturdays in the Ridley's parking lot in McCall, ski all day
and then depart Tamarack at 3:45 p.m.
"This is a great opportunity for anyone to catch a free ride from McCall and ski all day at Tamarack
without the worry of having to drive," said Tama Lamm, events and marketing coordinator for Tamarack
Resort.
To reserve a seat, write to skitam @tamarackidaho.com before 5 p.m. on the Friday prior to the
Saturday of the shuttle service.
Tamarack Resort is celebrating Spring Break for the entire month of March. Lift ticket deals, Ski, Stay
and Dine packages and fun events are planned throughout the month.
$10 Day will be held Sunday, March 22 and all lift tickets will cost $10. Theme days are planned at the
end of the month with live music and specials.
http: / /www.mccallstamews.com /pages /outdoors_page.php 3/12 /2015
Star -News News Announcements Page
New real estate brokerage to
represent Tamarack Resort
Tamarack Realty, Inc., a new, specialized resort real estate brokerage, has been formed to focus on
marketing properties at Tamarack Resort.
Trisha Sears, who has been responsible for the majority of real estate transactions at Tamarack for
the past eight years, will be general manager of the brokerage and oversee all sales activities.
Sears is a partner in Tamarack Realty, Inc. with co- owners Beverly Anderson and Michael Anderson,
who will be the designated broker.
"With Tamarack's amenities and the ski -in, ski -out access, there's really nothing else like it in the
region," Sears said.
"There are precious few resort real estate opportunities like it, or as affordable, available anywhere in
the country," she said.
Tamarack Resort is seeing much higher demand for its vacation real estate with significantly improved
home sales during the first quarter of 2015.
New sales include residential townhomes, chalets, and vacant lots, with buyers coming primarily from
Boise and the Treasure Valley. Tamarack Resort season ski pass sales for 2015 -16 have also increased
substantially, Sears said.
"We look forward to working closely with the Tamarack Municipal Association and the owners and
management of the resort to continue building a healthy real estate market as the local economy
improves," Mike Anderson said.
"Toward that end, we plan to offer full cooperation with local and regional real estate offices by
providing support, current information, and access to properties," Anderson said.
There is pent -up demand from those who have just been waiting for the good news at Tamarack to
start again, Sears said. "It's definitely here," she said.
Tamarack Realty will host an open house event soon to welcome property owners and the real estate
community to its new office at 850 Village Drive.
For more information, go to www.tamarackidaho.com /real- estate.
Page 1 of 1
http://www.mccallstarnews.com/pages/announcements_page.php 3/12/2015
Star -News News Main News Page
Tamarack owners group to give up
Osprey Meadows Golf Course
Chief creditor has sued for breach of contract, property taxes
"We have worked hard to operate, maintain and improve the course for the hene /it of all. " -
Tim Flaherty
BY TOM GROTE
The Star -News
The future of the Osprey Meadows Golf Course at Tamarack Resort was in doubt this week after the
resort's owners association said it was turning over operations to the course's main creditor.
The Tamarack Municipal Association announced last week that is would turn over the golf course to a
Tennessee woman who represents the main creditor to the course.
Jeanne Bryant of Receivership Management Inc., of Brentwood, Tenn., sued the association last year
to recover $140,000 in property taxes and seeks damages totaling $324,000. The company also wants
to charge the association an annual rent of nearly $700,000 to continue to operate the course.
The continuing lawsuit and demand of rent were among the reasons the owners association decided
to turn over the golf course, which it has managed since 2012, said Tim Flaherty, executive director of
the Tamarack Municipal Association.
The association stepped in when the owner of the course, West Mountain Golf, could no longer afford
to operate or irrigate the course, according to the TMA's response to the lawsuit, which was filed last
August in federal court in Boise.
The association "stepped in and saved (Osprey Meadows) from literally wasting away and returning to
a natural state," the response to the lawsuit said.
The association levied an extra assessment on the resort's homeowners to pay for the maintenance,
just as it did when the association took over Tamarack's ski area in 2010.
"We have provided significant financial support and worked hard to operate, maintain and improve the
course for the benefit of all," Flaherty said.
Sponsors & Donors
Many homeowners and local businesses donated sponsorship of holes, supplied fertilizer and other
materials and volunteered their time to maintain the course, he said.
As a result, the course has achieved wide recognition. Golf Digest ranked Osprey Meadows the 32nd
Best Public Course in America in 2013 -14, and Golfweek designated the course as the 2015 "Best
Course In Idaho You Can Play."
Flaherty hopes that Bryant will decide to open Osprey Meadows this summer. "We're optimistic she
will find a management company to operate the golf course," he said.
Bryant declined to comment when contacted by telephone on Monday, citing the continuing lawsuit.
In dispute are 15 of the 18 holes of the golf course as well as spaces in The Lodge at Osprey
Meadows occupied by Morel's restaurant, the pro shop, Lobby Bar, pool, dining terrace and exercise
room. The other three golf holes are on land leased from the state.
Receivership Management Inc. became involved in after a series of events that started in 2005 when
West Mountain Golf obtained a $3.5 million loan to buy Osprey Meadows from Tamarack Resort.
West Mountain Golf stopped making payments on the loan in 2009 and foreclosure proceedings were
started.
In 2010, the golf course and the loan were purchased by Green Valley Holdings and its principal,
Matthew Hutcheson.
Illegal Transfers
Later that year Hutcheson illegally transferred $3.3 million from Retirement Security Plan & Trust of
Wichita Falls, Texas, to Green Valley Holdings.
Hutcheson was indicted, and in 2012, a federal jury convicted him on 17 counts of wire fraud. He was
sentenced to 17 years in federal prison and ordered to and pay $5.3 million in restitution to victims of the
Tamarack fraud and others.
Bryant was appointed by a federal judge to manage what was left of the trust's assets, after which
Bryant filed the lawsuit against TMA. Preliminary motions are still being exchanged in the case and no
date has been set for a trial.
Bryant has been unwilling to negotiate a new lease with the owners association but instead demanded
the association pay past -due property taxes as well as the $700,000 per year rent, Flaherty said.
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3/1
Star -News News Main News Page
The association has told Bryant that her company "likely faces even higher expenses and bigger
losses" if it tried to operate the golf course on its own, he said.
The decision by the association to turn over the golf course comes at the same time that Tamarack's
new owner, NewTrac, has agreed to take over the operation of the ski area from the TMA.
.es _page.php
Page 2 of 2
Star -News News Main News Page
New Tamarack Resort owners to take over ski area operations
Homeowners group had run the ski lifts since 2010
"That is what we were hoping would happen. "- Tim Raherty
BY TOM GROTE
The Star -New,
The owner of Tamarack Resort near Donnelly will take over the operations of the resort's ski area
starting May 1.
The announcement means the Tamarack Municipal Association, the resort's homeowners association,
will be freed from operating the ski area for the first time in five years.
New TR Acquisition Co., also known as NewTrac, has turned over operation of the ski area to Replay
Resorts, a Vancouver, B.C., company that specializes in managing resorts that have gone through
financial turmoil.
Replay was hired last year to oversee the resort's assets but did not take over the ski area, which the
homeowners association has operated since 2010 following the bankruptcy of Tamarack's original
developers.
"It's a logical next step to move from the homeowners' association to professional ski resort
management," said David Papiez, project manager for NewTrac.
"You really have to hand it to the homeowners' association for keeping the resort alive during some
challenging times and making a lot of skiers happy in the process," Papiez said.
Association Happy
The handing over of operations of the ski area to Replay Resorts is "a good thing," said Tim Flaherty,
executive director of the Tamarack Municipal Association.
"That is what we were hoping would happen with the new ownership group," Flaherty said. "I have
really enjoyed the challenge and very honored to be part of the success."
Replay Resorts will take over the operations of the ski lifts and snowmaking equipment as well as ski
rentals and marketing of the resort, he said.
The owners group hired 165 employees this winter to run various operations of the ski area, Flaherty
said.
"There's a lot of excitement about the revival of Tamarack," said Mariana Ishida of Replay Resorts.
"We're happy to add our team of professionals and world -class ski -resort expertise to Tamarack's
continuing success story."
The resort's owners saw a surcharge on their annual assessments to cover the costs of running the
ski area.
Flaherty declined to disclose the amount of the extra assessment, but said owners will not see a
decrease this year. "But they also will not be faced with the risk of increase due to the burdens imposed
by winter operations," he said.
Tamarack Resort opened in 2004 as a new four - season resort that drew national attention to Valley
County.
The implosion of the national real estate market and arrival of the recession in early 2008 hit
Tamarack hard. Foreclosure proceedings were soon filed against the resort's original developers by
Credit Suisse, which had funded a loan to Tamarack in 2006.
The ensuing six years of foreclosure and bankruptcy litigation came to an end last March when
NewTrac, a conglomerate of lenders led by Credit Suisse, conducted a sheriffs sale to foreclose on
nearly all of the resort.
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Page 1 of 1
PROUD TO BE AN AMERICAN
P n`ZS News by G7
Lamm, ma
Bode , 4, of McCall, aka Captain America,
soars over a snowbank on Sunday during the final
day of sluing at Tamarack Resort near Donnelly.
ries _page.php
Page 1 of 1
4/2/2015
Star -News News Announcements Page
Replay Resorts names Brad Larsen as ski area manager
Replay Resorts has named Brad Larsen as new General Manager for Tamarack Resort near
Donnelly.
