Schlitterbahn in Chapter 11 Bankruptcy Giving Partners Time

Schlitterbahn Riverpark and Resort Padre Island is in Chapter 11 Bankruptcy

Judge Craig Gargotta in the Western District of Texas ruled Tuesday morning in San Antonio to place the troubled park into reorganization and is set to appoint a trustee to oversee a reorganization plan which must be in place by December 4. If not, according to Gargotta’s ruling Axys Capital Credit which holds a lean against 270 acres surrounding the park will be allowed to foreclose on the property and sell it at auction on December 5. Axys had requested that the land be separated from an Involuntary Bankruptcy filing by companies owned by the Henry family, owners of Schlitterbahn waterparks so it could be sold immediately, that request was denied, but his decision to appoint a trustee was a move to push the partners, who have been at loggerheads for over a year, toward a resolution that will put the park on stable financial footing going forward.

Testimony at the four-day trial in San Antonio was that if Axys was allowed to foreclose on the land then the primary lender in the project IBC Bank could call a separate note for $28 million on the waterpark likely forcing it to close while new owners were sought. To avoid that outcome Gargotta gave the partners until the December 4 date to come up with a reorganization plan.

 At one point in the hearing in San Antonio, Gargotta asked Deborah Williamson, a lawyer for Gary Henry, if selling property would be the solution.

“At the end of the day, the only way this is going to work is if something is sold,” she answered. “And the park may be the one that is easier to sell. It may be easier to attract capital because it is an operating entity.”

The problems began when the builders of the park, Henry Brothers Construction, added on to the size of the building at the park from an original plan calling for less than thirty separate “treehouse” rooms to the current 92-room facility which increased the cost of the development from the original $28 million to over $58 million forcing the owners, Upper Padre Partners to raise an additional capital leading to the borrowing of $18 million from Axys using the land as collateral.

According to court filings from Axys attorneys, “Cash flow from the Debter (UPP) operations is insufficient to repay obligations on any reasonable, confirmable basis. The Henrys control the management of the Debtor’s general partner and, as a result, the Debtor. For all practical purposes, the Debtor has a dysfunctional management and is incapable of effective operations.”

Garotta’s solution was to appoint a trustee to work with the partners and find a long-term solution.

The trustee, yet to be named, along with the Henry family who own two-thirds of the park, and developer Paul Schexnailder whose company owns one-third, must now decide whether to sell some or all of the interest in the park and surrounding land or find an investor or lender to provide about an estimated $10 million to bring the park up to the original design specifications.

Schexnailder said after the hearing that while the park is an integral part of a 500 acre, 552 acre development it is not the main focus of the project.

“This is a project much bigger than just a waterpark,” he said. “The park is part of something much bigger and that project is continuing.”

He was referring to a planned 3600 foot Beach Walk development with retail and commercial elements which would connect the current canal system to Lake Padre and the Gulf of Mexico through the planned Water Exchange Bridge under SPID. The canals to each side of the bridge site are dug and bulkheads in place on the Lake Padre side. However, work to excavate the canal to connect with the existing canal near Cruiser Street near Whitecap was halted Wednesday by order of the City of Corpus Christi over permitting issues.

The Chapter 11 ruling is not expected to have an impact on park operations as plans call for the waterpark to close during the winter season, as it has in previous years, and re-open in the spring.

“The judge understood that this park is important to the future of The Island,” Schexnailder said, “and this ruling allows us to keep it operating as we look for a long term solution.”

