Woodcrest Bankruptcy Auction Turns Political

The saga of Woodcrest Country Club took a decidedly political turn Monday night, as local Republicans slammed the all-Democratic governing body over perceived conflicts of interest and financial choices, even as council reaffirmed the decision to push for township and county intervention in the bankrupt club’s auction.

Three of the four Republican candidates running in November’s election took to the microphone to criticize the township’s involvement in the auction—a move announced on April 3—in trying to preserve the 155-acre golf course as open space, raising blunt concerns over the potential short- and long-term costs, as well as transparency issues with the closed-door auction.

“Buying this property could result in increased property taxes,” John Galie said. “As a resident and a taxpayer in Cherry Hill, I…am opposed to town council taking any action to acquire the bankrupt Woodcrest Country Club.”

They saved their harshest criticism for Mayor Chuck Cahn, a member at the club who served as part of the team that tried to save Woodcrest from the brink in 2010, accusing him of having conflicts of interest for his involvement with the club and the Brown family, owners of Sun National Bank, the club’s largest creditor.

The Republicans pointed to $24,000 in donations from various members of the Brown family, as well as Sun National Bank itself, to Cahn’s 2011 mayoral campaign as clear evidence of the conflict.

“I’m not suggesting there’s a quid pro quo here,” Stephen Cohen said. “I’m suggesting there might be the appearance of a conflict of interest, and I think the people of Cherry Hill deserve better.”           

Cahn wasn’t on hand to defend himself from the accusations, as he was on a previously scheduled vacation, but left a statement regarding the township's actions, read by township clerk Nancy Saffos.

“We must preserve the few environmental assets that we have in this township,” Cahn’s statement read. “The ideal scenario would be to see a private entity buy the property and continue to run it as a golf course, but I, for one, am not willing to risk the future of 155 acres of land and the thousands of families who live nearby.”

Council members stood by that statement, unanimously passing a resolution in support of the effort by both township and county officials to pursue a bid in the auction, which is slated for next Monday. That resolution also requires final approval from the council at a public meeting before the township spends any money on the bankrupt club.

“I say without apology that the mayor and all of council…are very much in favor and will be undeterred in fighting to keep the Woodcrest Country Club space as open space,” council President David Fleisher said. “I’m somewhat appalled by some of the speakers who would prefer the development of the Woodcrest Country Club versus preserving it for open space.”

But his Republican opponents lashed back at that characterization, saying their opposition was to public involvement, not open space.

“None of us said that we wanted to see that property developed,” Nancy O’Dowd said. “We don’t think taxpayers should be held responsible for supporting that property…it’s appalling to me that you would misrepresent the statements of the public.”

At the same time, the Democrats on council rebutted Republicans’ concerns over increased debt service to pay for the club, noting the availability of open space funds at the township and county level, which have already been raised via referendum.

“That could certainly be a potential source of funding,” Fleisher said. “This is still a quick-moving situation.”

Either way, it’s likely the bid is either coming in partnership with the county, or with the county spearheading the effort, a slight departure from what Cahn and council members said back in April—but a departure made necessary by the developments since the original announcement, officials said.

“It’s not the plan for the township, on its own, to submit a bid,” township solicitor Robert Wright Jr. said.

It’s not yet clear how much the county could contribute to the effort to buy the club—the minimum bid, with fees, at next week’s auction is just over $6.5 million, and the township has about $1 million in open space funds available, officials said.

The freeholders are scheduled to meet later this week for their regular monthly meeting, which includes one resolution related to Woodcrest—a $20,000 contract for an appraisal on the club.

That meeting comes the same day as the bid qualification deadline for the auction, which has attracted interest from several individuals and groups, including developer Bruce E. Toll and the Union League of Philadelphia.

For more on this story, read:

• End Comes for Woodcrest Country Club
• Possible Bidders File in Woodcrest Country Club Auction: Report
• Cherry Hill Calls for Tax Sale in Woodcrest Country Club Bankruptcy
• Woodcrest Country Club Could Go to Auction in May
• Woodcrest Country Club Goes to Auction May 20
• Woodcrest Country Club Closed-Door Auction Draws Members' Ire