:y _41, Larsen will be responsible for resort operations and real estate development and
marketing.
He has held roles in ski resort leadership for more than a decade, and has a wealth of
.'marketing and sales experience from prominent resorts throughout the United States.
<1 .
Most recently, Larsen was vice president of sales and marketing at Telluride Ski Resort
Bnd two in Colorado, and previously served as vice president of sales and marketing at Sugarloaf
Mountain in Maine.
His background includes involvement with operations and lodging departments, including a post with
Intrawest at Snowshoe Mountain in West Virginia.
"Tamarack Resort has great potential to thrive as a winter and summer destination, and I truly believe
this location has a bright future,' Larsen said.
In March, New TR Acquisitions Co. LLC, the owner of Tamarack Resort, announced Replay Resorts
would assume overall operational management for the resort, except for golf operations, effective May
1, replacing the Tamarack Municipal Association.
The owners association stepped in to manage day - to-day ski operations in 2010 after the original
developers suspended operations due to financial troubles.
Replay Resorts is a destination development company headquartered in Vancouver, B.C.
Page 1 of 1
J&
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TAMARACK LODGE FIRE -This photo showing
smoke rising from the Lodge at Osprey Meadows at
Tamarack Resort was released by Donnelly Fire &
EMS. The fire on May 6 burned between the third
and fourth floor of the lodge over a condo. The
lodge was evacuated, but firefighters quickly put
out the fire, which was suspected to have started in
flooring embedded with electrical heating
elements, Fire Marshall Jess Ellis said.
s _page.php
Page 1 of 1
5/21/2015
Star -News News Outdoors Page Page 1 of 1
Tamarack Resort to start shuttle service for mountain biking
Tamarack Resort will add a new mountain biking program that will include shuttle services and bike
rentals starting July 4.
The resort will offer shuttled mountain biking to guests and homeowners. The -10 passenger shuttle
will run from the Sports Dome to mid- mountain on Saturdays and Sunday through Labor Day.
"The shuttle service mountain biking will begin the process of putting Tamarack Resort back on the
mountain biking map," said Brad Larsen, the resort's general manager.
"Guests have not seen this type of program at the resort since 2007 and we are very excited with this
new resort offering," Larsen said.
Shuttle tickets and mountain bike rentals will be offered inside the Sports Dome at the resort. Both
downhill and cross country mountain bikes will be available for rent and no ticket is needed except for a
ride on the shuttle.
The mountain biking and hiking trails are already open for use as well as the 18 -hole disc golf course.
Whitewater rafting trips and zip line tours occur daily and can also be booked by calling 325 -1030.
http: / /www.mccallstamews .com/pages /outdoors _page.php 5/28/2015
. Star -News News Lead Story Page Page 1 of 2
Tall & Brown At Osprey Meadows
Tamarack go fcourse left unmaintained during legal dispute
BY TOM GROTE
The Star -News
Last Friday, a jogger moved along the cart paths at Osprey Meadows Golf Course, unconcerned about
errant golf balls.
A fox ambled across a green without worries about encountering golfers lining up their putts. Animal
tracks dotted the sand traps, unraked.
Those movements were the only activity at Osprey Meadows, the golf course at Tamarack Resort, as
the course remains closed while a legal battle works itself out.
The irrigation system is not operating and mowing has been halted on the 18 -hole golf course
southwest of Donnelly.
As a result, the fairways have sprouted clumps of clover, grass in the roughs has grown to over a foot
tall, and the greens have taken on the consistency of low -pile carpet.
For the previous three years the Tamarack Municipal Association, representing property owners at the
resort, operated Osprey Meadows after then-owner West Mountain Golf could no longer afford to
operate or irrigate the course.
The land on which nearly all the golf course sits as well as the swimming pool and restaurant space at
the nearby Lodge at Osprey Meadows are under the control of Jeanne Bryant of Receivership
Management Inc., of Brentwood, Tenn.
Bryant represents Retirement Security Plan & Trust of Wichita Falls, Texas, the company from which
former Osprey Meadows owner Matthew Hutcheson illegally transferred $3.3 million.
Hutcheson was later convicted him on 17 counts of wire fraud and is serving a 17 -year prison term.
Last August, Bryant sued the municipal association in federal court for past -due property taxes as well
as $718,000 per year in rent.
As a result of the lawsuit, the TMA walked away from the course on April 2, calling Bryant's claims
unreasonable.
Irrigation Lines Drained
The irrigation lines have been drained, the golf carts owned by the TMA are for sale and the
association is working to return the leased mowers that were used on the course.
It is Bryant's duty to get as much money as she can to repay the victims of Hutcheson, said T.J.
Angstman, a Boise attorney representing Bryant.
"Operating a golf course does nothing to repay the victims, because the golf course has never made
money," Angstman said.
"it is a costly amenity designed to sell real estate, and my client does not own that real estate," he
said.
Bryant's clients do not want to spend more money from their retirement accounts maintaining a golf
course for other people to enjoy, he said.
The price tag for RSPT's position is about $5.5 million, which could be reduced if a buyer came along
quickly, Angstman said.
"I would love to get the golf course open as much as anyone," said Angstman, who owns a townhome
at Tamarack. "But my client represents people whose fife savings were stolen by Hutcheson and it is her
legal duty to try and get them repaid."
Green Pasture
An April 3 letter from TMA attorney Steve Lord of Boise to Angstman's law firth said cutting off
maintenance of the golf course would serve no purpose.
"Reducing the golf course to essentially green pasture will logically severely reduce its attractiveness
to any buyer and leaves a buyer with greater cost for rehabilitation and reconstruction - especially to
greens, sand traps and tee boxes," Lord's letter said.
The $718,000 in rent demanded by Bryant was "not based in reality - economic or otherwise," Lord
said. "if it was, she might have a new operator by now."
At least $1.5 million would need to be spent to restore the course if it is neglected through the rest of
this summer, said Ben Wilmarth, who has been the head superintendent at the course for the last three
years.
'It is not salvageable to play golf for this season" Wilmarth said.
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r Star -News News Lead Story Page Page 2 of 2
It could take up to four years before Osprey Meadows could open for play again if the legal disputes
are not settled soon, he said.
http: / /www.mccallstamews .com/pages /lead _page.php 6/18/2015
Star -News News Lead Story Page
Golf course operators say Osprey Meadows closure Is bad news
BY TOM GROTE
The Stu -News
Nothing good can come from the closure of Osprey Meadows Golf Course at Tamarack Resort,
operators of the three other public golf courses in the area said.
The Osprey Meadows course has not opened for the season due to a legal dispute, and the grass at
the course is being allowed to grow long and dry out.
"We want to see golfers coming up and golfing at every course over several days, not just driving up
for the day to golf and leaving," said David Carey, general manager of Jug Mountain Ranch south of
McCall.
The 18 -hole Jug Mountain course is likely to see some additional golfers this season due to the
Osprey Meadows closure, but that is the only positive outcome, Carey said.
"The confusion about whether they will open or not is not good in general," he said.
"Ironically, the low snow winter we just had has left all area courses in the best condition they have
ever been in over 10 years," Carey said.
McCall Golf Course gained a group of 40 people that had planned their corporate golf tournament at
Osprey Meadows, Head Golf Professional Allan Morrison said.
"Throughout the season we host many groups that come to McCall to play Osprey, Jug Mountain, and
McCall," said Morrison, who manages the 27 -hole course owned by the city of McCall.
MeadowCreek Golf Resort near New Meadows may gain from golfers from the Boise area who want
to play two or three courses, said Andy McCluskey, a director of the MeadowCreek Resort Association,
which owns the 18 -hole course.
"We are having a terrific start, but I give that credit to a gentle winter, resulting in a pristine golf
course," McCluskey said.
Property values at Tamarack likely will suffer if Osprey Meadows remains closed, he said.
"When a course closes, it is very difficult, and expensive, to bring it back," McCluskey said.
Whitetail Golf Course in McCall Is private, with only club members and guests of Shore Lodge
permitted to the play the 18 -hole course.
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Page 1 of 1
6/18/2015
Star -News News Outdoors Page
Tamarack Resort to open
waterfront cabana on Lake Cascade
Tamarack Resort will open a waterfront cabana on Lake Cascade at the Poison Creek Campground
and Day Use area next week.
The Tamarack Waterfront Cabana will be located just north of the group pavilion and the boat ramp at
Poison Creek and will include a floating dock and a yurt rental and retail facility.
The cabana will feature a variety of rental equipment and amenities including motorized and self -
propelled watercraft such as kayaks and stand -up- paddleboards. There will also be a luxury pontoon
and wake boats for rent.
The facility will operate Mondays through Thursdays between 10 a.m. and 6 p.m., and Fridays through
Sundays 10 a.m. to 8 p.m. through Labor Day or low water, whichever comes first.
Boat reservations will be available through waterfront @tamarackidaho.com or by calling 325 -1011.
