Insurance company may not foreclose on buildings used as collateral for Buena Vista golf course
BUENA VISTA (WSLS10) The battle of the Vista Links golf course in Buena Vista heats up.
ACA Guaranty Corp., the insurance company at the center of the deal, says it doesn't want the collateral the city pledged if it can't pay back the bonds.
The collateral includes Buena Vista's municipal building and police station.
After a year of covering the city's payments, ACA Financial Guaranty Corporation said Buena Vista is now capable of paying its bill.
In a letter, Steven Higgs, the attorney representing ACA, says, "ACA has analyzed the city's 2014 audit and it's clear city operations have improved since forbearance."
But city leaders said that is not the case.
"The city cannot afford to pay rent payments that's required," said Brian Kearney, the city's attorney.
Kearney said even though the police and municipal buildings were put up for collateral to finance the golf course, the ACA will not foreclose on them because the company wants money, not the buildings.
Kearney said the city responded to ACA's letter, saying it regrets ACA's unwillingness to negotiate a reasonable settlement but doesn't anticipate any action being taken by council.
Copyright by WSLS - All rights reserved