Earth Quest Adventures

[Soapboxmom]

It's been less than a month since that date came and passed. Some lenders will let the loans float as long as payments continue to be made and as long as the borrower continues to demonstrate good faith.

Even still... You should do an open records request from the East Montgomery County Improvement District. Ask for copies of all written correspondence between them and Marlin Atlantis or any of its principals.

This overdue loan has had 5 extensions / modifications. The most recent one was for only 3 months. That does make me wonder if the bank is tired of dealing with this.

I am familiar with open records request, but I am not sure if the correspondence of that nature is available. Checking that out is an excellent idea. If it was one would think the media would have pounced on that already and busted this thing wide open. Perhaps someone with more time will do more digging. I am just very concerned that we as taxpayers are not getting updates and reliable information. With millions of dollars spent where is the transparency and accountability?

Soapboxmom

[TheNiche]

This overdue loan has had 5 extensions / modifications. The most recent one was for only 3 months. That does make me wonder if the bank is tired of dealing with this.

I am familiar with open records request, but I am not sure if the correspondence of that nature is available. Checking that out is an excellent idea. If it was one would think the media would have pounced on that already and busted this thing wide open. Perhaps someone with more time will do more digging. I am just very concerned that we as taxpayers are not getting updates and reliable information. With millions of dollars spent where is the transparency and accountability?

Soapboxmom

All it takes is a couple of paragraphs on paper stating what you want from them. The worst that can happen is that they furnish a letter from the attorney general saying, "Nope." If you fancy yourself some kind of investigative blogger or whatever, and you ever want to be taken seriously, then you need to take yourself seriously. You shouldn't expect the media to do the work for you. (They're in the entertainment industry, if you hadn't noticed.)

[Soapboxmom]

Improvement district bolsters East Montgomery County - Your Houston News: News

“(But) everyone wants to talk about EarthQuest,” McCrady conceded.

EarthQuest is a $550 million amusement park which is scheduled to break ground in six to nine months, he said. The design of the park is essentially in four areas, all on adjacent sides of a central mountain.

“There is a huge demand for commercial development,” McCrady said.

Phase I of the development has a projected initial investment of $550 million, the bulk of which is the $389 million theme park. A resort 250-room hotel is projected to cost $77.9 million. Other areas in the design include Cretaceous Cove ($32.1 million developmental budget), Green Gadget Garage ($17 million), Earth Walk ($26.9 million), an eco-tourism area ($6.9 million) and a museum $20 million.

“Our focus is to bring in amenities to improve the quality of life,” McCrady said of the East Montgomery County Improvement District. For more information on the district, visit www.emctx.com.

We are still being strung along. The loans were renewed for a year through September 14,2012. The construction costs have been quoted higher, but I still am not convinced that the theme park can be built for anything near even the 389 million dollar figure.

When are we taxpayers going to get a real update and some honest disclosure? Is the financing finally secured? Why is ground breaking put off yet another 6-9 months?

Soapboxmom

[Mister X]

Glad to hear the park still has not been cancelled. It's taking forever to get this thing going. It took 12 years for Disney to build Walt Disney World. 9 of those years it was only in the conceptual/planning phase. EarthQuest may well be AHEAD of schedule. Building a 1600 acre, half billion dollar project must be a little more complicated than building a suburban strip center.

[Houston19514]

Improvement district bolsters East Montgomery County - Your Houston News: News

We are still being strung along. The loans were renewed for a year through September 14,2012. The construction costs have been quoted higher, but I still am not convinced that the theme park can be built for anything near even the 389 million dollar figure.

When are we taxpayers going to get a real update and some honest disclosure? Is the financing finally secured? Why is ground breaking put off yet another 6-9 months?

Soapboxmom

What is the taxpayers' investment in this project ?

[Houston19514]

Soapboxmom, anyone...

What is the taxpayers' investment in this project?

[Soapboxmom]

EMCID takes one step closer to Dinosaur Park

By

MATTHEW HUISMAN

Published: 10.14.08

The East Montgomery County Improvement District board has set a date of Dec. 12 for for its target to attain $7 million in bonds for the development of the dinosaur park. Marlin-Atlantis is the real estate developer planning the estimated $1.5 billion park and resort to be built on U.S. Highway 59 by 2011.

The EMCID board is loaning Marlin the $7 million in bonds toward pre-development costs of the construction, according to Frank McCrady, EMCID president. The expenses include fees for accounting, engineering, design and master planning.

The board will be repaid half of the bond once Marlin takes out the construction loan. McCrady said the construction loan is expected to close summer to fall 2009. The remaining $3.5 million will be paid five years after the construction loan closes in 2014.

