Bluegreen Corporation Announces Plans for New Resort Property in Williamsburg, Virginia
biz.yahoo.com
Wednesday June 28, 11:42 am ET
BOCA RATON, Fla.--(BUSINESS WIRE)--June 28, 2006--Bluegreen Corporation (NYSE: BXG), a leading provider of Colorful Places to Live and Play®, today announced plans for a new Bluegreen Resort property located in Williamsburg, Va., less than one block from the historic district of Colonial Williamsburg.
Bluegreen® commenced the first phase of this project with the purchase of the Patrick Henry Inn, and the Liberty Inn and Conference Center, which are located on approximately 4.6 acres of land in Williamsburg, Va. The second and final phase of the project is contingent upon Bluegreen's purchase of the Colonial Capital Inn and a commercial building, which are located on approximately 18 acres of adjacent land. Acquisition of the properties for the second phase of the transaction is expected to occur in the third quarter of 2006, subject to satisfactory completion of due diligence and the receipt of necessary governmental approvals. Although Bluegreen expects the property acquisitions necessary to initiate the second phase of the project will close, there is no assurance that the properties will be acquired.
George F. Donovan, president and chief executive officer of Bluegreen, stated, "Over four million people visit the Williamsburg area each year to experience how our colonial ancestors lived and to take advantage of fine dining, quality shopping, and family-focused entertainment. This new property, our second in Virginia, joining Shenandoah Crossing in Gordonsville, reflects Bluegreen's continued commitment to providing our customers with access to some of the nation's most popular vacation destinations."
The Company expects to begin construction in fall 2006 to transform the 139-room Liberty Inn and Conference Center into 76 one- and two-bedroom timeshare units. These units are expected to be available for occupancy in the second quarter of 2007. Approximately 15,000 square feet of the hotel and conference center will be renovated into a Bluegreen Preview Center, which is also expected to be available in the second quarter of 2007. Bluegreen Resorts Management, Inc. is currently operating the Liberty Inn and Conference Center to capitalize on the high demand summer season and to allow time for the completion of the permitting process before construction commences. The Company plans to renovate and continue to utilize the 160-room Patrick Henry Inn for overnight accommodations.
If successful in acquiring the second parcel of land, Bluegreen plans to utilize the Colonial Capital Inn as a welcome center. Bluegreen is also seeking approval to build 400 campus-style timeshare units on the remaining property with phased development planned for completion by 2011. Current plans for the purpose-built units include 380 two-bedroom units and 20 three-bedroom units.
Williamsburg is 150 miles from Washington, DC; 50 miles from Richmond, Va. and 60 miles from Virginia Beach, Va. In addition to Colonial Williamsburg, this latest Bluegreen Resort will be in close proximity to Busch Gardens, an amusement park based around a European theme, and Water Country USA, the mid-Atlantic's largest water play park with a 1950's and 1960's surf theme.
According to industry information in Virginia, timeshare owners spend an average of $1,591 on food, shopping and tourist attractions during a typical one-week vacation stay. In addition to bringing additional tourists to the area, Bluegreen expects to contribute to the local economy through the employment of guest services, construction, and sales and marketing personnel, as well as through generation of state and local taxes and fees. The Company hopes to establish marketing alliances with local vendors to provide incentives to its guests, including admission tickets to local attractions, and restaurant and merchandise certificates |
