DEQ acquires Heritage property in exchange for debt associated with Tamarack Resort
Thursday, October 18, 2018
BOISE—The Idaho Department of Environmental Quality (DEQ) and Tamarack Homeowners Acquisition Company (THAC) have agreed to a land exchange and bond-transfer agreement to settle outstanding debt associated with Tamarack Resort near Donnelly.
On October 17, DEQ accepted ownership of the 532-acre Heritage property south of the resort in exchange for a bond that was financed through the State Revolving Fund (SRF) in 2008 to build sewer facilities and in default after years of non-payment. As part of the agreement, THAC took over the bond for a reduced amount and will pay the North Lake Recreational Sewer and Water District for certain expenses and administrative fees associated with the Heritage property. THAC also paid all property taxes on the Heritage property as part of the closing.
The bond was in default due to years of non-payment and many of the properties benefitted by the sewer facilities faced foreclosure to collect outstanding bond payments. The Heritage land had been held by Credit Suisse following its foreclosure and the bankruptcy of the resort’s prior developer. A group of Tamarack homeowners formed THAC in 2016 to acquire Heritage and other assets from Credit Suisse.
Delinquent assessments were in the millions of dollars, and potential investors viewed it as an impediment to continued development of the resort. This exchange resolves the outstanding debt owed to DEQ and could help spur continued development of the resort.
DEQ intends to sell the Heritage land and place the funds back in the SRF to be used for future sewer and water projects around the state.
Tamarack Resort is a four-season mountain resort located on the west shore of Cascade Reservoir, near Donnelly and McCall. Tamarack Resort was the first new ski resort to be built in North America in 23 years and was planned to be a $1.5 billion destination resort with skiing, golf courses, and mountain biking trails to be completed by 2020. Construction at Tamarack Resort began in 2003 and alpine skiing officially opened in December 2004. The resort has changed ownership several times since the majority owners filed for bankruptcy in 2008.