"Providing visitors, residents and Tamarack homeowners with easy access to rental equipment to
enjoy summer water sports on Lake Cascade is a great step for us as we move toward becoming the
premier year -round resort for the Boise and McCall regional area" said Brad Larsen, general manager of
Tamarack Resort.
http://www.mccalistamews.com/pages/outdoors_page.php
Page 1 of 1
6/25/2015
Star -News News Main News Page Page 1 of 1
Tamarack owners owe $5.5 million in property taxes
Representative says 2011 taxes will be paid soon
BY TOM GROTE
The Star -News
The two largest owners of property at Tamarack Resort near Donnelly owe more than $5.5 million in
property taxes to Valley County.
The county is getting ready to seize the properties as soon as Aug. 24, but representatives of both
companies say the back taxes will be paid.
The property taxes due are from 2011. A listing of all of the county parcels with unpaid taxes can be
found starting on Page B -6 of this issue of The Star -News.
The most taxes owed, about $4.7 million, are owed by New TR Acquisitions Co. LLC, also known as
Newtrac, on 40 parcels inside the resort.
Newtrac was formed by Credit Suisse after the international bank obtained most of the resort's
undeveloped property last year in a foreclosure sale from the original developers of Tamarack Resort.
The Newtrac properties are operated by Replay Resort, a Vancouver, B.C., company that specializes
in salvaging financially troubled resorts.
Replay is working with the Valley County Treasurer's Office to get the back taxes paid, said Brad
Larsen, who manages Tamarack Resort for Replay Resorts.
"Our team is working with the county to find an equitable way to solve this," Larsen said Monday.
Some of the larger amounts owed by Newtrac are $606,000 for two timber stands, $278,000 for 37
lots in the Blue Mountain Subdivision, and $56,000 for 14 condos in the Lodge at Osprey Meadows.
The county also is seeking $180,000 in unpaid taxes for the land and building housing the Canoe Grill,
$101,300 for the land occupied by the resort's recreation center and Wildhorse Youth Activity Center
and $130,000 for the unfinished expansion of the lodge.
A total of 183 of the parcels listed as past due by the county are owned by UWW of Puyallup, Wash.,
with back taxes from 2011 of $905,000.
Most of the parcels are condominiums located inside the unfinished Village Plaza in the heart of the
resort. The condos were pre -sold by the original developers, who then had to return the buyers' earnest
money when construction on Village Plaza was hatted in 2008.
Village Plaza was built by Seattle based Banner /Sabey, which was never fully paid by the developers
and which acquired Village Plaza in a sheriffs sale in 2013. Banner /Sabey then created UWW as the
owner of the property.
"We intend to pay," Mike Dunne, managing director of UWW, said on Monday.
Dunne also said his company was "a couple weeks" away from an announcement that he said would
be "good news," but he declined to provide specifics.
Also on the list of back taxes is a 4.7 acre parcel across Village Driver from Village Plaza that once
was proposed as the site for a luxury Fairmont Hotel by a development group that included tennis stars
Andre Agassi and Stefanie Graf.
The land, currently, owned by BAG Property Holdings of Coral Gables, Fla., has back taxes of
$458,000 owed on it from 2011, according to county records.
http: / /www.mccallstamews .com/pages /fp_stories _page.php 7/9/2015
Star -News News Groups Page
Firewise interpretive garden
completed at Tamarack Resort
A Firewise garden has been completed at Tamarack Resort by the Tamarack Environmental
Protection Association.
The garden creates an attractive buffer zone around the
resort's ski maintenance and security building and the
Donnelly Fire & EMS Annex dome.
All of the plants in the garden are fire resistant. Stone has
been used as mulch, and a drip irrigation system has been
installed. Educational signage will be installed as funds are
available.
The idea for the garden came from long -time West
Mountain residents Claire and Orval Wieber, who suggested
it to association Board President Doug Dvorak about 18
months ago.
From left Keigan E—tt, Mike Wurtz and Braedon
Goddard from Alpha Nus w and Garden Center
install the Fire.i Garden at the Ski
Maintenance /Security Building at Tamarack
Resort.
After the 2010 Hurd Fire threatened residences on West
Mountain, the Wiebers decided to learn more about protecting their properly from wildfires, Dvorak said.
"As they learned more about Idaho's Fire Wise program, they recognized the value of community
education," Dvorak said. "Tamarack seemed like a perfect place for an interpretive garden."
Grants were awarded from Idaho Firewise and the Idaho Soil and Water Conservation Commission
along with donations from the Donnelly fire department, McCall Farmers' Market and private individuals.
Robert Quinn, a landscape architecture student at the University of Idaho, donated his time and
expertise for the landscaping plan.
Members of the association board, employees and those needing to complete community service
hours all gave time and labor to see the project through to completion.
'•php
Page 1 of 1
8/6/2015
Star -News News Lead Story Page
Tamarack owners sue to stop Valley County takeover
Newtrac, UWW owe $5.5 million in property taxes from 2011
BY TOM GROTE
The Star -News
The two largest owners of property at Tamarack Resort near Donnelly are asking a judge to stop
Valley County from taking over their land because they have not paid properly taxes.
The two companies, New TR Acquisitions Co. LLC, also known as Newtrac, and UWW LLC, filed
separate lawsuits in Fourth District Court in Cascade asking a judge to stop a planned Aug. 24 hearing
in front of Valley County commissioners.
At the hearing, commissioners could seize the properties and place them up for public auction.
But the lawsuit says the notices that the county sent to the owners were flawed, so the seizure should
be delayed.
A hearing is set for 8 a.m. Tuesday before Fourth District Court Judge Jason Scott at the Valley
County Courthouse in Cascade.
The most taxes owed, about $4.7 million, are owed by Newtrac on 40 parcels inside the resort.
A total of 183 of the parcels listed as past due by the county are owned by UWW of Puyallup, Wash.,
with back taxes from 2011 of $905,000.
Newtrac also owes an additional $5.8 million in back taxes for 2012, 2013 and 2014, according to the
Valley County Treasurer's Office. The amount of back taxes that UWW owes from those years was not
available.
The companies do not deny they owe the taxes, but say the Aug. 24 hearing should be cancelled
because the notices of delinquent taxes sent out by the treasurer's office were inaccurate and violated
state law.
The complaint says taxes owed to the North Lake Recreational Water and Sewer District were lumped
together and not broken out by year. That violates state law which says the back taxes should be
itemized, the lawsuits claim.
Delaying Tactic
In a response, Valley County Prosecuting Attorney Jay Kiiha said the lawsuits were merely a delaying
tactic on the part of Newtrac and UWW.
'(Valley County) asks the court to see this matter for what tt is - another attempt to avoid payment of a
long- standing tax bill," Kiiha wrote.
The treasurer's office merely passed along the delinquency numbers given to it by the sewer district,
and no further breakdown is required, he said.
Newtrac was formed by Credit Suisse after the international bank obtained most of the resort's
undeveloped property last year in a foreclosure sale from the original developers of Tamarack Resort.
The Newtrac properties are operated by Replay Resort, a Vancouver, B.C., company that specializes
in salvaging financially troubled resorts.
Some of the larger amounts owed by Newtrac are $606,000 for two timber stands, $278,000 for 37
lots in the Blue Mountain Subdivision, and $56,000 for 14 condos in the Lodge at Osprey Meadows.
The county also is seeking $180,000 in unpaid taxes for the land and building housing the Canoe Grill,
$101,300 for the land occupied by the resort's recreation center and Wildhorse Youth Activity Center
and $130,000 for the unfinished expansion of the lodge.
Most of the parcels owned by UWW are condominiums located inside the unfinished Village Plaza in
the heart of the resort. The condos were pre -sold by the original developers, who then had to return the
buyers eamest money when construction on Village Plaza was hatted in 2008.
Village Plaza was built by Banner /Sabey of Seattle, which was never fully paid by the developers and
which acquired Village Plaza in a sheriffs sale in 2013. Banner /Sabey then created UWW as the owner
of the property.
Page 1 of 1
http: / /www.mccallstamews .com/pages /lead _page.php 8/13/2015
Star -News News Outdoors Page Page 1 of 1
New college ski pass to be offered at Tamarack Resort
College students now have a way to get on the snow at Tamarack Resort for less.
Tamarack will offer a $99 College Season Pass that will allow unlimited access to the mountain for the
entire 2015 -16 season.
'With a single day ticket costing $62 this winter, the College Pass is perfect for any college student
who plans to ski or snowboard more than once this season," Tamarack General Manager Brad Larsen
said.
'This is the best college season pass deal in Idaho," Larsen said. "If you are in college, and you ski or
ride, then this product is a no-brainer."
College Pass holders also will have three "Bring a Friend Fridays" where they can bring a friend to the
mountain for $25 per ticket. Plus, the season pass comes with discounts on retail and equipment
rentals.
The price will remain at $99 until Nov. 16, after which the cost will rise to $299. Go to
www.tamarackidaho.com or call 325 -1030 to order or for information.
http: / /www.mccallstamews .com/pages /outdoors _page.php 8/13/2015
Star -News News Main News Page
Judge blocks Valley County seizure
of 40 Tamarack parcels
Aug. 24 hearing stalled by improper notices; UWW pays 2011 taxes
BY DAN GALLAGHER
for The Star -News
A judge in Cascade on Tuesday blocked Valley County from seizing 40 parcels of land inside
Tamarack Resort for unpaid property taxes.
