Wigwam Golf Resort & Spa

WIGWAM GOLF RESORT AND SPA

We have prepared the following information to keep our residents apprised of the ongoing situation with the Wigwam Resort and Spa and its related golf courses. We have tried to provide information about the most commonly asked questions. We will update this information as appropriate and you are welcome to contact City Hall with additional questions or concerns at 623-935-5033.

FACT SHEET

• On April 20, 2009, the City was notified that a Notice of Trustee’s Sale had been filed by Citigroup Global Markets Realty Corp. According to the Notice, a Trustee’s Sale will take place on July 9, 2009 at 10:00 am, at which time the assets of Kabuto Arizona Properties, LLC (“Kabuto”) will be sold. In Litchfield Park, that includes the Wigwam Golf Resort and Spa, including the golf courses (“Wigwam”).

• Other property owned by Kabuto in Litchfield Park such as Scout Park, Scout Lodge, the land adjacent to City Hall and the commercial buildings at Wigwam and Old Litchfield Road are not included in this Trustee’s Sale.

• The land to the south of the Red Golf Course where the Awenasa Condominium development was planned has been sold to Homes by Towne. There are currently no development plans.

• Starwood Hotels & Resorts Worldwide, Inc. (“Starwood”) is the current manager of the Wigwam. By letter dated April 20, 2009, in compliance with the Federal Worker Adjustment and Retraining Notification Act, Starwood gave notice to the State of Arizona, the City and the Wigwam employees that effective May 29, 2009, Starwood will cease operating the Wigwam and that a total of 330 employees will be permanently laid off by Starwood.

• On April 16, 2009, an Order to Show Cause was issued by Maricopa County Superior Court to consider the appointment of a receiver for the properties. It is anticipated that the receiver will be appointed by the end of April. The receiver will operate the Wigwam until the property is sold. We anticipate that the Wigwam will continue to operate without substantial interruption during this period.

• Douglas Wilson Companies of San Diego, California has been named as the Court appointed Receiver for the Wigwam Golf Resort and Spa property; and the Wigwam and Biltmore Golf Courses.

• On May 19, 2009, Douglas Wilson Companies announced that Destination Hotels & Resorts will manage the legendary resort and the Arizona Biltmore Golf Courses. Destinations Hotels & Resorts, a wholly owned subsidiary of Lowe Enterprises, is a top seven ranked full-service hotel and resort management company and will step in as manager of the Wigwam Golf Resort & Spa at midnight May 29, 2009.

• Kabuto Arizona Properties annnounced filing for Chapter 11 protection on May 22, 2009.

• U.S. Bankruptcy Court hearing on May 28, 2009 held that Destination Hotels and Resorts will take management control of the Wigwam as of midnight May 29, 2009; and Kabuto Arizona Properties will retain management control of Golf Solutions, which operates Wigwam’s golf courses.

• The Chapter 11 Bankruptcy Hearing scheduled for September 11, 2009 was postponed until September 18, 2009.

• The Chapter 11 Bankruptcy Hearing scheduled for September 18, 2009 was postponed until September 25, 2009.

• The Chapter 11 Bankruptcy Hearing scheduled for September 25, 2009 has been postponed with no date set.

• CitiBank has noticed a trustee sale for the Wigwam Golf Resort and Spa to be held on October 27, 2009.

• The Federal Bankruptcy Court ordered Kabuto Arizona to provide a sale plan to the Court by October 22, 2009.

• The Sale Plan and Trustee Sale have been postponed.

• The City is monitoring this matter and is being kept informed of new developments as they occur. We will update this fact sheet as this situation develops.