Next summer, families across Texas may only be able to find one location of their favorite water park, as Schlitterbahn water park and resort on North Padre Island is reportedly facing the foreclosure auction block in February.
According to an agreement announced in a San Antonio bankruptcy court, creditors are giving Schlitterbahn’s owners until the auction to make a deal to save the property.
The water park and resort hotel are said to be collateral for a $28 million loan held by IBC Bank.
Though the bank announced it plans to foreclose on the popular summer attraction to recoup part of the loan, they reportedly agreed to give the owners more time to find a buyer or work out another plan to save the park.
According to a company spokesperson, owners Gary Henry and Jeff Henry are both committed to saving the park.
“The Henry family is focused on a strategy that will allow the waterpark and resort to continue operations,” spokesperson Winter Prosapio said in an interview.
They believe they can come up with a solution to benefit North Padre Island and Corpus Christi, since the park is within city limits.
The 270-acres of land around the park acted reportedly as collateral for $16 million in loans made to Upper Padre Partners, the development owners in the the water park partnership.
However, last week, Austin-based lender Axys Capital Credit Fund gained approval to foreclose on the surrounding properties, which are reportedly scheduled to be auctioned off today.
The Schlitterbahn park initially began with intentions to be part of a $550 million development project on North Padre Island.
The 25-year development project originally came with plans to include a marina, residential properties and a waterfront boardwalk, but the future of the entire site, including its foundation of the year-round water park, are in jeopardy.
Stay tuned, Houston.