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SNOWMASS VILLAGE — From the front door of the Snowmass Conoco, Jeff Jandegian's view is not of mountain greenery but two unfinished structures in Base Village, the Arrival Center and the Little Nell Residences at Snowmass, also known as buildings 7 and 8.
Jandegian, co-owner of the gas station, is accustomed to construction in his front yard. He is also among those in the village concerned that the slowdown of the Related WestPac projects could become a permanent stoppage if something isn't done soon.
Yet rumors that are widely circulating throughout the village are giving business owners hope that a white knight, in the form of the Aspen Skiing Co., may step in and buy back these properties as well as the yet-to-be-started building 6, a condominium structure.
“I do think [Skico buying those buildings] would be a good thing,” said Jandegian, who had heard the rumor repeatedly of late at the gas station.
Related WestPac, which closed on the commercial space in Base Village from its original developers, Skico and Intrawest, in March 2007 for approximately $169 million, declined comment on the rumors.
The company has endured financial difficulties since last fall when a consortium of German banks froze its credit. That led to the aforementioned work stoppages, foreclosure proceedings on seven Snowmass Village properties and the delay of the Viceroy's second phase. The main Viceroy hotel building, however, is expected to be open by early winter.
“We have been in ongoing discussions with Related and the town of Snowmass Village in our desire to keep this development moving forward,” Skico spokesman Jeff Hanle said in a prepared statement. “We cannot say anything else about the status of these discussions at this time.”
The credit crunch prompted Related WestPac to suspend work on the Little Nell-Snowmass in April, despite the fact that more than half of the units were under contract. Related WestPac has also halted movement on the Arrival Center, which was supposed to have been operable by the forthcoming ski season, a deadline that now looks unlikely.
“It's fair to say [Related WestPac] is looking at all options at their disposal, but as far as I know, there haven't been any formal offers [from Skico],” Mayor Bill Boineau said.
The town has sent Related WestPac a letter that gives the firm 60 days to “cure” the situation with the Arrival Center, which the developer had initially pledged a $2 million insurance policy toward making it workable by November.
“I don't believe it will be done in time for ski season,” Boineau said, adding that elevators and escalators that would provide the building's internal circulation “can't just be bought off of the shelf.”
While sympathetic to the developer's situation brought on by the tight commercial lending market, Boineau said, “At the town we have to continue to get as much of the development we have planned done.”
In the back of the town's mind is also how public improvements that are tied to the property — including a roundabout for Brush Creek and Wood Road — will get funded if there's an ownership change in the base area properties. Boineau said the improvements “would fall to the successor,” but a dual ownership could complicate matters on who is responsible for what amenity.
The town is continuing to look at its options and is also watching closely to see if and when these properties change hands.
“Somebody needs to be involved,” Councilman John Wilkinson said. “There's ‘beachfront property,' and it's sitting there going to fallow.”
For more on this continuing story, pick up a copy of Wednesday's Snowmass Sun or go to snowmasssun.com.
Jandegian, co-owner of the gas station, is accustomed to construction in his front yard. He is also among those in the village concerned that the slowdown of the Related WestPac projects could become a permanent stoppage if something isn't done soon.
Yet rumors that are widely circulating throughout the village are giving business owners hope that a white knight, in the form of the Aspen Skiing Co., may step in and buy back these properties as well as the yet-to-be-started building 6, a condominium structure.
“I do think [Skico buying those buildings] would be a good thing,” said Jandegian, who had heard the rumor repeatedly of late at the gas station.
Related WestPac, which closed on the commercial space in Base Village from its original developers, Skico and Intrawest, in March 2007 for approximately $169 million, declined comment on the rumors.
The company has endured financial difficulties since last fall when a consortium of German banks froze its credit. That led to the aforementioned work stoppages, foreclosure proceedings on seven Snowmass Village properties and the delay of the Viceroy's second phase. The main Viceroy hotel building, however, is expected to be open by early winter.
“We have been in ongoing discussions with Related and the town of Snowmass Village in our desire to keep this development moving forward,” Skico spokesman Jeff Hanle said in a prepared statement. “We cannot say anything else about the status of these discussions at this time.”
The credit crunch prompted Related WestPac to suspend work on the Little Nell-Snowmass in April, despite the fact that more than half of the units were under contract. Related WestPac has also halted movement on the Arrival Center, which was supposed to have been operable by the forthcoming ski season, a deadline that now looks unlikely.
“It's fair to say [Related WestPac] is looking at all options at their disposal, but as far as I know, there haven't been any formal offers [from Skico],” Mayor Bill Boineau said.
The town has sent Related WestPac a letter that gives the firm 60 days to “cure” the situation with the Arrival Center, which the developer had initially pledged a $2 million insurance policy toward making it workable by November.
“I don't believe it will be done in time for ski season,” Boineau said, adding that elevators and escalators that would provide the building's internal circulation “can't just be bought off of the shelf.”
While sympathetic to the developer's situation brought on by the tight commercial lending market, Boineau said, “At the town we have to continue to get as much of the development we have planned done.”
In the back of the town's mind is also how public improvements that are tied to the property — including a roundabout for Brush Creek and Wood Road — will get funded if there's an ownership change in the base area properties. Boineau said the improvements “would fall to the successor,” but a dual ownership could complicate matters on who is responsible for what amenity.
The town is continuing to look at its options and is also watching closely to see if and when these properties change hands.
“Somebody needs to be involved,” Councilman John Wilkinson said. “There's ‘beachfront property,' and it's sitting there going to fallow.”
For more on this continuing story, pick up a copy of Wednesday's Snowmass Sun or go to snowmasssun.com.
