Statement From David Brooks On Bear Ridge Golf CourseMarch 19, 2004
David Brooks, vice president for finance and administration at Baylor University, released the following statement today regarding Bear Ridge Golf Course:
"In 2000, Baylor University leased real estate to Mission Bear Ridge Investors, L.P., for the construction of a golf course facility. Baylor had previously received the property as a donation expressly conditioned on Baylor's agreement that a golf course would be constructed on the land. The lease term was for 50 years.
"This week, Baylor University received notice that Sterling Bank, which loaned construction funds to Mission Bear Ridge Investors, L.P., may foreclose on the golf course property. We at Baylor understand that the bank has continued to communicate with the original investors, and we remain hopeful that Sterling Bank and Mission Bear Ridge will come to a resolution regarding their dispute.
"However, it is important to note that Baylor University is not now, nor has it ever been, liable on any of the underlying debt. The default on the note by the original investors was not caused by any lack of support from Baylor, financial or otherwise. Baylor did not expend any of its funds in the construction of the golf course property. In the event that the golf course is foreclosed on or comes under new management, Baylor has retained the rights in the loan documents to continue to use the golf course facilities consistent with current usage at no cost.
"In addition, Baylor University's Golf Center facilities are not involved in the loan documents and are not implicated in the dispute between Mission Bear Ridge Investors, L.P. and Sterling Bank."