Napa developer embezzled $1M from Margaritaville project, lawsuit says

A proposed Margaritaville resort in Napa County has hit a snag amid a lawsuit alleging that its lead developer embezzled thousands of dollars from project funds for airline tickets and dining at Bay Area restaurants.

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The Napa County Board of Supervisors entered exclusive negotiations with WhiTim Napa LLC, a company controlled by developer Tim Wilkens, in 2023 to build a Camp Margaritaville Resort on Lake Berryessa. The proposed $95 million development includes cabins, RV parking, marina slips and restaurants. 

The county has yet to approve the massive resort, and its future is in question after the Press Democrat reported last week that Wilkens has been sued at least two dozen times, including for fraud and breach of contract, and is now facing a lawsuit from one of his former business partners in the Margaritaville resort. 

Lincoln Hine, who was a co-manager on the project until 2024, accused Wilkens of unjustly enriching himself from the project, including treating himself at a steakhouse, buying airplane tickets and improperly moving over a $1 million into his personal accounts, according to a lawsuit first filed in 2024. A trial is expected in November. 

In an interview with SFGATE, Wilkens called the lawsuit’s allegations “completely false” and said their agreement was terminated when Hine was unable to pay the agreed-upon total of $2.5 million — of which he had paid only $500,000, according to Wilkens. Wilkens also denied the allegations that he used WhiTim funds for personal use. 

“There was nothing unusual or improper,” Wilkens said of the WhiTim bank account. “The full accounting was done by an outside firm, and copies were provided to [Hine].” 

Napa County spokesperson Linda Weinreich told SFGATE by email that Napa County was not aware of the legal allegations brought forth against Wilkens. Weinreich said the board of supervisors has not walked away from the resort proposal and remains under an exclusive negotiating agreement with WhiTim. Weinreich added that WhiTim’s deadline to complete plans and all studies of the site, in addition to having financing in place, is July 2027 before a development contract is granted. 

When Margaritaville Enterprises LLC, founded by the late singer Jimmy Buffett, agreed to franchise the brand name with WhiTim, Wilkens connected with Atlas Hospitality LLC in 2024, which agreed to invest in the resort, according to the lawsuit. The lawsuit said that both parties agreed to invest $2.5 million in total capital contributions toward WhiTim, but the relationship soon soured. Hine alleged in his lawsuit that Wilkens viewed the multimillion dollar Margaritaville project as an opportunity “for him to take a leap into the ‘big leagues’” while establishing himself as a “‘player’ in Napa County’s real estate community.” But Wilkens never made the agreed-upon contributions and became defensive when asked about the money, the lawsuit alleged. Hines was eventually removed as co-manager on Aug. 19, 2024. 

Despite the ongoing lawsuit, Wilkens confirmed that Camp Margaritaville is still on track. He shared that he’s working with three lobbyists in Washington, D.C., who are helping him obtain a 99-year lease from the federal government, which owns the land around Lake Berryessa. Wilkens added that his lender, JLL, required a 99-year lease for financial backing due to the increased cost of the proposed resort. The project site will also include affordable housing units for forthcoming Camp Margaritaville staff, Wilkens added. 

Attorneys for Hine declined to comment for this story. SFGATE also reached out to Margaritaville for comment but did not hear back before the time of publication.