________________________________________________________________________________________________________________________________

I have heard other figures bandied about, but here is one from a trusted source. I suspect that Marlin Atlantis hasn't paid back a cent. There are no construction loans filed yet that I am aware of. The Texas legislature also passed legislation to support this project. The taxpayers are very likely to get burned I would imagine. We have had no real updates or disclosure for months. Where are the two investors that were bragged of in 2010?

Soapboxmom

[Houston19514]

EMCID takes one step closer to Dinosaur Park

By

MATTHEW HUISMAN

Published: 10.14.08

The East Montgomery County Improvement District board has set a date of Dec. 12 for for its target to attain $7 million in bonds for the development of the dinosaur park. Marlin-Atlantis is the real estate developer planning the estimated $1.5 billion park and resort to be built on U.S. Highway 59 by 2011.

The EMCID board is loaning Marlin the $7 million in bonds toward pre-development costs of the construction, according to Frank McCrady, EMCID president. The expenses include fees for accounting, engineering, design and master planning.

The board will be repaid half of the bond once Marlin takes out the construction loan. McCrady said the construction loan is expected to close summer to fall 2009. The remaining $3.5 million will be paid five years after the construction loan closes in 2014.

________________________________________________________________________________________________________________________________

I have heard other figures bandied about, but here is one from a trusted source. I suspect that Marlin Atlantis hasn't paid back a cent. There are no construction loans filed yet that I am aware of. The Texas legislature also passed legislation to support this project. The taxpayers are very likely to get burned I would imagine. We have had no real updates or disclosure for months. Where are the two investors that were bragged of in 2010?

Soapboxmom

Interesting. Couldn't help but notice that the article spoke of the bonds being attained some two months in the future (after the article was dated) Any idea whether, or evidence that, the bonds were ever attained or the money made available to the earthquest folks?

[Houston19514]

Sorry

[McKnight]

I have heard other figures bandied about, but here is one from a trusted source. I suspect that Marlin Atlantis hasn't paid back a cent. There are no construction loans filed yet that I am aware of. The Texas legislature also passed legislation to support this project. The taxpayers are very likely to get burned I would imagine. We have had no real updates or disclosure for months. Where are the two investors that were bragged of in 2010?

Soapboxmom

Soapboxmom,

I've sat around for more than a few months without responding to your posts, but I've had enough of 'em at this point.

I'm currently the highest-donating Individual (that is, non-corp-related), toward EQI, the non-profit component of this project. I'm middle-class, single, young, and have attended all of the EarthQuest Institute fundraising events I've been able. I value amusement and theme parks tremendously, and think Houston will benefit very well from a vision as thorougly-thought-out as EarthQuest. While I'm completely frustrated it's taken so long for any component of the Resort to get off the ground, I still have confidence in the current Team developing the project. I've been generally regular personal contact with one Team member (because I'm a donor), but can't mention anything that was reviewed with me.

If you and your consipiracy theorists at Real Scam did your job, you'd also know exactly what was going on, and you'd realize you've been spreading bad information around the past 6 months. I figured everything out in a Google search, but I'm not going to give you any key words. If you were really paying attention, you'd know what to type in, and what to look for.

And let me add, I only found clarifying good news, not bad news.

Let's just say, I've been told first-hand the less news we get, the better.

And if the project never gets off the ground, it will be a shame, and the "joke will be on me," but at least some alongside me have made an effort to help make something great.

In the meantime, please stop bashing this project with incorrect info. and potentially stunting collective confidence in its development.

[Mister X]

Some people (SoapBoxMom, others) just hate the thought of anyone having fun anywhere near Houston. There have been people posting negative things about this project since the first day it was announced. Why- I'll never know. It's not like there is a half billion dollar tourist mecca, funzone resort themed around sustaining the planet built in Houston every day. In fact, as everyone well knows, the Houston area is the largest metro in the country not currently served by a large theme park. A travesty IMO.

Of all the nobel causes in the world to keep one occupied and things to get worked up over, it is mind boggling to me that anyone would want to try to stop EarthQuest from being built. Refineries, warehouse districts and parking lots - no problem, but try to build a place for people to have a little recreation in Houston and watch that scary shut-in scrooge element come out in full force to TRY and stop it. Not that anyone but the almighty dollar is going to stop anything from happening in this part of the country. Real Scam? LOL! Get real.

Only one question, McKnight. Why would the less news we get, the better?

