10C going into foreclosure

ScottM

ScottM

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Harris Bank has sued to collect about $14.3 million on an unpaid loan on Galt Airport in northwest suburban McHenry County, a 60-year-old airfield for private pilots that in recent years has also become an outdoor concert venue.
For many years, small private airfields have struggled to stay in business, threatened by urban sprawl, increasing regulation and the expanding airspace of major airports like O’Hare International Airport. Now, the economy may be posing a new challenge.
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http://www.chicagorealestatedaily.com/cgi-bin/news.pl?id=37056

CRAP!
 
Bummer Scott. Will it have any short term affect on you?
 
If Federal Funds have been spent on the airport, wouldn't the new owners (Harris) still have to keep it open unless they pay back what was used?
 
EdFred said:
If Federal Funds have been spent on the airport, wouldn't the new owners (Harris) still have to keep it open unless they pay back what was used?
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If they can proove that the airport is not viable and that the services can be provided by nearby airports those obligations can be waived. Going broke would be one indication of nonviability.
 
weilke said:
If they can proove that the airport is not viable and that the services can be provided by nearby airports those obligations can be waived. Going broke would be one indication of nonviability.
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"Going broke" could be a sign of the operator's overleverage. According to the article, the bank is going after him on his $3.3 million house, too.
 
EdFred said:
If Federal Funds have been spent on the airport, wouldn't the new owners (Harris) still have to keep it open unless they pay back what was used?
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It is a private airport, no federal funds at all.

It is a really nice place and the new owners have dumped a lot of money into making it a real family type of place. I had been noticing that there was less traffic and they were renting hangar space to people without airplanes, so I knew money was tight.
 
smigaldi said:
It is a private airport, no federal funds at all.

It is a really nice place and the new owners have dumped a lot of money into making it a real family type of place. I had been noticing that there was less traffic and they were renting hangar space to people without airplanes, so I knew money was tight.
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Perhaps a lot of the pilots that are there could buy it. How many planes are based there?
 
Wasn't there just a thread on how there are not enough family type airports.....

Isn't Brandywine airport near Wilmington owned by the based pilots ?
 
EdFred said:
If Federal Funds have been spent on the airport, wouldn't the new owners (Harris) still have to keep it open unless they pay back what was used?
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No once the foreclosure is complete, the title is cleared for the new owner.

there will be no attachments to the deed.
 
rpadula said:
"Going broke" could be a sign of the operator's overleverage. According to the article, the bank is going after him on his $3.3 million house, too.
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After Foreclosure is filed any one can offer the bank a deal, they may take you up on it.

OKH's first mortgage was for $480,000 and was bought for $48,000.

Make the bank an offer, by finding out what the arrears are worth.
 
Tom-D said:
No once the foreclosure is complete, the title is cleared for the new owner.

there will be no attachments to the deed.
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Liens from the mortgagee may be discharged, but generally speaking, existing codes, covenants and restrictions will stay, as will liens from other parties.


Trapper John
 
Trapper John said:
Liens from the mortgagee may be discharged, but generally speaking, existing codes, covenants and restrictions will stay, as will liens from other parties.


Trapper John
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I understood foreclosure clears all the liens behind the mortgage being foreclosured on. (In this state anyway)


" existing codes, covenants and restrictions " are not attached as liens, they effect all properties under that coded area.
 
Major Bummer! Harris wants it as real estate residential development property, I'm sure.

Galt is/was a true airport community. Sigh.
 
Tom-D said:
I understood foreclosure clears all the liens behind the mortgage being foreclosured on. (In this state anyway)


" existing codes, covenants and restrictions " are not attached as liens, they effect all properties under that coded area.
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It will vary from state to state.
 
bbchien said:
Major Bummer! Harris wants it as real estate residential development property, I'm sure.

Galt is/was a true airport community. Sigh.
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There is a failed real estate development right next to the airport now. If Harris wants it for that it the land will just sit there for a good while. Not that banks have an issue with that.
 
nyoung said:
Well, I hate to see an airport go under... but wow - $98.5k in monthly interest payments? There's just no way that any airport of Galt's size and location (relative to a metropolis) could cover that.

