LakePoint officials say bankruptcy could strengthen Bartow sports complex’s finances
LakePoint Sporting Community is filing for federal bankruptcy protection as it works to strengthen its finances after support businesses did not build as expected.
The land company is recapitalizing in a move to allow the southeast Bartow County facility near I-75 to “achieve its vision for becoming the premier travel sports vacation destination,” a news release stated.
The LakePoint Land entity was scheduled to file a Chapter 11 reorganization bankruptcy in the U.S. Bankruptcy Court for the Northern District of Georgia. A first hearing is tentatively set for Wednesday at 1 p.m. in Atlanta, the Rome NewsTribune reported.
The filing is expected to allow LakePoint to quickly emerge with a clean balance sheet and strong financial outlook, a news release stated.
“The recapitalization will strengthen the company’s financial picture so LakePoint can grow and flourish. It creates financial certainty and stability for the project and puts LakePoint on a clear growth trajectory,” said Dan Berman with GlassRatner, which is leading the restructuring on behalf of LP Investments I.
Growth of businesses – from hotels to restaurants to entertainment venues – to support the development of its athletic facilities did not occur quickly enough to create a thriving finan- cial “ecosystem,” the release stated.
“We hope to change that,” Berman said.
The indoor sports pavilion, entertainment venues and surrounding hotels and restaurants are not included in the bankruptcy filing because they are not owned by LakePoint. LakePoint Land has acted as a master developer and sold parcels to third parties for development.
Rimrock and LakePoint plan to continue as master developer of the 1,300-acre project. Rimrock has purchased additional acreage around the facility and a new master plan is in the works, the release stated.
It also hired real estate firm Jones Lang LaSalle and other professionals to help with the planning and analysis.
“We’re extremely positive about LakePoint’s future,” said Bob Zurcher, LakePoint manager and CFO. “LakePoint is an important asset to us at Rimrock. We’ve already invested millions of dollars in both LakePoint and surrounding land, and we plan to invest millions of dollars more.
“We believe in and support the original vision of LakePoint and we believe the project’s best years are yet to come.”
More than 1 million visit LakePoint annually, which creates an economic impact of nearly $100 million from room nights at hotels, restaurant visits, shopping and other entertainment, the release stated.
Berman said, “We’re only 50 minutes from the world’s busiest airport, and right off of I-75, so it’s easy to get here from just about anywhere. And our attention to detail at the indoor and outdoor facilities can’t be matched.
“The reorganization will allow us to leverage these strengths to grow into the most sought-after sports venue of our kind.”
During the bankruptcy process people should see few changes in the normal course of operations, Zurcher said.
“LakePoint will continue to operate as before, existing management will remain, employees and vendors will continue to get paid in full and on time, and tournaments, events and games will go on,” the release stated.
LP Investments I is an affiliate of Rimrock Capital, a fund with $4 billion of assets under management. Rimrock is the lender and main capital source for LakePoint and has been since 2013.
The release stated LakePoint was filing for reorganization under Chapter 11 of the federal bankruptcy code after LakePoint Land deeded land to Rimrock as part of a loan workout in November 2016.
“In the pre-arranged filing, Rimrock will contribute the land it now owns back to LakePoint Land,” the release stated.
“Rimrock’s debt will be converted to equity, making Rimrock the largest shareholder in the project. This will allow LakePoint to emerge from bankruptcy debt free and with the certainty of being clear of any claims. As part of the plan, existing shareholders will share in LakePoint’s future success.”
LakePoint expects to grow 10 percent this year, according to the release.
“What we hope people do notice is LakePoint’s continued commitment to service and quality guest experiences along with Rimrock’s commitment to LakePoint’s continued success.” Zurcher said.
LakePoint includes 1,300 acres and has eight baseball fields, three multiuse fields, Georgia’s first cable wake boarding venue, 12 basketball courts, 10 beach and 24 indoor volleyball courts, a 175,000-square-foot indoor sports center and seven entertainment venues.
It includes indoor and outdoor facilities for athletic tournaments and scouting events. It hosts more than 40 sports, including baseball, softball, basketball, gymnastics and sand volleyball.
LakePoint’s indoor complex, the Champions Center, was both the newest and busiest facility in the past year. The complex hosted 578 event days from June 2016 to May 2017, making LakePoint a year-round destination, the release stated.
In addition, a road-bridge expansion will extend LakePoint Parkway from Allatoona Road to Red Top Mountain Road and serve as a catalyst for more development, the release stated.