The Peek'n Peak Resort & Spa in Chautauqua County is being bought out of bankruptcy by a developer in Erie, Pa., who has built a restaurant and a hotel in Western New York.
Scott's Development Co. submitted the $11.3 million top bid Wednesday in U.S. Bankruptcy Court in Cleveland for the ski and golf resort in Clymer.
The sale is expected to be approved today. Four qualified bidders attended the closed, court-ordered auction Wednesday, who made a total of 20 bids over the course of the auction. There was no minimum bid set.
The 1,150-acre resort filed for bankruptcy in May 2010 as Kiebler Recreation, based in Chardon, Ohio. It owes Chautauqua County $1.3 million in property taxes, which will be paid out first. Its largest creditor, Huntington National Bank, is owed $17 million.
Scott's Development is owned by Nicholas C. Scott and Nick Scott, who are president and vice president, respectively, of Scott Enterprises. In June 2009, Scott Enterprises built Western New York's first Staybridge Suites on Sheridan Drive and Transit Road in Clarence. In 2008, it built the area's first Quaker Steak and Lube restaurant on Transit Road in Lancaster.
"They are excited to expand upon their involvement in Western New York and to further their commitment to economic development in the area," said Guy Fustine, the attorney representing Scott's Development. "The Scott family will continue to be interested in pursuing opportunities available to them in Western New York that make sense for the company."
Scott's owns more than 20 restaurants and hotels in northwest Pennsylvania, as well as Splash Lagoon Indoor Water Park near Erie.
"Peek'n Peak is about 25 miles from Erie, and there are a lot of obvious synergies," Fustine said.