LakePoint Sporting Community Files For Bankruptcy

EMERSON, GA — The popular LakePoint Sporting Community in Bartow County has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Georgia, the company said Monday in a press release.

LakePoint, based in the small town of Emerson, said the prearranged filing will allow it to "achieve its vision for becoming the premier travel sports vacation destination." It also said the filing will allow it to emerge with a clean slate and a strong financial outlook.

“The recapitalization will strengthen the company’s financial picture so LakePoint can grow and flourish," said Dan Berman with GlassRatner, who is leading the restructuring plan on behalf of LP Investments I. "It creates financial certainty and stability for the project and puts LakePoint on a clear growth trajectory."

LP Investments I is an affiliate of Rimrock Capital, the lender and main funding source for the sporting community for the last five years.

LakePoint Manager and CFO Bob Zurcher notes few changes will take place its day-to-day operations due to the bankruptcy filing. The company will soldier on with its operations, as existing management will remain in place and employees and vendors will continue to get paid in full and on time. Tournaments events and games planned at the facility will also go on as planned. Despite the filing, LakePoint said it expects to see a 10-percent growth this year.

“What we hope people do notice is LakePoint’s continued commitment to service and quality guest experiences along with Rimrock’s commitment to LakePoint’s continued success," Zurcher added.

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Rimrock and LakePoint plan to continue the legacy of master developing the 1,300-acre project. Rimrock already has purchased additional acreage around campus and a new master plan is in the works. Rimrock has hired real estate firm Jones Lang LaSalle and other professionals to help with the planning and analysis.

LakePoint bills itself as a vacation destination with state-of-the-art indoor and outdoor facilities for athletic tournaments and scouting events. It hosts more than 40 sports, including baseball, softball, basketball, gymnastics and sand volleyball. LakePoint’s indoor complex, the Champions Center, was both the newest and busiest facility in the past year. The complex hosted 578 event days occurring from June 2016 to May 2017, making it a year-round destination.

The 1,300-acre facility, which opened in 2013, has eight baseball fields, three multi-use fields, a cable wake boarding facility, 12 basketball courts, 10 beach and 24 indoor volleyball courts, a 175,000-square-foot indoor sports center and seven entertainment venues.

How did LakePoint get to this point?

LakePoint Land in November 2016 deeded property to Rimrock as part of a loan workout, LakePoint said. In the filing, Rimrock will contribute the property it now owns back to LakePoint Land. Rimrock’s debt will be converted to equity, making Rimrock the largest shareholder in the project. This will allow LakePoint to emerge from bankruptcy debt free and with the certainty of being clear of any claims.

As part of the plan, existing shareholders will share in LakePoint’s future success. While LakePoint’s development of athletic facilities started fast, growth of supporting businesses – from hotels to restaurants to entertainment venues – didn’t go fast enough to create a thriving mixed-use project.

Certain facilities and venues, including the indoor sports pavilion, the entertainment venues and surrounding hotels and restaurants, are not included in the Chapter 11 filing, as they are not owned by LakePoint. LakePoint Land has acted as a master developer and sold parcels to third parties for development.

While the bankruptcy filing could be described as a financial setback, movement on future projects at LakePoint has already started. The company notes construction trucks are working around the clock on a road-bridge expansion, which would extend LakePoint Parkway from Allatoona Road to Red Top Mountain Road. This, LakePoint stipulates, would serve as a "catalyst for more development."

More than 1 million people visit LakePoint annually, which creates an economic impact of nearly $100 million from room nights at hotels, restaurant visits, shopping and other entertainment.

“We’re only fifty minutes from the world’s busiest airport, and right off of I-75, so it’s easy to get here from just about anywhere,” Berman said. “And our attention to detail at the indoor and outdoor facilities can’t be matched. The reorganization will allow us to leverage these strengths to grow into the most sought-after sports venue of our kind.”

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