Lake Lawn Lodge Update

The other day, after a wintry mix of snow and ice befelled Walworth County, a lone driver who made the mistake of turning into the Lake Lawn Lodge entrance was stopped dead in his tracks. I drove by and saw this hapless individual, feverishly digging the front end of his car out of the snow that had been pushed knee high by passing plows. (Editors note- I didn’t stop because he was clearly almost extricated. I swear. Otherwise I totally would have stopped to help. Or at least feign concern.) The gentleman must not have read the news about Lake Lawn. Or perhaps he read the news and didn’t believe it. Perhaps he thought, as many did, that an 11th hour Christmas miracle would save Lake Lawn from this shuttered fate. I assume he only realized the drive wasn’t plowed about ten feet too late, which left his car, stuck in the snow, facing a very large resort that also seems to be stuck in an unfortunate, equally frustrating position.

And so it goes, the Lake Lawn Lodge of your childhood is no longer. Anchor Bank has officially closed the resort, and has begun the long, arduous, impossibly expensive task of closing down a once thriving resort. The logistics of what must happen next are nearly impossible. The resort is so large, with countless buildings and many more weather sensitive fixtures, that an effective winterizing project is nearly impossible to execute. As the bank scrambles to find a new buyer, terrific care must be made to insure that the resort does not deteriorate during our harsh winter. The mission is overwhelming. The prospects for a soul crushing loss are even more daunting, and at this point in time all but assured. Without knowing many of the financial arrangements behind this deal, I’m still left wondering how Anchor Bank will survive this collapse. The winterizing, maintenance, utility bills, and insurance aside, there’s the issue of a mind blowing tax bill of roughly $500,000. If Anchor Bank escapes this head on car crash, somewhere, in the shadows, creepy David Blaine will be shaking his head in amazement.

The death of Lake Lawn has been an ugly one. Local residents, unaware of their folly, have been apoplectic towards the City of Delavan for their repeated and significant attempts at helping the previous owners stay afloat. Locals have said this preferential treatment given to the resort is a sign of catering to the wealthy. They say this was just the city taking care of the rich business men who, perhaps naively, threw their clout and guarantees and considerable money behind this resort. What they failed to realize, in their class warfare inspired indignation, is that the city of Delavan needs Lake Lawn Lodge. Like neeeeeeeeds Lake Lawn. Like the city, still battered by the loss of the always-doomed-for-failure-Great Lakes Dog Track, can’t afford to lose the only other draw that the city of Delavan can identify.

Many have lamented the loss of the once great resort. Many have written me with touching stories of love found and lost on the grounds of Lake Lawn, of childhood memories and moments frozen in time with the rambling Lodge as the backdrop. These stories are sweet, and many who have written have acted like the resort is no more. As if this death is final. Fear not, oh lover of the Lodge, for I have a hunch that this death isn’t a death as much as it is a medically induced coma. My prediction is that Lake Lawn Lodge will not be shuttered for long, and that children will once again splash in the pool and fish from the piers.

The reality is, Lake Lawn is going to sell for too cheap for it not to be picked up by another investment group. The current asking price is just shy of $20MM, though the rumor is that the resort may sell for much, much, less. I have a number in mind that it might sell for, and some clients of mine who are aware of hotel prices claim that the real sales number might be a mere fraction of the fraction that I think the property is worth. It must be noted that this is not some small town resort with a central motel office and a scattering of cottages. This is a serious resort, complete with the only marina on Delavan Lake, an 18 hole golf course, an airport (that alone sold for more than $1MM years ago), hundreds of rooms, proposed future developments (bad idea though…), and conference rooms and spa rooms, and restaurants and much, much more. This is a resort worth saving, and here’s how I think it plays out.

At some point over the next six months, some investment group will buy the resort. They’ll then begin a renovation, as the resort underwent a significant face lift a few years back, but the renovations fell far short of expectations. If an investment group throws an additional $10MM at the property in upgrades, the resort could open with a shiny new look sometime in 2012. Perhaps the resort would sell to some group that would open it immediately, and undertake the additional improvements while operating, but that’s not how I’d do it if I were the new owner. I’d buy it, open the golf course, find a way to get some revenue from that airport, make darn sure that my marina revenue is maxed, and operate the hotel with enough basic infrastructure so to keep the condotel owners from filing more suits against me. I’d renovate what needs to be renovated, and I’d reopen with a huge bash in 2012. I’d invite every single person who has ever stayed at the hotel, and I’d make Richard Driehaus green with envy as he marveled at the size and indulgence of my grand opening. That’s what I’d do, but I’m just a kid with a computer.

Lake Lawn Lodge is, for now, resting quietly in the intensive care unit. While the candle light vigil drags on outside, there is still some life left in this old resort. Far from terminal, all this resort needs now is a fresh name on the deed, an infusion of cash, and a grand opening to lift spirits, rekindle nostalgic emotions, and save the city of Delavan from its deep and growing despair. If you’re interested in the resort, email me for some details.

About the Author

I'm David Curry. I write this blog to educate and entertain those who subscribe to the theory that Lake Geneva, Wisconsin is indeed the center of the real estate universe. When I started selling real estate 27 years ago I did so of a desire to one day dominate the activity in the Lake Geneva vacation home market. With over $800,000,000 in sales since January of 2010, that goal is within reach. If I can help you with your Lake Geneva real estate needs, please consider me at your service. Thanks for reading.

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