More bad news for the Tamarack ski resort

The financially-troubled Tamarack ski resort development faces yet another issue as Bank of America threatened to remove two ski lifts when lease payments fell into arrears.

Bank of America started foreclosure proceedings on a three building conference centre, and Stirling Bank started similar proceedings on an employee housing facility. There are sheriff’s sales scheduled for October and December.

We reported back in July that construction was at a standstill at the Tamarack Resort in Idaho, and no progress has been made since that time. Tennis stars Andre Agassi and Stefi Graf have both pulled out of the planned Fairmont Hotel/sports complex; and rumors are flying that the CEO, Jean-Pierre Boesspflug will step down as head of the company if that is what it takes to secure an influx of money.

I understand an agreement now has been made regarding the two ski lifts; the Wildwood and Buttercup. “They (Bank of America) gave us due notice and we immediately opened the communication channels,” said Ken Rider, the Tamarack spokesperson. No details were given.

Tamarack is still trying to find a buyer or a cash investor and is exploring some unusual avenues, including the possibility of working with Idaho’s affordable housing lender to generate $670 million in revenue bonds. But with the foreclosure rate continuing to increase, this seems unlikely to solve the problem.

According to the latest figures from Realty Trac, one in 416 home owners in the US got a default notice in August, which is the highest monthly figure since records started in January 2005. Bank seizures have more than doubled over the last year, defaults have risen 10% and auctions are up 7%. None of which bodes well for an investment of this size in a luxury ski resort development by an affordable housing lender.

RealtyTrac Foreclosure Activity Report