Chandler's historic San Marcos resort in financial trouble: Foreclosure?

10-08-2010 • Azcentral.com

Chandler's historic crown jewel, the state's oldest golf resort, is in financial trouble and may be headed for foreclosure. A court-appointed receiver has taken over operations of the 97-year-old Crowne Plaza San Marcos Golf Resort after San Marcos Capital partners defaulted on a $23.9 million loan from Guaranty Bank and Trust Co., according to Maricopa County Superior Court records. The resort and its amenities will stay open in the meantime; reservations will be honored and employees will be paid, said receiver Kirby Payne of Newport, R.I. Opened in 1913, the resort is on the National Register of Historic Places and entertained the likes of Clark Gable, Fred Astaire, Joan Crawford, Christian Dior and President Herbert Hoover. City officials have counted on its imposing presence and rich history to stimulate downtown redevelopment. Payne said he and two associates were sent to the facility last week to gain control of assets and bank accounts and train employees for the transition. General manager Frank Heavlin, who is a member of the owning partnership, will remain as an employee of the receiver and the resort will stay open, Payne said. No service or staff changes are planned, and guests will likely not notice any changes, Payne said. "We're very gentle with the staff. It's not their fault; they haven't done anything wrong," he said.