Little River Optimistic on Future
The clubhouse at Little River Golf Resort
- Print print this page
- Discuss 13 comments, Blog about
Advertisement
Little River Golf Resort paid its tax bills last week and looks forward to setting records for May business, General Manager Terry Schieber said.
Rumors of financial distress are without foundation, according to Schieber, who said the resort has been cutting back in response to the worldwide economic downturn. Its parent company, Oceanico Group, is heavily invested in Portugal, where many of its golf resorts are located.
Owners Simon Burgess, from Manchester, England, and Gerry Fagan, from Ireland, had created villa vacation communities and seven golf courses in the Algarve region of that country before buying the 640-acre Little River property in December 2007 from Little River Partners. The purchase of Little River heralded their entry into the U.S. market, where the history and traditions of Pinehurst area golf attracted them.
Big plans were announced at meeting after meeting with the Carthage town commissioners, as company representatives sought approval for various development plans. A new hotel was to be built just below the clubhouse.
A series of shared homes were on the horizon, marketed as “fractional ownership” investments — differing from time-shares in that owners of each fraction would have actual deeds to their portion of the property. One could own any or all of eight shares in a luxury course-side mansion.
Master plans included some 1,150 townhomes, single-family homes and condominiums, the new hotel complete with spa, a lazy river, tennis courts and retail spaces. The first phase was to be 140 three- and four-bedroom homes and about 100 two- and three-bedroom condos.
All that is on hold. The global recession hit their principal funding bank, the Anglo Irish Bank, according to Schieber. Anglo was “the only bank to be nationalized so far due to its mountain of bad debts,” according to The Wall Street Journal. It is currently facing possible liquidation, according to Ireland’s finance minister.
“We have a lot of ‘raw property’ here,” Schieber said. “It’s appraised value went from here to here (moving his hand to indicate a drop), and the bank said, ‘What’s happened to our investment?’ We are in negotiations with the (Anglo Irish) bank currently.”
Schieber has taken control of operations formerly managed by subcontractors such as Troon Golf. As of the first of this year, Troon is no longer handling Little River. Schieber and Golf Director Marvin Waters are running the resort.
Things are going well, better than ever, as far as golf at Little River is concerned, Waters said
“We had the busiest April we’ve ever had, and we are expecting the busiest May we’ve ever had,” Waters said. “The golf course is in the best shape it’s been in over the five years I’ve been here. It is almost perfect. I was confident five years ago when I moved here from Florida. Nothing I see on a daily basis makes me anything but more confident we are moving in the right direction.”
Golfers and vacationers won’t notice the cost-cutting, Schieber said.
“We cut from the top down,” he said. “We kept our people. We kept our standards. The course is in top shape. Bookings are up. We expect a record-breaking May this year. Troon managed courses for Oceanico in Europe, so it made sense to them to begin with Troon here.”
That management expense could go, however, as things got tight.
“We could fire Troon, or we could fire 500 waiters,” he said. “We kept our staff, and we are keeping our service levels high.”
Schieber is quick to say that he is loyal to Oceanico. But he is limited in what he can say about the present difficulties forced on the company by the troubles of its prime lender.
“We are in negotiation,” is all he will say about what’s happening between Oceanico Group and its bankers.
The former Oceanico office on the property is closed. Its building is rented now as a house.
The fractional ownership residence with its eight apartments and state-of-the-art kitchen is on the market as a single dwelling for $585,000.
“We are renting it currently,” Schieber said Wednesday afternoon. “It’s full right now.”
It rents for $1,000 a night. Schieber said he is bullish about his resort’s real future.
“Our payroll has never been late,” he said. “Our vendors are all paid on time, our courses are maintained and improved. We did pay our taxes late, but we have paid them. We are paid up as of last week. I hope that will be on the front page now.”
Moore County advertised tax liens against Little River Golf Club and other properties of the resort for failing to pay about $220,000 in property taxes. Liens for unpaid taxes are automatic but must be advertised before any action may be taken for collection. It would have been months before anything like a tax sale of the property. Now that is off the table.
The resort pays its vendors and its employees first, and had to wait a few weeks for its tax bill, according to Schieber. Cutting Troon and other unnecessary expenses while holding off on construction is part of staying in business, he said.
“My job is to make money, not lose money,” Schieber said. “And we are making money; we will stay in business.”
Behind the reception desk, a clerk was registering newly arriving guests. Golfers completing their rounds were heading for the “19th hole” and diners were being seated in the Grille Room. A sign by the main entrance on U.S. 15-501 heralds a coming charity golf tournament to benefit the local chapter of the National Alliance on Mental Illness.
Schieber said the next few months will see continued growth and herald a promising future for Little River.
Contact John Chappell by e-mail at jchappell@thepilot.com.
More like this story
Advertisement
Comments
pilotreader 2 years ago
"Rumors of financial distress are without foundation, according to Schieber... " Sure, tell that to my cousin that works there who says staff didn't receive a paycheck on occassion because Little River couldn't afford to pay them. Sounds like a little 'financial distress' to me. I do have to say that I'm a tad negative toward Little River though. This winter, on one of those 20 degree nights, our heating unit blew in our house. We live directly across the street from the resort. It being a Thursday and having a small child who attends SFL, I called and asked if we could rent one of their condos for one night. This way, we're in close proximity to the school and to our pets we're leaving behind. "Sure!" they say, "Come on over!" Mind you this is 8 o'clock...we just want to sleep there for one night and we'll be gone by 7:30 a.m. No price break whatsoever. They wanted over $100 dollars for one of those hundreds of empty condos over there. I'm not saying we're entitled. I'm well aware that they are a business (in financial trouble) BUT I would expect that they would realize that they are in Carthage and that we are neighborly and friendly to our neighbors. I said all that to say... good things happen to good folks Little River :)
TooHot 2 years ago
The place will be another The Carolina.
