Overcoming Financial Trouble
By November 1991, the court appointed Vista Properties Management as the receiver of the Town’s land. Its president, John Kurtz, closed the sales office and began a comprehensive inventory of everything on the property. Meanwhile, the previous developer’s son, Robert Haines IV, who was no longer serving as Mayor, but still as a councilmember, failed to attend several Council meetings, favoring instead spending time in Connecticut with his father’s business. In December 1991, Emily Appleton was appointed to fill his seat on the Council.
Eventually Robert Haines III defaulted on more than $50 million in loans and twelve lawsuits were filed. “The doors to the elegant, $8 million, West Indies style Orchid Island Beach Club were locked; the cabanas, dining room and airy terraces visited only by the wind and a security guard. Across State Road A1A, the Arnold Palmer-designed, 18-hole championship golf course sits unused, closed to play with only a skeleton crew to maintain it. A telephone answering machine answered calls to the Orchid Island Golf and Beach administration and sales office with a message saying the office is closed until further notice.”
In March 1992 the Town held its first real election since 1966. The post-election Council was made up of Ted Leonsis, Lynn Velde, Emily Appleton and Ann Zugelter. Later Barbara Greenbaum would join this Council, after moving into Orchid in July of 1992.
Town Manager Ernie Polverari worked together with Town Planner Mary Jane Vreeland to draw up a Master Plan for the Town. It was adopted by the Town Council, as was a Code of Ordinances. These documents included many planning and zoning restrictions relating to the Town’s future development. They served to “preserve the character of the community” and would shield the Town from being purchased and developed by, among others, a California hotel chain and by Mobil Oil.
The work on the Master Plan and the Code of Ordinances by the Town Manager, Town Planner and Town Council are to be credited with the Orchid that exists today. Ann Zugelter said that Ernie Polverari, as the first Town Manager, particularly deserves credit for his vision for Orchid.
In May 1993, Orchid Island Golf & Beach Club was purchased by First Union for Resolution Trust Company for $19 million and its development was restarted. By March 1994, the golf course was restored to playing condition once more. During this time, Town of Orchid’s community slowly began to grow and a deep pride in the small municipality grew with it.
In October 1994, the property was purchased by TorWest for $20 million. Around this time, in November, the Town Council also saw some changes. Lynn Velde was (unanimously) selected as Mayor, while Ted Leonsis became Vice-Mayor. Following her resignation, Barbara Greenbaum was replaced with Dr. Jim Zickler. By 1998, Barbara would make a return to Council as Vice-Mayor.
By 1996, the Town had 34 residents, but soon room would be made available for more, as the Town approved the development of ocean-front condominiums. In 2000, the Town took under consideration several applications for use of the 510 parcel of land zoned for commercial use. In the fall of 2001, Torwest purchased the 510 property. In 2002, the Town made overtures to Galen Weston to see if he would sell the 510 property to the Town, but he declined the offer.
