Trump offers $10 million for bankrupt project

Running Horse's lawyers say the Fresno development is worth far more than that.

Published online on Tuesday, Jun. 26, 2007

Donald Trump wants to buy the bankrupt Running Horse residential project for $10 million, his attorney said Monday, and turn it into what the billionaire developer called "a world-class community" capable of hosting a PGA Tour event in 2008 and beyond.

But two Fresno attorneys representing Running Horse's new owner scoff at Trump's proposal, saying the project designed to have up to 780 upscale homes and a Jack Nicklaus-designed golf course is worth far more.

For his $10 million, Trump would buy Running Horse's approximately 420 acres plus all options to buy the additional parcels necessary to complete it, said Fresno attorney Albert Berryman, who is representing Trump in the project's bankruptcy.

Berryman said a letter of intent outlining the $10 million proposal was sent late last week to Fresno attorneys Riley Walter and Harry Pascuzzi, who are representing Running Horse and new owner/developer Mick Evans.

Berryman said the proposal signed by Trump has "many conditions," one of the most important being that Trump take over the project "free and clear" of all liens on the property.

If these conditions are met, Berryman said, "We are very interested in pursuing further discussions."

In a telephone interview Monday afternoon, Trump declined to discuss details of his proposal but said that, should it be accepted by the bankruptcy court, "We would make [the project] much more glamorous" than originally planned.

Walter said Trump's proposal is little more than "just throwing something out there to see if there's interest. At that price, there's no interest ... $10 million? That's a nonstarter."

Evans took over Running Horse about two months ago and sought Chapter 11 bankruptcy protection in April. The Manteca-based owner of a golf-course construction company is owed more than $9 million for work on the project and is among about 300 creditors.

Total debt on Running Horse could be $65 million or more. Construction on the project stopped last year when original developer Tom O'Meara ran into cash-flow problems; only two holes have been finished.

Walter said Evans would not consider Trump's $10 million proposal because the project is worth more than that. Should Evans decide to sell Running Horse, Walter said, "his duty is to get the best return he can for the creditors."

Pascuzzi said it's still unclear what Running Horse is worth. But he had no trouble listing its assets: more than 400 acres of developable land, considerable work already done on a Nicklaus-designed course, a good chance that a nationally televised PGA Tour event will be played there starting in 2008, and a City Hall intent on making a success of a troubled project.

"Put all that together in your hat and it's worth more than $10 million," Pascuzzi said.

Yet, nothing has been simple about Running Horse for the past nine months, and events over the past several days only add grist to what is turning into one of the most unusual residential projects in Fresno history.

A lingering question since construction on the golf course stopped has been where the $4.5 million PGA Tour event on Oct. 22-28 would be held. Tour officials scouted other Fresno-area courses and in recent weeks acknowledged they might take the event to another city for one year. That issue appears on the verge of a resolution.

On Sunday, the Palm Beach Post on its Web site said the tournament will be played in Port St. Lucie on Florida's east coast, but did not cite a source.

PGA Tour spokesman Bob Combs on Monday afternoon said the Tour has signed no contract with an alternate site and declined to discuss the Palm Beach Post article. He said there soon will be an announcement on the new site.