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IRS has filed lien against Ridgefields Country Club


Published October 28th, 2009 | 24 Comments


Image
Ridgefields Country Club, which is celebrating its 60th anniversary this year, is struggling financially. Erica Yoon photo.

 

KINGSPORT — Ridgefields Country Club owes more than $200,000 in back taxes to the IRS, and the matter is currently in litigation to resolve payment of the funds.

The IRS filed the federal tax lien in the Sullivan County Register of Deeds Office in May claiming Ridgefields had failed to pay $202,144 in payroll taxes. According to the lien, the country club failed to pay enough payroll taxes three times over the past 14 months — $15,381 on Aug. 18, 2008; $76,952 on Oct. 13, 2008; and $109,811 on Jan. 5.

Calls to the IRS were not returned.

Claudia Leonard, chair of the Ridgefields board of directors, said she did not care to discuss the IRS matter because the club is in litigation. Leonard said she does not think anyone on the board can comment on the matter.

Knoxville attorney Michael Winchester, who has been named successor trustee in the matter, said he had no comment on the club’s financial situation. Jerry Greene, previous trustee and president of First Community Bank of East Tennessee (which holds three of Ridgefields’ loans) did not return phone calls this week.

Ridgefields Country Club, which is celebrating its 60th anniversary this year, is struggling financially, Leonard said last week, noting the club is under some financial strains due to the economy.

Leonard said last week the club is not filing for bankruptcy at this point, but it is always a possibility.

First Community Bank recently considered auctioning off the property. Last week, Winchester submitted a notice of sale with the Times-News to sell the club at public auction on Nov. 13 at the Sullivan County Courthouse in Blountville. The next day, Winchester canceled the notice.

Leonard said last week the club was having some difficulties with its banking relationship, some pressure had been put on the club, and both parties were working through the situation.

The club does have debt, though how much Leonard would not reveal last week. Court records state the club has three loans with First Community Bank.

Much of the debt comes from a 25,000-square-foot expansion and renovation of the clubhouse approved by the membership in 1997 and completed in 1999. Then, the membership took on a 30-year debt to pay for the $3 million project. The state of Tennessee has appraised the property at $5.7 million.

Ridgefields is an equity club where the members own the club. If the income is not enough to pay the bills, the club goes through an assessment to determine how much money is needed to maintain services.

Ridgefields recently conducted an assessment, which came back at $1,500. Mayor Dennis Phillips, a 30-year member of the club, said he thought the assessment was done to take care of the back taxes, but not the bank loan.

Phillips said the club’s priority is to pay all of the liens with the assessment, make sure all of the vendors are current, and continue to provide a quality product people are willing to pay for.

“Civic clubs are certainly struggling, and it’s going to take someone to make some very tough decisions to overcome the tax liens and to pay the indebtedness that’s owed by the club. That’s going to take some strong leadership, and it would appear we have strong leadership in place,” Phillips said. “The question is going to become how bad do the members and the community want a country club because I’m not sure that the $1,500 assessment done recently is going to pay off all of the indebtedness.”

Phillips said the club has not approached the city regarding financial support, but some citizens have mentioned to him that Kingsport needs to take over the golf course.

“I’m not someone willing to look at that right now,” Phillips said. “We need to concentrate on getting the club back on the right track and see if the community wants a country club.

“If we do, it will survive.”

Ridgefields Country Club is located in the Ridgefields neighborhood and opened for members in 1949. The club features an 18-hole golf course (designed by Donald Ross), tennis courts, outdoor pool, gym and spa, and dining accommodations.

Discuss This Story

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Just remember...the folks who allowed "The Club" to go broke are the same ones running Kingsport and the BMA. Fund the Aquatic Center...sure...we've got plenty of the public's money. Now the Mayor wants the public to fund his club. Really, is there no end to their arrogance!

CommentTennessee Blue | 11/3/2009 - 11:15 AM - (CommentSuggest Removal )

interesting.

i've always gotten along with males better. i've been told before that i think like a guy...maybe that's why i type like one haha.

it's funny because i don't look like a guy at all, that's for sure!

CommentJK Long | 11/1/2009 - 1:30 AM - (CommentSuggest Removal )

I didn't mean anything by it at all. I just saw initials as a first name and assumed you were male. That's all.

CommentRichard Brown | 11/1/2009 - 12:25 AM - (CommentSuggest Removal )

richard,

haha. i don't know what you meant by THAT....dare i ask?

