This is a bit of a long read, but I’m looking for some advice on the current situation at Crowsnest Mountain Resort (728106 Alberta Ltd). Does anyone have experience with “buying” a long-term lease in a campground?
We’ve been leasing a campsite at Crowsnest Mountain Resort in Coleman, AB on a yearly basis for 3 years. For many years, the owner tried to get approval from the municipality to subdivide the land so that he could sell the individual campsites, but he hasn’t been able to get approval. I’m not certain why, but it sounds like he hasn’t met some of their requirements.
We’ve now received an email telling us the campground is changing to 35-year leases. We can only keep our campsite by paying for a 35-year lease at the same price he was going to sell (i.e. with title) the site to us. We also received a phone call a couple of weeks ago from David Hamm out of Calgary, who is working to sell the leases – something he told us he has done before in Radium and other places. David also told us a bank Wolfgang (the owner) deals with instructed Wolfgang to hire him… something about the beginning stages of foreclosure that I really didn’t understand. We ended up talking to Wolfgang after the call from David and he told us he had to sell 35 sites, but that there were also other private investors so I’m not sure what that means.
Based on reading the lease agreement (see link to website below), it sounds very risky. It sounds like the owner/manager will charge an annual maintenance fee, but also has the ability to make cash calls whenever he sees fit. I know he intends on building more campsites – it sounds like he could make a cash call to the current leaseholders to do this?!? Also, it sounds like we would be on the hook for any issues with the current water, electricity and sewer systems – I would understand this is we actually owned something, but we wouldn’t.
I also know there are issues with land purchased from Wolfgang to build homes on. There are references to the issues in the Municipality of Crowsnest Pass Council minutes, but the discussions are always ‘in camera’ so there no details. It’s been years since these individuals purchased the land and they still haven’t been able to build their homes.
Does this sound as risky to you as it does to me? I love the area and would love to stay there, but don’t want to pay over $50K for the use of a campsite for 35 years if there is a chance I will have to make significant yearly payments for cash calls. Also, what happens if there are more issues with the bank or private investors? Or even the group of individuals who bought land to build houses? Is there a chance I could lose my investment – pay for the lease and something happens where the campground doesn’t exist anymore? Maybe I’m making too much of this, but it’s a lot of money to pay upfront for a place to camp during the summer!
Here is a link to the website we were sent to access all of the documents:
http://crowsnestmountaininfo.com
What are your thoughts on my situation? Any personal experiences with a similar situation you can share?