Boca Teeca Golf Course Foreclosure Update

The owner of the property, MCZ Centrum and the loan guarantors have retained new legal counsel in the foreclosure case by Wells Fargo bank (formerly Wachovia bank). The receiver continues to operate the property under the management of their affiliated company, Arnold Palmer Golf Course Management Co.

The golf course (d/b/a Ocean Breeze Country Club) is open daily to the public and remains the only championship level golf course within the city that is open to the public. The condition of the golf course has improved steadily since the receiver took control in February 2011 and the number of golf patrons appears to be at the highest level in many years as a result of the improved conditions and the promotional rates. Area golfers should call the golf course to make a tee time and to learn about the current promotional rates: 561-994-0400

The environmental consulting firm retained by the receiver has conducted testing on the portion of the golf course that was determined to be incompatible for residential or industrial use according to the EPA & FL DEP report issued in August 2010. The FL DEP is awaiting the analysis by the private environmental consulting firm in order to determine the size of the impacted area and the possible solution to cleaning-up this problem. It should be noted that there are several area golf courses that have had similar environmental problems that have been monitored for several years, but these other golf courses retained their use and was not proposed for other development uses. Adjacent property owners are obviously concerned that the hazardous chemicals may have migrated to their property or ground water and are of course watching this issue closely.

Boca Teeca Environmental Cleanup Update

On June 14th Environmental Assessments & Consultants, Inc. was granted an extension until Nov. 30th to provide a site assessment on the environmental cleanup at the Ocean Breeze golf course. Florida DEP staff have indicated that the environmental testing was scheduled to begin on June 29th. Based upon these test results the testing will continue with the water monitoring in the area near the maintenance facility on the South golf course.

The correspondence with the FL DEP indicates that "the property owner (MCZ Centrum) has not been directly involved for some time and the property has been placed in receivership."

The property continues to be open for business as the Ocean Breeze Country Club and remains the only championship level golf course within the city that is open to the public. The receiver is affiliated with The Arnold Palmer Golf Course Management Co. and is operating the golf course under this management company. The foreclosure is still pending with recent court documents indicating that the owners and their principals have retained a new legal representative for their defense. Several MCZ Centrum developments in Florida are also in foreclosure with the recent foreclosure completion of a Boynton Beach property that was never developed.

Update of the Boca Teeca/Ocean Breeze Proposed Golf Course Conversion-Development of >200 Townhouses

Dear Boca Raton Neighbors,

The approved development of over 200 townhouses on the South portion of the Ocean Breeze golf course has received an extension of the original conditional use deadline of 4/12/11. According to city records Mr. Jeff Evans requested this extension in Sept. 2010 under a new State law that provided for automatic extension of 2 years for such a development so this development is pending until at least 4/12/13 as confirmed by correspondence from the city to & from Mr. Evans.

Why didn't the owner of the property, MCZ Centrum, request this extension?

Is Mr. Evans acting legally upon the request of the property owner, or is there some other legal right that he has to request this extension?

Tthe property remains in foreclosure and is operating as the only 27-hole championship level golf course within the city limits of Boca Raton that is open to the public. The foreclosure precess started in March 2010 and the current receiver was appointed in Jan. 2010 after large tax liens were placed on the property. It is estimated that the tax liens now exceed $650,000 based upon non-payment of property taxes to PBC, sales taxes to PBC & sales taxes to the State of FL. If the 2010 property taxes are not paid then the tax liens would be approaching $1 million.

Additionally, the Florida Dept. of Environmental Protection (DEP) has action pending versus the property owner for cleaning up the hazardous levels of arsenic and other toxic chemicals found on the property by the EPA & DEP in Jan. 2010. It is our understanding that the property owner has until July to respond to the DEP with their own environmental assessment and their proposed plan to cleanup the property.

Neighboring property owners are interested parties since the DEP report indicated that the source of the contamination found on at least one adjacent property was due to the activity on the golf course property. What are the costs of this cleanup on residential property and how much is the legal liability to the resdiential property owner(s)?

Arnold Palmer Golf Management affilate takes control of Boca Teeca Golf Course

The new management of the Ocean Breeze Country Club has been very busy since being appointed as receiver of property which remains in foreclosure by Wells Fargo bank. The receiver is an affiliate of the Arnold Palmer golf management organization which owns or manages over 40 golf courses throughout the U.S., including the famous PGA Resort in Palm Beach Gardens and the Weston Hills Country Club.

The receiver's affiliate corp web site indicate the company owns private clubs and golf courses that it acquired in partnership with Walton Street Capital and other investment partners. It also manages additional clubs and golf courses for third party owners. Century Golf Partners, d/b/a Arnold Palmer Golf Management, is focused on driving revenue, increasing market share and profitability by building member and guest retention, loyalty and referrals. Century’s portfolio of owned and managed golf courses is expected to generate more than $250 million in total revenues during 2010.