I've been impatiently waiting to ride the volcano roller coaster for almost 6 years now. I don't know what soapboxmom's major malfunction is. I think she's trying to get people to visit her cheezy little no-credibilty webpage. I wouldn't worry too much about anything she has to say. But, there hasn't been any real news about this project in months and months and months - that DOES worry me. It almost seems forgotten about. Lots of grand projects announced in Houston just fade out and are forgotten about by the general public. I worry that is what is happening to EQ. I used to get regular updates from the EQ newsletter and invites to community briefings, but that stopped over a year ago.

Any more info you can provide that would give me hope that this project hasn't been cancelled would be very sincerely and most appreciated.

Thanks

[McKnight]

Only one question, McKnight. Why would the less news we get, the better?

Any more info you can provide that would give me hope that this project hasn't been cancelled would be very sincerely and most appreciated.

Thanks

Sure thing, X, and I appreciated your complete notes above - I'm right there with you. If that forested land isn't developed into this Resort, it will likely become a Wal Mart or something equally awful.

Anyway, what I could gather from the last time I spoke to a Development Team member, is that there'd be little-to-no further publicized updates until a groundbreaking date is set. So the fundraising team is completely focused at this point, and all concentration is on making it happen than continuing with any more PR. This is in part to absolutely not raise any more hopes, but to also curb distracting speculation (re: soapboxmom). None of that is verbatim from the DT member, but it's what I generally inferred from the discussion.

I haven't even heard from the DT member in 6 months (likely to prevent me from outlining any note more detailed than this), and I know for sure the person is not going to be one to leave me hanging indefinitely, project or no project.

So, arguably, any next word we get will be either word of absolute groundbreaking, or a complete suspension of the project. So no news (or little news) is good news until absolute word of groundbreaking.

Get creative with your Google searches, and you can learn a lot - enough to completely shut soapboxmom up. No hints, links, or more detailed posts from me, though.

It's all a waiting game, guys. Let's see what late winter brings us. Oh, and to clarify. I'm also 'txtiger' on here - the guy who posted all the huge updates from the fundraisers, earlier in this thread. I mis-managed my login info, and locked myself out of that profile, so need to tend to getting that deleted.

(Complete side note, and I know the Landry's Corp is an entity many people in Houston love to hate: While we're all waiting for more diversions here in the Houston area to help people get their asses off the couch and instead be out in the sun, those interested can keep track of Galveston's new Pleasure Pier project on the Facebook page via the official website - www.pleasure-pier.com While I don't exactly want to see Mr. Fertitta own everything of the sort in the region, I at least appreciate his investment in gool ol' amusement-based entertainment... Latest word from www.screamscape.com is even Kemah Boardwalk will be receiving a multi-million dollar overhaul for 2013.)

[Mister X]

Thanks for the info and words of encouragement McKnight. What you say makes complete sense to me. I also agree 100% about your thoughts on Mr.Fertitta. The Galveston Pleasure Pier is going to be a fantastic asset to the area. And that multi-million dollar overhaul for Kemah Boardwalk sounds really exciting. Lets hope it all works out.

[Soapboxmom]

My insider source was correct. The scumbags are out!!!

EarthQuest dino-park lands in bankruptcy

Tuesday, January 10, 2012

Cynthia Calvert

Whitestone Houston Land Ltd. (“Whitestone”), an entity that owns approximately 1,564 acres near New Caney, a portion of which includes the planned EarthQuest theme park and museum, has filed for bankruptcy.

The EarthQuest theme park and museum has been promoted for years as a soon-to-come entertainment center with retail shopping, a water park, hotels, an eco-tourism area, and a residential development, along with a dinosaur area. The project grew from $50 to $500 million+ with numerous delays in breaking ground. To date, no construction has occurred.

According to trollerbk.com, Whitestone filed a Chapter 11 petition (re-organization) for bankruptcy protection more than five months ago on August 1, 2011. The filing was made at the United States Bankruptcy Court, Eastern District of Texas (Sherman). The bankruptcy petition number is 11- 42400.

According to Schedule B of the petition, Whitestone has $0.00 in its business checking account. Schedule D shows a total indebtedness to secured creditors of $20,167,465.94.

Schedule F of the petition indicates that Whitestone owes another $808,179.28 to various unsecured creditors. Notably, those unpaid amounts include $123,845.13 to local taxing agencies for unpaid property taxes for the 2008 to 2010 tax years. The status of payment for the property taxes due January 31, 2012, for the 2011 tax year is unknown.

Also included in Schedule F is an unsecured $225,000 note payable to the East Montgomery County Improvement District (“EMCID”). However, more significant amounts have been funded by EMCID to Whitestone in the form of expense reimbursements.

