The new owner of David Walley's Hot Springs near Genoa in the Carson Valley plans to build up to 100 single-family and condominium time-share and rental units at the historic resort founded in 1862.
Pat Joyce, president and founder of Summerwinds Resort Services of Branson, MO., purchased the resort and adjacent lands out of receivership from Bank of America earlier this year for about $12 million and has invested more than $1 million upgrading the restaurant facilities, which reopened in December after closing in 2009.
"When Bank of America gets a troubled asset they call me and other investors," Joyce says. "I took at look at the property and realize that it is going to be a while before I see any cash coming out of it, but the potential is there, especially with Lake Tahoe and the hot springs."
Summerwinds has a two-year renovation plan that included the extensive upgrades to the 10,000-square-foot, two-story restaurant, as well as an additional $1.1 million in upgrades to the spa and pool facilities, including:
* a new roof for the spa
* new lockers, flooring and equipment.
* replacing all existing plumbing for the hot springs, pool and jacuzzi.
* remodeling the wedding pavilion.
"We want to give it a more natural look," Joyce says. "Everything will be stone and natural it is a beautiful place, and we need to utilize what is there."
The renovation plan also includes building additional time-share and a handful of rental units on nearly 17 acres of developable land, Joyce says. However, Summerwinds will wait until market conditions improve before beginning construction.
"The clientele for David Walley's comes from Sacramento, Central California and the Bay Area, and a lot of those people have been hit pretty hard," he says.
Summerwinds is looking at different architectural renderings for up to 100 units. Joyce says additional units won't look like modern condominiums but rather will mimic the look of an old mining town.
The resort owners include partners Darren Abbott, Rich Dowdell and Dawn Joyce, who plans to move from Missouri to work as onsite manager. Pat Joyce says he is closing on a house at Lake Tahoe and also plans to spend more time in northern Nevada.
David Walley's, which has been rebranded as 1862 David Walley's Hot Springs Resort, plans to start a print, radio and television media blitz beginning Jan. 5 in hopes of drawing locals back to the property, Joyce says. David Walley's also plans to push availability of its wedding facilities, which have been popular in the past.
Summerwinds employs more than 700 people in four states.
