Deal Collapse, Why?

Thursday, September 21, 2006 03:58 AM

Since the news broke that the Prince George Golf and Curling Club had gone to court over the collapse of the $15 million dollar deal with the Pomeroy Group, the big question has been what went wrong?

The company had drawings put together on how the golf club property would be developed. Those plans included an area of commercial, some semi detached homes and regular stand alone housing.

Pomeroy Group is involved in a $35 million dollar project in Ft St. John which includes a hotel, conference center and a gamming center in that community. That project has already broken ground.

The scope of that project (which would give Pomeroy Group three hotels in the Ft. St John region) plus projects in Chetwynd and Slave Lake are leading to speculation Pomeroy did a re-think on its finances and opted to put its money elsewhere.

The status of the Foodteller restaurant which was also supposed to have been purchased by the Pomeroy group is not immediately known.

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Posted on Thursday, September 21, 2006 03:58 AM in News by 250 News

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Comments

Posted by: Gofaster on September 21 2006 6:52 AM

Well the golf club couldn't wait until they had money in hand and now have no sale..so I suppose it will now be up to us the taxpayers to bail them out until whenever.....
When will people learn.....

Posted by: YamaDooPolCat on September 21 2006 7:22 AM

The Pomery guys are typical high rollers, if Ben is right this is bad news for PG. No matter what the city officials and e-fficials think, it's these type of people that make things happen. No one else does it.

It is an eye opener for the next risk taker to pad his bet some more.

Posted by: spanky on September 21 2006 8:05 AM

Sheeeeeit! They are still gonna buy the golf course.

Posted by: Gofaster on September 21 2006 8:54 AM

No spanky we the taxpayers are going to end up buying it....or at least paying for it....

Posted by: QuasiMe on September 21 2006 10:05 AM

Pomeroy have assets, their not overly liquid i.e. don't have a lot of cash. They couldn't come up with the $1 million increase in their deposit, pending closing of the sale.

Personally, I think it was ludicrous to allow them to hold a $15 million property this long with a $25,000 deposit. You can't even speculate that cheaply on the Futures Exchange.

Any way, there are 2 serious back up offers that will be looked at... as good, if not better than the Pomeroy one was... larger sureties too.

Posted by: Gofaster on September 21 2006 11:45 AM

As long as I don't have to pay for some people to satisfy their need to run around in the grass chasing a little white ball.....I could care less what happens to it....
Maybe Mr Major would like to build a bigger casino and more bingo halls..... how about a facility to treat those poor unfortunates who have a gabmling adiction...
i know...fat chance....

Posted by: Marty on September 21 2006 11:52 AM

Drop the price to $2 million and I will buy it...but not at 15 million...youch

Posted by: Palopu on September 21 2006 12:41 PM

With the expansion going on at Westgate, and Recreation Place, along with other proposals such as the Fraser Flats, etc; in a City with a population of 77000 and only expected to grow to 80,000 by 2008/09 I dont see buying up this property and trying to develop it as a sure thing. I suggest that Pomeroy couldnt get investors for it either and thats why they backed out. This town is overbuilt and you would have to be pretty sure that you are going to get a return on your investment, before you invest 150/200 million or more on speculation.

Lets see if they come up with a better offer and what kind of a proposal goes with it. It looks to me like the Golf Course is now in a more serious finiancial situation than they were a year ago., and maybe they should be looking a cutting their loses and staying where they are.

Posted by: Death to Socialism on September 21 2006 12:42 PM

Sheeeeeit! What a moronic way to start every goddamn post.

Posted by: spanky on September 21 2006 6:26 PM

Sheeeeeeeeeeeeit! You ever hear of the Dave Chappelle show? Sheeeeeeeeeeeeeeeit I didn't think so. And they will buy the golf course land, I stand behind my statement.

Posted by: Palopu on September 21 2006 7:31 PM

Where do you get your information Spanky.
Chicken entrails, Crystal Balls, Stargazing, or throwing bones on the ground. In any event all will be revealed in time, and it makes little difference who buys the land, because at the end of the day the golf course will still be broke, and will need a bail out. Sheeeeeeit, have a nice day.

Posted by: Runner46 on September 21 2006 9:42 PM

Well, for starters their deposit of 25 big ones is now the golf courses.......small potatoes or what.