Reported by FauquierNow.com on October 05, 2011
Fauquier’s only public golf course, which closed May 15 because of financial troubles, will go on the auction block next week.
Kastle Green Golf Course near Midland will go up for bids at 1 p.m. Friday, Oct. 14, at the county circuit courthouse.
The property includes 168 acres, a 3,600-square-foot clubhouse and several maintenance-related buildings, according to a legal ad in the Oct. 5 Fauquier Times-Democrat.
The Cordova family opened the 18-hole, par-72, “links-style” course in 1998.
The former Southern Financial Bank, based in Warrenton, provided the original $2 million loan for Kastle Green, court records show. That loan passed to Provident Bankshares when it bought SFB in 2004. M&T later bought some of Provident’s business, including the Kastle Green note.
A limited liability corporation recently purchased the non-performing loan from M&T. That LLC has foreclosed and scheduled the auction, according to its attorney, Michael T. Brown.
Although the course drew good reviews from golfers, it never generated enough business to support millions of dollars invested in development and maintenance.
Kastle Green’s remote location and Fauquier’s restrictive sign ordinance didn’t help.
Court records indicate Kastle Green began having trouble paying taxes as early as 2003.
When it opened, the course qualified for a real estate tax break as “open space” under Fauquier’s land-use valuation program, according to Commissioner of Revenue Ross D’Urso.
“However, due to delinquent taxes the course was removed from the program starting with the 2007 tax year and hasn’t been able to qualify since,” D’Urso said.
Kastle Green no longer has a delinquent real estate tax bill, according to the county treasurer’s office. But, it owes $7,330.93 in personal property taxes and penalties, along with unpaid business license fees. County business taxes are confidential.
When the economy weakened in recent years, a wave of golf course foreclosures swept across Virginia and the nation.
The property has the “by-right” zoning for nine housing lots, Brown noted.
For more information about the Oct. 14 auction, contact Brown, with the law firm of Baumgardner, Brown & Cupp in Washington, Va., at: (540) 675-3617.