May 1, 2009 in City
Agreement reached on funding for Tamarack
BOISE – The receiver appointed to run Tamarack Resort through its foreclosure and the lending group that is still funding the financially insolvent development have reached a last-minute agreement on a budget.
At least, for May.
Attorneys for Credit Suisse and receiver Douglas Wilson told 4th District Judge Patrick Owen on Thursday that they’d reached the agreement.
Earlier in April, the two parties were hundreds of thousands of dollars apart in their budget requests – Wilson said the resort’s coffers were empty and asked the lenders to approve $1.7 million, but the lenders only wanted to budget $956,000 for the month, including nearly $500,000 they said should have been left over from April. Wilson said that would only cover expenses through May 14.
Still, both sides asked Owen to approve the $956,000 budget, an amount they were able to make work after Wilson found he could keep some substantial building insurance costs from increasing in May and after he agreed to reduce some of his fees.
The resort’s building insurance was expected to increase by more than $460,000 in May because vacant buildings are more costly to insure than occupied buildings, said Eric Bjorkman, Wilson’s attorney. But because some construction work is still being done on the buildings, Wilson believed the insurance company would allow him to keep the buildings insured as occupied structures for another month, Bjorkman said.
Tamarack, which opened in December 2004, failed because of debt, foreclosure lawsuits and operating losses. It closed in March.
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