Mavericks at Sunriver in foreclosure

Published 12:00 am Thursday, September 25, 2014

SUNRIVER — Bank of the Cascades seeks to foreclose on Mavericks at Sunriver, the fitness and aquatic facility, and recover $5.6 million it loaned its owners to build and operate the facility since 2003.

The bank filed a lawsuit Aug. 1 against the Sunriver Vacations Recreation Association LLC, the group of resort property companies that guaranteed the loans that built Mavericks, at 18135 Cottonwood Road, according to the complaint in Deschutes County Circuit Court. The bank asked the court to appoint an independent receiver to manage the property and protect the bank’s interests while the suit is pending. The bank ultimately seeks to have the property sold in order to recoup its loans.

A hearing on the request for a receiver is scheduled Wednesday in circuit court in Bend. The bank states that it restructured three outstanding loans in March 2013 and discussed a possible sale with the association in May.

In June, the bank demanded payment after the association defaulted on the loan payments and taxes due on the property, according to the lawsuit. The association owes $44,433 in real estate taxes from 2013, according to the Deschutes County Clerk’s Office.

Mavericks, a 32,000-square-foot facility, features an indoor rock-climbing wall, a basketball halfcourt, meeting rooms, weight room and other amenities, including an indoor pool. It also features a FlowRider 1800, a surfing wave machine, installed in 2007, according to online county property records. Mavericks, which continues to operate, is the venue for FlowRider competitions each year that draw professional bodyboarders and flowriders from around the country who compete for cash awards, according to The Bulletin archives.

The four resort property companies pay the association monthly fees for guests who lease vacation property at Sunriver resort to use Mavericks, according to a Sept. 5 affidavit by Richard Hadley, an association member. Hadley stated the September payments would be used to operate the facility and pay its employees and its payroll taxes.

“The appointment of a receiver during the month of September would be extremely disruptive, not only for the facility, but also (for) the guests …,” he stated.

The bank complaint names the association, its member firms and their principals: Larry Browning of Resort Realty Inc.; Hadley of Mountain Resort Properties Inc.; Mark Halvorsen of Village Properties LLC and Edward Willard of Sunray Vacation Rentals Inc., also known as Cascara Vacation Rentals.

A front-desk manager at Mavericks referred questions to another manager, Jami Cunningham, who was out of the office. Halvorsen, Browning and Hadley did not return messages left Wednesday seeking comment. Willard, through an intermediary, declined comment.

The bank moved to sever Willard from its original complaint after Willard and his wife, Sandra Willard, on Aug. 29 filed in U.S. Bankruptcy Court to discharge some of their debts under Chapter 7. The bank’s motion to sever Willard from the suit and proceed against the others also may be heard Wednesday.

— Reporter: 541-617-7815, jditzler@bendbulletin.com