Shuttered Sugar Loaf may get new life

By Bill O'Brien
bobrien@record-eagle.com

October 31, 2007 09:59 am

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CEDAR -- A man with Leelanau County ties is purchasing the long-shuttered Sugar Loaf Resort property.

An attorney for resort owner Kate Wickstrom said his client approved a purchase agreement for the property with Brad Lutz, a seasonal Leelanau County resident. Lutz is working on details related to the resort's sewage treatment system before the transaction is finalized, said his attorney, Robert Parker of Traverse City.

"He's real excited about it ... he's very committed to re-opening the ski hill," Parker said.

Lutz did not immediately respond to requests for comment Tuesday.

Wickstrom bought the property in March 2005, five years after previous owners closed it following years of financial problems. She had hoped to have ski facilities at least partially operating last season, and in April 2006 unveiled a $50 million redevelopment plan focusing on "extreme" sports like snowboarding.

The plans included an overhaul of the main lodge building, new residential development and a recreational vehicle campground.

Cleveland Township officials approved zoning for the proposal last year, but the project never materialized.

"It's been a challenge out there," said Wickstrom's attorney, Joseph Quandt of Traverse City. She also was tied up in litigation with Sugar Loaf Service Co., which owns the property's sewage treatment facility, and decided it was time to move on, Quandt said.

"I think she has other business interests requiring a great deal of her attention," he said. Wickstrom is the head of a company that operates substance abuse treatment centers based on the teachings of Scientology. Quandt said there never were plans to use Sugar Loaf as a treatment center, despite persistent rumors to the contrary.

The property generated significant interest on the market, he said.

"We've entertained offers from several parties," Quandt said. "(Lutz) appeared to us have the best ability to make this happen."

Officials in the township, where the resort is a major property tax generator and used to be one of the county's largest employers, were cautiously optimistic about an ownership change.

"If we do have a new, aggressive owner up there that does something positive with Sugar Loaf, it can be a real asset for Leelanau County," Cleveland Township Supervisor Timothy Stein said. "I think any activity at all up there is good, extremely good. It's obvious it wasn't going anywhere (under Wickstrom)."

County tax records show that Lutz owns residential property on Cathead Bay in Leelanau Township north of Northport, in Suttons Bay village and near Omena.

The pending transaction doesn't include the King's Challenge and Sleeping Bear golf courses near the resort; they were split off from the resort several years ago. The golf courses continued to operate while the main resort remained closed.

Stein said he'd like to see the various amenities reunited to make the property a viable four-season resort again.

"As we did with Kate, we'll do everything we can to help revive that piece of property," he said.

Leelanau County Treasurer Vicki Kilway said much of Sugar Loaf's back tax property tax bills recently were paid, although it still owes around $52,300 from 2006 and '07 tax bills.

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