Silverleaf Resorts Inc. of Dallas, which owns of Oak n’ Spruce Resorts of South Lee, made an announcement Feb. 26 that could have an impact on their expansion plans in South Lee.
At this time, the company fully intends to proceed with the special permit approval process, according to spokeswoman Deborah Siglin, who added that she imagines a more scaled-down version of the expansion plans.
“We have every intention of going through the process," she said, noting that the company has no intention of selling Oak n’ Spruce or any of its resorts, or abandoning its expansion plans.
In all, Silverleaf owns 22 resort properties across the U.S. that are in some stage of development, she said. According to a press release issued last week, Silverleaf has managed ownership base of over 116,000 in its time-share resorts.
The press release also states that "the uncertainties associated with the Company’s proposed downsizing and related curtailment of sales and marketing is expected to delay its earnings release for the fourth quarter of 2000, as well as completion of its audit for the year ended December 31, 2000."
At the time of the release, the company was seeking alternative sources to its principal lenders but at the time no agreement had been reached to expand or extend credit. Therefore, according to the release, "[I]t has determined to substantially curtail its normal sales and marketing operations effective immediately [Feb. 26] in order to conserve cash and downsize its business to a sustainable level."
Steven Di Mattia of Morgan Walke Associates, the public relations counsel to the company, said since the press release was issued, the company has begun to work with a new financial advisor, UBS Warburg.
In the release the company states that the "ongoing operation of its owned resorts, through Silverleaf Club, on behalf of its existing vacation interval owners will be largely unaffected."
Siglin reiterated this statement and added that resort staff has not been cut. Corporate staff in Dallas has experienced downsizing, she said.
The company filed for a 30-day extension of its permit process with the town of Lee. Siglin said when the 30 days are up, they "will have a much better sense of where we’re going."
Siglin stressed that such internal restructuring is not unusual. She said a public announcement such as this one is necessary for a public company; the release also went out to the business community and shareholders.
The company is requesting approval to expand its Oak n’ Spruce Resort in South Lee. After pulling a larger expansion plan off the table last spring, the company returned to the town boards in the fall with a new plan. They’ve also hired local professionals, including former Lee Economic Action for Downtown (LEAD) Downtown Manager Rich Beatty, to reorganize their plans and to help with their presentation to the town.
Local opposition to the project is coordinated by a neighborhood organization, Citizens for Preserving South Lee. They have been concerned with the scale of the resort, as well as its environmental and neighborhood impacts.
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Berkshire Food Project Closed for Power Issues
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