Article from Dale Rankin – IslandMoon

Padre Island Housing Report – August 2017

THE HOUSING MARKET IS SHOWING GREAT PROMISE WITH A CONTINUED UP TICK IN HOME VALUES, AS WE MOVE PAST THE HURRICANE SEASON IN SUMMER 2017.  TAKE A LOOK AT THE STATISTICS ON WHAT’S HAPPENING HERE ON PADRE ISLAND IN CORPUS CHRISTI, TX.  CLICK ON THE PICTURE BELOW AND GET A FULL PDF TO PRINT OUT TO KEEP TRACK OF THIS DATA. LOOKING FORWARD TO A GREAT 3rd QUARTER OF THE YEAR, GIVE US A CALL AND DISCUSS THE MANY OPPORTUNITIES TO OWN A PIECE OF COASTAL TEXAS! (361) 949-0101

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New Grocery Store Coming to North Padre Island

When Mohsin and Lori Rasheed moved to Padre Island three years ago their plan was to retire and take things easy. But that plan has taken a detour as last week Lori purchased a franchise from the Independent Grocers’ Alliance (IGA) and are moving forward to have a grocery store open on Padre Island in the next nine months.

“Every time we asked people what we should put in the shopping center we are building they always said, a grocery store,” Mohsin  said this week. “We are part of the Island community now and Padre Island wants and needs a grocery store, so we are going to build one.”

The Rasheeds have been married for 39 years with three kids and during that time have built, owned, and operated restaurants and shopping malls in Sacramento, where they owned 38 restaurants, and Houston where in the last fourteen years they have built 18 shopping centers, three of which they still own. The center they are building on Padre Island is located adjacent to Seashore Middle School along SPID, where the earthwork is currently underway. As designed it will have a total of 33,500 square feet, with the grocery store occupying 18,000 square feet and another 6000 square feet to be a restaurant, with a tenant yet to be determined. There are also eight retail spaces.

They were nearing a final agreement with the Sprouts chain until a few weeks ago when Amazon announced its purchase of the Austin-based Whole Foods Chain.

“Everything in the grocery business just came to a stop after that,” Mohsin said. “There is no movement in that business right now. So Lori just decided to buy an IGA franchise and we will do it ourselves.”

Each IGA store is its own franchise and the local owner decides what to stock.

“With 18,000 square feet we won’t have ten kinds of ketchup,” Lori said. “We will only have a few and we want to know from Island residents what brands and items we should stock. We will stick strictly to groceries, we won’t be competing with CVS or other existing stores, we are only going to sell groceries.”

Plans call for 32 parking spaces along the south edge of the center’s parking lot for parents picking up kids at the middle school.

“I know there has been talk of a grocery store on Padre Island for a long time,” Mohsin said. “But this is going to happen.”

With permitting and funding in place, it looks like after decades of wishing, Islanders are about to have a place to buy groceries without having to go OTB.

“This is going to be a first-class operation,” Mohsin said. “We are going to do this in a way that Padre Island will be proud of.”

iga-grocery-store-padre-island

Story from Island Moon Newspaper

Padre Island Housing Report – July 2017

THE HOUSING MARKET IS SHOWING GREAT PROMISE WITH MANY NEW LISTINGS, AS WE ARE IN THE DOG DAYS OF SUMMER 2017.  TAKE A LOOK AT THE STATISTICS ON WHAT’S HAPPENING HERE ON PADRE ISLAND IN CORPUS CHRISTI, TX.  CLICK ON THE PICTURE BELOW AND GET A FULL PDF TO PRINT OUT TO KEEP TRACK OF THIS DATA. LOOKING FORWARD TO A GREAT 3rd QUARTER OF THE YEAR, GIVE US A CALL AND DISCUSS THE MANY OPPORTUNITIES TO OWN A PIECE OF COASTAL TEXAS! (361) 949-0101

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Hurry! PINS Lifetime Passes for Visitors 62 and Older Going to $80

The price of a lifetime pass to national parks for people 62 years of age and older is about to change.

On August, 28, the cost of a lifetime pass to the national parks for those 62 and older will jump from $10 to $80. So if you are 62 years old get your lifetime pass before August 28 and you can access the more than 2,000 sites and parks across the country that are managed by the National Park Service. Those who purchase the passes before Aug. 27 will never have to pay an additional fee to visit any of the national parks, according to the NPS.