Fourth District Court Judge Jason Scott ruled the Valley County Treasurer's Office did not properly list
what the owner of large parts of the resort Tamarack Resort owes in taxes.
That means Valley County commissioners will not be able to take over the properties on Monday,
when a seizure hearing had been scheduled.
The preliminary injunction means the county must redo the notices for New TR Acquisitions Co. LLC,
which halts the process indefinitely. Newtrac owes $4.7 million in property taxes on 40 parcels for 2011
and an additional $5.8 million in back taxes for 2012, 2013 and 2014.
In a related matter, UWW LLC, owner of the unfinished Village Plaza hub at Tamarack, paid its 2011
back taxes of $912,000 last week, the treasurers office said.
UWW still owes $1.1 million in property taxes for 2012, 2013 and 2014, according to the county.
Ken Howell, Newtrac's Boise attorney, told Scott the notices mailed in May violate state law that
requires an item -by -item listing of the tax years, delinquencies, fees and costs that go into the notice.
The back taxes in dispute are due to the North Lake Recreational Sewer and Water Improvement
District.
Howell said there was one instance where nine separate parcels were included in one deed notice
from the sewer district, but it did not break down the information.
"In other words, your client might have an interest in rescuing some of these properties but not others
from the tax deed process, but the notice doesn't tell you exactly what you need," Scott replied.
Stall Tactic
Valley County Prosecuting Attorney Jay Kiiha told Scott the move by Newtrac, created by Tamarack
creditor Credit Suisse, is intended to stall the progress, he said.
"North Lake is owed a lot of money and they don't know how things will progress forward into the
future if this issue doesn't resolve itself," Kiiha said. "This is the same process that has dragged out in
one way or another, one lawyer or another, for six years."
"Here we're at the 11th hour and Newtrac is trying to stop the sale related to numbers that Newtrac
knows full well what they mean," he said.
Even if the county prevailed, Kiiha said he had advised the commissioners to use caution and not
immediately jump into disposing of any property.
"There may be a degree to which delay is the plaintiff's goal; I don't necessarily doubt that," Scott said.
"But in the end, I don't think that overrides the primary consideration here, which is whether the statute
has been followed," he said.
Page 1 of 1
http: / /www.mccallstamews .com/pages /fp_stories _page.php 8/20/2015
Star -News News Outdoors Page Page I of 1
Tamarack Resort to expand snowmaking
Tamarack resort will install 1,840 feet of new snowmaking pipe and five hydrant locations on the Waltz
ski trail to make its snowmaking arsenal even larger.
The Waltz ski trail is important terrain for skiers and snowboarders of all ability levels, as it is a major
exit route from the top of the popular Tamarack Express chaidift.
The snowmaking expansion will help ensure good snow coverage on the trail, even when Mother
Nature doesn't deliver natural snowfall.
"Our snowmaking capabilities help make Tamarack's snow conditions more reliable than resorts
without snowmaking," said Brad Larsen, general manager of Tamarack Resort.
The resort will use eight -inch fusion bonded epoxy coated pipe, which has a longer lifespan than just
traditional uncoated steel pipe. Also, the resort installed five water hydrants on the pipe which is where
snowmaking employees will access the water and place their snowmaking guns.
The resort has a total of 14 snowmaking guns and a water pumping capacity of 1,150 gallons per
minute
http: / /www.mccallstamews.com /pages /outdoors _page.php 8/20/2015
Star -News News Outdoors Page Page 1 of 1
Tamarack offers Express Card to skip ticket window
Skiers and boarders at Tamarack Resort will be able to use new technology this winter that will allow
them to bypass the ticket window in search of first tracks.
The Express Card will allow guests to skip the lift ticket window and go directly to the chairlift. When
the card is scanned at the chairlift, the guest's credit card will be charged, which eliminates waiting in
line to buy a ticket.
For the price of a day ticket, guests can purchase an Express Card, which gets them a day on the
slopes. Guests can then return to the resort up to two more times and save $10 off the window rate for a
day pass.
"The Express Card is a perfect fit for skiers who are looking to save money, but aren't ready to commit
to a season pass," said Brad Larsen, general manager of Tamarack Resort.
"For someone who may only ski one to three times this winter, the Express Card is a great product to
access the mountains in a fast and convenient manner," Larsen said.
Skiers and riders who purchase their Express Card by Dec. 11 can save an additional $10 on the
purchase price. Go yo www.tamarckidaho.com for details.
http: / /www.mccallstarnews .com/pages /outdoors _page.php 9/17/2015
Star -News News Outdoors Page
Tamarack Resort to reopen Wildwood trail system
Tamarack Resort will reopen its Wildwood trail for skiers and riders as "hike -to" terrain.
The series of trails in the most northern section of the
resort's boundary includes 100 acres of long -time skier
favorite slopes. The Wildwood area originally closed in 2009
#_
due to the removal of a lift in that section of the mountain as
the result of a foreclosure.
b-
P
When Replay Resort took over operation of the resort Ia.,
A
g
October, the new team recognized the potential of the area,
a news release said.
ti
liaeo mu~ey TmavY Roan
Photo shows view of LAke Cescde from the
Skiers will get to the Wildwood trail by skiing to the top of
Wildwood trail, which will
be reopened this winter
the Enigma run and then take a five- minute hike to the top of
at Tamarack Resort.
Wildwood.
From there, guests can ski about halfway down the trails before being directed back to the resort's
main trail system with a short hike. Guests can then ski back to the established lift network using the
Waltz ski trail.
"Reopening this terrain to guests willing to take the short hike and 'earn their turns' is a great way to
create a new ski experience that is unique to Tamarack," General Manager Brad Larsen said.
The new Wildwood trail augments existing out -of- bounds terrain at the south side of the resort, where
skiers hike a short distance and are able to cover untracked powder with the ability to reconnect with lifts
at the bottom of the hill, Larsen said.
Unlike the out-of-bounds area, the new Wildwood terrain is within Tamarack's permitted resort
boundary and will be monitored by Tamarack's professional ski patrol. The new terrain does not have
snowmaking and will open when natural snow conditions allow.
Page 1 of 1
http: / /www.mccallstamews.com /pages /archive_2015 /09_10_ 15_webeditionICopy %2Oof%... 9/29/2015
Star -News News Announcements Page
Replay Resorts takes over vacation
rentals at Tamarack Resort
Replay Resorts has taken over the vacation rental business at Tamrack Resort under the name of
Tamarack Lodging Co.
"Since taking over the resort's day - to-day operations earlier this year, we've been heavily focused on
improving the guest experience, both on and off the mountain," Tamarack Resort General Manager Brad
Larsen said.
"By managing the vacation rental process, we hope to create a seamless experience for the resort's
guests and owners," Larsen said.
For the past six years, the resort has worked with an outside service to offer on- mountain rentals.
Replay Resorts, based in Vancouver, B.C., will now take over as the resort's reservation and property
management company, and will also oversee all food and beverage operations.
"We believe that managing the resort experience across all lines of business is a key element for
success," said Larsen. "This move will help harness and unite the power of the Tamarack brand, and
take the resort to new levels of occupancy and excitement"
Larsen will lead the blending of new properties into Tamarack Lodging Co.'s rental program while
Director of Hospitality Chris Wisocki will manage day - today operations.
Tamarack Lodging Co. will assume operations of the front desk at the Lodge at Osprey Meadows on
May 15. New properties are being accepted into the rental program immediately.
There are about 100 units that are owned by private citizens and placed in third -party rental programs,
Larsen said.
"Our new lodging division has 14 units under our management now, and we'll be working with
homeowners to have their homes represented, and rented, by Tamarack Lodging Co.," he said.
The food and beverage outlets operated by Replay Resorts are Hot Shots, 7 Devils, Canoe Grill, and
Packers Station, a mid - mountain yurt.
Page 1 of 1
http: / /www.mccallstamews.com/pages /announcements _page.php 1 1 /2015
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Curr,nt Edition
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McCall, ID
19 OF
Owereast Jon Batley
at 08131 PM --
ekek 6. Fe.ru�
MAIN NEWS— THURSDAY, DECEMBER 17, 2015 Main News Index
Nampa man gets lost at Tamarack,
spends night in snow cave
BY DAN GALLAGHER
for "I'he Star -News
A Nampa skier who spent Sunday night in a snow cave after becoming lost west of Tamarack Resort
was rescued on Monday by Valley County searchers.
Sean Stevenson, 32, had his ski pass checked and rode the ski lifts to the top of the mountain at about
10:35 a.m., on Sunday.
Stevenson became disoriented in the snowy weather and skied out of bounds to the west of the
summit, said Larry Mangum, head of Valley County Search and Rescue.
Stevenson had planned to return to Nampa by 7 p.m., but failed to show up so his wife alerted
authorities at about 11:30 p.m. His car and cell phone were found in the Tamarack parking lot.
Tamarack Ski Patrol searched for him, and the county sent a snowmobile trail groomer off Forest
Service Road 218 during the evening, but Stevenson had dug a snow cave to stay for the night and did
not hear the snowcat, Mangum said.