CommentJK Long | 11/1/2009 - 12:14 AM - (CommentSuggest Removal )

I agree the member should want to see the books and see where the money went too. I think they have been using the payroll tax money to pay other bills to keep vendor account open or the banks. Only reason the payroll tax money was not paid is some one is skimming some the money. That is the only 2 reason.
I think how they got caught is some one turn them in.

Commentken horon | 10/30/2009 - 12:52 PM - (CommentSuggest Removal )

Open up the restaurant to the public, too. It's Troutdale, the food is excellent, and most people would enjoy it in Kingsport, just as they've enjoyed it in Bristol for the last 20+ years.

CommentMary Acito | 10/30/2009 - 12:06 PM - (CommentSuggest Removal )

If the club closes the people who will be hurt most are the employees. I cannot understand the mentality of those who want any business to fail, since the employees who lost their jobs will most likely have to turn to unemployment, as the Kingsport area really doesn't have a good employment outlook anymore, and most jobs here now are in retail or restaurants at low wages, or health care, which seems to be booming. Ridgefields pays their wait staff more than the average restaurant pays, and a job in another restaurant would not be equivalent.
As a member, I think that the golf course, tennis court, and pool should be opened up to the public, with summer memberships for the pool, and certain times that the tennis courts and golf course could be opened up on a pay-to-play basis.
One of the problems is most of the members tend to be older. They are dying off and aren't being replaced with new members. In the beginning, there were few restaurants in Kingsport, and only private clubs could serve liquor. Now you can get a mixed drink at most full service restaurants, so that allure is moot.
One reason that memberships are necessary for a place like this is you can't depend on pay-to-play to pay the bills for a golf course and tennis courts and instructors and maintenance people. That's why the city and state are getting stuck with Cattails and Warriors golf courses being in the red.
"Members and the neighborhood as a whole would fight it. Members for obviously reasons, the neighborhood because of increased traffic and fear of value loss to their property." Wrong, wrong, wrong. Loss of value to property? Only if the facility closes. Obviously, most of the neighborhood are not members, as membership is comprised of people from all parts of the area. Ridgefields is a pretty big neighborhood, the road to the club is the only one impacted, and it is the first right when you enter the area. The only increased traffic would be on that street, and would probably not even be noticeable.

CommentMary Acito | 10/30/2009 - 12:01 PM - (CommentSuggest Removal )

Some bigger questions;
Are there too many golf courses in this area for golfers? Can one attribute cattails to the failure of this golf course? If this one goes by the wayside, would cattails then make the money that was promised “projected to exceed expenses by approximately $370,000 in FY2000″?

After considering the debt these courses run, I think we simply might have too many courses for golfers.

Cattails
http://www.nowhitewash.com/wp-content/uploads/2009/06/CIP-2010-to-2014.gif

Warrior’s Path/Kingsport: -$21,758

you tell me.

CommentBrian Haynes | 10/29/2009 - 9:40 PM - (CommentSuggest Removal )

Am I reading a hint of envy in some of these comments?

If Ridgefields Country Club fails it is not the members who will suffer – it is the employees. To these employees Ridgefields is not a golf course or restaurant but a source of income hard to come by. These glib comments hoping for the failure of a business, and Ridgefields Country Club is a business, smacks of classism.

I’ve read a couple of great ideas that Ridgefields should consider and one really bad idea the residents of Kingsport should reject. On the good side, opening the restaurant to the public. A reservation only business model would work well if their prices and quality of cuisine are competitive. The infrastructure is already in place. Also the idea of opening the golf course to the public would generate income into a business obviously stagnate in its growth. Friday through Sunday could be allocated to members only and Monday through Thursday could be allocated to reservation only public play. On the bad side, the City of Kingsport taking over a private country club using city tax dollars.

Will the “public option” happen? No!

Members and the neighborhood as a whole would fight it. Members for obviously reasons, the neighborhood because of increased traffic and fear of value loss to their property. Concern about property value depreciation is understandable though I point out if Ridgefields Country Club goes under this still could occur.

Ridgefields members deserve to know why management allowed the IRS dept to get out of hand. These members pay to be part of a country club whose future is in doubt. The economy can be blamed for revenue loss but only to a certain extent. Ridgefields books should also be opened to its members for outside review. I’m not suggesting anything nefarious rather questioning why events have escaladed to where they are now.

The idea of “outsiders” being allowed on Club property might be distasteful to some members but finding an “closed” sign on the door and the loss of already paid dues would be worse. Ridgefields management needs to answer questions and they (or their replacement) need to have a business plan ready to fix their problems.

Regardless, compromise is a word many people will need to get familiar with for Ridgefields Country Club to see their next 60 years.

