Legacy Park in Mesa sold in Arizona bankruptcy court
A bankruptcy judge approved the sale of Legacy Park in Mesa to new owners, a deal that seemed the best option to keep the troubled — but popular — sports facility running. But the sale will cause financial pain for the investors who bought the bonds that financed it and the firms that built it.
The $25.5 million sale price to Burke Operating Partners out of Florida represents a small fraction of the more than $280 million raised for the facility’s construction through bonds issued in 2020 by an arm of state government, the Arizona Industrial Development Authority.
A group of investors has filed a lawsuit asserting that they should get their money back, naming several parties who should be liable, including the investment bank that underwrote the bonds. Money from those bonds went to the park’s previous owner, a nonprofit called Legacy Cares, which filed for bankruptcy, prompting the sale.
Only one potential buyer, a Florida-based company, presented an offer, which the judge approved Wednesday. The owners of the park had expected to sell it through a competitive auction, but received no valid bids by the court-imposed deadline.
The deal was supposed to be finalized Monday. An army of attorneys had made its way into the courtroom in downtown Phoenix for hearings both Monday and Tuesday, only to be told each day the details were still being hammered out.
The judge approved the deal, though the final form of the documents were still to be prepared after the hearing.
The bulk of the sales price of $25.8 million will close liens filed by construction companies that installed the fields, plumbing and buildings.
The firms had claimed some $30 million in unpaid bills, but will make due with divvying up $19.1 million.
Okland Construction Company, Inc., the main contractor, was the last major lienholder to agree to the tentative terms of the deal.
Bondholders would receive $2.4 million — about 1% of the original investment — but gain an 11% equity stake in the firm that is taking over the park. The remaining funds were set aside for professional fees.
On paper, the new owner of Legacy Park is AZ Athletic Associates, a limited liability company created Nov. 13. Its sole member, according to corporate records, is Burke Operating Partners, based in Miami Beach, Florida. In a memorandum of understanding about the sale, it listed a “supporting entity” as Rocky Mountain Resources.
The Republic was unable to reach neither Burke Operating Partners nor Rocky Mountain Resources for comment.
After the hearing, Keith Bierman, the court-appointed restructuring officer for Legacy Cares, said that “the park will continue to operate and continue to serve the community.”
That new owner was to provide approximately $19.7 million of the sales price. The remaining $6 million was to come from the landlord, Pacific Proving LLC. That firm is co-owned by William Levine and Arte Moreno, the owner of Major League Baseball’s Los Angeles Angels.
Ahead of Wednesday’s hearing, the court received some objections to aspects of the deal from parties involved in the case.
One objection came from Salt River Community Gaming Enterprises, operators of Casino Arizona and Talking Stick Resort. It said its sponsorship deal should not transfer to the new owners, saying it did not want its name associated with what its filing called “certainly one of the largest economic debacles in recent Arizona history.”
The objection from the U.S. Trustee, the government agency that oversees bankruptcy cases, said it wanted to make clear that the new ownership had no involvement with anyone involved with Legacy Cares previously. At a hearing Monday, the assistant U.S. Trustee said the office was particularly concerned about Randy and Chad Miller, the father and son who operated the park.
At that hearing, Mike Burke, head of Burke Operating Partners, appearing telephonically, avowed that he had no association with the Millers.
Mesa sports park bankruptcy case:Questions of fraud, misappropriation of bond funds
A vision for a park, but a lack of financing at first
Randy Miller had worked since at least 1990 to create a sports facility that could host several types of events at once. In an interview with The Arizona Republic, Miller said he got the idea after he and his then-wife spent weekends shuttling their two sons to varying sporting events. He thought of a spot that could host youth fields of varying types and that had a restaurant and bar where parents could relax between or after games.
But Miller had trouble cobbling together private financing for his vision. Miller said that at times he trusted the wrong people and got burned. At other times, according to court records, people accused him of fleecing them.
Miller finally found an avenue to bring his vision to life: the…
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