On Friday, February 11, 2000 a decision was rendered by the
bankruptcy judge presiding over the Wyndholme Village proceeding. The motion by
Leeds Federal Savings Bank to lift the stay and proceed with foreclosing on the Wyndholme
property was DENIED!
It was determined that Leeds Federal was adequately protected
in regards to their $3,000,000 existing lien and it would be in the best interest of the
other creditors to allow additional time for WV, LLC to submit a plan of reorganization.
It was cautioned however, since the interest and penalties
were accruing on a daily basis against the existing equity cushion, it would be advisable
to submit a reasonable plan in a timely fashion.
Unfortunately on February 5, 2000, the venture agreement with
NADIF expired because they did not provide the construction financing as
required. I was quoted by the Baltimore Sun last Fall as saying Stuart C.
Neil Fisher, the Florida developer who signed the Wyndholme Village Venture Agreement on
behalf of NADIF was a "savior". At the time I made that statement
Wyndholme's funds and the balance of my available personal funds were exhausted and the
dream of Wyndholme as presented was all but gone.
After 16 hours of intense negotiations at 3:00 AM in the
morning of
August 31, 1999, all of the issues for the Venture Agreement between myself and NADIF were
resolved and the document was signed. By 12:00 Noon that same day, the mortgage
owned by Metropolitan Bank of Cleveland (the lender that forced Wyndholme into bankruptcy)
was purchased by an affiliate of NADIF.
The judgment imposed by defaulting on the Metropolitan
mortgage was immediately released by the affiliate of NADIF, allowing me access to some of
my other assets providing much needed cash, and saving me from being forced to declare
personal bankruptcy.
On September 21, 1999 Wyndholme Village was granted permission
to obtain a $750,000 Super Priority Loan to move the project forward as long as none of
the creditors filed an objection within the prescribed time allowed. When no
objections were filed, a source provided by NADIF funded $750,000 in cash. These
funds enabled the Wyndholme Village site work to finally start moving ahead after a 14
month delay. The architectural firm, along with a host of other providers of
required services were paid from those funds to complete the necessary items required to
obtain a building permit.
In addition, NADIF (represented by Fisher) provided $272,000
in unsecured cash to fund operating expenses through December of 1999. I believe my
statement about NADIF (represented by Fisher) was justified and I stand behind it.
Needless to say I was extremely disappointed NADIF was unable to secure the construction
financing.
The main reason this financing was not obtainable under
reasonable terms from lending institutions has not changed. Lenders do not have any
facts that deaf seniors want or can afford Wyndholme Village based on our current mission
statement as outlined in our sales materials and on our web site at www.wyndholmevillage.com.
Promises from many individuals who professed to support the
effort said "once we see progress at Wyndholme Village, we will sign up" did not materialize. In fact, had it not been for Harry Tremaine, (who had already
purchased a residence at Wyndholme) stepping up and agreeing to purchase the 33rd unit as
an investment property, the number of sales required by us to proceed in accordance with
the venture agreement would not have been satisfied.
The Good News:
- Utility Lines are adjacent to the Watson House and Stirling House building site.
- The access road is paved.
- Firm bids from subcontractors have been received.
- A building permit to start the Watson House was issued by December 9, 1999.
- We can start tomorrow!
Do you want Wyndholme?
If you want Wyndholme, contact us and see if you can
help.
If you do not want Wyndholme, contact us and tell us why.
It's now or never.
If you have questions or comments please FAX them to my office at 410-644-5165.
Sincerely,
James M. Lancelotta
Managing Partner
Wyndholme Village, LLC
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