Four search and rescue crew members and a rider from the Donnelly Snowmobile Club headed onto
the mountain at 8:30 a.m. Monday, and a rescue member spotted Stevenson on a slope at 9:42 a.m.,
Mangum said. He was weak, and was treated for dehydration and minor hypothermia.
Healthier Lives: New
coalition aims to
promote wellness
Scott to join Richard
Petty team, race in
NASCAR Sprint Cup
series
New docks to be
built at Van Wyck
Campground on
Lake Cascade
Back To Current Edition
Star -News News Lead Story Page
Valley to try again to collect
$12.1 million Tamarack Resort taxes
Judge blocked land seizure last vear on technicality
BY DAN GALLAGHER
for The Star -News
Valley County is getting ready to take another run at seizing properties in Tamarack Resort for which
$12.1 million in past -due property taxes are owed.
Last August the county tried to seize 40 parcels owned by New TR Acquisitions Co. LLC, also known
as Newtrac. The various parcels are part of developed and undeveloped properties at the resort
southwest of Donnelly.
Newtrac owes $12.1 million in back taxes not paid for 2011 through 2014.
Newtrac, a lender group led by the Credit Suisse bank, sued the county, saying the county did not
properly list the back taxes in official notices as required by state law.
Fourth District Court Judge Jason Scott halted the seizures, saying the Valley County Treasurer's
Office needed to further itemize the costs and payments for taxes owed to the North Lake Recreational
Sewer and Water District.
Valley County Treasurer Glenna Young has reworked the notices and they are scheduled to be sent
out later this month.
If Newtrac pays its back taxes by mid - February, the county will not make another attempt to seize the
parcels, Young said.
If the back taxes are not paid, then a new hearing to seize the parcels will be held this summer, she
said.
Valley County Prosecuting Attorney Jay Kiiha is confident the revised notices will bring the matter
closer to resolution.
"This is the most complex commercial tax deed sale in the history of the state, coupled with the most
expansive and dragged -out failure of a real estate project in Idaho," Kiiha said.
Stall Tactic
Newtrac's complaints about the notices were merely an effort to put off making the payments, he said.
Newtrac knew full well how much it owed, especially to the North Lake sewer district, Kiiha said.
"It is my goal to resolve all of the tax deed issues by the end of the year," he said. "Now is the time to
gel this done."
The largest share of the back taxes, or about $11.5 million, is owed to the North Lake sewer district to
repay bonds that financed sewer lines and treatment equipment serving Tamarack Resort.
The next largest amount, $258,793, is owed to the McCall - Donnelly School District, followed by
$156,708 owed to Valley County.
Other taxing districts owed money are the Donnelly Rural Fire Protection District ($74,386), Cascade
Medical Center ($50,878), Edwards Mosquito Abatement District ($27,185), the county's emergency
medical services taxing district ($21,000), Luke's McCall ($17,458) and the Valley Center Cemetery
District ($3,470).
Some of the parcels for which taxes are owned are two timber stands, 37 lots in the Blue Mountain
Subdivision, and 14 condos in the Lodge at Osprey Meadows.
Back taxes are also owed for the land and building housing the Canoe Grill, the land occupied by the
resort's recreation center and Wildhorse Youth Activity Center and the unfinished expansion of the
lodge.
UWW LLC, owner of the unfinished Village Plaza hub at Tamarack, still owes $1.1 million in property
taxes for 2012, 2013 and 2014, according to the county.
Last summer, the Seattle company paid $912,000 for its back taxes for 2011 .
http://www.mccallstamews.com/pages/lead_page.php
Page 1 of 1
1/7/2016
Star -News News Lead Story Page Page 1 of 1
Utah businessman buys
Osprey Meadows Golf Course
Tamarack Resort course will stay closed for second season
BY TOM GROTE
for The Scar -News
A Utah businessman has purchased the Osprey Meadows Golf Course at Tamarack Resort for $1.2
million, according to court records.
Walter J. Plumb III signed a purchase agreement on May 5
with the Tennessee representative for the company that
i A
controls over the land, according to records filed in U.S.
District Court in Boise.
r
The agreement with Jeanne Bryant of Receivership
s
Management Inc., of Brentwood, Tenn., is scheduled to
tt vtlq��
close in early July, according to the agreement....
Plumb, of Salt Lake City, could not be reached. His
E ai��ak'�LS.
biography on the website of ChantyVision, where he serves
`
on the board of directors, lists him as an attorney and'^
^
r"oakte
businessman.
°
Photo taken last summer shows dishe�eted state of
the Osprey Meadows golf course
His early legal career included a partnership with Utah
Sen. Orrin Hatch, according to the biography.
Plumb has joint ownership in several companies including Pharmics, Plumb Holdings L.L.C., Western
States Ventures, Gardner and Plumb, Integrated Water Management, Summitt Energy Company, and
Mineral Rights Leasing.
Plumb and his wife, Peggy, recently served a humanitarian mission for their church in Kurdistan, Iraq.
The sale comes after the settlement of a lawsuit that kept the Osprey Meadows course from opening
last year or this year.
No mowing or irrigation has been done for more than a year on the 18 -hole golf course southwest of
Donnelly, allowing the course to become overgrown and dried out.
Closed Last Year
The course was abandoned last year due to a legal dispute between the Tamarack Municipal
Association, representing property owners at the resort, and Bryant.
The land on which nearly all the golf course sits as well as the swimming pool and restaurant space at
the nearby Lodge at Osprey Meadows are under the control of Bryant.
Bryant represents Retirement Security Plan & Trust of Wichita Falls, Texas, the company from which
former Osprey Meadows owner Matthew Hutcheson illegally transferred $3.3 million.
Hutcheson was later convicted on 17 counts of wire fraud and is serving a 17 -year prison term.
The association had operated the course for the previous three seasons after owner West Mountain
Golf could no longer afford to operate or irrigate the course.
In 2014, Bryant sued the municipal association in federal court for past -due property taxes as well as
$718,000 per year in rent.
As a result of the lawsuit, the TMA walked away from the course, calling Bryant's claims
unreasonable.
In February, both sides notified the federal judge in the case that the matter had been settled and
asked for the lawsuit to be dismissed.
Both T.J. Angstman, a Boise attorney representing Bryant, and Steve Lord, a Boise attorney
representing the TMA, declined to comment on the settlement, noting its terms were confidential.
http: / /www.mccallstamews.comJpages /lead _page.php 6/2/2016
tar -News News Main News Page Page I of I
Tamarack owners protest again over paying back taxes
County defers decision on whether to seize 35 properties
BY DAN GALLAGHER
for The Star -News
For the second year in a row, the owners of vacant and developed land at Tamarack Resort near
Donnelly have protested paying past -due property taxes.
On Monday, Valley County commissioners held a hearing on whether to seize the 35 parcels owned
New TR Acquisitions Co. LLC, or NewTrac, on which $12.6 million in past -due property taxes are owed
back to 2011.
But a protest was filed with the county last week by NewTrac claiming the notices of the past -due
taxes were incorrectly worded.
Errors in wording was the same arguament used by NewTrac last year when the county was about to
seize the parcels. NewTrac managed to convince a state judge to rule the notices inadequate and force
the county start the process over.
Commissioners on Monday listened to arguments on both sides and deferred a decision for two
weeks.
Among the parcels owned by Newtrac include two timber stands, 37 lots in the Blue Mountain
Subdivision and 14 condos in the Lodge at Osprey Meadows.
NewTrac also owns the land and buildings housing the Canoe Grill, the resort's recreation center and
Wildhorse Youth Activity Center as well as unfinished expansion of the lodge.
During Monday's hearing, Ken Howell, NewTrac's Boise attorney, questioned Valley County Treasurer
Glenna Young, asking her the exact dates the parcels became delinquent and for which tax year.
Young noted that most of the past -due taxes are owed to the North Lake Recreational Sewer and
Water District, and that the county receives information from North Lake on what its customers owe
annually to pay back the loans issued to build the sewer system to Tamarack.
The reports from North Lake are certified and the county collects the money for the district, Young
said.
David Papiez, a former Tamarack employee and project manager for NewTrac for a time, testified
Monday on the yearly schedule in which North Lake submitted its billings to Tamarack.
Former Valley County Prosecuting Attorney Jay Kiiha, representing the county, said NewTrac knows
full well how much it owes in taxes but uses delay tactics not to pay.
"Do you know the amount you owe ?" Kiiha asked Papiez. *You owe at least 10 bucks, right? And there
hasn't been any check that has ever showed up for 10 dollars, right ?"
Young is not required to "drill down" on North Lake's numbers, Kiiha said.
'This is a dance that has very little to do with the county," he said.
The county got some good news, however, when back taxes of $439,000 for 2012 were paid by UW W
of Puyallup, Wash.
The taxes were due to 183 parcels, mostly condominiums located inside the unfinished Village Plaza
in the heart of the resort. UWW still owes nearly $1.1 million for 2013, 2014 and 2015.
And the county did seize parcels associated with the legal dispute over Osprey Meadows Golf Course,
which has not operated since 2014.
Past due taxes were paid on the golf course and driving range plus the golf maintenance building, but
no taxes were paid on associated properties at the Lodge at Osprey Meadows such as the pool, terrace,
restaurant, lounge and spa.
The god course was purchased by Utah businessman Walter J. Plumb in May for $1.2 million.