Century Golf Partners employs several thousand highly dedicated people who are committed to superior management of all facets of club and golf facility operations including: member acquisition and retention, revenue generation, yield management, expense control, agronomy, food and beverage and tournament sales, clubhouse operations, capital improvements, accounting and technology systems. The team has pioneered industry leading revenue-generation and yield management programs and is an acknowledged industry expert in private club membership programs and golf revenue concepts. At a time when many are focused solely on cost containment, Century Golf Partners is successfully driving revenue growth through aggressive capacity utilization.

The current owner remains in foreclosure and it appears that a judgement against the business operation for over $76,000 in December for sales tax which was expected to be a contributing factor in the need to appoint a receiver. It is our understanding that the operating manager on property under the MCZ Centrum LLC ownership, Dennis Taback, has been relieved of his position and a new general manager should be in place by Feb 1st.

We look forward to learning of the improvements planned for the property under this acclaimed Arnold Palmer Golf Management company.

Receiver Appointed for Ocean Breeze Golf Club in Boca Teeca

The court overseeing the foreclosure proceeding of the Ocean Breeze Golf Club property in Boca Raton has agreed to appoint a receiver of the property while the foreclosure proceeds through the legal process. While MCZ Centrum's LLC remains the owner of the property, the receiver will be responsible for the management of the property in order to protect the value to the mortgage holder, Wells Fargo Bank (formerly Wachovia Bank).

What does this mean for the future of the golf course? The receiver would be expected to bring-in his own management of the property since he is affiliated with a major golf course owner and management company. Hopefully, this receiver's management will result in long-promised improvements to the property which is located in the financially attractive area of eastern Boca Raton.

Golfers and area residents would benefit from improvements and professional management of this 27-hole championship golf course which is open to the public. We look forward to learning of the plans by this new management for this property.

Boca Teeca Golf Course Foreclosure Heating-Up

The foreclosure on the Boca Teeca golf course is heating up as the bank has filed a motion to appoint a receiver which would take control of the property from the current owners, MCZ/Centrum. On 1/11/11 there is a hearing at the PB County courthouse to hear this motion by the bank.

The golf course is still open and operating under the name Ocean Breeze Golf & County Club. Is Wachovia/Wells Fargo bank concerned that the current owner is not protecting the value of their collateral which also includes all furnishings and assets of the country club and hotel on the East side of NW 2nd Ave.? Or, would the bank's receiver plan to improve to the golf course in order to improve the value of the property that secures their loan?

According PB County public records the MCZ/Centrum LLC has not paid taxes for 2008 or 2009 and has liens on the property totaling almost $500k. The property is also subject to an investigation by the Florida Dept. of Environmental Protection (DEP) and the EPA concerning contamination that was confirmed in ealry 2010 on a portion of the South golf course at the location of the maintenance facility. The DEP has a specific time deadline for the owner of the property to complete an environmental assessment and provide a plan for resolving the contamination issue. Considering the lack of payments to creditors this environmental issue is a concern of adjacent residents who's property may have been affected by the historical operation of the golf course and are awaiting more details from DEP on this matter.

WPB attorney Lawrence Rochefort represents Wachovia/Wells Fargo in this foreclosure case.

Another Over-Leveraged Boca Raton Developer Loses to Foreclosure

North Boca Village Center loses $27M foreclosure
North Boca Village Center has been slated for auction after its owner lost a $27.3 million foreclosure judgment. Fifth Third Bank (NASDAQ: FITB) won the judgment against Boca Riverwalk LLC covering the mixed-use center on 20.3 acres at 7867 and 7887 N. Federal Highway. The online auction is set for Sept. 30.
The property, located on the Boca Raton/Delray Beach line, has 100,652 square feet of retail, office and cinema space in what formerly was known as Levitz Plaza. Boca Riverwalk planned to redevelop it. The plans included 385 residential units priced from $400,000 to $900,000; 165,350 square of retail, restaurants and entertainment; and 53,990 square feet of office space.
In 2006, the developer sold the nonprofit Caldwell Theater, a neighboring building, for $1 million and marketed it as part of the project. The bank filed for foreclosure in January.
In 2006, the managing members of Boca Riverwalk were Arthur Falcone, Leslie Arouth and Albo Antenucci Jr. None were named in the complaint. Falcone also is a partner in the Miami Worldcenter project, which also has a foreclosure pending against it from Fifth Third Bank.Read more: Foreclosure Roundup: Riverstone Shoppes faces seizure - South Florida Business Journal