Golf Club of Dublin
2010 Updates
Thursday, May 27, 2010
This is to update the pending case against The Golf Club of Dublin, LLC (“GCD”) in the Common Pleas Court for Delaware County.
In December 2009, the court denied GCD’s motion to move the case from Delaware County to Franklin County. GCD appealed that decision to the state appellate court for Delaware County, citing as the jurisdictional basis for the appeal, the trial court’s appointment of a Receiver for GCD. General Electric Capital Corporation, GCD’s lender and the plaintiff in the Delaware County case against GCD, opposed the appeal.
On May 13, 2010 the Court of Appeals dismissed the GCD appeal. In essence the Court ruled that GCD did not have the legal right to appeal the denial of its motion to change the venue of the case to Franklin County.
The receiver remains in control of all of the GCD assets and operations and the court approved manager, Century Golf, will continue with its role in management of the golf course and related operations.
The Golf Club of Dublin’s receiver and management assure the City of Dublin that all operations of the club will continue as normal throughout the legal process.
Monday, March 1, 2010
GE Capital Corp. is moving forward with its foreclosure case with The Golf Club of Dublin in the Delaware County Court of Common Pleas.
The bankruptcy case of The Golf Club of Dublin, Inc. was dismissed in October and the club is under the management of a receiver, Reg Martin, and a consultant, Century Golf, approved by the court in December.
The Golf Club of Dublin filed a motion asking the court to transfer the case to Franklin County, arguing that since all the real estate leased by the club from the City is in Franklin County, the case should be transferred to Franklin County. GE Capital Corp. submitted that The Golf Club of Dublin has reported that its principal office is in Delaware County and therefore the case is properly in that jurisdiction. The court held a hearing and issued its decision denying The Golf Club’s motion.
In the meantime, The Golf Club of Dublin’s receiver and management assure the City of Dublin that all operations of the club will continue as normal throughout the legal process.
2009 Updates
Tuesday, December 15, 2009
On Dec. 4, 2009, the Delaware County Court of Common Pleas granted a motion for order appointing Reg Martin, of Martin Management Services, Inc, as receiver for The Golf Club of Dublin, LLC. The receiver is required by the court to file a full and complete accounting of all financial transactions on or before Jan. 15, 2010, and every month thereafter.
The court approved the employment of CGPM Course Managers LLC, d.b.a. Century Golf, as a consultant to the receiver in the management and operation of The Golf Club of Dublin.
The court authorized Martin to hire A.C. Strip from the law firm of Strip, Hoppers, Leithart, McGrath & Terlecky Co., L.P.A., as attorney for the receiver.
A motion from the defendant, The Golf Club of Dublin, LLC, to transfer venue from the Delaware County Court of Common Pleas was denied. The court determined the defendant’s principal place of business is 8070 Tartan Fields Drive in Delaware County.
Friday, October 30, 2009
On Oct. 22, 2009, the U.S. Bankruptcy Court entered its order dismissing The Golf Club of Dublin, LLC, Chapter 11 bankruptcy case. The City of Dublin, through its legal counsel, filed a memorandum supporting the Golf Club of Dublin's motion to dismiss and no objections to the dismissal were submitted to the Court.
The bankruptcy case is now terminated and creditors are permitted to pursue claims against the Golf Club of Dublin. GE Capital Corp., the Golf Club of Dublin’s primary lender, is pursuing its foreclosure case and a motion for the appointment of a receiver for the Golf Club of Dublin in the Common Pleas Court of Delaware County.
The Golf Club of Dublin filed a motion in Delaware County asking the Delaware County Court to transfer the case to Franklin County, arguing that since all the real estate leased by the Golf Club of Dublin from the City of Dublin is in Franklin County, the foreclosure case should be heard by the Franklin County Court. GE Capital Corp. contends that the Golf Club of Dublin has reported that its principal office is in Delaware County and therefore the case should be heard in Delaware County.
The Delaware County Court held a hearing on that motion Oct. 19, 2009, but has yet to rule on the motion. In the meantime, the Golf Club of Dublin’s management has assured the City of Dublin’s legal counsel that all normal operations of the Golf Club of Dublin will continue as usual.
Friday, September 25, 2009
On Sept. 25, The Golf Club of Dublin, LLC filed a Motion to Dismiss its pending Chapter 11 bankruptcy case, stating that it is unable to effectively reorganize its financial affairs. The Golf Club of Dublin also has approved an agreed consent order with its primary lender, GE Capital Corp., which authorizes GE Capital Corp. to proceed with its pending foreclosure case in Delaware County, including the GE Capital Corp. motion for the appointment of a state court receiver for the Golf Club of Dublin.
The Motion to Dismiss the bankruptcy case will not be heard for approximately 25 days. Any objections to the Motion to Dismiss must be filed with the court by Oct. 19. During that interim period, The Golf Club of Dublin’s management will remain in place and continue all operations at the facility until a state court receiver is appointed. It is expected that the receiver will be an experienced, professional golf management company and that all existing programs, banquets, schedules and reservations will continue as planned.
Wednesday, September 9, 2009
The Golf Club of Dublin LLC (“GCD”) bankruptcy case continues with GCD’s management in place and operating the golf course and other facilities. A hearing will take place Sept. 24 that may decide who will operate the GCD facilities. At that hearing, it is expected that GCD’s secured creditor, GE Capital Corp., will present testimony and documents in support of its motion to have the bankruptcy remain modified so that GE Capital Corp. may proceed with its pending foreclosure case in the Delaware County, Ohio court, including GE Capital Corp’s motion to appoint a receiver to manage the GCD facilities.