Whitestone is a limited partnership whose general partner is Whitestone Houston Holdings LLC. The manager of the general partner is John D. Marlin. Marlin is also manager of EQ Ventures GP LLC, the general partner of Global Earthquest Ventures LP (“Global”). Global is one of the parties to the contracts executed with EMCID.

According to www.earthquestinstitute.org, Marlin is also a director of the EarthQuest Institute (“Institute”), a nonprofit organization established to apparently manage the EarthQuest Museum and Institute. Marlin is shown on their website as a director of the Institute. The Institute is another of the parties to the contracts executed with EMCID.

According to www.earthquestadventures.com, Marlin’s real estate and development company, Marlin-Atlantis, of which he is the chief executive officer, is the general partner and developer of the planned project through an entity called EarthQuest Resort. This company does not appear to be a party to the contracts executed with EMCID. Marlin-Atlantis is based in Dallas.

Marlin did not respond to a request for comment.

Frank McCrady, President and CEO of EMCID, stands behind the development. “We have a new developer who is working with the bank to take over the property and the project.

“It is not a matter of if, but when [it will be built],” he said.

According to a website at www.landadvisors.com/whitestone, Whitestone originally acquired the New Caney land for a residential development to be called Whitestone. As described in a special warranty deed dated June 14, 2004, the same being recorded in the public records of Montgomery County under Clerk’s File Number 2004-06651 and film code number 608-10-2194, the property was purchased from HS Tejas Ltd. The purchase price of the land, as stated in the first paragraph of the deed, was in the amount of $4,150,000 plus “$10 and other good and valuable consideration.”

Over time, the idea of a dinosaur-themed park and resort was developed through the principals and affiliates of Whitestone. This new concept was then planned on about 500 acres of the land that was originally intended for residential development. Due to the projected economic impact on the surrounding region, discussions were initiated with the EMCID.

Those discussions ultimately resulted in a series of complex agreements between Global, EMCID and the Earthquest Institute. Briefly stated, for the perceived future benefits of having a major theme park and other related developments, EMCID agreed to sell millions of dollars in bonds in order to provide funds to Whitestone for “pre-development” and “pre-construction” expenses.

Pursuant to a Houston Chronicle-This Week article dated August 26, 2009, the aggregate funds [then] paid by EMCID to Whitestone for the foregoing expenses totaled $7,800,000. The same article referenced a second request by Marlin for EMCID to provide another $2,800,000 to Global to pay for a “site locater fee,” the recipient of which was unnamed in the article.

McCrady said that EMCID subsequently did not advance the additional funds to pay the site locater fee.

“We do not want people alarmed and think that the project will not be built. We have Contour Entertainment from Los Angeles. They are going to take over,” he said.

McCrady said he was aware Whitestone had filed for bankruptcy some months ago.

“They have a restructuring plan – a hearing on this will be held Jan. 23 in Dallas,” he said.

The property is currently in bankruptcy but McCrady says Contour is currently working with the bank and hopes to purchase the property eventually.

“Contour is an entertainment company with experience developing theme parks all over the world. Our board thinks that is very good,” McCrady said. Contour, McCrady said, was a subcontractor of Whitestone's and performed all the design work on the EarthQuest project, he said. “Chris Brown, CEO of Contour, has been prepared to step in from the inception,” McCrady said. Owning the site would be a first for the Los Angeles-based design firm.

According to Contour Entertainment's website, www.contourentertainment.com,

the company performs many functions related to theme park management but they do not own theme parks. Contour's website states that they perform concept development and show design, project management, operational planning, market research and architectural design. EarthQuest is already listed as one of the six projects Contour is working on.

The site states that, “Contour Entertainment is the Resort Masterplanner and lead designer for all aspects of this $530 million, 500-acre (Phase 1) entertainment resort as well as providing the initial design for the conceptual direction and facility design for the $20 million, 40,000-sqare foot, not-for-profit EarthQuest Institute.”

It appears that the general plan of repayment to the EMCID was to receive about one-half of the proceeds at the beginning of construction of the theme park, with the second half being repaid after construction of the park was completed. However, there have been numerous changes and amendments to the original contracts and the current status of the repayment terms is uncertain. The filing of the bankruptcy petition has created concerns about any projected construction date and whether or not the bankruptcy filing has jeopardized the repayment of the monies funded by EMCID to Global.

“Whitestone was just a landholding company,” McCrady said. “The bond paid for predevelopment expenses, engineers, drainage, things like that all related to EarthQuest.”

McCrady said that repayments are certain, based on future sales tax recapture as well as future taxes attached to the development zone and future hotel taxes.

