By PAULENE POPARAD

A lawsuit, a contentious divorce and their financial ramifications threaten the late May opening of Splash Down Dunes water park in Porter.

Co-owner Paul Childress estimated the park’s chances of opening as 50/50. If the U.S. 20 amusement venue remains shuttered for the season, he said, approximately 55 lifeguards and at least 40 additional maintenance workers, food staff and cashiers would be out of a summer job.

“If (matters aren’t resolved) by April 1, it’s game over,” he predicted. In a normal season lifeguard training already would have begun, Childress said.

Attorneys huddled Tuesday at the Porter Superior Court of Judge William Alexa for the second time in two weeks regarding a lawsuit brought by Fred Pearson, who maintains he would lend about $300,000 to get the park ready for the 2007 season but only if a receiver is appointed to undertake Splash Down Dunes management.

If the park isn’t opened, its value will be dramatically reduced, according to Pearson. He estimated the property’s value at more than $6 million provided the facility is put in operation this year.

Childress said he and Pearson are 50/50 owners in Water Parks of America LLC, which operates Splash Down Dunes, and Porter Recreation LLC, which owns the property, facilities and attractions. Pearson originally purchased the former Enchanted Forest site west of State Road 49 for $440,000 at a sheriff’s sale.

According to the lawsuit, 11 months ago Childress agreed to purchase Pearson’s interest for $3 million. However, Pearson said Childress has requested that he either cancel the sale or give him more time because of Childress’ financial situation involving his pending divorce from Debbie Childress.

“One hundred percent of this is caused by the divorce,” said Paul Childress.

Last year Porter Recreation LLC won approval from the town to develop both a 500-vehicle paved parking lot for the water park on the west side of Waverly Road as well as the adjacent Dune Grass Hollow townhome development. Childress said the townhomes are on hold due to Splash Down Dunes’ current problems.

Will there be a resolution allowing the park to open for its 14th season? “Who knows? Flip a coin at this point,” said Childress.

He forsees two options: that he structures a reasonable buyout of Pearson’s interest and operates the park this year, or that he seeks dissolution of the jointly owned corporations resulting in some form of sale of their assets.

Childress said he doesn’t favor appointment of a receiver because that would add to the park’s overhead and make the business less profitable. Splash Down Dunes usually draws about 100,000 visitors a year with 2005 its peak attendance year.

In the past, neighbors have complained to town officials about loud music coming from the park and drainage problems they say are related to the park.

If the business doesn’t open, unresolved is what to do about hundreds of 2007 season passes to Splash Down Dunes that have been sold. “I have no clue. I really don’t know. None of that’s been discussed,” said Childress.

Pearson’s attorney, Gordon Etzler, was unavailable for comment.

Posted 3/7/2007