In its first step toward development, Bluegreen has acquired the Patrick Henry Inn and the Liberty Inn and Conference Center, which are located on approximately 4.6 acres here. The company purchased the properties from York Street Properties, LLC, Lisa Thornhill, Bluegreen's director of corporate communications, tells GlobeSt.com. However, she says the company cannot reveal the acquisition price until after it has filed a 10Q. She also says the company cannot disclose the total project cost until the 10Q is filed.

Bluegreen is also in the process of acquiring two more properties from York Street Properties: the Colonial Capital Inn and a commercial building, both located on approximately 18 acres of adjacent land. Thornhill also declined to disclose this potential deal price until a 10Q is filed. Bluegreen expects to close the second round of acquisitions in the third quarter of 2005, subject to due diligence and necessary government approvals; however, the company adds that though it expects to acquire the properties, there are no assurances the deals will close.

With the first round of deals, Bluegreen is eying a fall 2006 start for the first phase of the new resort. It will include the transformation of the 139-room Liberty Inn and Conference Center into 76 one- and two-bedroom timeshare units, with an occupancy date slated for the second quarter of 2007. The work also includes the renovation of approximately 15,000 sf into a Bluegreen Preview Center, which is also expected to be ready in the second quarter of 2007, according to the company. In the meantime, Bluegreen Resorts management is operating the Liberty Inn "to capitalize on the high demand summer season and to allow time for the completion of the permitting process before construction commences," the company adds. Plans also call for the renovation of the 160-room Patrick Henry Inn for overnight accommodations.