UCHRA Efforts to Sell Lakeside Resort Clears Hurdle

UCHRA’s effort to sell Lakeside Resort and reduce the agency’s debt has cleared a preliminary hurdle.
Officials were informed last week that the U.S. Army Corps of Engineers has given initial approval to allow the buyer to enter into a lease agreement to take over operations of the facility, located off Highway 56 north in DeKalb County.
UCHRA Executive Director Luke Collins explained in a recent memo that Timothy Hill Children’s Ranch has made a proposal of $600,000 for the facility along with $100,000 in services over a 10-year period (or $10,000 per year). He said if the proposal could be accepted at the agency’s next real estate meeting on December 29, a check for $50,000 would be presented as earnest money, with the balance paid at closing.”
In the meantime, the Ranch is currently in discussion with Tennessee Tech to partner with the university to meet educational requirements set forth by the Corps. The Corps’ final approval of the proposal also is subject to the request submitted by UCHRA, which must meet “assignment of lease”
application requirements.
“This lease has both educational and transient use components,” said Michael T. Abernathy, district chief of real estate with the Corps of Engineers’ Nashville district. “The official request needs to be specific in how Timothy Hill Children’s Ranch will be providing education for its members and how compliance with the ‘transient use’ condition will be met.” The transient use clause prohibits stays longer than 30 days during any 60-day period.
UCHRA is currently paying on two loans relating to Lakeside at a total cost of nearly $1.3 million and at an interest rate of 4.25 percent.
With the purchase price, UCHRA’s debt would be reduced to $663,895, which Collins said could be paid over three years.