Foreclosure has an upside for Gurnee golf course
Although Bittersweet Golf Club in Gurnee is in foreclosure, it's far from being a stereotypical rundown property.
Samuel M. Ekstein, who was appointed by a Lake County judge to operate the course during the foreclosure process, says he's initiated many changes, such as cheaper weekday fees and an option for players to have their cars washed while they golf. He added the course's appearance is vastly improved.
"We've significantly increased the budget for grounds care," said Ekstein, who runs a Chicago-based asset management company. "And it's already starting to show visual benefits."
Gurnee residents have a vested interest in how the Bittersweet Golf Club foreclosure plays out in Lake County circuit court. The village owns the 240 acres the 18-hole course that sits on near Almond Road and Grand Avenue. A private company was running the operation.
Under a lease amended in 2001, Bittersweet Venture LLC was supposed to repay the village $400,000 as part of the public-private deal. Bittersweet was guaranteed a 6 percent management fee based on overall gross revenue until it repaid the village the $400,000 in principal and interest on a loan the course received.
Bittersweet stood to gain 7 percent of course revenue annually if it repaid the village, with a chance to receive 8 percent if certain conditions were met.
Gurnee Mayor Kristina Kovarik said the village is monitoring the foreclosure process. She said she's grateful Midwest Bank and Trust Co., which filed the foreclosure lawsuit against Bittersweet Venture, hasn't allowed the golf course to decline.
"We've got a lot of homes that abut that property," Kovarik said Monday. "Our worst fear was the bank would take over and not operate it."
Midwest Bank and Trust foreclosed on Bittersweet in January. Last week, a legal notice was published warning a default judgment may be entered against Bittersweet if a lawyer doesn't file an answer to the complaint or make an appearance by July 17.
As the court-appointed operator during the foreclosure process, Ekstein's job was to make Bittersweet Golf Club more attractive to players this year while preserving its value. Bittersweet partner Alan Richards couldn't be reached for comment.
In addition to improving the course's look and offering the car-washing service, officials purchased new golf carts and have more merchandise in the pro shop. Ekstein said the price has dropped to $39 for golf and a cart on weekdays, which is $59 before 2 p.m. on weekends.
Gurnee Village Administrator James Hayner said Bittersweet never has had any leftover profits to share with the town since the public-private venture began in 1996. Ekstein said that situation should change.
"We believe this course will make a profit this year," Ekstein said. "That is very good news for taxpayers."
Kovarik said the village unsuccessfully offered the Bittersweet land to the Gurnee Park District earlier this year. In exchange, she said, the village wanted to end nearly $400,000 in annual payments to the parks to help pay off a loan for a $6 million pool complex on Hunt Club Road.
Park District Executive Director Susie Kuruvilla said the idea didn't get far.
"We need the $400,000 to pay the debt on the pool more than the land," Kuruvilla said.
• Daily Herald staff writer Mick Zawislak contributed to this report.