Developers are planning to foreclose on a $3.1 million loan owed by the Prairie Village, Kan., club, with plans to close the club and redevelop the property as an upscale subdivision. Club officials are considering filing for bankruptcy to buy time in order to pursue their own preservation plan, which would include maintaining nine acres for the club and building homes on the remaining five acres.
A plan by developers to foreclose on a $3.1 million loan owed by Homestead Country Club in Prairie Village, Kan., has the tennis and swimming facility scrambling to survive, the Kansas City (Mo.) Star reported.
The developers, Jeff Alpert and Melanie Mann, want to close the club and redevelop the property as an upscale subdivision. The existing zoning would allow 25 to 30 houses to be built there, the Star reported.
The club was established on 14.4 acres in 1952 by J.C. Nichols. Its leaders are considering filing for bankruptcy to buy time to pursue their own preservation plan. They want to find a buyer who will let them continue operating on nine acres at the back of the site where the clubhouse, pool and tennis courts are, and build homes on its five-acre lawn closer to Mission Road, the Star reported.
“We’re exploring our options to find a point where we can continue to function as a viable club,” General Manager Brian Collins said.
Membership at Homestead has dropped 36 percent in the past decade, from about 500 in the late 1990s to 320 today. The club’s facilities include an Olympic-size pool, 16 outdoor tennis courts, a clubhouse with a restaurant, bar and banquet room, the Star reported.
Homestead officials have been working with Valley View Bank to refinance a loan made in 2007 and were seeking a buyer willing to pursue their downsizing plan, they told the Star. In mid-November, however, the bank abruptly sold the $3.1 million loan note to Alpert and Mann.
A spokeswoman for Valley View declined to comment to the Star.
“We want one of two things. Either pay off the note or if they can’t pay us, we’d want the opportunity to take the property and develop it,” Alpert said. “We weren’t comfortable with marketing just part of the site. Our intent would be to develop it consistent with the surrounding neighborhood, single-family lots and higher-quality houses. We want to be good neighbors.”
The attorney representing Homestead, Colin Gotham of Evans & Mullinix, said he was confident the club would be able to stave off closing. Gotham said bankruptcy was an option, which would allow the club to reorganize its operation under court supervision, the Star reported.
“The club is not shutting down. It’s going to survive,” Gotham said. “It’s an unfortunate situation that can be overcome legally. If they have to sell a part of it to be financially viable, they will.”
The club needs to respond to the foreclosure proceeding by March 21, the Star reported.
The club has been a popular gathering and recreational place for generations of members, Collins said, and plans to continue to be. He emphasized that the club would continue to operate as normal, the Star reported.
“It’s an institution in Prairie Village, and it’s been around for more than 60 years,” he said. “When you talk to people in the area, nine out of 10 times they’ve had an experience there. Everybody has been to this place.”
Tell Us What You Think!
You must be logged in to post a comment.