Passes can be purchased online for an additional service fee of $10 or at any of the parks without the extra charge. Passes also can be purchased through the mail, though applications must be postmarked by Aug. 27 to secure the $10 price.

The park service has offered the lifetime senior pass for $10 since 1994. It covers all entrance, day-use and vehicle fees, and provides discounts for things such as tours and campsites. At a site that charges per-person fees, pass holders can bring along three other adults for free. Seniors can still opt to buy an annual pass for $20. Those who purchase an annual pass for four straight years can convert their pass to a lifetime senior pass.

Single park-admission fees to the most popular sites can run as much as $30.In late 2016, Congress approved legislation, the National Park Service Centennial Act, that raises fees and sets up an endowment to help pay for projects and visitor services.

 via Padre Island Moon

STAY COOL MY FRIENDS

Helter swelter, you could fry an egg on the sidewalk! Eat the egg, but don’t BE the egg. If you follow these 10 tips, you may actually find that there are ways to enjoy the dog days of summer. Our bodies, moods, and bills take a toll during the scorching summer heat, but don’t let the temperature and humidity keep you from the beach, outdoor entertaining, and boating. Stay cool, my comPADREs.

  1. Clothing is your friend. It seems instinctual to remove as many items as possible without fear of an arrest. However, loose, long garments made from natural and breathable fibers will actually keep you cooler than bearing it all. The shade from the clothing protects the body, and the loose fit allows air flow to evaporate sweat.
  2. Accessories are not your friend. You’re still cute without your statement metallic necklace and fun hoop earrings. These are sun magnets and could actually burn you. Furthermore, if you’re able to pull your hair off your neck, opt for that flouncy pony tail or bun. You want that breeze on your neckline (pressure point, which we’ll get to later). Sunglasses ARE an acceptable and encouraged accessory.
  3. As are hats. It’s believed that roughly 20% of our blood supply flows to our faces. Simply covering your head can lower the heat to the rest of your body. Hats, bandanas, and hooded tops can make all the difference. Dust off that floppy beach hat you wear only on vacation – it’s functional AND adorable!
  4. On the topic of fashion, light colors are better than dark. White, beige, and light pastels reflect the sun and keep you cooler, whereas its darker counterpart absorbs heat. Welcome, your new go-to trend for this season’s garb. Be bold, try mint!
  5. Speaking of herbs and trends…do as the traditional herbalists do and reach for those mint body washes, lotions, and oils. They have a cool and calming effect that when eaten or used on the skin can help fight the heat. See? I have given you the reason you’ve been searching for to slurp down that mint julep. Try dabbing a bit of spearmint or peppermint oil on your neck or chest for a quick burst of cooling sensation.
  6. AFTER your mint julep, get busy hydrating. This is possibly the No. 1 preventive measure you can take to stay cool. Drink as much water as your belly can handle. Your body actually won’t tell you that you’re thirsty until it’s too late, as thirst will usually come late in the dehydration process. Be proactive in your hydration. Don’t love water? Try lemonade, sports drinks, coconut water, or munch on some watermelon!
  7. That’s right, eating can help, too. Aside from the obvious choice snacks that are high in water concentrate such as cucumber, celery, lettuce and strawberries, a less obvious but surprisingly effective alternative is spicy food! I know, it seems counterintuitive to want to sip a bowl of hot chili, but studies show that eating spicy foods can cool the body by making you sweat and therefore lowering your internal temperature. Whip up a nice curry chicken salad or jalapeño guacamole and let your mouth do the work.
  8. Sunscreen, sunscreen, sunscreen. Protecting your skin does more than preventing you from premature aging, sun poisoning, and even skin cancer. Our intensely strong South Texan sun can burn even the most experienced sun worshipers in 20 minutes. Sunburns impact your body’s ability to cool itself down, therefore increasing your risk for dehydration. If you’re not on the sunscreen bandwagon, try an SPF 15. Anything is better than nothing.
  9. Cool your pulse points. These are the points on your body where you can easily feel your pulse – the skin is often thinner there and your blood vessels are closer to the surface. Cooling your blood helps cool your entire body. Tip: Keep a cup of water nearby to dab on the body’s cooling points: temples, wrists, knees, ankles, thighs and elbows.
  10. Seek shade. This may seem obvious, but compared to direct sun, shade can make the temperature up to 15 degrees cooler! There is a huge difference between an unbearable 100° and a lovely 85°. Can’t find shade? Make your own! Bring an umbrella to the beach, put a sail shade over your pool, or put an awning over your patio. If you can find some shade and a nice breeze (don’t have a hard time finding wind here!) you are sittin’ pretty.

