Mountain Creek misses payment


Make text smaller Make text larger







EDITOR’S NOTE: This is a developing story and will be updated.

Mountain Creek did not make its Jan. 31 payment to Vernon Township of $448,481, Mayor Harry Shortway said on Friday.

Shortway said Mountain Creek’s next payment is due on March 1.

The payments are for Mountain Creek’s portion of a bond payment to the Sussex County Municipal Utilities Authority in which the resort is responsible for 63 percent and the township making up the rest.

Shortway said at the Feb. 15 township council meeting that the bond payment for 2018 is about $700,000 and the amount increases annually to $1 million by 2022 before jumping to $1.25 million ni 2023 where it will remain constant for several years.

Shortway said Friday he has heard nothing from Mountain Creek.

“This whole thing is coming out of their Chapter 11 filing,” Shortway said Friday. “We’re spending tens of thousands of dollars to defend our position.”

Shortway said the Vernon Township MUA shortfall is forecast to be $592,276 and if no Equivalent Dwelling Units are added, it will increase to $1,432,970 by 2025, which could increase Mountain Creek’s deficit payment to $902,771.10.

Mountain Creek also was obligated to rebuild Pump Station 2 by 2007, but this was extended to July 1, 2013, by the 2012 interlocal agreement between the township and resort.

Shortway said this obligation has not been fulfilled.

The township extended a $1.9 million letter of credit should Mountain Creek not fulfill its obligation, but Shortway said the letter of credit will only cover two years of deficit payment.

“You can’t stick this debt on $1,400 users,” Shortway said.

A call placed to Mountain Creek on Friday afternoon was not answered.



Make text smaller Make text larger

Comments

Pool Rules



MUST READ NEWS

Insurance Expert Patrick Hughes: Life Insurance
Life insurance helps provide your loved ones with a level of financial security after you're gone. You pay a premium , and if the unexpected happens, your beneficiaries receive a...
Read more »
Image

The Infusion Center at St. Anthony Community Hospital
The Infusion Center at St. Anthony Community Hospital, a member of the Westchester Medical Center Health Network (WMCHealth), provides top-notch care and a
Read more »
Image

When to take the keys from aging parents

Figuring out when it’s time for a loved one to stop driving is a challenge many families face. While you don’t...

Read more »

Fraser recertified as civil trial attorney
Andrew A. Fraser, Partner with Sussex County law firm, Laddey Clark & Ryan LLP and Leader of the firm’s Personal Injury...
Read more »
Image

VIDEOS



Subscribe to our mailing list

* indicates required
Community Newspapers



MOST READ

Local News
EPA, DEP visit Vernon waste pile
  • Dec 6, 2018
Local News
Five ways to use less salt
  • Dec 5, 2018

MOST COMMENTED



Find more about Weather in Lafayette, NJ