Lakside Resort could be in the hands of another very soon.
A UCHRA committee is expected to meet this week in Cookeville for the purpose of awarding a bid to one of the groups who have submitted proposals to take over the operation of Lakeside Resort, which is located on Center Hill Lake off the Cookeville Highway in DeKalb County.
A sub-committee reviewed all the proposals last week which had been under consideration including a new one offered by Jim Himelrick and Bob Pierce of American Modus Partners, LLC, a Brentwood based company which was organized in 2010. Himelrick and Pierce were part of the Investors Equity Holdings group that put $1.5 million worth of improvements into Nashville Shores before its sale in 2011. The sub-committee voted to recommend that UCHRA enter into contract negotiations with American Modus, a recommendation that will go before the full board.
UCHRA’s Pat Callahan told WJLE last week that American Modus Partners, LLC wishes to initially enter into a management contract to operate Lakeside Resort with an eye toward taking over the facility before the end of the year, which would take it out of the hands of UCHRA. If UCHRA chooses American Modus, the deal is contingent on the company extending or renewing a long-term lease with the Army Corps of Engineers for the land, 139 acres, on which Lakeside is situated, as well as working with the U.S. Department of Agriculture to assume UCHRA’s existing loan, a note that totals nearly $1.6 million. If those conditions are met, the deal could close on or before January 1st. “As of this past Monday, a sub-committee of our board that was appointed by our board, after reviewing a number of different proposals, have decided to recommend that the board approve a management contract with an investment group out of Nashville that will immediately come in and start phasing in, as far as the management of the property,” said Callahan. “All the rentals would continue and be paid to us (UCHRA). We would pay all the bills and we would pay them a management fee ($5,000 a month, or $40,000 total through December 31) which is approximately equal to or maybe a little less than the pay in benefits that went to the previous managers. So it’s a pretty attractive deal for the board. Their long term goal is that by the first of the year they would assume the lease with the Corps and also assume the loan with Rural Development and the agency and the board would be completely out of the business,” said Callahan
“Their (American Modus’) long term goal is to create more of a Disney type landscape down there and create a year round operation that would be able to support itself year round and be a much nicer asset than what it is now for DeKalb County and the entire region,” he said.
“They started the Nashville Shores project and recently sold that so the two partners here (Himelrick and Pierce) have been in the business for about fifteen years and they have developed a number of different investment projects including some retail mall areas and those kinds of things. I think the board feels like they are the most viable prospect that we have at this point. If they enter the management contract they’re going to help deal with the advertising and promoting the property, trying to increase the rentals between now and the time that they would assume the lease,” said Callahan.
“I think what they want to do is try and create a facility, a property that will attract parents and children, entire families. There would be things for everybody there. There would be some types of things that would be going on year round,” he said.
“The management fee is about $5,000 per month. I believe it was eight months for $40,000. That’s a flat fee. There’s no fringe or no travel or no expenses that are added to that as far as my understanding of what their proposal is for. They are going to also take care of some of the advertising, booking, and all that. We are going to continue with limited part time people we have down there that will do some of the grounds maintenance and those kinds of things. I think we’re in the process of actually hiring a couple of people for that and a couple for clerical. Those will be temporary until they decide what they want to do when they assume the lease,” said Callahan.
“They (American Modus) would assume the lease that we have with the Corps. That is our understanding. That would get us completely out of it. The remainder of that note is approximately $1.6 million dollars. This (offer by American Modus) will be presented to the full board on April 18 and they will vote on the recommendation. (If approved) it will actually get us out of that business where we would have no connection with the property any longer,” said Callahan.
Proposals have also been presented by Robin Driver, owner of Center Hill Chalets, who has submitted a three-year management contract, and Deanna Pierson, current owner of Mills of Gold in Jamestown and founder of PeopleBuilders, a faith-based 501(c)3, who wants to lease the property for one to three years before making the purchase, at $1.8 million. Bob Sotis, who served as the resort, food and hospitality management teacher at Lakeside for a number of years, also made an earlier lease proposal, but reportedly notified the committee last week that he was withdrawing his offer in order to join with Driver.
“The second most attractive offer was a longer term management contract but we (UCHRA) would still have responsibility for seeing that the mortgage is paid every year and that all the bills are paid,” said Callahan.