“We would not have issued bonds if there was any chance of the funds not being recovered,” he said.

The contracts further provide that, should the project not be constructed, then EMCID would have the right to purchase certain properties owned by the Institute. That purchase option is for the 50 acres upon which the Dino Institute and Museum would be built. The option price for that tract is $1,250,000. This amount would be in addition to the original $7,800,000 already known to be approved by the bond to Global.

McCrady said that EMCID and the bond has put up about $9 million. He said “you can add another million to the bond money” for expenses to date.

Marlin Atlantis also received approval from taxing authorities for property tax abatements to enhance the profitability of the project via Montgomery County Commissioners Court and from the passage of House Bill 4015. At the same time, the contracts between Global and EMCID would have set in motion a set of new taxes and user fees in connection with the development and operation of the theme park and museum, including Improvement Zone sales taxes and hotel occupancy taxes, along with event admission taxes and parking fees and taxes.

In fact, McCrady said,”Without a doubt, this will happen. If Contour fails, others are willing to step up. We are not putting all our faith in one developer. That is not the way we do business. We have backup plans A, B, C and D.”

“From our perspective, the board thinks the future sales tax will pay back the money. The property is well suited to retail development.

“Contour is hoping to pick up the project after the bankruptcy is complete,” McCrady said. “Houston is poised for theme park projects. We have three different economic reports that say that.”

List of creditors and amounts owed listed in the bankruptcy filing:

Creditors holding secured claims, according to Schedule D:

J.R. Moore, Jr. Tax Assessor, $15,970.81; County of Montgomery Tax Office, $61,943.94; Hillcrest Bank, $20,043,611.21; J. R. Moore, Jr. Tax Assessor, $45,939.98.

Creditors Holding Unsecured Claims, according to Schedule F:

Anco-McDonald Waterworks, $5,385; Bracewell & Guiliani LLP, $952.50; Cindy A Schmidt, $2,521.57; Coasts, Rose, Yale Ryman & Lee, $3858.83; East Montgomery County Improvement District, $225,000; Hayne and Associates PC, $155; Hesse & Hesse LLP, $225; Ryan & Company PC, $1025; Sammons Realty Corp., $275,683.88; Texas Commission-Environmental Quality, $2,565.38; Thompson & Knight LLP, $11,978.74, and WMA Whitestone Land LP, $278,828.38.

[Mister X]

This is great news. I couldn't be happier to hear that Contour is driving the project. Contour is a strong developer with many successful projects under their belt. Also glad to hear that other landholding companies are willing to step in to make this project happen.

McCrady said,”Without a doubt, this will happen. If Contour fails, others are willing to step up. We are not putting all our faith in one developer. That is not the way we do business. We have backup plans A, B, C and D.”

[Soapboxmom]

This is great news. I couldn't be happier to hear that Contour is driving the project. Contour is a strong developer with many successful projects under their belt. Also glad to hear that other landholding companies are willing to step in to make this project happen.

McCrady said,”Without a doubt, this will happen. If Contour fails, others are willing to step up. We are not putting all our faith in one developer. That is not the way we do business. We have backup plans A, B, C and D.”

With John Marlin and fake multi-billionaire, scammer Trey White apparently out, there is hope the project can go forward. McCrady should be sent packing as well. The taxpayers and business people who have invested in projects in the area have a right to know what is going on. I have had enough of the clown show antics going on! I hope the truth about what was going on behind the scenes will finally be told. My source was right all along. Marlin Atlantis was allowed to play games for way too long!

Soapboxmom

[Mister X]

Who cares who the hell builds EarthQuest. It could be built by Osama Bin Ladin for all I care. Houston needs a theme park. I like McCrady's attitude and commitment to the project. It sounds like he is very confident the park will be built. As long as I keep reading that he is confident - I will remain confident the EQ will be built.

[Soapboxmom]

Soapboxmom,

I've sat around for more than a few months without responding to your posts, but I've had enough of 'em at this point.

I'm currently the highest-donating Individual (that is, non-corp-related), toward EQI, the non-profit component of this project. I'm middle-class, single, young, and have attended all of the EarthQuest Institute fundraising events I've been able. I value amusement and theme parks tremendously, and think Houston will benefit very well from a vision as thorougly-thought-out as EarthQuest. While I'm completely frustrated it's taken so long for any component of the Resort to get off the ground, I still have confidence in the current Team developing the project. I've been generally regular personal contact with one Team member (because I'm a donor), but can't mention anything that was reviewed with me.