Rebuilding the Iconic Harbor Bridge

If you’re a native South Texan, no doubt you are familiar with Corpus Christi’s big, beautiful, bridge.  The one that is sure to mesmerize and to some may even seem a little scary to cross.  You guessed it—the Harbor Bridge–the iconic roadway that is a distinct feature of the sparking city by the sea’s landscape is about to get a major upgrade.

The Harbor Bridge as we currently know it was built back in 1959 for a total cost of approximately $11 million dollars. It was considered the most important design work of Texas Highway Department Bridge Engineer Vigo Miller and was featured in Time magazine in 1964 for its exceptional beauty. No doubt our current bridge has served our community well, but increased safety concerns rooted in an aging infrastructure meant it was time to research a rebuild.

City and regional leaders have been working more than 15 years to pave the way for the construction of a replacement Harbor Bridge.  After an extensive Environmental Impact Study, the Texas Department of Transportation (TxDOT) was granted approval from the Federal Highway Safety Administration to rebuild the current structure.  Now, here we are at the launch of one of the largest and most significant transportation projects in the region.

This summer, construction will commence on a new Harbor Bridge.  This new structure promises to be just as magnificent and beautiful as the beloved, current Harbor Bridge.  Making the most of the majestic views of the bay, the new bridge will be the longest, cable-stayed, concrete-segmental, bridge in North America.

The nearly $900 million project will include the development, design and construction of just over six miles of combined bridge and roadway.  It will include the new six-lane Harbor Bridge, as well as, the reconstruction of approximately 1.6 miles of IH-37 and approximately one mile of the Crosstown Expressway.  Once the new bridge is open to the traveling public, the project will conclude with the demolition of the existing Harbor Bridge.  The design/build firm, Flatiron/Dragados, LLC, who were chosen by TxDOT to complete construction, anticipate the project will take five years to complete.

The new bridge design incorporates a number of aesthetic features including shared-use paths, a community plaza, nighttime LED lighting and xeriscape landscaping. Designers are aiming for the new Harbor Bridge to be just as iconic as the original.  In order to get there, it’s anticipated that between 500 and 650 skilled workers will be needed to complete the job.  For more information on employment opportunities and general updates about the Harbor Bridge Project, please visit www.harborbridgeproject.com.

Padre Island Housing Report – May 2017

THE HOUSING MARKET IS SHOWING GREAT PROMISE WITH MANY NEW LISTINGS, AS WE MOVE INTO SUMMER TIME OF 2017.  TAKE A LOOK AT THE STATISTICS ON WHAT’S HAPPENING HERE ON PADRE ISLAND IN CORPUS CHRISTI, TX.  CLICK ON THE PICTURE BELOW AND GET A FULL PDF TO PRINT OUT TO KEEP TRACK OF THIS DATA.  LOOKING FORWARD TO AN EVEN MORE EXCITING SUMMER AHEAD, GIVE US A CALL AND DISCUSS THE MANY OPPORTUNITIES TO OWN A PIECE OF COASTAL TEXAS! (361) 949-0101

cchousinreportsept-2016

PADRE ISLES PROPERTY OWNERS ASSOCIATION – DID YOU KNOW?

