Ian Rolland, receiver for Oakwood, filed his fourth report to the court, detailing his plans for Oakwood's future.
Tom Yoder, counsel for Rolland, explained to Judge Duane Huffer, at the time of the Dec. 28, 2010, hearing, Ambassador Enterprises was the only prospective buyer. After the hearing, Buckingham Companies, which had partnered with the state in submitting a proposal, contacted Rolland.
Buckingham was interested in submitting its own proposal for the Oakwood property. After rounds of competitive bidding, both Ambassador and Buckingham made excellent offers. "The receiver decided Buckingham was the best offer for the creditors, for the neighbors and the community," Yoder told the court.
Buckingham Companies has offered to purchase the property for $3,775,000 and will put another $5 million in refurbishing it. The company has also embraced the Chautauqua philosophy for programing including the arts, religion and education components.
Rolland requested permission to extend his role as receiver until Aug. 31 to work with Buckingham on finalizing the details of the sale of the property. Buckingham has 90 days to finish its due diligence investigation into Oakwood and then needs 30 days to complete closing.
Yoder told the court, based on the purchase price, the Indiana United Methodist Conference's claims can be settled, the conference's and the late Howard Brembeck's claims against each other can be settled, the secured claims can be paid and depending on closing costs are determined, other claims can be paid as well.
Yoder stressed the last bit of claims against Oakwood may not be paid 100 cents on the dollar.
Rolland has also worked to reconstitute the Oakwood Foundation's board, which will serve as a "watch-dog" for the foundation's real estate and tangible personal property assets. The board will also act as a liaison between Buckingham and the Chautauqua committee, which will handle programming. The new board of directors will also be the eyes and ears of the attorney general as well, to make sure Oakwood is operating as it should.
Rolland has also asked the attorney general to make recommendations or nominations to the board. Rolland has also agreed to temporarily stay on as board chair to get the board of directors running.
The Oakwood property will also be annexed by the Town of Syracuse at the request of Oakwood Park homeowners and Rolland. Infrastructure updates will be needed for a cost of $570,000. The cost will be split between the homeowners and the Oakwood Foundation.
Yoder pointed out this would also remove the Foundation from the Oakwood Service Company. He also assured the court the needed $287,000 will be available to the foundation for its share of the infrastructure upgrades. The homeowners will pay their share through enhanced utility bills for a period of 60 months.
Huffer pointed out he had correspondence from someone regarding the utility company may have creditors. Yoder told Huffer Rolland did not pay any attention to the service company claims because his job was to focus on Oakwood's claims. All the directors loans have been identified and Rolland didn't know there were any creditors to the service company.
He plans to investigate the matter and will include his findings in his final report. Any claims for the service company will go in the unsecured pot, the service company will be paid a pro-rata and its creditors can go after it as they see fit.
Yoder explained the list of recommended claims Rolland supplied to the court is not a final list, but merely an attempt to identify them. The claims by the conference have been settled. Rolland is working on a claim by a ex-director who has mortgages on two lots in the park. Yoder said there is some question as to whether the claim is fully secured or under secured based on the property value.
Rolland also reported he filed a motion to nullify the restrictive covenants in Oakwood Park, specifically those against laughing, dancing and alcohol, which will allow Buckingham to pursue an alcohol license.
Yoder told Huffer it was believed the neighborhood association was in the position to remove the covenants and the conference, while not happy with the circumstances, will remain mute on the subject. Brembeck's estate, as long as his money is used as he intended, will remain mute as well.
Notice was given to those who have standing to object to removing the covenants and a hearing was set for 2:15 p.m. June 10, for those to come to join the motion to nullify the covenants or explain why they have standing to object.
Huffer approved the sale to Buckingham and extending Rolland's role of receiver to Aug. 31.
After the hearing, Indiana State Attorney General Greg Zoeller issued a statement: "I supported a receivership process to clear away the many entanglements that had imperiled the future of Oakwood. With his expertise as one of Indiana's top business executives, Ian Rolland has performed a great public service by devising a plan that again can make Oakwood economically viable and restore a true gem for the community and all those who love Oakwood. We commend Mr. Rolland's creativity and patience on this long voyage."
"The excellent result produced by the receivership process is consistent with Howard Brembeck's philanthropic vision of a recreational, cultural and spiritual retreat on one of Indiana's most scenic settings on Lake Wawasee. Mr. Brembeck gave generously to Oakwood's preservation and the legacy he left for others to enjoy now can be carried forward through the receiver's proposal, which we urged the court to adopt," Zoeller added.
Oakwood property settlement moves closer to being resolved
By DANIEL R. GANGLER
Director of Communication
Indiana Conference United Methodist Conference
The Oakwood property dispute came closer to being resolved Monday with a court decision. Kosciusko County court heard and approved Monday the report of Mr. Ian Rolland, the court-appointed receiver, for the sale and settlement of the Oakwood Inn Conference and Retreat Center at Syracuse. The report included these points:
- Oakwood Inn will be sold to the Buckingham group of Indianapolis, who will operate the Oakwood Inn and work through a new board to allow Oakwood Park to function as a Chautauqua-like program center.
- From the proceeds of the sale of Oakwood, the various creditors will be repaid, including the bank who holds the mortgage, the Indiana Conference of The United Methodist Church who paid the mortgage and expenses during the time the property was reverted to the Indiana Conference by the former Oakwood Foundation and other parties who have claims that will need to be verified.
- The lawsuit filed by the late Howard Brembeck and other individuals against the Oakwood Foundation and the Indiana Conference will be dropped.
- The proposed sale of Oakwood does not include any change of status for the private residences of the Oakwood community adjacent to the Oakwood Inn Conference and Retreat Center.
Trustees of the Indiana Conference have approved the financial settlement proposed by Rolland along with having the lawsuit dropped.
Upon news of this decision, Indiana United Methodist Bishop Michael Coyner said, "I am pleased we are finally moving toward a settlement at Oakwood. The Indiana Conference Trustees and I have worked closely with Mr. Rolland. We believe he has the best interests of Oakwood at heart and is working to find a fair resolution which maintains the original vision for Oakwood."
Oakwood was founded in 1893 by the former Evangelical Association, which became the Evangelical
United Brethren Church, one of the predecessor denominations of The United Methodist Church. The former North Indiana Conference of the church created the Oakwood Foundation in 1993 preceding extensive renovation of the property.
In 2008 the Oakwood Foundation reverted the Oakwood property back to the North Indiana Conference along with more than $2 million of debt. Brembeck and former foundation member Don Blosser filed a lawsuit against the foundation and the conference in 2008 alleging the meeting at which the foundation voted to revert the property was not a properly called meeting.
The judge placed the Oakwood property into the hands of a court-appointed receiver to settle the dispute. |