If you and your consipiracy theorists at Real Scam did your job, you'd also know exactly what was going on, and you'd realize you've been spreading bad information around the past 6 months. I figured everything out in a Google search, but I'm not going to give you any key words. If you were really paying attention, you'd know what to type in, and what to look for.

And let me add, I only found clarifying good news, not bad news.

Let's just say, I've been told first-hand the less news we get, the better.

And if the project never gets off the ground, it will be a shame, and the "joke will be on me," but at least some alongside me have made an effort to help make something great.

In the meantime, please stop bashing this project with incorrect info. and potentially stunting collective confidence in its development.

......

Get creative with your Google searches, and you can learn a lot - enough to completely shut soapboxmom up. No hints, links, or more detailed posts from me, though.

If you are in fact the largest indiviual investor you may have just been burned. I have known for months the project was having financial problems and bills were not being paid. In order to protect my sources I never give out information that could give away their identities. This bankruptcy is no surprise to those who were following this closely. Marlin Atlantis' Trey White is no multi-billionaire. That oily John Marlin has his hand in every pie related to this fiasco. They have run other projects into the ground and never had the experience or qualifications to be involved in this in the first place.

The real disaster now will be sorting out the many contracts and agreements made with Frank McCrady's gang. McCrady has also known for months that he was dealing with dishonest buffoons and he just kept rambling on about how wonderful everything was going. Time to send that boy packing! The property LLC is in bankrupcty. Many other LLCs signed contracts related to this. The question is will the Marlin Atlantis scammers sign off and allow the project to go forward or will there be months of costly litigation to extricate them from the project and send them packing? Here is a listing of LLCs

The documents related to the charity, The Earthquest Insitute, are quite telling as well. Marlin Atlantis' Deborah Thomas was paid $140,000.00 in 2008 for working part-time for this Insitute. That is beyond ridiculous! It is high time this sham of a project gets exposed. Why is the local media not all over this???

Soapboxmom

[Mister X]

Obviously it's not that big of a deal to anyone but you.

[Soapboxmom]

Here is the link to the actual bankruptcy docs:

http://www.realscam.....html#post14855

I have only briefly perused them, but several things stand out. Whitestone claims the property is worth around 25 million. They owe the bank around 21 million and the bank's appraiser valued it at around 10 million.

The bank also argues in a bunch of legalese that the bankruptcy is improper for an entity that holds only a non-income producing piece of land. They want the court to grant them relief from the automatic stay so they can foreclose on the property immediately.

It appears the Whitestone bunch does not have any buyers for the property and no reasonable way to pay what is owed.

Soapboxmom

[TheNiche]

First thing's first. I am not an attorney, merely someone experienced in the development of commercial real estate. I once contemplated and researched a Chapter 11 filing, but didn't have to go through with it (thank goodness!) and since then, I've evaluated several bankruptcy situations for their investment potential. I'm no expert (and nobody should rely upon my comments for business or investment purposes), but I am an experienced professional. You are not. I shall ply myself with the equivalent of three shots of gin, then two beers and a pizza during the analysis, just to keep our debate lively and on a level playing field.

The lender's claim that the land is worth $10 million is probably valid, albeit with a fairly significant margin for error. Most of the large-tract land sales that have been taking place in the northeast and east parts of the metropolitan area for the prior several years have been consumated at the courthouse steps or otherwise under duress. The volume of valid transactions is minimal. It's hard to tell what the market value is for lack of data. The appraiser was likely working from a liquidation value perspective rather than attempting to estimate a going concern value provided a reasonable and appropriate time for marketing the property...which could be several years in this instance. Without reading the appraisal, however, it is impossible for you or I to know what its scope was or what the assumptions were. The appraiser's client, the creditor, defined them in the engagement contract, and most likely in such a way as would benefit them the most.

Whitestone Land's first plan for reorganization was filed in October 2011. The article was written in January 2012. Circumstances do change over a period of three to four months. If the new equity investor, possibly Contour, is able to provide a fresh infusion of capital to the venture under the provisions of the Chapter 11 reorganization plan, then debt service can be paid to creditors. All parties should like that, and if the new equity investor were to fail at some point, then the venture would re-enter bankruptcy and be disolved in the future. Presumably, future land values will be higher than present land values; so again, all parties should like that.

In fact, as long as the creditors are getting paid on more than just the liquidation value ($10 million divided many ways), for any amount of time, then they should favor that outcome. That is the purpose of Chapter 11 is to maximize the return to the creditors. That said...if the creditors didn't think that there was any likelihood of a new equity investor jumping in when they filed to convert to Chapter 7, then they would be acting reasonably, within their rights, and according to the spirit of the law.

