More Morgan Properties In Foreclosure Sales

In recent posts I reported on the financial and legal problems encircling Morgan RV Resorts.

There are 183 mobile home sites and 500 camp sites at Buena Vista Campground, which is asking for a reduction of the $108,600 it pays annually in licensing and pad fees to the township, and will be sold at a sheriff's sale February 6. (Source: pressofatlanticcity.com)

There are 183 mobile home sites and 500 camp sites at Buena Vista Campground, which is asking for a reduction of the $108,600 it pays annually in licensing and pad fees to the township, and will be sold at a sheriff’s sale February 6. (Source: pressofatlanticcity.com)

Buena Vista Campground in New Jersey is the latest in a series of troubled RV parks owned by the Sarasota, New York company.

The campground, located near the intersection of Routes 40 and 54 in the Richland Village section, is one of four in the region owned by Morgan that are being forced into foreclosure sales by investors who hold two loans totaling about $110 million, reports pressofatlanticcity.com. Morgan RV is a division of Morgan Management LLC.

The others are Yogi Bear’s Jellystone Resort at 1079 12th Avenue in Mays Landing, which was sold to its creditors for $100 at a sheriff’s sale last week; Echo Farms Resort at 3066 Route 9 in Ocean View, Upper Township, set for sheriff sale tomorrow (January22) in Cape May Court House; and Atlantic Blueberry Hill RV Resorts, LLC, at 299 Clarks Landing Road in Port Republic, due to be sold at a February 20 sheriff’s sale in Mays Landing.

Buena Vista Campground will be sold in a sheriff sale February 6 in Mays Landing.

Many locals say current owner Morgan RV Resorts has neglected the property in recent years.

Haley Cook, of ICR Corporate Communications in New York City and a representative for the investment group that has foreclosed on the property, declined comment on the pending sales.

Morgan-Recreation-Destination-logoMaria Randle, who works for Buena Vista Campground’s current management under receivership of the Bank of America, recently sent a letter to the township asking for a reduction in the $108,600 licensing and pad fees the campground pays annually in lieu of taxes, reports pressofatlanticcity.com.

She said she could not comment further on the situation when reached by phone.

The fee covers the whole facility, and includes 183 mobile home sites and 500 campsites, Mayor Chuck Chiarello said at a caucus meeting last Monday, when the letter was discussed.

“The fees were reviewed a number of years back,” Chiarello said.

“They are asking us to review them, but at the same time I learned today … the campground is up for a sheriff sale.”

Township Solicitor Jeffrey April recommended a cautious approach.

“My initial reaction is, everybody who pays a fee would like to lower the fee. That’s not a basis to lower (it),” April said.

“For every dollar one person pays less, another pays more.”

Chiarello said the letter cites occupancy rates as one reason for the request, and April said they shouldn’t be the township’s concern.

“That’s a management concern,” he said.

Current Buena Vista Campground manager Tom Ainslie did not return a call for comment, according to pressofatlanticcity.com.

April suggested township Administrator Susan Quinones meet with Randle and determine if Randle has a strong enough case to bring to the committee.

As recently as 2011, Morgan owned 42 large RV campgrounds in 14 states.

In recent years:

  • 7 Morgan RV resorts entered foreclosure after the company defaulted on a $36 million loan
  • 3 Maine resorts were foreclosed in 2013 after Morgan RV defaulted on a $38 million loan
  • 13 former Morgan RV resorts were sold to Sun Communities; in all, 16 former Morgan resorts are now owned by Sun
  • 12 former Morgan RV properties were auctioned off and acquired by Janus Hotels

Worth Pondering…

Efficiency is doing things right; effectiveness is doing the right things.

—Peter Drucker

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