News Channel 3 Investigates Palm Desert Country Club Bankruptcy
PALM DESERT – City councilmembers are trying to uncover if Palm Desert Country Club owners informed them of their intent to sell the property in a timely manner.
Palm Desert Country Club filed for bankruptcy on Friday, June 19th.
Its long been known the Palm Desert Country Club is in trouble. It may still look as well kept and beautiful as ever.
But, in these tough times, there is no money to run it all. A letter just sent to residents informs them the Palm Desert Country Club filed for Chapter 11 bankruptcy.
Resident Bob Ludwig worries how the bankruptcy will affect the maintenance of the greens and the value of his home.
“The fact that they’re going bankrupt will drive home values on the golf course, like mine, down,” says Ludwig
Palm Desert Country Club owners recently asked the city council for a bailout.
Councilwoman Cindy Finerty explains, “They requested from the city $200,000 a year for purchase of rounds of golf for a ten year period. It was a $2 million commitment.”
But, News Channel 3 uncovered a real estate listing showing the country club for sale. That was in April, before the club owners asked the city for money.
The selling price is nearly $12 million in cash.
The listing was so under the radar, it wasn’t even listed in the Desert. It was listed in L.A.
Councilwoman Finerty says the city never knew, “I am appalled because we have tried to negotiate in good faith as have the residents of Palm Desert Country Club. The owners, they decided not to be truthful. Therefore, I don’t see how we can move forward. I think it’s time, quite frankly, for the city and the homeowners to step back.”
Club owner Sung Sang Cho has not returned our calls.
But late Wednesday afternoon, co-owner Larry Kosmont says they informed Palm Desert city staff by letter of their intent to sell on February 18th.Kosmont adds that in no way did they lie to the city of Palm Desert and that they are notresponsible for the city staff not telling the city council.
The banruptcy will be brought up in the Palm Desert Redevelopment Agency meeting at 4:30 Thursday.
