The following statement was released on the nextdoor.com website associated with the Errol Estate community by the Estate of Julian Klein/5th Hole Investments in response to the statement made by Signature H Property Group in reference to the New Errol Project.
On the site, The Estate of Julian Klein/5th Hole Investment made this statement:
New Errol Update From the Estate of Julian Klein
Members of the Errol Community,
After the untimely death of Larry Klein, the entire golf course project is going through the process of due diligence and review. Before his death, Larry loaned a very substantial amount of money to Helmut Jr. & Helmut III (Wyzisk) through their companies. Part of the due diligence process is to ensure that the loaned funds and the financial matters have been appropriately and professionally handled.
One of the things that we are waiting on is a full accounting of all of the project related expenditures that is at a minimum compliant with generally accepted accounting principles. Development could move ahead as appropriately and financially feasible under the circumstances and based on a sound decision making process. Helmut Jr. & Helmut III and their companies are requested to refrain from making any additional public statements regarding any matters relating to New Errol at this time.
With regard to golf course maintenance, 5th Hole will be using independent contractors to begin clearing debris and mowing. This will be limited to perimeters directly behind homes. You will see them on the course very soon.
Thank you all for your patience and understanding.
-Estate of Julian Klein/5th Hole Investments, LLC
Earlier in the week, Helmut Wyzisk III, Vice President of the Signature H Property Group, posted this update on the nextdoor.com site associated with the Errol Estate community in regards to the Estate of Julian (Larry) Klein and the suspended operations of the New Errol Project announced on July 18th.
Signature H is the developer of The New Errol project.
New Errol Update from Signature H
Dear Errol Community:
Signature H Property Group LLC and New Errol Partners LLC would like to provide the Errol Community with an update regarding the status of the New Errol project. I want to thank you for your patience and apologize for the lack of communication you’ve been given.
Signature H and New Errol Partners remain committed to moving this project forward. We have partners in place for the financing, construction, and management of the New Errol project. However, commitments from these partners are expiring as we continue to be delayed by the Estate of Julian Klein. The delays have also pushed the development schedule to a point where opening the golf course and clubhouse in 2019 is in jeopardy – a potential death blow to the project.
The key aspect for this project to move forward is for the property owner, 5th Hole Investments, LLC, taking action on their agreement to transfer the property, upon rezoning, to a new ownership entity (of which 5th Hole is a member), New Errol Partners, LLC. Without this authorization by the members and managers of 5th Hole, the company has no asset to develop.
Unfortunately, it does not appear 5th Hole intends to comply with our agreements or at least shows no urgency to do so. We haven’t been provided any explanation by 5th Hole Investments as to why, and we fail to see any logic in their inaction. From our perspective, moving forward with the project is undeniably the best-case scenario for all parties involved, including the Klein estate, 5th Hole Investments, the community and the city.
As this may be the last statement from Signature H to the Errol community, I would like to provide more detailed transparency regarding the past two months.
Immediately upon the sudden passing of our partner Larry Klein, we were informed that Larry’s estate would now become the sole manager of 5th Hole Investments. Since management rights passing to an estate is not typical, we requested documentation to understand how this was possible. The family assured us they intend to move forward and would arrange an in-person meeting following the funeral and grieving process to formalize the transfer.
Since then, we were told that Robert L. Klein, Larry’s son, had been appointed as the personal representative (PR) of Larry’s estate, despite being described by the family as “not having a strong relationship with Larry”. We were then also told that two eminent domain attorneys from Minnesota and Wisconsin would be representing the Klein estate’s interest in 5th Hole Investments, LLC, as its sole manager. They immediately proceeded to take the unilateral actions of shuttering the clubhouse, banning us from the property and halting the project, all of which to our knowledge was done wrongfully. We reached out to the family and both attorneys multiple times in an effort to understand their actions, yet we were provided no logical explanation and only hostility. The attorneys for Larry’s estate continue to insist that the PR of Larry’s estate is the sole manager of 5th Hole Investments and as such, has the right to approve of all actions since he now controls the property. However, despite multiple requests, the estate never furnished any documentation proving that Robert L. Klein, as PR of Larry’s estate, is actually the sole manager of 5th Hole, something that is seemingly in contravention of the 5th Hole operating agreement.
We have contacted the four living members/managers of 5th Hole, who to our knowledge are the only members and managers with voting rights, and provided them the agreements and an open line of communication. However, they have either been on vacation or unwilling to even discuss the project. We have encouraged these members/managers to contact their legal counsel to hopefully expedite this process, but they don’t appear to have done so.
At this point, Signature H’s options are limited. When an abrupt stoppage occurs in the midst of a development process, and a resolution is not immediately forthcoming, it is typical for the property to be encumbered with numerous liens and litigation. This fact will only add more delay and further complicate the path to resuming the project.
These unfortunate circumstances are not what we envisioned for this project. We have worked tirelessly for the past 2 years to make New Errol a reality for this deserving community. We had begun development on the golf course, completed our plans and architecture, secured our funding, were proposing a CDD to the City, but unfortunately, it appears Signature H’s involvement could conclude here. I am very sorry to write these words, and I feel disappointed for every community supporter who has believed in New Errol. I apologize for not being better prepared for this situation, as we had tremendous faith in the 5th Hole managers honoring not only all of our signed and ratified agreements but also the wishes of our beloved partner.
As of today, we still remain committed to making New Errol a reality, but we’re truly running out of time. We need to gain immediate clarity on the intentions of the 5th Hole managers to save this project. Otherwise, the likely outcome is litigation involving liens and defaulted agreements, which could take years and will assuredly end the chance of Larry Klein’s vision of New Errol coming to fruition. As always, if there are further developments I will continue to keep the community apprised at the earliest possible time. Until then, I will refrain from any further comments as we transition into the legal stages of this resolution.
Helmut J. Wyzisk III