On a personal note, if Ridgefields does survive the management needs to find the old recipe they used for their sweet rolls. Back in the 70’s and early 80’s Ridgefields sweet rolls were outstanding. I miss those things!

CommentTrey Shearer | 10/29/2009 - 8:03 PM - (CommentSuggest Removal )

JK Long is a woman? The things you learn on here.

CommentRichard Brown | 10/29/2009 - 7:35 PM - (CommentSuggest Removal )

RCC is too big to fail. I say rescue it. take some money out of the bond issue for the pool and get this place running. if the gentry have no place to congregate they could decide to leave town! then where will we be?

CommentJesco White | 10/29/2009 - 5:30 PM - (CommentSuggest Removal )

i love that quote. i joined a sorority when i first went to college. after i realized there is really nothing special or great about it....i quit. it was the lamest thing ever and i couldn't figure out how i got mixed up in it!

i always thought about that quote!

CommentJK Long | 10/29/2009 - 3:49 PM - (CommentSuggest Removal )

RCC is a privately-owned business, supported in part by membership dues. If the economy is such that the membership declines (as that's a disposable expense), then let them take their lumps.

As a Libertarian- I see it as the owner's prerogative to set his model up as he/she sees fit. If they want exclusivity, then set up the memberships and enjoy the fruits of that. However- thanks to the declining economy- that will come back to haunt them. It's an antiquated business model, if either society or the economy dictates so.

Don't rescue RCC, especially at taxpayer expense.

Besides- I wouldn't want to be a member at any club that would have me as a member. HT: Groucho.

CommentC.K. Bigoldi | 10/29/2009 - 2:56 PM - (CommentSuggest Removal )

Hey Greg maybe a drug store.

Commentjim morrison | 10/29/2009 - 1:43 PM - (CommentSuggest Removal )

Let the IRS take it, auction it off and someone can buy themselves a nice little personal country club of their very own for a good deal and say screw the rest of Kingsport, nobody else can play here HAHA, then I would guess the Rich (bleeping out the word I wanna use) yuppies in Richfields can have something to cry about

CommentJOSH none | 10/29/2009 - 1:10 PM - (CommentSuggest Removal )

Will you guys quit rooting for failure. Remember, we were told these guys create jobs and pay their bill. Well, most of their bills.

CommentPeter Stevenson | 10/29/2009 - 12:55 PM - (CommentSuggest Removal )

The bigger question is is there one in Kingsport that makes money? This one, CatTails, Warriors Path all operate in debt.

Let someone that can operate one without debt buy it. I just know this is going to be bought by tax payers. The excuse will be the riverwalk project

CommentBrian Haynes | 10/29/2009 - 12:39 PM - (CommentSuggest Removal )

My brother-in-law works here. It seems like a nice course. Open it to the public. I know plenty of people who would pay $30-$50 to play here, and that money would add up fast.

CommentMike Elam | 10/29/2009 - 11:25 AM - (CommentSuggest Removal )

Looks like a great site for another fast food joint..........

CommentGreg Gilreath | 10/29/2009 - 10:30 AM - (CommentSuggest Removal )

I agree with the semi public option. Every time I've been there to golf over the last few years the course has been wide open. I know several golfers who would pay to play there. Even a "Golf Only" type membership that is similar to the Crossings, reasonable membership fee only for golf. The concept of a "Country Club" is outdated and not appealing as it was "back in the day". It seems most surrounding CC's are experiencing similar membership issues...

CommentDon't Let 'em Fool U | 10/29/2009 - 9:01 AM - (CommentSuggest Removal )

Why not, we could have 2 that run in debt.

CommentBrian Haynes | 10/29/2009 - 1:22 AM - (CommentSuggest Removal )

if they would lower the rates to play and be more open to non-members maybe the place wouldnt be broke....they think they have something elite and special and its really not.. i worked there for 3 summers when i was in high school

CommentJ G | 10/28/2009 - 11:54 PM - (CommentSuggest Removal )

I don't think the city will do anything like issuing bond debt to bailout Ridgefields. That would be political suicide for everyone on the BMA who voted for it.

CommentRichard Brown | 10/28/2009 - 11:27 PM - (CommentSuggest Removal )

Kingsport would be silly to assume the up keep of the golf course unless they owned it and took it over.

A BAILOUT FOR A GOLF COURSE !!!!!

LOL WEALTHY CREATE DEBT PASS IT TO THE PUBLIC AND ENJOY THE EQUITY.

CommentJames Wilson | 10/28/2009 - 9:41 PM - (CommentSuggest Removal )
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