The commissioners have up to 14 months to auction properties they have seized, Young said.
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Star -News News Main News Page Page 1 of 2
Tamarack Resort owners buy back land, buildings
New company formed to operate ski area this winter
BY TOM GROTE
for The Star-News
Homeowners at Tamarack Resort have moved to put the resort under local ownership - for now.
Last week, the Tamarack Homeowners Association announced a newly formed company had bought
the land and buildings previously owned by New TR Acquisition Co., also known as NewTrac.
On Monday, representatives of the homeowners bought key pieces of the Lodge at Osprey Meadows
that had been put up for auction by Valley County for non - payment of property taxes.
The new company is called Tamarack Homeowners Acquisition Company. Meanwhile, a subsidiary of
the homeowners association will operate the ski area at the resort southwest of Donnelly this winter.
That subsidiary, TMA Operating and Technology Company, will also operate the lodge, food and
beverage services and summer operations, a news release said.
"This is a very positive development for everyone," said Brad Larsen, the resort's general manager.
"This ensures that the people who love the resort the most now also control its future."
No price was disclosed for the purchase from NewTrac, which was formed in 2014 by Credit Suisse,
which had loaned the original Tamarack developers $250 million in 2006 to complete the resort.
The original development company went bankrupt in 2008 and Credit Suisse took over the various
parts of the resort that had not yet been sold or were part of the resort's operations.
Forced to Move
The homeowners were forced to make a move when Replay Resorts, the Vancouver, B.C., company
that had been operating the ski area as well as the rest of the resort for NewTrac, suddenly exited,
according to an Oct. 12 memo to Tamarack homeowners obtained by The Star -News.
"The result of their exit with no action on our part would have meant an immediate and total shutdown
of the resort," the unsigned memo said.
Replay Resorts had operated the ski area the last two winters after the homeowners association had
operated the ski area for the four previous seasons.
The new company was formed and investors were required to put in at least $100,000 to be part of the
effort, the memo said.
Now that NewTrac is out of the picture, the homeowners intend to sell to a resort development group
"as soon as possible," the memo said.
"THAC is not a commercial investment company," the memo said. "It has been formed as a defensive
move to prevent the liquidation of all resort assets."
The properties bought by the homeowners include two timber stands, 37 lots in the Blue Mountain
Subdivision, 14 condos in the Lodge at Osprey Meadows, The Canoe Grill, Seven Devils Pub, Sports
Dome, Wildhorse Youth Activity Center and the unfinished expansion of the lodge.
However, millions of dollars in past -due property taxes have not been paid on the acquired parcels,
Valley County Treasurer Glenna Young said. Valley County is moving forward with a Dec. 5 hearing to
seize those properties.
Seizures Delayed
NewTrac successfully delayed the seizures twice because of typographical errors in the past -due
notices
The homeowners will decide which of the properties are important for the operation of the resort and
will pay those back taxes, said Larsen, who previously worked for Replay Resort and is now working for
the homeowners.
"Some properties might be allowed to go back to the county to facilitate them being acquired by people
with a vision for their future development," he said.
The homeowners group also paid about $287,000 in back taxes due on facilities on land leased from
the Idaho Department of Lands, including the two main ski lifts, the unfinished mid- mountain lodge and
the zip line.
On Monday, the homeowners representatives successfully bid for various pieces of the lodge that the
county had put up for auction for back taxes. The auction was conducted by Valley County
commissioners at the Cascade American Legion Hall.
Those pieces include the former Morels restaurant space, spa, fitness center, golf course pro shop,
pool and terrace.
http:// www. mccallstarnews .com/pages /fp_stories _page.php 10/20/2016
Star -News News Main News Page
Those pieces had been owned by West Mountain Golf, which owns the land on which Osprey
Meadows Golf Course sat until it was dosed In 2015 and left to overgrow.
Page 2 of 2
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Star -News News Main News Page
Homeowners move seen as good news for Tamarack golf course
Unfinished Village Plaza not involved in buyout
BY TOM GROTE
for The Star -News
The move by the homeowners of Tamarack Resort to buy out the previous resort owners is good news
for the future of the Osprey Meadows Golf Course, a spokesperson for the golf course said.
The purchase of land and buildings formerly owned by New TR Acquisition Co. and West Mountain
Golf by homeowners gives those who control the course hope it can be sold, Boise attorney T.J.
Angstman said.
"This is what we've been waiting for - for five years," Angstman said.
Angstman represents Jeanne Bryant of Receivership Management Inc., of Brentwood, Tenn.
Bryant in turn represents Retirement Security Plan & Trust of Wichita Falls, Texas, the company from
which former golf course owner Matthew Hutcheson illegally transferred $3.3 million.
Hutcheson was convicted in 2013 on 17 counts of wire fraud and is serving a 17 -year prison term.
Angstman hopes that any buyer of the resort properties from the homeowners also will buy the golf
course to help repay RSPT for the funds lost to Hutcheson.
He has received estimates that say the turf at the course, which has been left unattended for two
years, could be restored for about $200,000.
In June, The Star -News reported that the golf course had been sold to Utah businessman Walter J.
Plumb III for $1.2 million. However, the deal was never completed, Angstman said.
The Tamarack Municipal Association operated the course or three years, from 20012 through 2014,
after the owner could no longer afford to operate or irrigate the course.
In 2014, Bryant sued the homeowners association in federal court for past -due property taxes as well
as $718,000 per year in rent.
As a result of the lawsuit, the association walked away from the course in 2015, calling Bryanfs claims
unreasonable. The lawsuit was later dismissed.
Also not included in the homeowners purchase was Village Plaza, the massive mufti- building condo
and commercial complex in the core of the resort that has sat unfinished since 2008.
Village Plaza is owned by a subsidiary of Sabey Corp., the Seattle construction company that built the
complex and which acquired Village Plaza in a trustee sale.
Sabey Corp. President John Sabey did not reply to requests from The Star -News for comment.
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Page 1 of 1
10/20/2016
Star -News News Main News Page
Former Tamarack golf course
to be sold at auction Dec. 29
Course has been closed for two years over legal disputes
BY TOM GROTE
for The Star -News
The former Osprey Meadows Golf Course at Tamarack Resort can be purchased for as tittle at $1.2
million when the land goes up for auction next week.
The auction is the latest move that homeowners at Tamarack hope will lead to consolidated ownership
of the various parts of the resort southwest of Donnelly.
The 200 acres of overgrown land will be sold to the highest bidder at an auction set to begin at 10 a.m.
next Thursday, Dec. 29, at the Valley County Courthouse in Cascade.
The minimum price to be sought is $1.2 million said T.J. Angstman, a Boise attorney who represents
Jeanne Bryant of Receivership Management Inc., of Brentwood, Tenn.
Bryant in turn represents Retirement Security Plan & Trust of Wichita Falls, Texas, the company from
which former golf course owner Matthew Hutcheson illegally transferred $3.3 million.
Hutcheson was convicted in 2013 on 17 counts of wire fraud and is serving a 17 -year prison term.
One estimate received by Angstman said the golf course could be restored for $200,000.
One uncertainly is a state license to sell hard liquor that goes with the golf course, Angstman said.
That license is due to expire on Jan. 1.
Homeowners Move
The auction comes two months after the Tamarack Homeowners Association announced in October a
newly formed company had bought land and buildings previously owned by New TR Acquisition Co., a
company formed by resort loan holder Credit Suisse.
Also in October, representatives of the homeowners bought key pieces of the Lodge at Osprey
Meadows that had been put up for auction by Valley County for non- payment of property taxes.
"Now that the homeowners control the remainder of the resort, it should be easier for a new developer
to acquire the resort and all its pieces," Angstman said.
In June, The Star -News reported that the golf course had been sold to Utah businessman Walter J.
Plumb III for $1.2 million. However, the deal was never completed, Angstman said.
The TMA operated the course from 2012 through 2014 after the owner could no longer afford to
operate or irrigate the course.
In 2014, Bryant sued the homeowners association in federal court for past -due property taxes as well
as $718,000 per year in rent.
As a result of the lawsuit, the association walked away from the course in 2015, calling Bryanfs claims
unreasonable. The lawsuit was later dismissed, but the course has not been maintained for the last two
summers.
Tamarack homeowners tried, but failed, to acquire the golf course land this fall, Angstman said.
"Although the homeowners did not acquire the golf course as planned, we are hopeful that someone
will step up to the plate at the auction," he said.
Tamarack Resort General Manager Brad Larsen declined to confirm Angstman's statement that
homeowners tried to acquire the golf course.
"Tamarack homeowners have currently chosen to secure the assets necessary to operate the resort's
mountain operations now, and into the future," Larsen said.
Closely watching the developments is UWW, Inc., of Puyallup, Wash., which owns Village Plaza, the
massive mufti- building condo and commercial complex in the core of the resort that has sat unfinished
since 2008.
UWW Manager Mike Dunne said Tuesday that he agrees the goal is consolidated ownership of all
parts of the resort.
