Partners in American Modus Pitch Their Vision for Lakeside Resort To UCHRA

The partners in American Modus laid out their vision for Lakeside Resort in a power point presentation Wednesday during a UCHRA policy council meeting in Cookeville.
Ideas to make the resort more family oriented, presented by Jim Himelrick and Bob Pierce, include Disney style landscaping to give it a much more attractive look; adding more cabins and recreational amenities like lake inflatables, play areas, and a splash pool; and sprucing up the lodging facilities with new flat screen TV’s, carpeting, and other cosmetic upgrades.
Himelrick and Pierce are proposing to enter into a management contract with UCHRA for $5,000 per month for eight months as they work toward acquiring their own land lease on the property with the U.S. Army Corps of Engineers and assuming all UCHRA loan obligations on the resort by January 1st, 2013.
After hearing the proposal and discussing other issues with Himelrick and Pierce, the policy council authorized the UCHRA Lakeside Committee to negotiate a contract with them, subject to final approval by the full UCHRA board of directors. In the meantime, a service contract is to be executed by the UCHRA executive director and attorney, pending approval of a final contract, so Himelrick and Pierce can start up operations there. The policy council added that if for any reason American Modus cannot fulfill its contractual obligations, a clause should be included in the final agreement to allow UCHRA to terminate the deal.
In his presentation, Himelrick told the policy council that the objectives of American Modus are to negotiate the extension and renewal of the current Army Corps of Engineers land lease, assume all obligations of UCHRA on the existing loan from USDA, and develop a first class resort and recreational, educational area for the eighteen counties of the Upper Cumberland region.
On or before January 1st, 2013, American Modus proposes to close on the acquisition of the Army Corps of Engineers lease and the improvements located on the 139 acres that are the subject of the Corps lease. The purchase price for these assets will be the remaining principal balance of the two loans from the U.S. Department of Agriculture as of closing or December 31, 2012, whichever occurs earlier. Conditions that must be met prior to closing will include the approval of the Army Corps of Engineers and the U.S. Department of Agriculture. Until January 1, 2013, American Modus proposes to manage the project so as to maximize cash flow and provide for debt service on the U.S. Department of Agriculture loans on the project.
Himelrick said immediate cash flow must be achieved and until closing, American Modus proposes to manage the project. Once all the necessary structures have been put in place and closing has occurred, American Modus will proceed to develop the entire 139 acres of leased land in the most appropriate means as approved by the Corps of Engineers. “No plan has yet been developed because its not known what the community will embrace and what the Corps will allow us to do,” said Himelrick.
The 2012 objective is to restore the property to the 2010 level of cash flow, increase bookings through extensive marketing and high level of service, and carefully manage expenses and maintain the property at a high level.
The 2013 objectives are to make property improvements, upgrade landscaping, make unit interior improvements to lodging facilities such as adding flat screen TV’s, carpeting, and other cosmetic upgrades. Increase amenities and family activities, add lake inflatables and cabins, pool amenities, etc.
American Modus Partners, LLC,. is 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.