Item 2. Properties
Los Abrigados Resort
Los Abrigados resort is located in Sedona, Arizona, approximately 110 miles
northwest of Phoenix. The resort consists of a main building which houses the
lobby and registration area, executive offices, meeting space, a health spa and
athletic club, food and beverage facilities and support areas. The hotel
contains 174 suites in 22 one and two story free-standing structures. In
addition, a two bedroom historic homesite which has been renovated to include a
spa and other luxury features is also located on the property and has been
marketed by the Company. The resort has an outdoor swimming pool, tennis courts
and other recreational amenities and is situated on approximately 19 acres of
land.
The Company offers membership interests to customers in the form of deed and
title which provide the right to occupy the resort for a designated amount of
time each year in perpetuity. A total of 9,100 interval ownership memberships
may be sold, of which approximately 4,158 were available for sale at December
31, 1994. One to two year options to purchase approximately 344 of these
available memberships have been extended to potential buyers on terms
substantially the same as those offered to current purchasers.
The Company holds fee simple title to the property, which is encumbered by a
first deed of trust securing loans in the principal amount of $1,660,000, and by
two subordinate deeds of trust of equal priority securing repurchase obligations
relating to borrowings against consumer notes receivable of approximately
$424,000 and sales of consumer notes receivable with recourse in the amount of
approximately $14.3 million at December 31, 1994.
Golden Eagle Resort
The Golden Eagle Resort, located within the corporate limits of the Town of
Estes Park, Colorado and within three miles of the Rocky Mountain National Park,
contains a resort lodge which overlooks the Estes Valley and is bounded
generally by undeveloped forested mountainside land. Approximately four acres of
land are owned along with a four-story wood-frame main lodge that was
constructed in 1914. The lodge property contains 27 guest rooms, a restaurant,
bar, library and outdoor swimming pool, as well as two other free standing
buildings containing six guest rooms and support facilities. Space is available
to construct eleven to fifteen additional suites in the lodge and adjacent
buildings and the Company also owns a residence in a duplex adjacent to the
property which may be marketed.
The Company offers deed and title interests which provide the right to occupy a
specific unit for a specific week each year in perpetuity and plans to offer a
minimum of approximately 1,785 such interval ownership weeks, exclusive of the
adjacent condominium. Approximately 702 interests in completed suites are
available for sale at December 31, 1994. The Company offers certain purchasers
of Golden Eagle interests the option to convert their ownership to other ILX
owned properties at a designated time for a pre-determined amount. Golden Eagle
interests received from converting owners are offered for resale.
The Company holds fee simple title to the property which is encumbered by a
first deed of trust securing a loan in the principal amount of $639,916 and by a
second deed of trust securing repurchase obligations relating to borrowings
against consumer notes receivable in the principal amount of $626,265 and sales
of consumer notes receivable sold with recourse in the approximate amount of
$943,000 at December 31, 1994.
Kohl's Ranch Lodge
On June 1, 1995, ILX acquired ownership of Kohl's Ranch Lodge ("Kohl's Ranch").
Kohl's Ranch is a 10.5 acre property located 17 miles northeast of Payson,
Arizona. It is bordered on the eastern side by Tonto Creek and is surrounded by
Tonto National Forest. The main lodge of Kohl's Ranch contains 41 guest rooms
and a variety of common area amentities. Kohl's Ranch also includes eight (8) 1-
and 2-bedroom cabins along Tonto Creek, a triplex cabin with two 1-bedroom
units and one efficiency unit, and a free standing building that contains sales
offices and food and beverage facilities.
On June 14, 1995, the Arizona Department of Real Estate approved ILX's
application to sell timeshare interests in Kohl's Ranch. Timeshare sales
commenced in July, 1995. As of June 30, 1995, ILX had 2,704 timeshare weeks
available for sale. In addition to the sale of timeshare interests, ILX intends
to continue operating Kohl's Ranch as a lodge-hotel. ILX has begun refurbishing
Kohl's Ranch and intends to maintain its authentic ranch atmosphere and decor.
ILX anticipates commencing construction of six new duplex cabins on the property
in the spring of 1996, thus adding twelve 2-bedroom cabins, for a total of 64
units and 3,328 timeshare weeks available for sale. The Company holds fee simple
title to the property which at June 30, 1995, is encumbered by a first position
note and deed of trust in the amount of $929,250 and a second position note and
mortgage in the amount of $367,750.
Interval Ownership Interests in Costa Vida and Ventura Resorts
At December 31, 1994, the Company owned and held for sale 22 interval ownership
interests in the Ventura Resort in Boca Raton, Florida, 115 interval ownership
interests in the Costa Vida Resort in Puerto Vallarta, Mexico, and 85 interval
ownership interests in other resort properties worldwide. These intervals are
owned free and clear by the Company at December 31, 1994.
Varsity Clubs of America - Notre Dame
Varsity Clubs of America - Notre Dame is under construction in Mishawaka,
Indiana at December 31, 1994. The resort is situated on approximately four acres
of land and will consist of a three story main building which houses 60 one and
two-bedroom suites, the lobby, gift shop, meeting space, member lounge, health
club, and food and beverage facilities and a separate one story building which
contains a three bedroom suite and a one bedroom suite.
The Company offers membership interests to customers in the form of deed and
title which provide the right to occupy the resort for a designated amount of
time each year in perpetuity. Memberships are offered in one day intervals.
Approximately 22,568 one day intervals will be offered for sale. Sales contracts
have been accepted in advance of completion for approximately 274 one day
intervals at December 31, 1994.
The Company holds the fee simple title to the property, which is encumbered by a
first mortgage securing construction financing in the amount of $400,784 at
December 31, 1994.
Varsity Clubs of America - Arizona
The site for the second Varsity Clubs facility was acquired in July 1995 and is
located in Tucson, Arizona, approximately 2.3 miles from the University of
Arizona. Construction of the Arizona facility is expected to commence in the
fall of 1995. In July, 1995, the Company received a written commitment for
construction financing for the Arizona facility in the amount of $6 million,
which is expected to be sufficient to build and furnish the property. In
addition, the commitment includes up to $20 million in financing for eligible
notes received from the sale of timeshare interests in the Arizona facility. The
property is held in fee simple title and is encumbered by a first deed of trust
in the amount of $701,400 at July 31, 1995.
Red Rock Collection Building
The Company holds in fee simple title an 8400 square foot building in Phoenix,
Arizona which houses the Red Rock Collection office and warehouse facilities.
The building is encumbered by a deed of trust in the amount of $225,000 at
December 31, 1994.
Land
The Company owns various parcels of unimproved real estate in Arizona through
its wholly owned subsidiary Genesis and is presently marketing these properties.
At December 31, 1994, the real estate held for sale less encumbrances was
recorded at $1,673,168. It is the Company's intention to liquidate this land in
the next twelve to twenty four months.
Company Headquarters
The Company leases its corporate headquarters in Phoenix, Arizona under a five
year lease through April 30, 1998. The terms of the lease provide the Company
with the option to extend the lease for three additional one year periods and
with a right of first refusal to purchase the building. The landlord has the
right to cancel the lease upon one year notice and payment of a $20,000
cancellation fee in the event the building is sold. Such cancellation may not
occur prior to May 1, 1997.
Other
In the opinion of management, the Company's properties are adequately covered by
insurance.
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