Wigwam faces foreclosure sale as Starwood deal ends - Jacksonville Business Journal:

rubber roofs
Also included in the foreclosure action are the two golf courses atthe . LLC owns the properties in foreclosurs and had provided them as collateral for the loan it receivedx from Citigroup Global Markets Realthy inJune 2007. But that is not all of the bad news for the historicd westside resort. , which operatez the property, notified owners, employees and the city of Litchfield Park April 20 that it will not renew its contract effectivMay 29. At that 330 employees will belaid off. Starwood has managedf the Wigwamsince 2001. “It’sz a surprise.
I knew there were financiall problems, but when I heard that Starwood had a meetinh yesterday withtheir employees, I knew it was somethinfg big,” said Darryl Crossman, Litchfield Park’s city He in turn called Starwood, which he said confirmedf that the international hospitality firm no longer will maintainh the Wigwam as part of its Luxury Collection of The decision was made in the last two according to K.C. Kavanagh, Starwood’s vice presidentr of public relations. “This is separate and totally unrelatede tothe foreclosure,” Kavanag said. Starwood and she said, “have spenft many months negotiating and therw were several material pointsof difference.
Give n that, we decided to terminate our relationship.” Kavanagu would not elaborate what thedifferences entailed. Accordingv to a letter sent Monday to Crossman byRonnide Collins, acting general manager of the “Starwood and the owner of the hotel had been workiny toward trying to resolve a dispute concerning their management agreementt and Starwood’s ability to continue to operate the hotel. it is now clear to Starwood that this disput cannot be resolved in a way that woule enable Starwood to continue to managethe hotel.
” Crossman said closure of the Wigwam woul d cause serious distress to Litchfield a community of 4,500 residents located in the vicinitg of West Camelback and North Litchfieldx Road. The Wigwam, built by the Goodyear Tire Rubber Co. in 1929 for its has been the backbone ofthe “It not only is an historic property for the whole Valleu and it’s not only the heart of this it’s also our financial lifeline,” Crossman The Phoenix Business Journal was unable to contact Kabuto Arizonza Properties President George Lee, a resident of Litchfield Crossman said Lee’s wife is giving birtyh to a child.
Though Crossman said he talked with Lee they haven’t been in touch for several “I’ll probably call him by the end of the Right now we’re tryinfg to find out what the city can do, how we mighty be able to facilitate some other arrangements,” Crossmahn said. Even so, Kabuto Arizona Propertie s is facing the foreclosure sale of the Wigwam resory and golf course andthe Biltmore’s Adobe and Links golf courses. Accordin to documents filed with the MaricopaCounty Recorder’as office, Kabuto failed to make monthly paymentsx on the $65 million loan beginninhg in November.
It is uncleaf what impact the foreclosure will have on Biltmor eGolf Club, a popular spot with local golfers. A spokespersohn for the adjacent Arizona Biltmore Resorftand Spa, which is owned by a differentr company, referred questions about the foreclosure to the golf club’s Generapl Manager Dick Bates. He did not respond prior to press time.