Branson racetrack shaky after developer's bankruptcy

Plans for a $250 million racetrack in Branson are shaky following a Chapter 11 bankruptcy filing by its developer, Russell Cook. On July 12, Cook filed for personal bankruptcy protection in the U.S. Bankruptcy Court Western District of Missouri – one day ahead of a second scheduled sheriff’s sale of 550 acres slated for the Branson Sports Entertainment Complex near Ridgedale.

According to the filing, Cook and his wife Wanda, a joint debtor, owe up to 49 creditors between $1 million and $10 million. Their assets are listed between $10 million and $50 million. Creditors include Arvest Bank; BKD LLP; Butler, Rosenbury & Partners Inc.; Great River Associates Inc.; and Ozarks Extreme Sports Complex Inc.

Architect Geoffrey Butler of Butler, Rosenbury & Partners said the firm has issued a mechanic’s lien on the racetrack land for more than $23,000 to cover design services within the complex.

“Obviously, we are interested in getting paid. Everybody is,” Butler said. “This is just normal stuff. A Chapter 11 filing is typically done to find a way to pay off creditors, forestall foreclosure and total loss of the property. It just takes time, and we are patiently waiting. There is still an opportunity for them to secure financing for the project.”

Among the 20 largest unsecured creditors listed in the filing are Kansas City, Kan.-based Roadbuilders Machinery & Supply Co., $811,000; Fort Lauderdale, Fla.-based Curtis Gray Consulting, $341,000; and Boca Raton, Fla.-based MDA Development Partners, $282,827.

In April, Empire Bank initiated a land sale following a November civil judgment it secured of more than $900,000 against parties including Cook and his wife on Cook’s BSEC property in Taney County. The property sale was canceled after an agreement was reached between the party’s attorneys, according to Taney County Sheriff Jimmie Russell. Arvest Bank also called for a sheriff’s sale, which was scheduled for July 13 after it secured its own civil judgment against several parties for $5.2 million tied to a separate development deal. The auction of 550 acres – proceeds from which would have satisfied court judgments in favor of the banks – was cancelled due to the Cooks’ Chapter 11 filing, Russell said.

The Cooks’ Springfield lawyer Raymond Plaster declined to comment for this article.
Nathan Adams, a spokesman for BSEC, did not return calls for comment on the status of racetrack plans.

Johnny Morris, founder of Bass Pro Shops, expressed opposition to the racetrack plans in a July 2011 open letter to Hollister and Branson area residents. Cook’s property – between U.S. Highway 65 and the Branson Airport – would operate within miles of the Morris-owned Big Cedar Lodge. In the letter, Morris cited race car noise emissions and dispelled BSEC developer Cook’s reference to an affiliation between the complex and Morris, Bass Pro Shops and Big Cedar Lodge.

“I believe that this proposed racetrack project is not only a very risky venture in its own right, but that it is also putting the future of our community at risk,” Morris wrote. “This project threatens hundreds of homeowners, our property values, thousands of jobs, our quality of life and the natural environment of our Ozarks hills and waterways.”

Other neighbors spoke out as well and asked the Taney County Planning and Zoning Commission to prevent the project from moving forward. The administrative body approved the plans by a 4-2 vote but added stipulations, including a $5,000 fine for noise violations, infrastructure to access the 800-acre property in accordance with county and Missouri Department of Transportation guidelines, and the use of international building codes on the construction of the stadium’s seating.

In August 2011, the Missouri Department of Natural Resources ordered Cook to stop clearing land on the 800 acres slated for the complex until violations of the state’s clean water law were addressed. A call to DNR spokeswoman Renee Bungart requesting the status of violations and active permits was not returned by press time.

In November, Paul Vozar and Ozarks Extreme Sports Complex Inc. filed suit against Cook and BSEC for breach of contract. The suit claims Cook entered into a confidentiality agreement with Vozar in January 2010, concerning Vozar’s own plans to bring a racing and entertainment complex to the land Cook is developing for BSEC.

According to the complaint, after a roughly six-month period during which Vozar tried to secure financing for his project, Cook established BSEC and utilized confidential research and intellectual material from Vozar.

Taney County court records indicate a motion to dismiss the case was overruled at a June 7 hearing. Cook’s attorney for that case, Thomas Millington, was allowed to withdraw from the case, leaving Cook with no representation in that suit. No hearings were scheduled as of July 25.[[In-content Ad]]