TWO HARBORS, Minn. — The owner of Superior Shores Resort has temporarily lost control of the troubled resort’s operations following a Lake County judge’s ruling last week.

The Two Harbors resort is owned by Bryce Campbell, who also owns the Lutsen Lodge. The historic lodge of the state’s oldest operating resort was destroyed by fire on Feb. 6. The cause of the blaze remains under investigation, and multiple lawsuits have since surfaced about that property.

The sellers of the Superior Shores Resort — Blue Waters Development Corp., Jensen-Re Development and Jensen-Re Partnership — filed a receivership case against Shores Resort Co. with the Lake County District Court on July 25.

An emergency motion was granted to appoint Bruce Kinseth of Kinseth Hospitality Cos. to temporarily take over the operations of Superior Shores Resort.

The sellers claimed in the court document that Campbell’s company has defaulted on its contracts for deeds on several occasions, triggering the appointment of a receiver.

On Oct. 29, 2019, Shores Resort Co. bought Superior Shores through three contracts for deed, totaling $14.5 million — a record-setting price for resorts in the state at the time, according to the Minneapolis/St. Paul Business Journal.

The purchase included a Lake Superior lodge building with 103 rentable units, a restaurant, an indoor and an outdoor pool; the Burlington Bay property with 75 units; and a property with lakehome condo units.

Under each contract for deed, Shores Resort Co. was to pay monthly payments of $71,100. Balloon payments — a large, one-time payment at the end of a loan — for each were due on June 1.

The contracts for deed required Shores Resort Co. to be responsible for all real estate taxes, assessments, property insurance, liability insurance and maintenance of assets.

According to the court document, the sellers claim Shores Resort Co. defaulted on 10 occasions, including failure to:

•Make balloon payments totaling $12.9 million.

•Pay all real estate taxes assessed against the property.

•Deliver certificates of insurance.

•Pay assessments imposed by Superior Shores II Condominium Association and Burlington Bay at Superior Shores Association.

•Maintain and keep the properties in good repair, working order and condition.

•Provide timely unaudited financial statements.

In the event of a default on behalf of Shores Resort Co., the contract for deeds stated the sellers may seek the appointment of a receiver. The sellers are undergoing cancellation proceedings to terminate the contracts for deeds.

The court document claims payments to various local vendors have not been made and that Shores Resort Co. has also been given notice of disconnection of city utilities.

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