‘With sad hearts’ Elk Ridge owners step aside as resort falls into receivership

The COVID-19 pandemic was the final blow to an award-winning golf resort that helped put northern Saskatchewan on the map.

Elk Ridge Golf and Conference Centre near Waskesiu is going into receivership, according to an affidavit filed in Court of Queen’s Bench in Regina on June 5.

The resort shut its doors on March 26 and laid off all its staff amid the pandemic.  Hopes of it reopening this spring ended when the resort handed the keys over to Prince Albert’s Conexus Credit Union, listed as the primary lender on the property.

“With sad hearts we have stepped away from Elk Ridge,” vice president Debby Klarenbach wrote in a May 22 letter to Elk Ridge property owners.

“It was with great regret that we officially informed the financial institution of our inability to carry on. The plan was in place to operate for the year and then COVID-19 hit. This outbreak simply made it impossible to continue running the business. Without operations, the revenue dropped to nil but the expenses did not.”

Founded by her father Arne Petersen in 1993, the resort began to fall on hard times in 2017 according to court documents. In November 2018, Elk Ridge informed the bank it was “about to run out of money imminently and the resort will need to cease operations.”

The resort was able to stay afloat despite its cash flow problems.

Heading into the spring of 2020, bookings and events had improved. However, in the second week of March that optimism evaporated. Cancellations poured in with the outset of the pandemic.

The affidavit said as of May 6, Elk Ridge’s outstanding loans totaled $13,289,737.

The resort’s assets listed in the affidavit include: the 27-hole golf course, 34-room hotel and spa, 51 rental cabins, a church and various other recreational facilities.

Lou Doderai owns a condo along the golf course and said it’s a sad end to the Petersen legacy.

“We know that the Petersen family has put their heart and soul into this business for many years. I think people understand times are tough and things like this do happen.”

Doderai said he was initially worried about his property value going down, however his concerns were eased after hearing the golf course would be maintained during the transition to a new owner.

“Anyone that has been there is really amazed how incredible the property is. I think it has a really bright future,” he said.

Edmonton accounting firm MNP was approached by the Elk Ridge Community Owners Association to reopen the golf course during the transition, but efforts fell flat this month.

“After a lengthy conversation with the Receiver, we have been informed that the golf course will not open while it is in their control. The course and resort grounds will be maintained, as personnel have been hired to do so,” said an email from the association to property owners.

Permission was granted to local volunteers to assist a qualified course management person with maintenance of the course.

The sale of the Elk Ridge property will be done through a bidding process, but a closing date was not revealed.

In the meantime, customers with outstanding deposits for golf and cabin rentals this summer remain in limbo.

Eric Sirrs with MNP said they are still reviewing the books and records of Elk Ridge and the status of those deposits is dependent on whether a new owner is found, and the completion of the resort’s sale before the end of the season.

“(It’s) something we are working towards,” he said in an email.

In an email to 650 CKOM on June 2, the resort said cancellations up to May 31 are currently being processed. All other inquiries will be responded to when the resort re-opens.

Efforts have been ongoing for some time to find a buyer for the 479-acre development. Listing agent Colliers International said the property remains for sale while in receivership.