Curious - how many hangars are at Galt?
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Nate, the $98.5K was monthly principal and interest, not interest only. Still, :yikes:
 
That stinks - I was based there for a couple of years. I really liked the place and new hangars. Problem was it took 30 mins to get there and 3CK is 5 mins away.

I noticed when I was there that they were struggling. Seems strange that the foreclosure is for ~$13 million and the original purchase price was $2.1 million.

It would be cool to own it but not sure how a guy could make any money at it. I bet it would be hard to break even.

Allan
 
alindsay said:
It would be cool to own it but not sure how a guy could make any money at it. I bet it would be hard to break even.
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How is the market for air-park properties around Chicago ?

How many decades does it take in that county to get a zoning change ?
 
weilke said:
How is the market for air-park properties around Chicago ?

How many decades does it take in that county to get a zoning change ?
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I thought it would make a nice airpark but not sure it is located in an area to get a premium price for the lots. There is farm land all around 10C so who knows?

As for zoning, it's IL, I bet a shoebox of $100s would get it done.
 
We stopped in a couple of years ago on the way to Oshkosh. Great People and a nice airport. What a shame.
 
The word is that Ivan and the bank are playing hard ball over the interest rate. As you saw in the article the current interest rate is over 7% and Ivan has been wanting to refinance. When Harris would not deal he withheld payments to force the suit and a compromise. Right now it is man-sword fight.
 
Anyone know what the status of 10C is? I'm hoping to get instruction there, but I'm a bit worried that it will disappear.
 
fancypants said:
Anyone know what the status of 10C is? I'm hoping to get instruction there, but I'm a bit worried that it will disappear.
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Things are stable and seem to be being resolved. This is a great relief to all.
Last word I got was the the new financing was almost in place and that Ivan and the bank are talking about dropping the foreclosure .
 
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Well that's good news. I hope to make it out there in the next few weeks. Thanks for the update.
 
As of 8/4, the operating entity filed chapter 11 bankruptcy. I don't believe the LLC that owns the land itself filed bk. The principal owner of both also has stakes in several other domestic entities which filed for bk protection on the same day.

Nice guys working the field though I get the impression ownership is a little removed.

I have clients that would have loved to own and operate that field, but I'm guessing the numbers involved would make that unfeasible
 
I just checked out 10C's web page. It looks like they have a great fishing pond and camping area complete with cabin. Do any of you have details on this. How many will the cabin sleep?
 
ISUHawkeye said:
I just checked out 10C's web page. It looks like they have a great fishing pond and camping area complete with cabin. Do any of you have details on this. How many will the cabin sleep?
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I have been back by the pond several times. There is a picnic area there as well and it is all very nice. The boy scouts camp out there every once and a while. But I have no idea about the cabin. Call Justin at the airport and speak with him. He is an upstanding, good guy.

BTW if you land you can taxi your plane to the camping area.
 
FYI, EAA Chapter 932 just released their October newsletter and it includes an update on Galt from the Airport Manager. Sounds quite upbeat and hopeful...but maybe that's because he just got married. :)

http://www.eaa932.org/newsletters.html will get you the high octane version of the newsletter.

Jack
 
A couple of weeks ago Galt, which has been in foreclosure for sometime now was finally sold. There is a new owner to the airport and it is great news. One of the tenets, Claude Sonday, is the proud owner of his very own airport.

What this means is that for the time being Galt is very safe and in very capable, pro-GA hands. Claude has been a fixture at the airport for a long time, he has owned businesses in the area and loves the airport. I cannot think of a better owner and someone to carry on the legacy of Art Galt, who founded the airport so he could fly to his favorite fishing hole. So for those that care or wonder, or maybe plum forgot about the whole saga. Here is the final installment.
 
Scott that is fantastic news not only for the GA community but the area surrounding Galt.
 
ScottM said:
A couple of weeks ago Galt, which has been in foreclosure for sometime now was finally sold. There is a new owner to the airport and it is great news. One of the tenets, Claude Sonday, is the proud owner of his very own airport.
...
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Is that the Claude from Lake Zurich who owns a Stearman? He's one of ours.

His cousin was my landlady.
 
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