To a large extent, the debate over whether a startup venture is subject to bankruptcy protections has to do with the momentum that it has going for it. This is mostly subjective, and (myself, not having reviewed case law) should hinge primarily upon the market value of goodwill established by the debtor. In accounting terms, any amount of market value that the debtor's entity has over and above the liquidation value of their tangible assets is that goodwill. And having expended as much money on marketing, political consulting, planning, etc., as they have, it is entirely likely that goodwill does exist. These concepts are...complicated and uncertain. But banks don't like complication or uncertainty, and plantiffs positively love making the worst of circumstances. It is possible that they're just trying to strongarm the debtor by leveraging a less-than-credible threat.

So the bottom line is that there are more unknowns than there are knows, from our lowly perspectives as spectators. Its a ____ed up sport; the rules are too complex, too opaque, and may or may not make sense. My contribution to this thread is to point out that none of us have anything meaningful to contribute. It ain't over till the fat lady sings.

I know that we've got a former bankruptcy attorney somewhere on HAIF. If he'd like to chime in and tell me how horrifyingly wrong I am, that would be appreciated.

[Mister X]

This was pointed out on another disreputable forum, so take it for what its worth:

"According to the bankruptcy filling EMCID owns 50.95% of 'Whitestone Houston Land' - the company that owns the land." How much more does this complicate the chapter 11 if true? Isn't it possible that EMCID has control of the land already and can push the development if they so desire?

No answers, only questions but Frank McCrady of the EMCID is seriously pushing this project and claims to have backup plans A,B,C,and D ready to go should Contour not pick up the pieces.

Obviously I want to see this project happen, so I stay optimistic about its chances (even after 6 years of waiting), but I still see no reason to assume the project is in serious jeopardy until the EMCID is publicly ready to give up on it - and that hasn't happened by a long shot.

[TheNiche]

The answer to your question is that Whitestone Houston Land is a bankrupted entity, whose plan is to void the equity stake of all of the investors up to this point. If EMCID wants to inject fresh capital, then they can keep the entity going and effectively take control of the entity...but they'll still have to pay debt service, or there'll just be another bankruptcy, probably Chapter 7 on the second go-round.

Frank McCrady's optimism is the rational action of an investor in an entity that is fighting a motion by creditors to convert a Chapter 11 bankruptcy (reorganization) to a Chapter 7 bankruptcy (liquidation). It may or may not be genuine. We do not know.

[Soapboxmom]

http://www.ourtribune.com/article.php?id=13242

Finally the truth is out. I spoke to Contour and knew this was coming. I can also now share that I spoke to "Dino" Don Lessem last year and the Marlin Atlantis gang was not fulfilling their obligations to him. He is another victim in this dino disaster.

I will keep watching PACER for more filings in the bankruptcy. The paper references the bankruptcy papers I have up in their original form on my site.

http://www.realscam.com/f11/trey-white-fake-multi-billionaire-marlin-atlantis-earthquest-park-don-lessem-654/index4.html#post14855

[Mister X]

Sounds like the EMCID has an even bigger incentive to get this park built now.

This quote from the article is very encouraging...

"If the original site becomes unavailable, Contour has chosen several other nearby alternative sites. “We are interested in that property, but we have also looked at other sites. Our preference is that particular piece of land but it doesn't have to be. The project is not dependent exclusively on that,” Brown said."

It sounds to me as if Contour and the EMCID are determined to build EQ. They know that a park like this in an underserved metro will be a goldmine.

[Soapboxmom]

Realscam.com is a crackpot website. Soapboxmom has been at every internet forum that has an EarthQuest thread trying to discredit Marlin/Atlantis and Trey White. She finally found HAIF. My guess is that this is just another NIMBY troll out to try to stop the project. The latest news is that EarthQuest is still a go. The NIMBYs are getting nervous.

Marlin/Atlantis owns the land EQ is to be built on. I do not believe they are funding, building, designing, or managing this project.

May I just say my crystal ball is working splendidly. Trey White and John Marlin have sunk this like the Titanic. Contour might just star in the next chapter -- raising the Titanic.

[Mister X]

Coaster was right about one thing. Realscam.com IS a crackpot website. It's completely void of anything other than the opinion of the person who runs it. Even Hitler made the occasional right guess. Really, nothing to brag about.

EQ isn't sunk by any means. It may have spotted an iceberg - hopefully in time to avoid collision. If that is the kind of info Miss Cleo's crystal ball spits out, it isn't worth much.

