February foreclosure set for Schlitterbahn’s island water park
The money-losing Schlitterbahn water park and resort on North Padre Island could be auctioned off at a foreclosure sale in February if a deal for the property is not reached before then, under an agreement announced Monday in U.S. Bankruptcy Court in San Antonio.
About 270 acres surrounding the park and hotel, however, are slated to be sold at Tuesday’s foreclosure auction in Nueces County.
Austin lender Axys Capital Credit Fund received court approval last week to foreclose on the 270 acres, collateral for about $16 million in loans made to Upper Padre Partners — the development partnership.
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IBC Bank had made a similar request to foreclose on its collateral, which includes the water park and 92-room hotel. On Monday, though, its lawyer announced an agreement giving the bankruptcy trustee more time to find a buyer or work out some other plan for the property.
“If, by Jan. 31, there is no sale or other agreements with IBC with respect to the hotel and water park, then IBC will be permitted to foreclose in … February,” said Michael Colvard, an attorney for the bank. U.S. Bankruptcy Judge Craig Gargotta approved the request.
The Schlitterbahn Riverpark & Resort was supposed to be part of 500-acre development on Padre Island that would include residential properties, a marina, and a waterfront experience modeled after San Antonio’s River Walk. The 25-year project’s value is estimated at more than $550 million.
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