Ian Rolland, receiver for Oakwood Inn and Conference Center, made his third interim report to the court Tuesday morning and requested instructions.
Tom Yoder, attorney for Rolland, told Kosciusko County Superior Court Judge Duane Huffer the good news was Rolland believed he could satisfy the court's instructions to take control of Oakwood's assets and try to implement general parameters for use of the property.
Yoder said the real challenge was finding a market for the property, since Huffer's instructions were to find a way for the property to be available for public use.
Rolland submitted a report to the court Dec. 17, with five possible proposals. Rolland also informed Huffer at this time the state has formally withdrawn its proposal.
Of the remaining four proposals, Rolland recommended Ambassador Enterprises LLC of Fort Wayne. Ambassador is interested in turning the property into a Chautauqua-like experience. A representative from Ambassador was present in the courtroom, but did not testify. Chautauqua Institution in Chautauqua, N.Y., is a center for the arts, education, religion and the arts.
Rolland explained Ambassador wants to use the inn and outlaying buildings to welcome people of all faiths to participate in artistic, cultural, educational, recreational and religious based programming. Ambassador is willing to invest money into the property, paying off its debts and liabilities, as well as desiring to purchase the property outright.
Rolland requested a three-month extension to continue work on the proposal. "There are a lot of cats to be herded," Yoder told Huffer. "This is about as close as we're going to get when you told us to go forth."
Huffer said he reviewed the proposals but was concerned about the restrictive covenants of Oakwood. Yoder's legal partner, Mike O'Hara, said the covenants will have to be addressed, and with the state out of the picture, the process will be a bit more complicated.
O'Hara told Huffer many of the covenants haven't even been enforced for years. "We're going to have to address those in a public manner," Yoder said. The covenants will have to be modified so property owners are comfortable enough to partner with the new owners, whoever they may be, and move into the future.
Huffer asked why the state withdrew its proposal. Rolland's team and Deputy Attorney General Abby Kuzman both said they weren't sure, but suspected it may have something to do with learning Ambassador's proposal was going to be the one endorsed.
"We received a letter from the state Dec. 21. I think that was after the committee and I decided to endorse the Ambassador proposal," Rolland told Huffer. "When I received the letter, I contacted Jennifer Alby, who I had worked closely with and told her I was surprised."
Yoder said Rolland still hoped the state would be involved in the project in some way.
Yoder pointed out the Oakwood Foundation still exists although its board has been removed. He requested the court install a new board with a slate from all the entities involved to work on the covenant issue.
Roland reported he has developed relationships with Bishop Michael Coyner of the Indiana Methodist Conference and the Oakwood Property Owners Association and has discussed the covenant situation with them.
Yoder told Huffer doing away with some of the covenants, such as prohibitions against laughing, singing and dancing won't be a problem. The idea of the inn's restaurant serving alcohol is causing concern among property owners.
Yoder said several property owners would rather the inn remain dry but realize that isn't practical.
Rolland told Huffer he attended the property owners annual meeting during Labor Day weekend. "I went over pretty candidly and completely what I had learned at that point; my sense is if we put alcohol up for a vote we would prevail, but there would be a small minority that would object. I think we can get a majority vote to loosen the covenant," Rolland said.
"I'm quite excited at the proposal from Ambassador. I agree it fulfills the original intent of Oakwood," Huffer said. Still, he is a bit concerned about the covenant prohibiting alcohol. "I think the state is still a viable option," Huffer said.
Rolland agreed saying he was "delighted" to get a proposal from Ambassador. "I think they're committed to producing the result we're interested in," he said.
O'Hara and Yoder said if the court instructs Rolland to close on the proposal, they would rather do it the easy way but with the alcohol covenant, it may be get complicated. "There's no way to make everyone happy," Yoder said. "The goal is to make everyone equally unhappy."
Prior to the start of the hearing, Stephen Fink, attorney for the Indiana Methodist Conference, handed out responses, approximately an inch to 1 and 1/2 inches thick, to Rolland's proposals.
Noting he had not had time to review the response, Huffer asked Fink for the highlights. Fink noted Oakwood Foundation was always intended to be a Methodist corporation operating a United Methodist Conference property. The conference is not convinced a Chautauqua experience fulfills the original goal for Oakwood. However, the conference believes it can work with Rolland and representatives of Ambassador to "mold it into something acceptable."
When asked how he felt about it Yoder responded "equally unhappy."
Kuzman said the state had no objections to the three-month extension as there were a lot of details to be worked out.
Phil Whistler, attorney for the late Howard Brembeck, thanked Rolland for his time.
Huffer ordered Brembeck's personal items in his suite at the Oakwood Inn be returned to his family as soon as possible. He said he was pleased with the report and recommendations, but would still like to see the state involved. |
