TRAVERSE CITY -- Sugar Loaf Resort's would-be buyer is pulling back on a would-be deal for the long-shuttered Leelanau County site, but said he's still interested in reviving the property.
Brad Lutz signed a purchase agreement for the resort in February, but said Tuesday he won't close on the deal because he needs more time to complete due diligence review of the property.
"We're still very interested in Sugar Loaf. We've done a lot of work out there and we still have a good plan for the property," Lutz said. "But we couldn't accomplish in 90 days what others haven't been able to accomplish in eight years."
Current owner Kate Wickstrom bought Sugar Loaf three years ago after it was shuttered for five seasons following several years of financial problems. A purchase price was not disclosed when Lutz signed the purchase agreement, but the resort has been listed for sale for around $6 million.
Wickstrom's attorney, Joseph Quandt, said he expects other potential buyers to pursue the property.
"We have two that have expressed serious interest," Quandt said. "I think that their process will become much more intense knowing Mr. Lutz will not be moving forward with his offer. I would hope to see something in the next two to three weeks."
Lutz declined to discuss his plans in detail, but said he wanted to make the resort more of a four-season attraction in Leelanau County. He said he also needed more time to work on details like county and township approvals for renovating the property, tying down building demolition costs and reaching and resolving sewer issues as the resort's sewer system is not part of Wickstrom's holdings.
"It's just not good timing for all that to happen," Lutz said.
Lutz said he tried to move the deal along by offering a property swap for Sugar Loaf for what he called a "premium property" in Colorado. But that was rejected by TransCapital Bank of Hallandale Beach, Fla., which holds a mortgage on Sugar Loaf for an unnamed guarantor.
Local officials were disappointed, but not overly surprised. Cleveland Township Supervisor Timothy Stein was unaware Tuesday that the agreement dissolved, but said it doesn't mean much for the township.
"I guess my reaction would be pretty nonplussed. It would be fair to say it's disappointing that it continues to sit dormant," he said. "It was simply an option to buy, right to refusal. That's hardly a deal."
Staff writer Victor Skinner contributed to this report.
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