UPDATED: Balsam Mountain Preserve faces foreclosure hearing
Wednesday, October 14th, 2009
Boarding House, Balsam Mountain Preserve
The Preserve differs from other communities in the area that are facing troubles in a couple of ways: the project is nearly a decade old, which means it pre-dates by a few years many similar projects that came on during the last decade’s wave of construction. It is also one-half to two-thirds “built-out”, with more than 230 homesites sold of 354 total, and most amenities in place. In addition, Balsam Mountain Preserve was the first such community to build in the north-central section of Jackson County — away from the ritzy Cashiers plateau — and has been an economic driver for the county.
The Preserve’s considerable efforts at executing “green” development have been overshadowed by a dam break at a golf course irrigation pond two years ago that caused a flash flood. The wave of mud and water caused considerable environmental damage in Jackson County’s Scotts Creek watershed.
The Hendersonville community “Seven Falls” is also undergoing foreclosure, and an enormous, but much newer project in Jackson County is also facing such difficulties.
At Balsam, 40 of 80 full-time employees have been laid off, and many amenities, including an 18-hole Jack Nicklaus golf course, are closed.
An excerpt from the Citizen-Times:
“We had sufficient sales to stay current on our interest payments and to pay down the principal and payables,” [Balsam Mountain Preserve President Chris] Chaffin said. “Unfortunately, our loan is due. It’s apparent the lender doesn’t have the flexibility to free up capital right now.”
Chaffin acknowledged that Balsam Mountain “actually defaulted on our loan the end of last year” and has been working with the lender since then.
The lenders listed in court documents are two corporations under the umbrella of TriLyn LLC, of Greenwich, Conn. Balsam Mountain secured two loans in 2005 for $9.8 million and $10 million.
Read the Citizen-Times piece here.
Read coverage from the Smoky Mountain News here.