[Soapboxmom]

I must be confused, but since when did court papers, mainstream press articles, public records and such consitute opinion? I kept in touch with folks actually involved in the project and then researched the back story on Marlin Atlantis. That is something that EMCID and Frank McCrady should have done. No guessing there. I just made sure to respect my sources privacy.

Sadly, the Marlin Atlantis bunch did not fulfill their obligations to Don Lessem and now the brains, genius and real core of the project has pulled out. Originally, it was his Dino museum that started this ball rolling. He got burned very badly by this bunch from Marlin Atlantis. That is going to make it all the harder to attract investors with him out of the project.

It was obvious last summer from the filings in Montgomery County deed search that this deal was in trouble. It is also obvious from the EMCID board meeting minutes that the taxpayers have been kept in the dark about what was really going on and that is inexcusable. I am glad Cynthis Calvert is really investigating. I can't wait for the next article due out on February 7th with more on the financial records.

If there is honest disclosure and the public rallies behind the project that would sure make it more attractive to investors. It might be time for a new board and for Frank McCrady to resign.

[Mister X]

That is going to make it all the harder to attract investors with him out of the project....It might be time for a new board and for Frank McCrady to resign.

Like I said...It's completely void of anything other than the opinion of the person who runs it. And yes, I believe you ARE confused.

The theme park is the money maker here. Not the Institute. The park is already designed. Don Lessum is no longer needed for any reason to get the project off the ground. Don Lessum is an expert on Dinosaurs, not building theme parks. He was never more than a consultant during the design phase. Anyway, when was the last time anyone (who knows what they are talking about) referred to EQ as a 'dinosaur park'. That is what they called EQ in the beginning, but it has since evolved (YEARS AGO) into a park that is themed to 'sustaining the environment'. Check out the EQ website. It is not a 'dinosaur park' anymore.

Don Lessum was involved with the project for years. His good name and reputation didn't seem to attract any investors. For years he was speaking on behalf of the park and no investors were secured. So I don't see how his absence from the project (if that is even true) is going to make things any worse or less likely to succeed.

Soapboxmom is the least qualified among us to guess what will dampen the enthusiasm of investors. How many theme park investors has she talked to in order to gage the enthusiasm within unnamed POTENTIAL investors? Contour? Contour says they are even looking at nearby alternate sites on which to build this park on. I say the EMCID has more reasons now to do everything in their power to see to it that this park gets built. It is the only way they will ever get back the money that they have already spent. How's that for an incentive?

Contour will get the money. Or someone else will. There is too much money to be made in an underserved market like Houston. Any theme park built in Houston will be a gold mine - warm climate, 6 million people within an hour away - That is why the EMCID has no intentions of giving up on this project.

I shouldn't have to remind people that the slow economy was definitely a factor in rounding up money to break ground. Look at all the projects announced in the last few years that just went away. EQ has not gone away. That alone should be encouraging. As the national economy improves and Houston's economy remains strong with thousands more moving into the area, the chances of this project finding a backer will no doubt improve. The EMCID and Contour sound more committed than ever before. Until they give up, I will remain optimistic that EQ will be built the way it has been planned.

[Soapboxmom]

Growing governments: How 'special districts' spread across Texas with limited oversight and accountability -- but with plenty of power to tax | Texas Watchdog

The lack of accountability has led multiple sources, including the

Handbook of Texas Online, to refer to the special districts as the state’s “invisible governments.”

The small districts “are subject to little or no supervision by the state, leading to administrative, personnel, and financial practices that are inefficient and sometimes ethically and morally questionable,” the LBJ School group’s paper continued.

Though the money may be coming in, information doesn't always go out. Of 3,000-plus special districts in the state, less than 10 have been tapped for the state comptroller’s transparency “leadership circle,” reflecting that they meet certain standards for publishing financial and other information about themselves on the Internet.

Comments:

Cruiser 1144

Thursday, 02/17/2011 - 01:11PM

Mr. John Otto a house representative for District 18 needs to be reminded that a tax is a tax is a tax. He seems to think that the voters in a small portion of Dist 18 in East Montgomery County don't mind if he is in bed with the improvement district. Mr. Otto you are a RHINO. Shame on you for HB-737 and your special gate tax for East Montgomery County.

Cynthia Calvert wrote:

Director Linda Floyd “recommended that the travel by the EarthQuest consultants “be restricted or eliminated.”

There is no mention of why Floyd was so concerned about the traveling expenses of the EarthQuest consultants. But from financial records obtained by The Tribune it is obvious that EMCID has paid for extensive travel and other accommodations for the EarthQuest consultants.

We tax payers deserve some transparency and accountability!

Soapboxmom