"We have worked very closely with everybody to get the resort back in play under one umbrella,"
Dunne said.
http://www.mccalistamews.com/pages/fp_stories_page.php
Page 1 of 1
12/22/2016
Star -News News Lead Story Page Page 1 of 1
Prospective Tamarack Resort owner has ties to Utah elite
Falter Plumb Ill was law partner with Sen. Orrin Hatch
BY TOM GROTE
for The Star -News
The man who would revive Tamarack Resort near Donnelly has ties to prominent peoDle in Utan it
addition to doing overseas work for the Church of Jesus Christ of Latter -day Saints.
Walter J. Plumb III said through a representative in Cascade last week that he would like to buy up all
the outstanding pieces of the resort and complete the financially troubled project.
Plumb had a deal to purchase the former Osprey Meadows Golf Course last spring, but the deal fell
through, according to his representative, James Roberts of JBR Holdings, of Eagle.
Roberts was in Cascade last Thursday to bid during a sheriff's auction of the 200 -acre golf course
property on behalf of Plumb.
His bid of $500,000 was lower than the $1.2 million minimum required by creditors, but Plumb will
continue to negotiate for the golf course and other unfinished parts of the resort, Roberts said.
"Our goal is to turn the resort around," he said, emphasizing that moving forward would need to make
sense financially.
Plumb, 70, did not respond to requests by The Star -News for an interview, but a detailed biography is
found on the website of CharityVision, a Utah nonprofit group that seeks to rid the world of curable
oiindness.
Plumb serves on the board of ChartlyVision along with Ann Romney, the wife of 2012 Republican
presidential candidate Mitt Romney.
The CharityVision biography lists him as an attorney and businessman. He graduated from the
University of Utah and earned a law degree University of Utah Law School and a master's of law degree
in taxation from New York University Law School.
Hatch Partner
His early legal career included a partnership with Sen. Orrin Hatch, R -Utah, a seven -term senator who
is currently the second- highest ranking member of the U.S. Senate.
Companies in which Plumb has joint ownership include Pharmics, Plumb Holdings L.L.C., Western
States Ventures, Gardner and Plumb, Integrated Water Management, Summit Energy Company, and
Mineral Rights Leasing, the CharityVision biography said.
He is married, has nine children and enjoys playing tennis, skiing, kayaking, mountain biking,
norseoack riding, and motorcycling.
"Word has it he's never one to shy away from a push -up challenge either," the biography said.
Plumb was profiled in the Saft Lake Tribune in December 2014 following his return from a year -long
venture in northern Iraq's Kurdistan region, where he was the point person for LDS Charities to supply
aid to hundreds of thousands of Syrian and Iraqi refugees.
"Plumb was picked by the LDS church, he believes, because he grew up in Chicago and attended law
school in New York," the Tribune story said.
"They wanted someone who could be street tough," Plumb, a former high school wrestler, told Tribune
reporter Paul Roily.
During his stay, Islamic State extremists began its military offensive in the region.
"I saw people everywhere trying to get away," Plumb told Roily. "They were on the side of the road,
helpless, with nowhere to go'
The need so impressed Plumb that he donated $400,000 of his own money to the cause, Roily
reported.
One testimonial for Plumb comes from Scott E. Yancey, managing member and founder of Goliath
Company, a land development firm located in Las Vegas.
In college, Yancey was a runner for a real estate investment company managed by Plumb.
"Walter pulled Scott aside one day and suggested that he get his real estate license, take an
apartment building he owned, convert it to condominiums and then sell the units with his real estate
license," according to Yancey's profile on his company's website.
"A suggestion was all that was needed, and Scott not only got his license but made so much money
his first year that he quit his college career and focused on real estate full time," the website said.
http: / /www.mccallstamews .com/pages /lead _page.php 11,K1201 7
Star -News News Lead Story Page
Tamarack golf course poised
to be sold to new operator
Next action will be Feb. 21 sale of undeveloped parcels
BY TOM GROTE
for The Star -News
The former Osprey Meadows Golf Course at Tamarack Resort took one step closer to being put back
into operation last week.
+ The 200 acres of overgrown land was secured during a sheriffs auction
\ last Thursday by its largest creditor, Receivership Management Inc., of
la atl Brentwood, Tenn., using a technique called a credit bid.
' The $3 million bid was offered by Boise attorney T.J. Angstman on behalf
of Receivership Management Inc. during the auction on the steps of the
Walter Plumb James Roberts Valley County Courthouse in Cascade.
I
he amount represents roughly the amount that former golf course owner Matthew
Hutcheson illegally transferred from Retirement Security Plan & Trust of Wichita Falls, Texas.
Hutcheson was convicted in 2013 on 17 counts of wire fraud and is serving a 17 -year prison term.
Receivership Management Inc. was hired by RSPT to try and recover the lost money.
Only one other bid was received on the land, a $500,000 bid by James Roberts of JBR Holdings of
Eagle who said he was representing Salt Lake City businessman Walter Plumb 111.
-he bid was not accented by Receivership Management Inc., which wanted to get at least $1.2 million
for the property.
With the sheriffs auction completed, the golf course, which last operated in 2014, can now be sold on
the open market, Angstman said.
"This is the beginning of the end, maybe," he said.
In June, The Star -News reported that the golf course had been sold to Plumb III for $1.2 million.
However, the deal was never completed because Plumb could not get title insurance quickly enough to
close the property, Roberts said last week.
Future Plans
Plumb would still like to acquire the golf course as well as the other uncompleted or undeveloped
portions of the resort, Roberts said.
"Our goal is to turn the resort around." he said.
Angstman has received one estimate that says the golf course, which has not been maintained for two
years, could be restored for about $200,000.
One step toward consolidated ownership could come on Feb. 21, when Valley County will auction a
variety of parcels previously owned by NewTrac, a subsidiary of Credit Suisse, the original loan- holder
for the resort.
Tamarack home owners bought out the properties owned by NewTrac in October, but only paid the
property taxes due on parcels necessary to run the ski area and other resort amenities.
The rest of the parcels could be developed and sold to help finance the revival of the rest of the resort,
Roberts said last week.
Those parcels include the 38 -lot Blue Mountain Subdivision, 14 privately owned hotel rooms in the
Lodge at Osprey Meadows, timbered land, the former medical clinic and the former Crane Creek
Market.
Delinquent taxes for those 18 parcels total over $13 million, Valley County Treasurer Glenna Young
has said.
Also sought by Plumb is Village Plaza, the massive multi - building condo and commercial complex in
the core of the resort that has sat unfinished since 2008.
Roberts said he had discussions with representatives of the Village Plaza owner, UWW, Inc., of
Puyallup, Wash.
Plumb did not reply to a request for an interview by The Star -News.
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LEAD STORY — THURSDAY, JANUARY 19, 2017
Prospective Tamarack Resort
owner outlines $20 million plan
Walter Plumb 111 hopes to restart construction
BY TOM GROTE
for The Star -News
McCall, ID
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Lead Story Index
Possible Tamarack
buyer wants to deal
with state over
sewer bond
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The prospective owner of Tamarack Resort near Donnelly plans to spend $20 million to consolidate
,; rent Eul;,on
ownership of the resort and restart construction, according to his representative.
The plan was revealed in an email memo sent last month by James Roberts of JBR
<
Holdings of Eagle to Barry Burnell, water quality chief of the Idaho Department of
;+
Environmental Quality.
' ✓
"While I know there have been many discussions with several groups interested in
purchasing Tamarack, I feel our group has the best chance to succeed," Roberts wrote to
Walter Plumb
Burnell on Dec. 5, 2016.
III
The email was obtained by The Star -News through a request under the state's public
records law.
Roberts represents Walter Plumb III, a Salt Lake City businessman and attorney who was the former
law partner with Utah Sen. Orrin Hatch.
The memo was written by Roberts as part of a negotiation with the state to buy bonds owned by the
state that were used to build the sewer system serving Tamarack Resort.
Under the plan outlined by Roberts, Plumb and his partners would buy the unfinished Village Plaza
from UWW Inc. of Puyallup, Wash. That purchase is expected to cost around $4 million, the Dec. 5
email said.
Plumb and his partners would then spend $10 million to complete the exteriors or the buildings in
Alpine Village that have sat unfinished since work stopped in 2008.
The work also would include finishing one building to house the resort's ticket sales office and finish
condos on the upper floors, under the proposal to DEQ.
Other Resort Parcels
Plumb would also buy out the interests of the homeowners at Tamarack Resort who bought parts of
the resort vital for visitor operations in October from a subsidiary of Credit Suisse.
Those properties included the temporary domes housing The Canoe Grill and Seven Devils Pub.
Buying out the homeowners is expected to cost $3.2 million, the email from Roberts said.
The last piece of the resort proposed to be bought by Plumb is the former Osprey Meadows Golf
Course. Roberts expects the cost of buying the golf course at $1.2 million with between $500,000 and
$800,000 needed to restore the course, which has not been maintained since 2014, the email said.
Plumb tried to buy the golf course last year for $1.2 million but the deal fell through. Roberts bid
$500,000 to buy the course during a sheriffs sale on Dec. 29, but the main creditors of the land rejected
the bid as too low.
On Dec. 29, Roberts said Plumb may bid next month on former Credit Suisse properties which the
homeowners bought but did not pay the past due property taxes
The Feb. 21 auction for the properties, seized by Valley County, includes nearly 600 acres approved
for 1,910 homes, townhouses and condos.
