The Block’s Eneliko Smith Purchases Sugar Loaf Resort
Mike Lewis
http://business.tran...ar-loaf-resort/
Eneliko Smith, the managing partner behind the now defunct The Block hotel chain, is investing a reported $10 million to reopen Michigan’s Sugar Loaf ski resort. Sugar Loaf was closed in 2000 due to financial problems. The Block was closed in 2008 due to financial problems, serious financial problems that have resulted in Smith, who is based in Las Vegas, facing felony grand theft and embezzlement charges in California’s El Dorado County.
Smith told the Traverse County Record-Eagle that he plans to purchase the entire resort, an attached golf course and a supporting water treatment plant and plans to open at least a portion of the resort by July 4.
“I’m not a ski resort person. I need a partner,” Smith said in the Traverse City Record-Eagle. “We need a partner that’s going to come in that knows the ski resort business like the back of their hand. The Midwest ski resort business, not California, not Colorado.”
It will be interesting to see who’s willing to step to that one. The Internet is awash with a sea of posts about Smith’s dubious business dealings and past lawsuits including being sued by former partner Nicky Hilton.
Leelanau County Commissioner Melinda Lautner wonders how plenty of red flags went unnoticed as Sugar Loaf’s owners and some county officials touted Smith as an ideal buyer.
“I’m greatly concerned that there are people in our county that were this far along in agreements and plans, etcetera, and hadn’t even Googled the guy,” she said. “I’m kind of stunned.”
Still, Lautner said, concerned county officials won’t have much say in the matter if Smith doesn’t opt to use brownfield dollars or other public incentives.
“On a totally private deal, the county has absolutely no involvement,” she said.
Commission Chair Mary Tonneberger agrees.
“I don’t think we have the ability on a private sale to examine the financial status of the buyer,” she said.
But e-mails still poured into county offices after the Record-Eagle on Saturday published a story about Smith’s plans for Sugar Loaf. Glen Arbor resident Molly Melin, 29, was among several people who expressed their concerns.
Melin believes the public deserves to know exactly what Smith plans to do with the resort, and thinks county officials need to take an interest in the pending deal.
“It’s just a little shady when your resume is based on defending everything you’ve done in the past,” she said, referencing a section of Smith’s Web site where he addresses negative accusations against him.