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New Strawberry Park Purchase Plan Struck

April 25, 2011 by   - () Leave a Comment

A bank purchase of the Strawberry Park campground near Preston, Conn., is back on the front burner after the bank and the owner of personal property reached an agreement last week.

Superior Court Judge James J. Devine approved the sale of the campground in Preston Thursday (April 21) after TD Bank, which owns the real estate, and Preston Strawberry Funding Associates (PSFA), which claims it owns $3.4 million worth of personal property at the site, forged an agreement to move forward, theday.com reported.

TD Bank won the property in a foreclosure sale for $8 million, but it had been seeking to back out of the purchase, claiming negative publicity had hurt its ability to market the property.

But on Thursday, the bank and PSFA told the judge they had reached a confidential pact that allows the bank to market the campground, PSFA attorney Mark Stern said.

Stern declined to disclose the terms of the agreement but said the outcome means “the sale goes through, which is what we wanted because that will end up with the business getting sold and us getting paid.”

Also Thursday, a federal bankruptcy judge lifted a stay, technically allowing PSFA to take possession of the personal property. Stern noted, however, that PSFA won’t do anything for at least 21 days, when an appeal period expires.

The park remains open, Stern added, under the operation of a receiver, Elite Resorts Management Co.

“The intent was for us to work together now to get a buyer and have nobody else able to interfere with that, and we’re now in that position,” he said. “The park will continue, we’ll find a good buyer and that’s where the value is.”

Scott DeLaura of the New Haven law firm Palumbo & DeLaura, who is representing TD Bank, could not be reached for comment.

Stern has said his client has an interest in hundreds of campground items, citing a list of assets that includes 50 mobile homes, 65 golf carts, six horses, furniture, tools, washers and dryers, office equipment, shelving and linens.

Strawberry Park was more than $7 million in debt to the bank before the bank submitted the $8 million bid at the park’s Feb. 26 foreclosure sale.

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