Mesa's Legacy Park to stay open into November as a deal is on the table
Legacy Park in Mesa could live to see another day, after its lawyers announced in federal bankruptcy court Tuesday it had a deal to secure buyers.
Legacy Park will sell for $25.5 million with the buyer Burke Operating Partners to provide $19.5 million and $6 million to come from the landlord Pacific Proving LLC. It's a tiny fraction of what the owners spent to develop it.
The 320-acre youth sports complex cost about $283 million to build using private bond funds issued by the Arizona Industrial Development Authority.
Tuesday's courtroom drama, which came 24 hours after a hearing described as "D-Day" for the park's future, and after U.S. Bankruptcy Judge Daniel Collins said the "anticipation was killing" him, started in familiar territory. Collins agreed to a request for yet another continuance, this time for 90 minutes, to allow the parties to work out final differences.
By 3 p.m., Keith Bierman, the park’s financial manager, told Collins that they had a deal. He also assured that the park had the money to keep the doors open through the closing of the deal.
That is in part because of cash that the park has on hand and a $750,000 donation from Pacific Proving as well as a waiver to Legacy Park's November rent.
While the framework of a deal has been presented to the judge, court hearings won't end here. A sale hearing to close the deal with the judge's approval will be scheduled for Nov. 20 with the expectation to close by Nov. 30. Now the legal teams will get putting the purchase agreement in writing, for final court approval.
That will be the day "money changes hands," Henk Taylor, a legal representative for Legacy Cares, told the Arizona Republic.
Objections to the sale are due Nov. 15.
How the funding will be distributed
Of the $25.5 million, the funding will be distributed to the lien claimants, professional fees and bondholders who financed the construction of the park.
About $19.1 million will go to pay the mechanic lien claimants, who were roughly owed $30 million. Okland Construction Company, Inc., was the last major lienholder to agree to the tentative terms of the deal.
Bondholders will get $2.2 million and 11% of equity in the buyer. Another $3.9 million will be set aside to pay for professional fees.
Jim Reed, who represents RKS Plumbing and Mechanical, one of the lienholders, told the Republic, that his client was happy with the settlement and that it was fair. "Everybody had a little bit of pain but nothing like if the park had closed," he said.
Now they wait for the deal to finalize.
Sports directors relieved
Once again a group of sports directors were in the courtroom awaiting their fate. At the announcement that a deal had been agreed on soft applause was heard in the courtroom. Hugs were given and enthusiastic handshakes were shared.
Paul Hardiman, the director of the park’s basketball club, approached the bench to give thanks to the judge for his patience with the lawyers.
"You just showed life is about moments and we have the power to do something," he said. "The doors are open and the families can come."
Reporter Maritza Dominguez covers Mesa and Gilbert and can be reached at maritza.dominguez@arizonarepublic.com or 480-271-0646. Follow her on X, formerly Twitter: @maritzacdom.
This article originally appeared on Arizona Republic: A deal to sell Mesa's Legacy Park is on the table. Here's what we know