ASU88 2 years ago
I hope the owners of Little River Farms can deliver on their promises. Shopping Center, Restaurants, Movie Multi Screen complex etc... Little River Farm has been a mystery ever since the Town of Carthage owned it for a brief while? As a taxpayer I never really understood that arrangement between the town and a private company? Maybe the town can take ownership again when this present company defaults on their loan and there is a tax lien placed on the property! Do you think any officials may have received a little "kick-back"? Such as reduced corp. party rates and reduced family wedding reception rates? Do I have anyone's attention? I'm pretty sure I do now! Little River Farm, "Home of the Political Perks" :) !
Advisor 2 years ago
Agree with Pilotreader, sounds like distress to me from a high level perspective. The business wasn't successful financially before Oceanico; so now that it is successful, it can be attributed to the same people who were there running things before when things weren't good? Doesn't make sense to me. Lots of negativity regarding Troon which have to say, has some of the best courses I've ever played on around the world. Maybe they are the reason why things now are so successful and the course is in the best shape ever? Guess they can fire Troon and still not pay their staff on time and kill two birds with one stone. Taxman wasn't too happy apparently either. Good luck getting high standards from the same people who have always been there and delivered what was a failing business before Oceanico and Troon arrived. The atmosphere in the bar had become lively so I just hope it stays that way now that it is under "old" management again.
HeelsHoopFan 2 years ago
I am with you on this ASU88. There has always been something awry with this course and development. At one time a few homes were being built and shown as models; can't find some of them, what's up with that? Did some private party have the houses picked up and moved? Kind of spooky.
Tough course, fun to play. I'd love to see the county pick it up and work a deal with First Tee, SCC and turn it into a great public course like the proposal that was made the other day. Centrally located to most residents connected with greenways etc. Pipe dream, maybe but if your going to dream, dream big........and it is time for the area to have a public course. Peace.
MooCofan 2 years ago
After reading some of the negative input from a from a few frustrated "Bloggers", I'd be remiss to not offer my opinion......give Little River a break. My wife and I played golf there last weekend with out of town guests and had dinner in their dining that evening. The golf course was wonderful and the food was great. Above all, the service was what it should be....warm southern hospitality. I'm sure Little River has its challenges (as do many businesses operating in a tough economic climate), but this individual (Pilotreader) who was put off because Little River didn't give him free room & board seems out of line. Perhaps he should buy a better heating unit rather than taking his unsubstantiated frustrations out on a local area busines.
LRemployee 2 years ago
I must say, as a Little River employee, it is pretty good place to work. Considering all the other companies that have come and gone, Little River is still around. I don't know who this "cousin" is, but I have never received a late paycheck. It has always been paid on payday like clockwork.
The course is in great shape and I have heard nothing but good comments. It is hard to compare us to Pinehurst and I feel it is unfair to do so. Pinehurst has over 100 years of history and tradition and we just simply cannot compete with that.
The decision to drop Troon was purely a fiscal decision. The management fee they were paid would have been better spent by paying bills or payroll. In this economic downturn, it is every compay for itself. We could have kept Troon and their logo and possibly sank like others.
Honestly, Terry is doing to fine job taking us from where we were to where we need to be.
I apologize to the person who feels they overpaid to stay with us. Those condos are not owned by Little River. They are privately owned by various individuals from all over the country.
Bigheadgolf 2 years ago
I love me some Little River!
GoldenDreams 2 years ago
I don't know much about golf but I did stop there for lunch once on a Sunday. I was amazed because there was only one other family present. It took a long time to be served, too, with the waitress apologizing over and over. The food was good but I thought it would be a bustling place, with much more to offer. I hope things have improved at least for the food service!
pilotreader 2 years ago
"...but this individual (Pilotreader) who was put off because Little River didn't give him free room & board seems out of line. Perhaps he should buy a better heating unit rather than taking his unsubstantiated frustrations out on a local area business."
Wow, reread my comment and point out to me where I said 'free'. I'll give you a minute... yeah didn't think so. And, if you make a habit of replacing a heating unit before it goes out after as long as we've had it then I totally understand the idiocracy of your statement. My comment was geared more towards Little River being greedy. However, as LRemployee pointed out, since the condos are not actually owned by LR maybe they were faultless in their inability to discount the room. I appreciate that input and I apologize for jumping to conclusions about the sense of community of LR.
LRemployee 2 years ago
I am of the opinion that no matter who it is, whether Talamore, Mid-South, Pinehurst or Fox Fire, we all have areas we can improve upon. Sadly, most people generally remember the bad experiences more vividly. Because of that, we try to satisfy our guests and try to be as friendly to local people as we can at the same time.
We are one of the few courses in the area to have a Moore County resident rate for golfers. We have tried in the past to get more local residents to come out and try our restaurant. We had mixed results, but I would not consider it successful.
With everything in life, all we can do is try.