440 acres near winery for sale

Wiederkehr owner says he has right of first refusal on land

A map showing the location of Altus, Arkansas.
A map showing the location of Altus, Arkansas.

A Wisconsin-based commercial and residential auction company is trying to sell nearly 450 acres on Interstate 40 near Altus that once belonged to Wiederkehr Wine Cellars Inc.

But Al Wiederkehr, the winery's owner, says he's been leasing the property for years and still has an option to buy. He said he was surprised to learn of the online auction, adding he was unsure whether he will buy any or all of the property. He and his wife, Linda, have a liquor store on part of the property.

The land is owned by Allied Bank of Mulberry and was sold to the bank by Wiederkehr in 2010, according to county records. The documents indicated the property was sold for $10 and "other valuable considerations" on April 16, 2010.

Wiederkehr said he made a deal with Alex "Lex" Golden, owner of the bank's holding company, to sell the bank the property and then lease it back with an option to buy. He said he had done business with Golden for years and that the two are still involved in projects together. He declined to say what the "other valuable considerations" involved, saying it was confidential.

"We have a contract and right of first refusal," Wiederkehr, 79, said Friday.

He was adamant the wine company was not behind on any of its loans with any creditors, including Allied Bank and an associated business, a restaurant. None are in financial trouble, he said. Between the wine company and his personal holdings, Wiederkehr said he has approximately 1,700 acres in the area.

Founded in 1880, Wiederkehr Wine Cellars is the oldest operational winery in the state, according to The Encyclopedia of Arkansas History and Culture. Between the restaurant and the winery, the company employs between 70 and 100 people, depending on the season, Wiederkehr said.

Calls left for Golden or any official at Allied Bank who could comment on the sale were not returned Friday.

Micoley.com lists the price on the approximately 440 acres near Exit 41 on Interstate 40 at the intersection of Arkansas 186, which includes small vineyard and a commercial building used now as a liquor store, at $3.5 million with a starting bid of $1.145 million if the property isn't sold by Sept. 27 auction.

In late 2003, Wiederkehr announced plans to develop the area at Exit 41 to make a gateway to Arkansas' wine country. Plans were for the area to eventually house a gas station, restaurant and gift shop, as well as a tourist shuttle. The liquor store was built in 2007, but no other major construction followed.

Wiederkehr said Friday that even if he chose not to purchase any of the land from the bank, the new owners would have to seek a liquor permit since it would not transfer with the property. He confirmed the company was looking for new investors for his entire enterprise and that it was seeking them through crowd-sourcing.

Jamie Perkins, executive for bank relations with Micoley.com, said the company specializes in sales of bank-owned properties and operates in 36 states. He said those wishing to make an offer on the property can do so prior to the Sept. 27 auction. Documents supplied by Micoley.com indicated the property is owned by Allied Bank.

In April, Acme Holding Co., which owns 100 percent of the stock of Allied Bank, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Western District of Arkansas. Chapter 11 allows for a business to continue operating and to reorganize its debts under court supervision. Golden signed the bankruptcy documents on behalf of Acme.

According to court documents, Acme has $12.22 million in total assets, all in personal property, and $11.4 million in liabilities, including $7.8 million in secured claims, $164,922 in unsecured priority claims and $3.4 million in unsecured, nonpriority claims.

Franklin County Assessor Cathy Bennett said records show that ownership of four parcels of property totaling more than 440 acres were transferred to Allied Bank in April 2010. Ownership was transferred to Allied Bank in the form of a corporation warranty deed.

According to the warranty deed, the purchase price was "$10 and other valuable considerations." No revenue stamps -- used to figure the value of the property changing hands -- are included on the deed, Bennett said.

Records confirm that the property was not taken by the bank as part of a foreclosure.

"It was not a foreclosure," Bennett sad. "It says they sold it to the bank."

Bennett said that much property changing hands for such a low purchase price, and the absence of stamps on the deed, were out of the ordinary.

"Honestly, I've never had one sell for that little that I'm aware of," Bennett said. "I'm not sure if there's a limit on when you have to pay for the stamp. Those are usually based on thousands of dollars, not $10."

Arkansas law does allow for a deed in lieu of foreclosure, a transaction in which property is transferred to avoid court cases. Little Rock attorney Kelly W. McNulty of Gil Ragon Owen said there are benefits for both parties in a deed-in-lieu transaction.

McNulty, speaking on the practice in general and not specific to Allied Bank and Wiederkehr, said a borrower would be open to the deed-in-lieu transaction to avoid having a deficiency judgment associated with his their name or business. Lenders are open to the practice because it allows them to avoid lengthy and costly legal battles.

Under some deed-in-lieu agreements, the borrower is allowed to lease the property. After the real estate bubble burst in 2008, the transaction became more popular for both lenders and borrowers.

"There is some heartburn associated with them for title companies," McNulty said. "Borrowers always want them. Lenders are reluctant to give them."

Included in the 2010 transaction, according to Franklin County records, were five separate parcels. All are included as part of the upcoming auction.

A 4,922-square-foot building that houses Wiederkehr Wine & Spirits was included in one transaction for 128.91 acres. Linda Wiederkehr, Al Wiederkehr's wife, holds the permit for the liquor store, which is still operational. Separate acreage of 80.08, 86.43, 54.82 and 87.50 also were part of the deal.

Allied Bank also owns 13.45 acres of pastureland. Lex and Ellen Golden are the owners of 36.42 acres in Franklin County. Both the 18.58 acre tract and 17.84 acres include homes of more than 2,000 square feet.

Business on 08/16/2014

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