Homestead Country Club alerted members this week that it had filed for Chapter 11 bankruptcy protection and that it had closed in principal on a deal to sell the front acreage of the club to a home builder.
Attorney Colin Gotham of Evans & Mullinix, who is representing Homestead in the matter, said Thursday the moves should allow the club to keep operating despite the legal maneuvers of developers Jeff Alpert and Melanie Mann, who purchased the club’s $3.1 million note from Valley View Bank in the fall of 2013.
“The message is Homestead is staying open,” he said. “There was some legal maneuvering against us and we’re doing it back. These actions will allow the club to stay open and remain a community asset.”
Gotham declined on Thursday to identify the home builder to whom Homestead intends to sell the property, saying that formal paper work on the sale will be filed likely Friday or Monday. Filing a motion to sell part of a property is standard procedure with organizations that are under federal bankruptcy protection, he said.
The sale of the front six acres of the club won’t have any impact on the pool area or the tennis courts. However, the building of homes on the property that is being sold may require the reconfiguration or demolition of part of the main clubhouse.
Homestead had been in discussions with the city of Prairie Village for months about the possible sale of the acreage to form a new city park. But the city announced last week that it had ceased negotiations for the purchase of the property in part over concerns that the deed restriction prevented the land from being used for a park.
Gotham said the club was in discussions with lenders who could provide a loan that would allow the club to pay off its note.
“There are a couple of options on that front,” he said. “We could just pay the debt through our reorganization plan. Or we may look for a new lender who would give us the funds to pay off the current note.”
Homestead told members it expected to share design concepts for the club facilities and entire property in the next four to six weeks.