Published: January 31, 2008 10:00 am         

Sugar Loaf buyer has uphill challenge

TRAVERSE CITY -- Brad Lutz said his biggest fear in buying long-shuttered Sugar Loaf Resort isn't its dormant equipment or aging facilities.

He's more worried about disappointing scores of area residents and recreational enthusiasts who've seen their hopes of a revived Leelanau County resort dashed time and again.

"A lot of people have waited for the $100 million dollar man or woman to come along and throw enough money at it to make it work," said Lutz, who this week signed a purchase agreement for the resort. "That's not me. I'm getting into this to bring back this wonderful jewel for our county and our area ... I'd like to get out with the shirt on my back."

Lutz lives in Omena and said he's put thousands of hours of research into the resort since his name surfaced last fall as a potential buyer for Kate Wickstrom's property.

Wickstrom bought Sugar Loaf almost three years ago, after it was shuttered for five years following several seasons of financial problems.

Lutz is realistic about the challenge, and doesn't want to create expectations that will be impossible to fulfill.

"As with any purchase agreement, we need to investigate to determine if we can formulate a plan that works successfully for the buyer and the community," he said. "I'm anxious to move as fast as I can, but I'm trying to do what no one's been able to do in the past eight years in a short period of time."

Lutz grew up near Freemont, north of Grand Rapids, and has a journalism degree from Central Michigan University. His professional background is in business; he worked up through the ranks of Kronos Inc., a Massachusetts-based company that makes computerized time clocks.

He eventually opened his own dealership in Memphis, Tenn., but sold it back to the parent company in 2002.

Wickstrom agreed to the deal back in October. The transaction includes around 400 acres of resort property including the aging lodge building, the ski hill and various residential properties in Cleveland Township. It also includes 100 acres in neighboring Centerville Township, but not the two golf courses that were spun off from the main resort. The purchase price was not disclosed.

In 2006, Wickstrom unveiled a $50 million redevelopment plan that included an overhaul of the main lodge and more residential development, but her plan never got off the ground. She became embroiled in a legal dispute with the owners of the complex's sewer treatment plant.

"I think that there were a lot of challenges," said Traverse City attorney Joseph Quandt, who represents Wickstrom. "Let's face it; the timing for real estate development couldn't be worse right now in Michigan."