In addition, the auction includes 14 privately owned hotel rooms in the Lodge at Osprey Meadows, the
former medical clinic and the former Crane Creek Market.
Delinquent taxes for those 18 parcels total over $13 million, Valley County Treasurer Glenna Young
has said.
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Possible Tamarack buyer wants to deal with state over sewer bond
Buy -out called vital ifdevelopment of resort to resume
BY TOM GROTE
for The Star -News
The prospective buyer of Tamarack Resort wants to make a deal with the state to buy out a $11.6
million bond used to build part of the sewer system to the resort near Donnelly
The buy -out, which would be tied to sale of home sites in the resort, would remove a major
impediment to resume development of Tamarack, a representative for the prospective buyer said.
Salt Lake City businessman Walter J. Plumb III wants to consolidate all resort parcels under one
ownership to begin the work of completing the resort. Work stopped on major parts of the four - season
resort in 2008 when the original developers went bankrupt.
In a Dec. 5 email, Plumb representative James Roberts of Eagle told Idaho Department of
Environmental Quality water quality division administrator Barry Burnell that Plumb plans to spend $20
million on the resort.
Plumb plans to consolidate ownership as well as reopen the Osprey Meadows Golf Course and begin
finishing the Village Plaza commercial and condo complex.
About $6.76 million is owed to the North Lake Recreational Sewer and Water District just to bring
current the past -due amounts and interest payments for two bonds used to build the sewer system at
the resort, according to figures provided by Burnell to The Star -News.
A third sewer bond is current, but a water bond for the drinking water system is also in default.
$20 Million Issued
More than $20 million in bonds were issued as the resort was being built during the early 2000s in
order to provide sewer lines to properties as well as expand the treatment plant operated by the North
Lake Recreational Sewer and Water District.
The bonds were to be paid back through monthly fees paid by property owners, but few payments
have been made since the 2008 bankruptcy.
In his Dec. 5 email to Burnell, Roberts proposed to the state to buy out the largest bond for its original
price of $11.6 million.
The state would be paid back over 15 years with $16,388 paid each time a lot was sold by the new
owners, Roberts said.
Roberts stressed to Burnell the need for a deal to be made soon, as Plumb plans to bid on key parts of
the resort at a Valley County tax auction on Feb. 21.
Previous court orders on the Tamarack bankruptcy have said fees owed to the sewer district must be
paid immediately by any buyers of the property.
"If we are going to have a chance of turning the resort around in 2017, we need to move quickly," he
said.
In a Dec. 16 response to Roberts, Burnell said "the state's position is to recover the $11.6 million' that
funded the sewer work.
The emails between Roberts and Burnell were obtained by The Star -News through a request under
the state's public records law. The negotiations were started last June, according to the emails received
by The Star -News.
Burnell told The Star -News that the DEQ wants to help get construction started again at Tamarack
Resort, but was limited in its options.
"We are interested in being creative (but) we are also concerned that any bond sale should not result
in harming the North Lake district's financial position," he said
No further progress on the negotiations had been reported as of this week.
Any new owners should be required to work with the North Lake district to recover legal expenses
incurred to get the bonds current, district manager Bill Eddy told The Star -News.
The district has been keeping the water and sewer systems operational at Tamarack Resort despite
the turnover in owners and operators and the defaults on the bonds, Eddy said.
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MAIN NEWS — THURSDAY, FEBRUARY 23. 2017
Future of Tamarack Resort still cloudy
No one hids on various parcels sei_ed by Valley County
BY "TOM GROTE
for The Star -News
The future of Tamarack Resort west of Donnelly remained unclear Tuesday after no one bid on 20
parcels of the resort seized by Valley County for unpaid property taxes.
Left unsold were nearly 600 acres of land approved for 1,910 homes, townhouses and condos, 14
privately owned hotel rooms in the Lodge at Osprey Meadows, the former medical clinic and the former
Crane Creek Market.
Any buyer would have been required to come up with about $15 million up front to acquire the 20
parcels in order to satisfy the past -due taxes and bond payments.
With no bidders, Valley County can now sell the properties on the open market, Valley County
commissioners Gordon Cruickshank told about 20 people attending the auction at the Valley County
Courthouse in Cascade.
No date was set for commissions to discuss ways to sell off the parcels, Cruickshank said.
A representative for Salt Lake City attorney and businessman Walter Plumb III had hoped to bid on the
properties, but was unable to reach a deal with the state on most of the money owed.
The representative, James Roberts of JBR Holdings of Eagle, watched Tuesday's proceedings from
the audience but did not place any bids.
Roberts said negotiations were unsuccessful with the Idaho Department of Environmental Quality to
spread out the amount due on a $11.6 million bond used to build part of the sewer system at Tamarack
Resort.
Repaid Over Time
Roberts had asked the state to defer collection of money due on the bond. In return, the state would
be paid $16,388 toward the debt each time a lot or home was sold by the new owners with a guaranteed
pay -off in 15 years.
That proposal was not acceptable to DEQ water quality division administrator Barry Burnell.
"My discussion (with Roberts) was the state would not be able to negotiate a payment schedule,"
Burnell told The Star -News prior to Tuesday's auction.
Roberts still hopes to put together a deal that would see Plumb consolidate all the unfinished pieces of
the resort. Construction was stopped in 2008 following the bankruptcy of the original developers.
"We'll continue to stay in touch with DEQ and continue to try an outside - the -box solution that is
financially feasible to resurrect the project," he said.
Bev Hellman, speaking for a coalition of Tamarack property owners, said after the auction Tuesday
that she was "not disappointed" no bidders had stepped up.
"I guess it gives us some more opportunities to keep the resort all in one block so we can find a path
for the future," Hellman said.
Roberts told the DEQ in December that Plumb planned to spend $20 million to consolidate ownership
of the resort and restart construction if debt payments on the sewer bonds could be extended.
Roberts outlined plans by Plumb and his partners to buy the unfinished Village Plaza in the core of the
project and spend $10 million to complete the exteriors of buildings.
The work also would include finishing one building to house the resort's ticket sales office and finish
condos on the upper floors, Roberts told the DEQ.
Plumb would also buy out the interests of the Tamarack homeowners who bought parts of the resort
vital for visitor operations in October.
Those properties included the temporary domes housing The Canoe Grill and Seven Devils Pub. The
last piece of the resort proposed to be bought by Plumb is the former Osprey Meadows Golf Course,
which has not been maintained since 2014, Roberts told the DEQ.
It was unlikely Plumb would pursue consolidation without some sort of debt relief, Roberts said
Tuesday.
"Lots of things need to change," he said.
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fees," Brockmann told commissioners.
air proposed McCall -
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$500,000 levy by
Public Notices
all 20 parcels will be offered in one bundle with a minimum bid of $400,000.
76% margin
Former Heartland
Valley County Commissioner Gordon Cruickshank on Monday made the motion to set that price in
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order to recoup unpaid property taxes owed to the county.
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Calendar Whoever purchases the parcels will still be responsible for about $15 million in past due payments on Back to Front Page
Announcements bonds used to build water and sewer lines in the resort.
Roberts had asked the state to defer collection of money due on the bond. In return, the state would
be paid $16,388 toward the debt each time a lot or home was sold by the new owners with a guaranteed
pay -off in 15 years.
That proposal was not acceptable to DEQ water quality division administrator Barry Burnell.
Roberts still hopes to put together a deal that would see Plumb consolidate all the unfinished pieces of
the resort. Construction was stopped in 2008 following the bankruptcy of the original developers.
Roberts told the DEQ in December that Plumb planned to spend $20 million to consolidate ownership
of the resort and restart construction if debt payments on the sewer bonds could be extended.
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The county held an auction on Feb. 21 for the parcels, which were offered individually. No bids were
received.
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The parcels include 600 acres of land approved for 1,910 homes, townhouses and condos, 14
privately owned hotel rooms in the Lodge at Osprey Meadows, the former medical clinic and the former
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Crane Creek Market.
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Complicating the sale is the uneven distribution of bond amounts owed, Valley County Prosecuting
Attorney Carol Brockmann said. One parcel carries an amount due of $6.7 million.
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"If you don't bundle them, you could be stuck with the least desirable properties that carry the most
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Commissioner Elting Hasbrouck thought bundling the parcels was worth a try. "If it doesn't happen,
we're still right where we are," Hasbrouck said.
A representative for Salt Lake City attorney and businessman Walter Plumb III had hoped to bid on the
properties on Feb. 21, but was unable to reach a deal with the state on most of the money owed.
DEQ Roadblock
James Roberts of JBR Holdings of Eagle said negotiations were unsuccessful with the Idaho
Department of Environmental Quality to spread out the amount due on a $11.6 million bond held by
DEC.
Roberts had asked the state to defer collection of money due on the bond. In return, the state would
be paid $16,388 toward the debt each time a lot or home was sold by the new owners with a guaranteed
pay -off in 15 years.
That proposal was not acceptable to DEQ water quality division administrator Barry Burnell.
Roberts still hopes to put together a deal that would see Plumb consolidate all the unfinished pieces of
the resort. Construction was stopped in 2008 following the bankruptcy of the original developers.
Roberts told the DEQ in December that Plumb planned to spend $20 million to consolidate ownership
of the resort and restart construction if debt payments on the sewer bonds could be extended.
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