As a Real Estate Agent, I am commonly being asked questions regarding the Island’s POA. Whether you are new to the Island or have lived here many years, I hope to provide some clarity and possibly unknown information to those who may be wondering…what are they all about.

The POA oversees 26 subdivisions, with the exception of Packery Channel (who doesn’t have one), and Cane Harbor (who has their own). All but three subdivisions (Seapines, Section A and Section B) that DO belong to the POA pay the new fees (that aren’t really new anymore). Back in 2007, they changed. Annual POA fees are calculated by the size of the lot itself. Prior to 2007, the fees were .1 cent a square foot for an interior/water access lot, and .2 cents a square foot for a waterfront lot. With the exception of the three aforementioned subdivisions that did not approve the fee change, they’ve been .2 cents a square foot for interior/water access lots and .10 cents a square foot for waterfront lots for 10 years now. These annual fees cover the following: Maintaining the medians at Whitecap and Seapines, common area maintenance such as cul de sacs, canal end landscaping, and the 7 public boat ramps around the Island. The reason the cost is higher for a waterfront home is because these fees also cover canal bulkheads.

FACTS:

POA

  • When voting, POA board members need 50% + 1 to pass.
  • They have a seed account in the event of a hurricane in access of $9,000,000, of which they added $300,000 to this past year.
  • They spend roughly $500,000 a year on repairing canal bulkheads.
  • The architectural control committee (ACC) is responsible for reviewing plans for new builds, renovations, fencing, decks/docks, shade structures/any structure really, but NOT landscaping. Currently, the committee has 4 members, but they are seeking a 5th.
  • The ACC is also in charge of “unsightly properties,” defining them, and working on cleaning them up to maintain property values.
  • A gentleman is out on the canals every single day cleaning the debris.
  • On the POA website, you can find requirements for building, setbacks, decking depths, etc. for each and every subdivision.
  • The POA has three notaries.
  • The POA has a swapping library.
  • Approximately 5,300 residents are within the association, making PIPOA the largest HOA in Texas and possibly the United States.

ISLAND STATS

  • Available lots left:

629 interior

148 waterfront

87 multi-family

277 commercial

  • The population on the Island is approximately 13,000, compared to roughly 330,000 in Corpus Christi.
  • Of all crime committed in Corpus, only 2% of it comes from the Island, and 60% of that is “victim assisted,” meaning garages are left open, items in boats aren’t put away, etc.
  • 525 children are enrolled in the Island charter school.
  • All parks on the Island are actually owned by the city.
  • Water depths: 18 inches – 2 feet near the bulkheads, and roughly 6 feet in the center of the canals.
  • It is a NO WAKE ZONE until you get to the ski canals or the Laguna Madre.

ISLAND STICKER

  • Often referred to as the “vanity sticker” as Island residents are proud to show where they live, the sticker allows residents to park at the boat ramps.
  • Common misconception: the sticker DOES NOT allow you back on the Island in the event of an evacuation. Sticker or not, you’ll only be allowed back on with two forms of ID showing your Island address AND utilities have to be back on before anyone is allowed access.

 

 

Padre Island Housing Report – April 2017

THE HOUSING MARKET CONTINUES TO BE HEATING UP AS WE MOVE INTO SUMMER TIME OF 2017, THE HOTTEST TIME OF THE YEAR.  TAKE A LOOK AT THE STATISTICS ON WHAT’S HAPPENING HERE ON PADRE ISLAND IN CORPUS CHRISTI, TX.  CLICK ON THE PICTURE BELOW AND GET A FULL PDF TO PRINT OUT TO KEEP TRACK OF THIS DATA.  LOOKING FORWARD TO AN EVEN MORE EXCITING SUMMER AHEAD, GIVE US A CALL AND DISCUSS THE MANY OPPORTUNITIES TO OWN A PIECE OF COASTAL TEXAS! (361) 949-0101

cchousinreportsept-2016

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