Whether GE Capital Corp. is successful in having a receiver appointed or GCD management continues to be in charge of operations, no closing or reductions in use of the golf course or other facilities is expected.
Monday, July 13, 2009
On July 7, following the previously filed involuntary bankruptcy petition filed against The Golf Club of Dublin, LLC (‘the Golf Club') the bankruptcy court entered an order making the The Golf Club a Chapter 11 Debtor in Possession. Chapter 11 permits a company such as the Golf Club to operate in bankruptcy while it negotiates with its creditors to reorganize its financial affairs.
Also on July 7 the Golf Club filed four “first day motions” none of which are out of the ordinary and will not effect the day-to-day operation of the golf course or any other activities at the Golf Club facilities. It will be business as usual.
The Golf Club and its primary secured creditor, GE Capital Corp. have agreed upon a 13-week budget for continued operation of the facilities through the week of September 21. A hearing to approve on an interim basis the motions including the budget is set for July 14 and a subsequent hearing will be set to enter a final order on the budget. It is anticipated that the Court will approve the motions and that the Golf Club and GE will continue to negotiate for operations after September 21.
Tuesday, June 30, 2009
During the last week GE Capital Corp. the primary secured creditor of The Golf Club of Dublin filed motions in Bankruptcy Court in the pending involuntary bankruptcy case filed against the Golf Club. In its motions GE Capital Corp. has asked the bankruptcy court to require the Golf Club’s assets and operations to be subject to bankruptcy code requirements, or in the alternative, to have an interim trustee appointed for the Golf Club. GE Capital Corp. also requested that the court modify the bankruptcy automatic stay so that GE Capital Corp. can proceed with having a receiver appointed in the suit GE Capital Corp. filed in state court against the Golf Club.
When a Federal Bankruptcy case is filed all proceedings in other jurisdictions are placed on hold or stayed. In the present case, this means that the request to appoint a receiver in state court in Delaware is on hold until the Federal Court either resolves this matter or lifts the stay and allows the state court to move forward on a hearing to appoint a receiver. None of the GE Capital Corp. motions should have any immediate effect on golf or other operations at the Golf Club facilities as the Golf Club will continue to manage all operations.
We have also learned that the Golf Club and GE Capital Corp. and their attorneys will be meeting sometime this week to discuss mutual resolutions of GE Capital Corp’s motions, and other related legal matters. If GE Capital Corp. and the Golf Club cannot reach agreement, the bankruptcy court has set a hearing for July 6.
The City of Dublin will continue to update our residents as soon as information becomes available to either the Federal Bankruptcy filing or the State Court Receivership.
On Tuesday, June 9, GE Capital Corp. filed a complaint for foreclosure in Delaware County against the Golf Club of Dublin, LLC. GE Capital Corp.l also asked for a receiver to be appointed. The City is not a party to this legal action.
On Thursday, June 11, an involuntary Chapter 11 was filed against The Golf Club of Dublin, LLC, in federal bankruptcy court. The City is also not a party to this legal action. The county court stayed the foreclosure complaint and receiver request after the federal bankruptcy filing.
The City’s history with The Golf Club of Dublin
In 2000, the City paid $1.5 million for the 209 acres on which the Golf Club of Dublin would be built as part of an economic development agreement with Ballantrae’s developer, Edwards Golf Communities LLC.
In return, Edwards Land Co. donated $1 million toward development of The Dublin Community Pool South and the City would cause the development of a first-class public golf course at the Ballantrae subdivision.
To cause the development of the course, the City entered into a Ground Lease and Operating Agreement with Tartan Golf Company, LLC, in 2000. In accordance with the Agreement, the City leased its land to the Tartan Golf Company, LLC, which was to construct and operate a first-class golf course facility.
In 2001, the Tartan Golf Company completed its financing for The Golf Club of Dublin with The Huntington National Bank.
In 2007, the Tartan Golf Company, LLC assigned its interests in the club to The Golf Club of Dublin LLC which completed a new financing with GE Capital Corp..
The golf course land, which remains under the City’s ownership, does not provide any security or mortgage for the golf course development loan from GE Capital Corp. to The Golf Club of Dublin. The Loan is backed by the lease-hold interest of The Golf Club of Dublin, LLC.
In May, the City of Dublin (in accordance with the terms of our Ground Lease) was notified by GE Capital Corp. that The Golf Club of Dublin, LLC was in default of its loan agreements. The City of Dublin then notified The Golf Club of Dublin that is was in default of its ground lease with the City.
The City did not invest financially in the golf course development and has no financial obligations with the golf course or its operations.
The City’s Ground Lease and Operating Agreement require the land continue to be operated as a consistently high quality public golf course and be appropriately maintained, regardless of the owner. View the Ground Lease and Operating Agreement.
The City, The Golf Club of Dublin, LLC and GE Capital’s shared goal is that the course and its related amenities continue operating.
Earlier this year, the City of Dublin hired a third-party consultant to conduct a review of operations, condition and financial status of The Golf Club of Dublin. View the Report.
Who to contact
In our quest to monitor resident concerns, please direct your calls to Sandra Puskarcik, Director of Community Relations, at 614-410-4501. This also will help us keep you informed of future developments.
For information or questions regarding the operations of The Golf Club of Dublin call General Manager Wes Widdows at 614-792-3825.
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